#$col

EARNING UPDATE $COL Rockwell Collins, Inc. for quarter ending q_Jun18 – Revenue fell but Margins expanded

[s2If !current_user_can(access_s2member_level0)]Please login to read the earning update on COL [lwa][/s2If][s2If current_user_can(access_s2member_level0)]Rockwell Collins, Inc. reported earnings (EPS) of 1.66 per share for the quarter ending q_Jun18. This is vis-vis 1.43 per share for the previous quarter ending q_Mar18, a growth of 16.1 %. Compared to last year same quarter (q_Jun17), earnings…

5 Trade ideas excerpted from the detailed analysis and plan for premium subscribers:

Alcoa, Ticker: $AA

Alcoa, $AA, gapped down after reporting earnings two weeks ago. It was already in a downtrend, moving counter-trend at the time. The move found support and then started back higher last week. The RSI is moving back up and the MACD is flat after a pullback, turning to the upside. Look for a continuation over resistance to participate higher.....

Rockwell Collins, Ticker: $COL

Rockwell Collins, $COL, dropped back to retest its 200 day SMA in May. That energized the stock and it quickly moved back up, retesting the high in June. It could not push through though and reversed again, back to the 200 day SMA, but at a higher low. It is rising again and near that top. The RSI is rising in the bullish zone with the MACD rising and positive. Look for a new high to participate to the upside.....

Fortune Brands Home & Security, Ticker: $FBHS

Fortune Brands Home & Security, $FBHS, gapped down in February and then rode a trend lower. It morphed into a bottoming consolidation in May and Friday looks to be trying to break to the upside. The RSI is rising and bullish with the MACD turning up and positive. Look for continuation to participate higher.....

Nasdaq, Ticker: $NDAQ

Nasdaq, $NDAQ, started a move higher in February. It paused in March and then resumed to a top in June. It pulled back to the 50 day SMA into July and then reversed. Now it is back at that top to start the week. The RSI is bullish and rising with the MACD turning up. Look for a push over resistance to participate higher.....

Northrop Grumman, Ticker: $NOC

Northrop Grumman, $NOC, was trending lower from a top in April when a bounce fell below the 200 day SMA last week. It continued lower through Thursday before finding support and bouncing. The RSI is rising off of an oversold signal and the MACD is slowing its descent. Look for continuation to participate higher.....

After reviewing over 1,000 charts, I have found some good setups for the week. This week's list contains the first five below to get you started early. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which as the last full week of July ended saw the equity markets looking tired on the shorter timeframe but remained solid on the longer one.

Elsewhere look for Gold to consolidate in the downtrend while Crude Oil shows signs of reversing higher at support. The US Dollar Index continues to mark time moving sideways while US Treasuries pullback in consolidation. The Shanghai Composite may be stalling in its bounce in the downtrend while Emerging Markets are building strength for a possible reversal higher.

5 Trade ideas excerpted from the detailed analysis and plan for premium subscribers

Bristol-Myers Squibb, Ticker: $BMY

Bristol-Myers Squibb, $BMY, has been moving in a broad channel between 58 and 70 for 18 months. This after a series of steps higher. Not tight flat steps, but broad messy ones, like the current environment. Most recently is has pressed up to and through an area of resistance for all of 2016. The RSI is trending higher but leveling while the MACD is rising, with the Bollinger Bands® opening higher. These support a continued move up. Look for a move higher Monday to participate.

Cummins, Ticker: $CMI

Cummins, $CMI, is revving up for a move higher after a long plunge from May through to January. The bounce from the depths consolidated through February and started higher again at the end of last week. The RSI is in the bullish zone and rising with the MACD turning back higher as well. Look for a continued hold over 100 to participate in the upside.

Rockwell Collins, Ticker: $COL

Rockwell Collins, $COL, had a violent drop to start 2016, falling nearly 20% in just 6 weeks. But then it found support and rocketed higher even faster. It spent the last two weeks consolidating that 'V' recovery but Friday saw a peek over the top of consolidation. The RSI is in the bullish zone, as the MACD rises, both supporting more upside. Look for confirmation of a break of the consolidation to participate.

eBay, Ticker: $EBAY

eBay, $EBAY, started to fall in December. It has given two different scenarios where it may have reversed along the way. The first time failed, and it is now trying a second time. The RSI is cruising along the mid line after rising from an oversold condition while the MACD is rising. Look for a move higher to participate in the upside.

State Street, Ticker: $STT

State Street, $STT, fell from a double top over 80 in July to a bottom at the end of January just over 50, losing 38% of its market cap. Since mid January it has gone through a bottoming process and seems to have broken out above that range Friday. But with a Shooting Star candle, a possible reversal. In fact this is an indecision candle so it can play out either direction. With the RSI rising and ion the edge of the bullish zone and the MACD rising, look for a break to the upside to participate.

After reviewing over 1,000 charts, I have found some good setups above for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which heading into the next week sees the equity markets on the verge of a major reversal higher.

Elsewhere look for Gold to continue higher in its uptrend along with Crude Oil. The US Dollar Index looks weak short term in consolidation while US Treasuries are biased lower. The Shanghai Composite and Emerging Markets are biased to the upside in the short run. Volatility looks to continue toward the normal range with a bias lower, adding a breeze to the backs of the equity markets.

The equity index ETF's SPY, IWM and QQQ, look better to the upside, with the SPY and IWM showing strength in break a range higher, while the QQQ lags behind but also looks better to the upside. Use this information as you prepare for the coming week and trad'em well.

5 Trade ideas excerpted from the detailed analysis and plan for premium subscribers

Agrium, Ticker: $AGU

Agrium, $AGU, consolidated over support just over 100 after moving there in January. It had one failed breakdown attempt in July which resulted in a lower high. The RSI is falling and now into the bearish zone while the MACD is crossing down. Now price is falling again with a strong down day Friday to the point of that failed July breakdown. A move below that level can be shorted for more downside.

Blackstone Group, Ticker: $BX

Blackstone Group, $BX, peaked in May near 43 and has been pulling back since. Friday it touched near 33, a 23% pullback, but printed a hammer candlestick, a potential reversal. This needs to be confirmed by a higher close Monday. The RSI has hit oversold territory with the MACD falling to its lowest level since 2008. This might trigger a bounce or a big reversal.

Rockwell Collins, Ticker: $COL

Rockwell Collins, $COL, moved from a low at 72 in October 2014 to 99 in May. Since then it has pulled back to 83 and had a small bounce. This is near a 61.8% retracement of the leg higher. The RSI is falling and bearish while the MACD is about to cross down. Looks like the Dead Cat Bounce may turn into something bigger to the downside.

Darden Restaurants, Ticker: $DRI

Darden Restaurants, $DRI, has had a long run higher from last fall. Now it is testing support at 70 though and moving lower after a lower higher last week. The RSI is testing the edges of the bullish zone while the MACD is falling fast. A break of support could lead to a retest of the May low.

Edwards Lifesciences, Ticker: $EW

Edwards Lifesciences, $EW, broke below the neckline of a Head and Shoulders top and support at 141.70 on Friday. It also dropped under rising trend support. A double whammy. The RSI is falling and now in the bearish zone whit the MACD falling as well, both supporting more downside. Look for continuation lower and with a natural stop above.

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After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which, heading into the last full week of August sees the Equity markets looking horrible, ready for more downside.

Elsewhere look for Gold to continue in its uptrend while Crude Oil continues lower. The US Dollar Index is consolidating sideways with a downward bias while US Treasuries are biased higher. The Shanghai Composite and Emerging Markets are biased to the downside with risk of the Chinese market running sideways in consolidation.

Volatility looks to remain elevated above the prior stable period but usually does not hold these levels long. This will keep the bias lower for the equity index ETF's SPY, IWM and QQQ, in the short run. Their charts suggest the downside move is not over but all are very oversold and could see short term bounces early in the week. Use this information as you prepare for the coming week and trad'em well.

5 Trade ideas excerpted from the detailed analysis and plan for premium subscribers.

American Electric Power, Ticker: $AEP

American Electric Power, $AEP, pulled back from a peak at the end of January when it was minus 10 degrees here in Cleveland. It consolidated in the Spring before a dip lower to end June. Since that bottom it has been rising and is now above the 200 day SMA again and nearing prior resistance. Over the short term the RSI has moved into the bullish zone and is rising while the MACD is also pointing higher.

BioMarin Pharmaceuticals, Ticker: $BMRN

BioMarin Pharmaceuticals, $BMRN, broke above an ascending triangle in June. It ran to a high near 150, short of the 160 target, and has reversed lower. Friday it retested the break out level and touched the 100 day SMA, finishing with a Hammer candle. This candle is a sign of intraday strength and can lead to a reversal of trend when confirmed higher the next day. There is still an open gap below though. The RSI and MACD are both in the bearish zone and pointing lower.

Rockwell Collins, Ticker: $COL

Rockwell Collins, $COL, had a long run higher to a peak just under 100 in May. Since then it has pulled back, slowly at first but with a vengeance on high volume in mid July. It has consolidated that move the last two weeks and is pressing against resistance with a Friday finish at the high of the day. The RSI is working off the oversold condition and the MACD is about to cross up. Watch for a break out higher or fall out of consolidation.

Progressive, Ticker: $PGR

Progressive, $PGR, rolled higher in a crescendo peaking in early July. After a slight pullback it has been consolidating over support with the Bollinger Bands® squeezing in. This is often a precursor to a big move. This consolidation also reconnected the price with the 20 day SMA. The RSI is bullish and the MACD falling.

Tractor Supply, Ticker: $TSCO

Tractor Supply, $TSCO, has been moving higher along a rising trend line since February. The trend line has been running along the 100 day SMA since May and is parallel to the 20 and 50 day SMA's just above. Recently it pulled back from the top of the Bollinger Bands and found that 20 day SMA. Friday saw some strength as it bounced near that trend line and off of the lower Bollinger Band as they are squeezing.

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After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which, heading into next week sees the news and earnings dry up and Equities could use some quiet time to steady.

Elsewhere look for a possible bounce out of Gold in its downtrend while Crude Oil continues lower. The US Dollar Index looks to continue to consolidate with an upward bias while US Treasuries continue higher. The Shanghai Composite remains in broad consolidation in the pullback while Emerging Markets look like they may break a 4 year range to the downside.

Volatility looks to remain subdued keeping the bias higher for the equity index ETF's SPY, IWM and QQQ, despite the moves lower. Their charts show further short term weakness possible but the Hammer candles could confirm a short term bottom. On the longer timeframe The IWM remains weakest with the SPY consolidating and the QQQ looking strong. Use this information as you prepare for the coming week and trad'em well.

5 Trade ideas excerpted from the detailed analysis and plan for premium subscribers.

AmerisourceBergen, Ticker: $ABC

AmerisourceBergen, $ABC, has been a monster of a stock since moving higher in late October. The last two weeks it has been consolidating again, but with an expanding range to the downside. This is as the RSI has worked off an overbought condition and the MACD is crossing down. It is noticeably extended from the SMA's. Watch for a range break to the downside.

Anthem, Ticker: $ANTM

Anthem, $ANTM, has been trending higher for over a year. In stocks like this a consolidation period, like what is happening now, is a possible opportunity to get a good entry. The RSI remains strong and bullish while the MACD has crossed down. It too is extended from the longer SMA's, but the 20 day SMA close by has acted as support. Watch this for a break either way.

Rockwell Collins, Ticker: $COL

Rockwell Collins, $COL, rose off of the double bottom at 71.50 and consolidated for a while around 85 before moving up again. Now hitting resistance after a slight pullback it has support for an upside breakout from a rising and bullish RSI and a MACD about to cross up.

Generac, Ticker: $GNRC

Generac, $GNRC, moved up out of a rounded bottom to end 2014, but pulled back early in 2015. Now having retraced the pullback and advanced it is consolidating in a tight range. As it churns the RSI is working lower, but remains bullish while the MACD has crossed down. This is normal for a consolidation and you could see this break the range in either direction. Be prepared.

Interactive Brokers, Ticker: $IBKR

Interactive Brokers, $IBKR, has been in a long trend higher. Recently it is consolidating in a narrow range with the Bollinger Bands® squeezing. This is often a precursor to a move. The RSI is falling but in the bullish zone while the MACD is falling. This could break the range either way and the strong rising SMA's suggest that any pullback be watched as a possible buying opportunity.

 If you like what you see sign up here for how to trade these, more ideas and deeper analysis.

After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which, Heading into next week sees the equity markets looking vulnerable.

Elsewhere look for Gold to continue lower while Crude Oil churns in a consolidation zone. The US Dollar Index looks to continue higher while US Treasuries continue lower. The Shanghai Composite looks to continue its broad consolidation with a short term downside bias and Emerging Markets are biased to the downside.

Volatility looks to remain low keeping the bias higher for the equity index ETF's SPY, IWM and QQQ. Their charts look better to the downside though with the SPY the weakest and the IWM and QQQ a bit stronger on the longer timeframe. Use this information as you prepare for the coming week and trad'em well.

This morning we saw a better-than-expected earnings report from Exxon Mobil, the second largest S&P 500 company by market cap. The oil behemoth reported Q3 EPS of $1.89, $0.04 higher than the Estimize consensus and $0.13 above the Wall Street consensus, growing 6% YoY. Revenues came in equally as strong, reporting an actual of $107.5B vs Estimize expectations for $104.1B and Street expectations of $100.9B, however this is still 4% lower than the year-ago result. Results were good enough to send the stock higher, up 1.5% so far for the day.The positive surprise was able to boost EPS growth for the Energy sector to 13.7%, but revs still remain in the red at -0.4% due to lower year-over-year oil prices.

Rockwell Collins also reported results before the bell, the last Q3 release from the S&P 500 Aerospace & Defense companies. Earnings came in at $1.30 per share, beating the Estimize consensus by $0.03 and the Wall Street consensus by $0.04. Revenues also came in stronger than expected at $1.4B, versus the Estimize and Street expectation of $1.34B. All 11 companies in the industry grew YoY with the exception of L-3 Communications. Overall the industry saw profits grow 10.3% during the quarter, which is not much of a surprise after seeing yesterday’s GDP report. The U.S. economy grew at a 3.5% pace in the third quarter, higher than our expectation of 2.9% growth, due in large part to stronger defense spending by the federal government.  

Last night we also got reports from Starbucks, Groupon and LinkedIn. Starbucks was able to beat on the bottom-line, but top-line results fell about $63M below Estimize’s expectations. In addition, EPS guidance for fiscal year 2015 were a little light, and the stock tumbled as a result, still down over 2% today. Groupon was able to put up better results, beating on both the top and bottom-line, with those metrics seeing YoY growth of 27% and 50%, respectively.  Even though the company issued forward revenue guidance that was slightly weaker than expectations, investors rewarded the company for great results and the stock is up 20% today. The mixed results for these two consumer discretionary companies also comes on a day when consumer spending for the month of September reports it’s biggest drop in 8 months, yet consumer sentiment improves to a level of 86.9, the highest since July 2007. We’ll get a better read on the health of the consumer as more retailers report results throughout November.

Lastly, results from LinkedIn after yesterday’s closing bell gave us more clues on the U.S. employment situation ahead of next week’s nonfarm payrolls and unemployment report. The company reported Q3 EPS of $0.52, beating the Estimize consensus by $0.02, the Wall Street consensus by $0.05, and even their own guidance by $0.08. Revenues also came in much stronger at $568.3M, beating Estimize, the Street, and guidance. The most promising results came from Talent Solutions products which help recruiters find the right candidates. That segment saw revenues increase by 45% YoY and now makes up 61% of all revenues which certainly bodes well for US jobs.

How Are We Doing?

Expectations for S&P 500 earnings growth for the third quarter stand at 11.7%. Revenues are anticipated to come in with 4.5% growth. All 10 sectors are anticipated to post positive YoY growth on both the earnings and revenue front.

  Leaders

Earnings:

Health Care (14.2%). Notable industry: Biotechnology (45.1%)

Materials (14.0%). Notable industry: Metals & Mining (36.5%).

Energy (13.7%). Notable industry: Equipment & Services (13.9%)

Revenues:

Health Care (11.9%). Notable industry: Biotech (38.9%).

Information Technology (7.3%). Notable industry: Software (15.7%)

  Laggards

Earnings:

Utilities (4.2%). Notable industry: Electric Utilities (3.1%).

Telecommunication Services (0.9%): All five companies are within Diversified Telecom Services. Only Verizon posted y­o­y growth.

Revenues:

Energy (-0.4%). Notable industry: Oil, Gas and Consumable Fuels (­-1.2%).

Materials (2.6%). Notable industry: Paper & Forest Products (­-14.4%).

  Beat/Miss/Match

Earnings: 345 companies have reported thus far, 56% have beaten the Estimize consensus, 33% have missed and 11% have met. This is compared to Wall Street estimates, of which 73% of companies have beat on the bottom­-line, 20% have missed and 7% have met.

Revenue: 52% have beaten the Estimize consensus, 48% have missed, and 0% have met. For revenues, 58% of companies have beat the Wall Street estimate, while 42% have missed.