Tuesday, March 21st 2006
Morning Update- Stocks that are reporting this week
Adobe Systems, Inc. (ADBE)
One of the things that I enjoy doing is looking at the charts of stocks that are reporting each day. Adobe is a great leading indicator. It was adobe that had forecasted the slowdown at Nasdaq 5000. It was a front runner or leading indicator to the market's downturn in 2000. Adobe has recently bought Macromedia. Fundamentals aside , I would not short ADBE nor would I go long before earnings. The daily chart of ADBE is short term bearish. It may back test the breakout line at the $33 level but overlapping is not until the $20 area. The Williams %, PPO and stochastics are still in a bearish trend reversal. Longer term I believe it is bullish. It is not a portfolio stock.
Jabil Circuit, Inc. (JBL)
The daily chart of JBL is currently bearish. It appears that it is trying to form a diamond bottom in a wave 3 to 4 correction. The chart is mixed, but it does look to go up as long as the last low of $37.00 holds. I am not long this stock.
KB Home (KBH)
The daily chart shows that the recent low of $61.57 held the long term uptrend line. In addition KBH has just completed an ABC correction. Possibly an irregular flat. The RSI, Aroon and Williams % are still bearish, but the PPO is showing a bullish divergence as are the stochastics. KBH reports after hours today. I am interested in what happens with this company because I believe that homebuilders are putting in failed topping patterns, which by the way, is when wave C is higher than wave B (called an Irregular flat).
Morgan Stanley (MS)
The Morgan Stanley daily chart looks very bullish. It has no identifiable pattern. It is still in a bearish trend reversal. Nevertheless MS is performing well in it's current uptrend channel.
The bottom line in regard to the aforementioned stocks, is that they are front runners and we need to wait and see how the market reacts to their earnings tomorrow.