Morgan Stanley (MS) Reports, Shares Decline – Will They Bounce or Breakout Like BAC, C, JPM, GS?
This week has been good for traders, especially considering BAC, C, JPM and GS bullish price action. Citigroup is working on day 4, while JPM, BAC, and GS are looking for a follow-through today. If banks can respond, the S&P 500 should test overhead resistance again today.
MS misses, reporting Q4 (Dec) earnings of $0.80 per share, $0.09 worse than the S&P Capital IQ Consensus of $0.89; revenues fell 10.0% year/year to $8.55 bln vs the $9.32 bln S&P Capital IQ Consensus. Book value and tangible book value per common share were $42.20 and $36.99, respectively, based on ~1.7 billion shares outstanding. Look for money flow here. (see below)
Morgan Stanley (MS) – Misses Earnings and Revenues
Pivots above and below Wednesday closing prices are laid out for reference. Morgan Stanley (MS) is settling at 42.75 (+/-) in early trading, with the 50d just below. We’ll anticipate a bounce, similar to actin seen in C, JPM, and GS this week.
We’ll act only if price action shows money flowing into the stock at these levels. 41.00 (+/-) is an additional zone just below the 50d, should 42.38/42.54 (+/-) pivot(s) / AOI (s) give way. Don’t assume a bounce will materialize; wait for confirmation.
We’ll also watch the banks that have reported already for additional day trading candidates.
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