Big Cap Tech and MarketSmith Workflow
We should examine earnings results from big cap technology, with MSFT and INTC reporting blowout numbers last night. Our workflow dictates that we measure earnings and sales going forward and how we might benefit with either of these companies or perhaps a competitor.
As a professional trader or avid investor, your workflow creates consistency. MarketSmith is designed to integrate into your daily routine.
Stocks Higher on Volume – Workflow
In Part I of this series, we discussed a few of the MarketSmith features we find extremely useful. It should be no surprise that unusual volume precedes price, the topic of the Wednesday blog post.
Logical steps and a process, coupled with strategy will make a big difference in your longevity.
With big cap technology stocks reporting blow out earnings, we begin the process of building a watchlist. INTC and MSFT reported excellent earnings, so we want to check a few filters to see how they would stack up against criteria other successful investors use when they consider buying shares.
Warren Buffett – MarketSmith and Intel
I cannot tell you how many times I have checked various sources to see what’s in Berkshire Hathaway’s buy list over the 30 years that I have been investing.
If you’ve spent any time investing, I imagine you might have done the same or maybe you’re just curious. What does Warren look for?
The creative geniuses over at Investors Business Daily make the process intuitive, by enabling features with one click.
Warren’s criteria are to the right of the chart. INTC gets a grade of 87%.
Would you buy INTC knowing Warren gives it a passing grade?
Wait, there’s more to this story.
Workflow – Other Factors
Considering the above we would consider a position in INTC.
We would also want to examine its relative strength to the market, to determine if money is flowing into the stock. With a relative strength (RS) rating of 96% and rising, it’s another check mark on the bullish side of the ledger. Let’s find more.
We would also want sales and earnings to appreciate. The panel on the left side of the chart shows you analysts metrics for 2018 and 2019. Note the green up arrow and projections rising. Check.
Ok so do we buy now?
Maybe, maybe not. We will make that decision live during our broadcast.
Happy Trading,
Vinny
https://theclosingprint.com/CV_Blog/winning-stocks-week-ibd50-reporting-earnings/
Disclaimer: Do your Own Research
Our content is intended to be used and must be used for informational purposes only. It is very important to do your own analysis before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on our Website and wish to rely upon, whether for the purpose of making an investment decision or otherwise.
Investment Warnings
We would like to draw your attention to the following important investment warnings. The value of shares and investments and the income derived from them can go down as well as up; Investors may not get back the amount they invested – losing one’s shirt is a real risk; past performance is not a guide to future performance.