Big-cap technology stocks have reversed and exhibit potential for further gains. Intel, in particular, surged back above it’s 20 SMA gaining more than 6%. MSFT, CSCO, AAPL, IBM and many of the semiconductor stocks pushed higher. In addition, the “Most Active” stocks on Monday were from the technology group.
Intel (INTC) and the Technology Sector
We entered a partial position in INTC yesterday during the LIVE session. We will look for conditions that warrant adding to our position in the next few days.
Bollinger bands are tight and ready to expand. RSI is rising as volume increases to above average levels. As price action lifts further it will enter into an area lacking supply. We are looking for MACD to turn and crossover as a function of price.
Intel (INTC) reported 4th Quarter December 2017 earnings of $1.08 per share on revenue of $17.1 billion. The consensus earnings estimate was $0.86 per share on revenue of $16.3 billion. Revenue grew 4.1% on a year-over-year basis.
INTC Reports 1st Quarter Earnings on 04/26/2018
The company said it expects first-quarter earnings of $0.65 to $0.75 per share on revenue of $14.50 billion to $15.50 billion and 2018 earnings of $3.37 to $3.73 per share on revenue of $64.0 billion to $66.0 billion. The current consensus earnings estimate is $0.73 per share on revenue of $15.02 billion for the quarter ending March 31, 2018 and $3.30 per share on revenue of $63.62 billion for the year ending December 31, 2018.
We will exit our Intel position prior to earnings. If we take any covered call positions we will look to weekly options that expire before earnings.
The NASDAQ 100 is switching to a bullish trend on the 60-minute timeframe in the short-term. We will focus on long positions in the technology stocks listed above as long as price remains above the 20 EMA on this timeframe.
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