With the strength in semiconductor earnings on Wednesday, owners
of big tech stocks like
) no doubt will be hoping that the broader technology sector can
put in similar performances.
Of the three, shares of Intel Corporation are the least
overbought heading into the company's scheduled earnings
announcement on Thursday. The stock rallied to new, yearly highs
just last week and is experiencing typical profit-taking in the
wake of rallying to those levels. INTC pulled back for three days
in a row heading into Wednesday's session, and finished trading
higher by more than 1%.
By comparison, both Google and Microsoft are far closer to
levels where traders historically have been more inclined to sell
shares than buy shares, at least in the short-term. Shares of
Google pulled back from new, 52-week highs in the first week of
January, selling off sharply over the following three days.
Immediately afterward, GOOG slipped into a tight, week-long
. And recent buying has helped push the stock not just to the upper
end of this trading range but to the edge of overbought territory,
as well. Interestingly, while remaining rangebound, GOOG has traded
higher for five out of the past six sessions, helping explain the
stock's overbought status in the face of relatively little overall
Microsoft is in many ways the most interesting company among
Nasdaq's tech cohort reporting earnings on Thursday. The stock has
roared higher over the past several days, gaining well over 8% in
the most recent two and a half weeks, and is back in overbought
territory above the 200-day moving average.
Light selling in the stock has helped the ordinarily,
low-volatility MSFT earn an upgrade to a neutral 5 out of 10. Any
strength in the wake of the stock's earnings report on Thursday,
however, could easily result in a reversal in that rating back down
in the "consider avoiding" direction of stocks rated 3 or less.
Looking for even bigger Nasdaq edges? Shares of
) are among the highest rated in our database heading into trading
on Thursday. The stock has finished lower for five days in a row,
the last two in technically
territory. And while
) has slipped below its 200-day moving average in recent days, the
fact that the stock has finished lower for three days in a row, and
is trading in technically oversold territory means that traders
should not be surprised to see higher prices in the stock sooner
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is Editor in Chief of TradingMarkets.com.