I have been profiling Apple as a value play since the stock closed below my annual pivot at $510.64. The stock has been in my ValuTrader Model Portfolio with buy-and-trade strategies averaged in down to a buy at $416.29 on April 17. As soon as the stock touched $429.50 in after hours trading I send an alert to subscribers to reduce the position at $429.50. By 8 p.m. the stock was in the red at $403.95.
Apple still has a buy rating and my weekly pivot at $403.52 and my annual pivot at $421.05 became magnets in after hours trading. The 200-week SMA is $374.02 with monthly, semiannual and annual risky levels remain $461.98, $470.21 and $510.64.
The stage was set for a positive trading day on Tuesday with positive pre-market earnings from three Dow components:
Du Pont ($52.49) beat EPS estimates by two cents earning $1.56 per share. The stock opened higher, dipped briefly into the red to $50.11, then rebounded to a new year-to-date high at $52.54, as my weekly pivot at $51.08 was a magnet for this hold rated Dow component. My monthly value level is $45.04 with a semiannual risky level at $60.06.
Travelers ($86.35) beat EPS estimates by 30 cents earning $2.31 per share. The stock opened at $87.41 traded up to $89.00, then dipped to $85.76, as weekly and monthly pivots at $86.28 and $87.09 were strong magnets on this hold rated Dow component.
It was a volatile ride for United Technologies ($92.89) as the stock missed EPS estimates by two cents earning $1.28 per share. The stock opened slightly lower, but traded into the green with a day's high at $94.25 versus my semiannual pivot at $94.43. This buy rated Dow component then dipped to a day's low at $90.65 versus my annual value level is $90.05.
Three other stocks of focus reported quarterly results after hours on Tuesday:
AT&T ($39.00) is a buy rated Dow component that traded to a new multi-year high before reporting quarterly results. The stock matched EPS estimates earning 64 cents per share was trading down at $38.40 at 8 p.m. My quarterly value level is $36.47 with a weekly pivot at $38.86 and annual risky level at $39.86.
Norfolk Southern ($75.84) is a sell rated railroad stock that beat EPS estimates by four cents earning $1.22, but with a revenue miss. The stock drifted to $75.06 in after hours trading. My quarterly value level is $69.85 with semiannual and annual pivots at $74.99 and $75.90 with an annual risky level at $82.73.
YUM! Brands ($64.15) is a buy rated stock that beat EPS estimates by eight cents earning 70 cents per share. There was a miss on the revenue line but the stock rebounded to $65.04 in after hours trading. My semiannual value level is $61.13 with a weekly risky level at $70.02.
Companies reporting after the close on Thursday:
Amazon.com ($268.90) is expected to earn ten cents a share. The stock is rated strong sell and is 8.6% overvalued with a one year price target at $231.23. The stock has been trading sideways to down since setting an all-time high at $284.72 on Jan. 25, but remains above its 200-day simple moving average at $250.60. The weekly chart profile stays negative on a weekly close below the five-week modified moving average at $263.69. Semiannual and annual value levels are $241.23 and $226.80 with a weekly pivot at $262.35 and monthly and quarterly risky levels at $278.07 and $278.28.
Starbucks ($59.39) is expected to earn 48 cents a share. The stock is rated buy, is trading around its fair value with a one year price target at $63.38. The stock has been trying to re-capture its April 2012 high at $62. The weekly chart profile is positive but overbought with the five-week MMA at $57.65. My semiannual value level is $49.88 with monthly and quarterly risky levels at $60.63 and $63.10.
A company reporting before the open on Friday:
Chevron ($117.48) is expected to earn $3.07 a share. The stock is rated hold, is 13.6% overvalued with a one year price target at $122.40. The stock set a multi-year high at multi-year high at $121.56 on March 25. The weekly chart profile stays negative with a close this week below its five-week MMA at $117.39. Semiannual and quarterly value levels are $111.22 and $109.58 with a monthly pivot at $117.69 and annual risky levels at $22.26 and $123.08.
I have been tracking the ratings in the DowJones Industrial Average stating that the buy rated names are candidates for your allocations to the long side of the stock market. Today the number of stocks rated buy fell to 13 as General Electric and Intel have been downgraded to hold.
At the time of publication the author held no positions in any of the stocks mentioned.
This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.