STX - reasonable results

Despite posting better than expected earnings, Seagate (STX) closed -1.7% @ $52.58 (intraday low $51.38), although had initially jumped higher to $55.23. Price structure remains a multi-week bull flag, with primary upside to the 56/57 zone.


STX, daily

STX, weekly

Summary

*I remain long STX, from the $53.50s. Right now, I don't expect an exit until later next week.
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Relative to the main market, STX remains under valued, with a forward PE of just 9/10.

see key stats @ yahoo finance

There is little reason why this won't eventually hit the big $100 threshold in late 2015/early 2016.

DO, RIG, SDRL - drilling upward

With the main market continuing to climb up and away from the Monday low, the Oil/Gas drillers saw some notable gains. Diamond Offshore (DO), Transocean (RIG), and Seadrill (SDRL) closed higher by 0.5%, 0.4%, and 1.5% respectively. Near term outlook is very bullish.


DO, weekly

RIG, weekly

SDRL, weekly

Summary

*rather than focus on the daily charts, I wanted to highlight an even broader perspective.
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The drillers have had a tough time since late 2013. We've seen five months or so of pretty strong declines, but that down trend was decisively broken last week.

This week began weak, but then the broader market was a little shaky. Even during the Monday afternoon sell down in the market, the underlying strength was there to be seen in stocks like DO and SDRL.

Outlook is bullish for rest of this week.

First upside targets...

DO - 56
RIG - 45
SDRL - 37

Those seem reasonable within the next 3-8 trading days. However, if the main market does see a major rollover this summer, the recent lows will eventually be taken out.

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*I am long all three of the above stocks, but will be seeking an exit into the Friday close - not least since the positions are via option call blocks, and I prefer to have no positions across a weekend.

OPEN - open air to the low $50s

With the broader market seeing some weakness, - especially in the momo stocks, OpenTable (OPEN) saw further very significant declines, settling -3.3% @ $64.24. Near term outlook offers opportunity of a bounce/back test to the $70 threshold, before $50 later this summer.


OPEN, daily

OPEN, weekly

Summary

*I have little interest in trading this one, but it is one I keep an eye on.
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Suffice to say...if the broader market can rally into May, then OPEN has a fair chance of a bounce to the $68/70 zone, before a renewed wave lower.

Of course, that will largely be dependent on earnings, but..price action is suggestive OPEN is headed lower this summer.

Earnings are due this Thursday, after the close.