Equity Clock

Adobe Systems Inc., CME Group Inc., Owens-Illinois, Inc. – Technical Analysis

Today’s report highlights all of the stocks that have provided indication of a technical bottom, with upside potential to make a short-term play.   Today’s equities have made a Bullish Crossover with respect to the Money Flow Index, are considered Oversold but Rebounding according to Stochastics, and currently reside below 50 with respect to the relative strength index, providing plenty of room to make a move upwards.

Highlighting: Adobe Systems Incorporated (NASDAQ:ADBE), CME Group Inc. (NASDAQ:CME), OWENS ILLINOIS (NYSE:OI), PASON SYSTEM INCOR COM NPV (TSE:PSI)

Uncertain of the unemployment numbers release Friday morning, investors sent the market lower before bringing it back within the final hours of trading, producing a minor gain on the day.   Of the 680 stocks analyzed on the S&P 500 and TSE Composite; 382 advanced, 291 declined, and the remaining 7 traded flat on the day.   Equities, for the most part, are still beaten down, having fallen below their 50-day moving averages to send signals to investors that we may be in a correction.   At the end of the day, just over 73% of stocks were below this crucial level, on volumes that were just over 5% higher than previous day.  

Chart courtesy of StockCharts.com
Adobe Systems Incorporated (ADBE)
	32.77	+ 0.53 (1.64%)
Support 2	Support 1	Pivot Point	Resistance 1	Resistance 2
31.52	32.15	32.47	33.10	33.42
Expected Short-Term Trading Range: 32.64 – 37.27
Support & Resistance Analysis		Broke Lwr Resistance (1)
MACD Analysis		Negative/Increasing		MACD
MACD vs. Signal		Below/Thinning		-1.054
RSI Analysis		Below 50		RSI
Stochastic (Fast) Analysis		Oversold but Rebounding		35.307
50-Day MA Analysis		Below 50-Day MA		%K (fast)
200-Day MA Analysis		Above 200-Day MA – Crossover		17.795
Critical Level Analysis		Broke Below Previous Trend
Adobe Systems Incorporated (ADBE) Seasonality
Analysis has revealed that with a buy date of August 5 and a sell date of June 4, investors have benefited from a total return of 870.86% over the last 10 years. This scenario has shown positive results in 7 of those periods.
Conversely, the best return over the maximum number of positive periods reveals a buy date of February 1 and a sell date of April 29, producing a total return over the same 10-year range of 482.19% with positive results in 9 of those periods.
The buy and hold return for the past 10 years was 120.37%.
Comments:
This stock at current levels would represent a speculative "buy" play. The stock has shown a minor period of seasonal strength around this time-frame, however, it is past the seasonality of the sector, technology, in which it operates. The company did record a negative EPS for the most recent reported quarter as a result of tax losses due to accounting changes, which would be considered extraordinary. The company, however, assures that impacts as a result of these items will be wrapped up by fiscal year end and should not affect the company going forward. With the company beaten down to this level and considering most investors would not take into account this one time loss that prevented its most recent profitability, this may be an opportune time to take a dip.
News Headlines for Adobe Systems Incorporated (ADBE)
[video] Christmas Android Tablet War - Mon, 06 Sep 2010 How to get the best apps for each and every interest, hobby and profession - Sat, 04 Sep 2010 Market Share Gains In Creative Take Adobe To $38 - Fri, 03 Sep 2010 [at Forbes] - The company's creative software market share has decreased from 48% in 2005 to 43% in 2009 due to IT budget cuts and reduced advertising budgets that trickle down to creative types.
Chart courtesy of StockCharts.com
CME Group Inc. (CME)
	280.8	+ 11.51 (4.27%)
Support 2	Support 1	Pivot Point	Resistance 1	Resistance 2
266.49	273.64	278.16	285.31	289.83
Expected Short-Term Trading Range: 283.83 – 344.08
Support & Resistance Analysis		Neutral
MACD Analysis		Negative/Decreasing		MACD
MACD vs. Signal		Below/Thinning		-13.707
RSI Analysis		Below 50		RSI
Stochastic (Fast) Analysis		Oversold but Rebounding		33.241
50-Day MA Analysis		Below 50-Day MA		%K (fast)
200-Day MA Analysis		Below 200-Day MA		19.971
Critical Level Analysis		Broke Below Previous Trend
CME Group Inc. (CME) Seasonality
Analysis has revealed that with a buy date of January 20 and a sell date of December 16, investors have benefited from a total return of 1078.4% over the last 7 years. This scenario has shown positive results in 6 of those periods.
Conversely, the best return over the maximum number of positive periods reveals a buy date of August 30 and a sell date of October 14, producing a total return over the same 7-year range of 170.95% with positive results in 7 of those periods.
The buy and hold return for the past 7 years was 393.26%.
Comments:
Another stock beaten down as a result of the recent decline. This stock has an average P/E of around 36 and a forward P/E of around 18. The valuation at current levels just does not make sense, and a bottom may be apparent at these prices. Plus is has a dividend yield of 1.64%, enough to at least cover the commission for a free ride if you should choose to partake.
News Headlines for CME Group Inc. (CME)
Macerich Chairman Sells $11M Worth - Tue, 07 Sep 2010 Swiss Exchange May Enter Derivatives Clearing as Demand Rises - Tue, 07 Sep 2010 20 Stocks Seeing Insider Buying and Bullish Options Activity - Tue, 07 Sep 2010
Chart courtesy of StockCharts.com
OWENS ILLINOIS (OI)
	26.84	+ 0.94 (3.63%)
Support 2	Support 1	Pivot Point	Resistance 1	Resistance 2
25.37	26.11	26.49	27.23	27.61
Expected Short-Term Trading Range: 27.34 – 34.27
Support & Resistance Analysis		Broke Lwr Resistance (1)
MACD Analysis		Negative/Decreasing		MACD
MACD vs. Signal		Below/Thinning		-1.643
RSI Analysis		Below 50		RSI
Stochastic (Fast) Analysis		Oversold but Rebounding		31.231
50-Day MA Analysis		Below 50-Day MA		%K (fast)
200-Day MA Analysis		Below 200-Day MA		16.388
Critical Level Analysis		Broke Below Previous Trend
OWENS ILLINOIS (OI) Seasonality
Analysis has revealed that with a buy date of October 10 and a sell date of May 17, investors have benefited from a total return of 1837.37% over the last 10 years. This scenario has shown positive results in 8 of those periods.
Conversely, the best return over the maximum number of positive periods reveals a buy date of October 10 and a sell date of January 11, producing a total return over the same 10-year range of 1116.26% with positive results in 10 of those periods.
The buy and hold return for the past 10 years was 31.17%.
Comments:
Taking a look at the seasonality for this deflated stock and you’ll notice that the play with the greatest number of positive periods didn’t work this past year. Don Vialoux of TimingTheMarket.ca has been suggesting that now is the time to invest in Materials, and with the seasonality of this discounted stock still in play, you might be in for a decent upside return.
News Headlines for OWENS ILLINOIS (OI)
Owen-Illinios Unit to Offer Notes - Tue, 07 Sep 2010 OI European Group B.V. Announces Proposed Private Offering of Euro 500 Million of Senior Notes - Mon, 06 Sep 2010 [PR Newswire] - OI European Group B.V., an indirect wholly owned subsidiary of Owens-Illinois Group, Inc., announced that it intends to offer, subject to market and other conditions, euro 500 million aggregate principal amount of Senior Notes due 2020 in a private offering. Owens-Illinois Buys Brazilian Co. - Fri, 03 Sep 2010 [Zacks] - Owens-Illinois Inc. acquires Brazilian glassmaker Companhia Industrial de Vidros for $603 million.
Chart courtesy of StockCharts.com
PASON SYSTEM INCOR COM NPV (PSI.TO)
	11.07	+ 0.21 (1.93%)
Support 2	Support 1	Pivot Point	Resistance 1	Resistance 2
10.60	10.84	11.01	11.25	11.42
Expected Short-Term Trading Range: 11.14 – 12.12
Support & Resistance Analysis		Neutral
MACD Analysis		Negative/Decreasing		MACD
MACD vs. Signal		Below/Widening		-0.075
RSI Analysis		Below 50		RSI
Stochastic (Fast) Analysis		Oversold but Rebounding		41.023
50-Day MA Analysis		Below 50-Day MA		%K (fast)
200-Day MA Analysis		Above 200-Day MA		19.079
Critical Level Analysis		Broke Below Previous Trend
PASON SYSTEM INCOR COM NPV (PSI.TO) Seasonality
Analysis has revealed that with a buy date of February 22 and a sell date of February 19, investors have benefited from a total return of 2177.37% over the last 10 years. This scenario has shown positive results in 7 of those periods.
Conversely, the best return over the maximum number of positive periods reveals a buy date of October 7 and a sell date of September 17, producing a total return over the same 10-year range of 1786.01% with positive results in 10 of those periods.
The buy and hold return for the past 10 years was 709.03%.
Comments:
The seasonality for this stock undenialbly reveals a buy and hold investment. The seasonality in Energy is soon approaching and the optimal buy date for this equity corresponds nicely to this time frame. This may be a good candidate to keep on you radar for the near future.
News Headlines for PASON SYSTEM INCOR COM NPV (PSI.TO)
Pason Systems Inc. announces twelve month capital spending plan - Thu, 12 Aug 2010 UPDATE - Pason Systems posts Q2 profit on strong US market - Mon, 09 Aug 2010 Pason Systems Inc. reports second quarter operating results - Mon, 09 Aug 2010
Equity Clock – By The Numbers will be offered following each trading day.
Disclosure: Mr. Vialoux does not own securities mentioned in this report.
Disclaimer: Comments and opinions offered in this report at EquityClock.com are for information only. They should not be considered as advice to purchase or to sell mentioned securities.
Data offered in this report is believed to be accurate, but is not guaranteed.

Stocks mentioned in this post: ADBE, CME, OI, PSI.TO