Equity Clock

Wells Fargo & Company, Textron Inc., PNC Financial Services – Technical Analysis

Today’s report identifies stocks that indicated “buy” signals in this selloff day.   These stocks all made a bullish moving average crossover with respect to MACD, implying a rebound from depreciated values, and made a bullish centerline crossover with respect to the Relative Strength Index, revealing strength in the recent market movements.

Highlighting: P N C FIN SVCS GR (NYSE:PNC), TEXTRON INC (NYSE:TXT), WELLS FARGO & CO NEW (NYSE:WFC)

Markets relinquished producing gains that they had been accustomed to indicating in the week previous by posting a negative return on the session.   Of the 678 stocks analyzed on the S&P 500 and TSE Composite, 262 advanced, 403 declined and the remaining 13 declined to comment.   Average losses among the stocks were 0.17% on volumes more than 8% less than previous day as investors waited on the sidelines to see which direction the market will go next.   Stochastics are still indicating that almost half of the stocks are overbought and a further 25% exist above their current trend levels, implying pullback is required in order to put things back in line.   The market is still not providing the technical or fundamental indicators that would provide evidence that it may exceed previous highs, leaving us within a predefined trading range of between the 200-day moving average and highs witnessed in January.

Chart courtesy of StockCharts.com
P N C FIN SVCS GR (PNC)
	53.17	+ 1.47 (2.84%)
Support 2	Support 1	Pivot Point	Resistance 1	Resistance 2
51.81	52.49	53.05	53.73	54.29
Expected Short-Term Trading Range: 51.37 – 57.31
Support & Resistance Analysis		Broke Upr Resistance (2)
MACD Analysis		Negative/Increasing		MACD
MACD vs. Signal		Bullish MA Crossover		-0.696
RSI Analysis		Bullish Centerline Crossover		RSI
Stochastic (Fast) Analysis		Neutral		50.571
50-Day MA Analysis		Below 50-Day MA		%K (fast)
200-Day MA Analysis		Above 200-Day MA		46.805
Critical Level Analysis
P N C FIN SVCS GR (PNC) Seasonality
Analysis has revealed that with a buy date of March 6 and a sell date of November 13, investors have benefited from a total return of 485.65% 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 17 and a sell date of November 13, producing a total return over the same 10-year range of 142.9% with positive results in 10 of those periods.
The buy and hold return for the past 10 years was 70.44%.
Comments:
This stock follows nicely with the article published earlier of stocks trading at a discount to their book value.   Book value per share for this equity is currently listed at 64.81, well below its current price.   Seasonal tendencies are coming into play over the next three weeks.   Technicals are revealing downside risk is minimal.
News Headlines for P N C FIN SVCS GR (PNC)
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Chart courtesy of StockCharts.com
TEXTRON INC (TXT)
	19.88	+ 0.2 (1.02%)
Support 2	Support 1	Pivot Point	Resistance 1	Resistance 2
19.32	19.60	19.84	20.12	20.36
Expected Short-Term Trading Range: 18.77 – 22.06
Support & Resistance Analysis		Neutral
MACD Analysis		Negative/Increasing		MACD
MACD vs. Signal		Bullish MA Crossover		-0.259
RSI Analysis		Bullish Centerline Crossover		RSI
Stochastic (Fast) Analysis		Neutral		51.145
50-Day MA Analysis		Below 50-Day MA		%K (fast)
200-Day MA Analysis		Above 200-Day MA		58.182
Critical Level Analysis
TEXTRON INC (TXT) Seasonality
Analysis has revealed that with a buy date of March 6 and a sell date of June 4, investors have benefited from a total return of 417.7% 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 22 and a sell date of January 2, producing a total return over the same 10-year range of 189.15% with positive results in 10 of those periods.
The buy and hold return for the past 10 years was -38.65%.
Comments:
This stock has found strong support around the $18 range.   Fundamentals are fairly unimpressive with nothing too significant to comment on, other than the fact the institutions have been seen adding to their positions on net.   Putting fundamentals aside, you’re looking at a pure technical and seasonal play with price targets in the low to mid 20′s.
News Headlines for TEXTRON INC (TXT)
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Chart courtesy of StockCharts.com
WELLS FARGO & CO NEW (WFC)
	28.01	+ 0.64 (2.34%)
Support 2	Support 1	Pivot Point	Resistance 1	Resistance 2
27.08	27.54	27.85	28.31	28.62
Expected Short-Term Trading Range: 27.01 – 28.71
Support & Resistance Analysis		Broke Upr Resistance (2)
MACD Analysis		Negative/Increasing		MACD
MACD vs. Signal		Bullish MA Crossover		-0.073
RSI Analysis		Bullish Centerline Crossover		RSI
Stochastic (Fast) Analysis		Neutral		54.808
50-Day MA Analysis		Above 50-Day MA		%K (fast)
200-Day MA Analysis		Above 200-Day MA		59.420
Critical Level Analysis
WELLS FARGO & CO NEW (WFC) Seasonality
Analysis has revealed that with a buy date of March 6 and a sell date of September 20, investors have benefited from a total return of 708.73% 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 March 12 and a sell date of August 24, producing a total return over the same 10-year range of 314.29% with positive results in 10 of those periods.
The buy and hold return for the past 10 years was 78.53%.
Comments:
Following the trend of the day, seeing financials as being the most active sector on the day, Wells Fargo has revealed itself as a buy opportunity.   Book value of this equity is at 21.59, not far off from its market value at current levels.   Downside risk is minimal.   This stock has growth written all over it.   Average P/E is calculated to be around 20 versus current P/E of 25.   This compares to a Forward P/E of around 10, implying significant growth if current levels are to be maintained.
News Headlines for WELLS FARGO & CO NEW (WFC)
[feedsnap, 3]http://us.rd.yahoo.com/finance/news/rss/add/*http://finance.yahoo.com/rss/headline?s=WFC[/feedsnap]
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: PNC, TXT, WFC