Equity Clock

Ford Motor Co. (NYSE:F), RONA Inc. (TSE:RON), IMS Health, Inc. (NYSE:RX) – Analysis

Today’s report seeks to identify stocks that reveal investment potential on this significantly depreciated day.   Today’s list of stocks has been filtered down to reveal equities that not only produced gains on the day, but also broke upper resistance levels.   Of these stocks that beat the market on the day, the list was filtered down further to single out equities showing a MACD that has bottomed out and also is beginning to show signs of improving, offering a glimpse into the outperformers.

Highlighting: FORD MOTOR CO (NYSE:F), IMS HEALTH INC (NYSE:RX), RONA INC COM NPV (TSE:RON)

The market was overwhelmingly negative on the day, with stocks losing 1.24% of their value, on average, once the day was through.   Almost 56% of stocks had losses greater than 1% on volumes almost 14% higher than previous day, sending a clear bearish signal to market participants.   Of the 678 stocks analyzed on the S&P 500 and TSE Composite, only 91 advanced, 580 declined and the remaining 6 chose not to participate.   The market activity today has deflated stocks to the point where less than half of stocks are greater than the 50-day moving average, now at 47.27%.   However, 133 stocks are still listed as being overbought according to stochastics.   The market is burning both ends of the candle, leaving its mark on the high end, and charting a new path on the low.

Chart courtesy of StockCharts.com
FORD MOTOR CO (F)
	11.6	+ 0.39 (3.48%)
Support 2	Support 1	Pivot Point	Resistance 1	Resistance 2
10.98	11.29	11.46	11.77	11.94
Expected Short-Term Trading Range: 10.91 – 11.77
Support & Resistance Analysis		Broke Upr Resistance (2)
MACD Analysis		Positive/Increasing		MACD
MACD vs. Signal		Below/Thinning		0.144
RSI Analysis		Bullish		RSI
Stochastic (Fast) Analysis		Increasingly Overbought		58.166
50-Day MA Analysis		Above 50-Day MA		%K (fast)
200-Day MA Analysis		Above 200-Day MA		94.872
Critical Level Analysis
FORD MOTOR CO (F) Seasonality
Analysis has revealed that with a buy date of March 6 and a sell date of May 5, investors have benefited from a total return of 603.4% 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 April 14 and a sell date of May 5, producing a total return over the same 10-year range of 147.13% with positive results in 9 of those periods.
The buy and hold return for the past 10 years was -55.99%.
Comments:
Not a huge surprise that this stock gained on the day as Toyota makes its appearance before the Congressional committee.   This company is still trying to get back in the black after seeing negative earnings that stretched back until 2006.   Technicals are becoming favorable, although it is trading at the high end of the expected trading range.   Seasonal strength will come into play shortly, however if current levels hold, or if continued outperformance compared to the market continues, a play at current levels might be in order.
News Headlines for FORD MOTOR CO (F)
[feedsnap, 3]http://us.rd.yahoo.com/finance/news/rss/add/*http://finance.yahoo.com/rss/headline?s=F[/feedsnap]
Chart courtesy of StockCharts.com
IMS HEALTH INC (RX)
	21.98	+ 0.03 (0.14%)
Support 2	Support 1	Pivot Point	Resistance 1	Resistance 2
21.94	21.96	21.97	21.99	22.00
Expected Short-Term Trading Range: 21.46 – 21.91
Support & Resistance Analysis		Broke Upr Resistance (2)
MACD Analysis		Positive/Decreasing		MACD
MACD vs. Signal		Below/Thinning		0.159
RSI Analysis		Increasingly Overbought		RSI
Stochastic (Fast) Analysis		Increasingly Overbought		75.033
50-Day MA Analysis		Above 50-Day MA		%K (fast)
200-Day MA Analysis		Above 200-Day MA		100.000
Critical Level Analysis		Broke Above Previous Trend
IMS HEALTH INC (RX) Seasonality
Analysis has revealed that with a buy date of October 23 and a sell date of December 10, investors have benefited from a total return of 100.6% over the last 10 years.   This scenario has shown positive results in 9 of those periods.
Conversely, the best return over the maximum number of positive periods reveals a buy date of August 6 and a sell date of September 2, producing a total return over the same 10-year range of 74.66% with positive results in 10 of those periods.
The buy and hold return for the past 10 years was -16.73%.
Comments:
There really isn’t too much that says value about this stock, but shockingly it made its way into the filter having fulfilled the criteria sought.   Fundamentals are weak, technicals are undesirable, and seasonal strength has yet to be seen.   Analysts have overwhelmingly rated this stock as a "hold", and I would have to agree.
News Headlines for IMS HEALTH INC (RX)
[feedsnap, 3]http://us.rd.yahoo.com/finance/news/rss/add/*http://finance.yahoo.com/rss/headline?s=RX[/feedsnap]
Chart courtesy of StockCharts.com
RONA INC COM NPV (RON.TO)
	15.68	+ 0.46 (3.02%)
Support 2	Support 1	Pivot Point	Resistance 1	Resistance 2
14.85	15.27	15.48	15.90	16.11
Expected Short-Term Trading Range: 15.46 – 16.45
Support & Resistance Analysis		Broke Upr Resistance (2)
MACD Analysis		Negative/Increasing		MACD
MACD vs. Signal		Below/Thinning		-0.114
RSI Analysis		Below 50		RSI
Stochastic (Fast) Analysis		Bullish Crossover		49.774
50-Day MA Analysis		Below 50-Day MA		%K (fast)
200-Day MA Analysis		Above 200-Day MA		52.137
Critical Level Analysis
RONA INC COM NPV (RON.TO) Seasonality
Analysis has revealed that with a buy date of November 24 and a sell date of October 29, investors have benefited from a total return of 219.46% over the last 7 years.   This scenario has shown positive results in 5 of those periods.
Conversely, the best return over the maximum number of positive periods reveals a buy date of January 17 and a sell date of May 2, producing a total return over the same 7-year range of 94.67% with positive results in 7 of those periods.
The buy and hold return for the past 7 years was 30.93%.
Comments:
Rona Inc rallied on the day.  This coming the day following the company’s announcement that it had acquired Plomberie Payette & Perreault Inc, a company that specializes in the distribution and retail sales of finished plumbing products.   Unfortunately the seasonal influences on this stock are not the strongest, however the stock is trading at the lower ranges of its expected scale and technicals are providing bullish indications.
News Headlines for RONA INC COM NPV (RON.TO)
[feedsnap, 3]http://us.rd.yahoo.com/finance/news/rss/add/*http://finance.yahoo.com/rss/headline?s=RON.TO[/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: F, RON.TO, RX