HG,
I've found the P/E's on ASK to be unreliable. Today's closing price is $96.375, and most recent earnings were $0.10/share, so you can see the P/E is much higher than 50. BTW, ITWO has reported an upside surprise in 4 of the last 5 quarters. They don't report till Jan 17, consensus $0.15, but that's one to make a mental note of. If the market is in halfway decent shape at that time, you might well see an anticipatory ramping going into earnings.
The chart on ITWO looks very good. Not only has ITWO pierced the lower 20 day BB, but it is significantly ahead of its downsloping 10 DMA, which currently resides around 110. Also, there are technical buy signals now:
askresearch.com
I would expect a rally to this level, possibly further, but ITWO will begin to encounter resistance here, with short-term candle resistance at about 120. Personally, I would be looking for an exit anywhere above 110, and simultaneously looking for a short entry (I think ITWO has substantially more downside left in it).
The market looks like it will cooperate, since the Naz futures are up 2.5% right now. Yesterday was a narrow range day, though not a Doji. The morning session clearly went to the bears, but the afternoon went to the bulls, probably contributed to by short covering/profit taking. Looks like tomorrow may see some follow-through of sorts, if the futures hold. People will say it has something to do with the Supreme Court/election events, but the fact of the matter is that the Naz has gotten way below all its moving averages, and there is pressure now to regress back to those moving averages:
askresearch.com
Technicals on QQQ show only OBV turning upward at this point, but I think this may well change tomorrow.
WS |
