Price Matters: TWTR, SBUX, C, HAL

Many big name companies are testing important levels, but investors need to differentiate fundamental analysis from price in each of these names.  The business of investing is sometimes confusing to persons who consider all of the facets of a company before investing.  However, sometimes the people who are taking the time to make all of those fundamental observations are not really interested in investing in the company anyway.  Certainly large institutions should do their homework, as should anyone who intends on holding any company for the next 5-10 years, but if you are in a stock to make money, and you like the idea of doing so over a span of a few months, only one thing really matters.

Price is almost all that matters to most people, but they confuse themselves into thinking other things matter too.  This can cause all kinds of problems, the most important being an unwieldiness to sell or buy when the price is right.  Our recent call to sell TWTR is a great example of exactly this.

Without focusing on anything other than price, we suggested that investors sell TWTR when it was around $72, since then it has fallen by about 20%, but when we said it TWTR was flying and people thought we were crazy.  Fox News criticized the call because Twitter is so popular, but popularity does not make you money in the stock market either.  The only thing that makes you money is price, and the recommendation to sell TWTR was based on price. 

Most people in the stock market today are interested in making money, so they too are most interested in price.  For investors who embrace the notion that price matters, Stock Traders Daily has identified the following companies as being near very important inflection levels.  By rule, we like to buy near support levels, and sell or short near resistance, but if support levels begin to break we also implement risk controls.  In the table below only one stock on our radar for Wednesday was breaking support.

Stocks to Watch:

SBUX Trading Report

Testing longer term support

APC Trading Report

Testing longer term support

C Trading Report

Testing longer term resistance

V Trading Report

Testing longer term resistance

HAL Trading Report

Breaking below longer term support

The stocks above were featured on Wednesday January 8, 2014.  Recommendations to buy or sell depend on these ability or inability to the stocks in the table above to hold these critical inflection levels.  Prices change and inflection levels also change over time, so investors should continuously monitor price as a result.  Real time updates have been provided for each of these stocks and continuous updates are provided by Stock Traders Daily, but investors can monitor price using their own analysis as well.