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Review a Previously Featured Stock Now Facing Overhead Supply - Thursday, September 17, 2015

Leadership has improved. However, very few stocks are currently included on the Featured Stocks list, and none of the companies listed are in great need of additional review in detail with new annotated graphs. At times like these we have an opportunity in this Featured Stock Update section to look back and review previously featured stocks which were dropped. They can serve as great educational examples of the investment system's tactics. They also serve as vivid reminders that high-ranked leaders eventually do fall out of favor, so it is critical for investors to recognize sell signals and react properly.  If you wish to request for a specific stock to receive more detailed coverage in this section please use the inquiry form to submit your request. Thank you!

Skyworks Solutions Inc (SWKS) was first featured highlighted in yellow in the May 1, 2015 mid-day report (read here). Subsequent gains into new high territory were noted for falling below the minimum volume guideline to trigger a proper technical buy signal under the fact-based investment system's guidelines. It made limited headway in the weeks that followed. Poor action in early July raised concerns and it was noted as it triggered technical sell signals and dropped from the Featured Stocks list on 7/09/15. Then, its 50-day moving average (DMA) line acted as a resistance level while trying to rebound. Ultimately, more worrisome action was noted as it violated the prior lows. It  even slumped below its 200 DMA line during a very weak market environment (M criteria). 

Recently it has been trying to rebound above the 50 and 200 DMA lines which have nearly converged.  However, the overhead supply created by several months of trading at higher prices is likely to be a hindrance that prevents SWKS from being a standout gainer in the coming weeks. Historic studies have proven that during market rallies stocks without overhead supply are more likely to be the best gainers.
 


Below is a list of the notes made in the past concerning SWKS: 
 
7/24/2015 1:07:17 PM - Gapped up today but reversed into the red, and it is still meeting resistance at its 50 DMA line when trying to rebound. Gains above the 50 DMA line are needed for its outlook to improve, and it faces resistance due to overhead supply up through the $112 area. Reported earnings +61% on +38% sales revenues for the Jun '15 quarter, continuing its record of strong earnings increases above the +25% minimum guideline (C criteria). Halted its slide after damaging volume-driven losses were noted as they triggered technical sell signals and on 7/09/15 it was dropped from the Featured Stocks list.

7/22/2015 1:10:47 PM - A rebound above its 50 DMA line is needed to help its outlook improve. Due to report earnings on 7/23/15, and volume and volatility often increase near earnings news. Gapped down today, slumping after meeting resistance at its 50 DMA line when recently trying to rebound. Damaging volume-driven losses were noted as they triggered technical sell signals and on 7/09/15 it was dropped from the Featured Stocks list.
7/9/2015 6:23:03 PM - Suffered a 3rd consecutive loss today marked by above average volume as it slumped further below its 50 DMA line. Damaging volume-driven losses were noted as they triggered technical sell signals and it will be dropped from the Featured Stocks list tonight..
7/8/2015 8:39:17 PM - G - Color code is changed to green after violating its 50 DMA line and undercutting prior lows with damaging volume-driven losses triggering a technical a sell signal.
 

Found Support After Wedging From Late Stage Base - Thursday, June 11, 2015

Skyworks Solutions Inc (SWKS +$0.09 or +0.09% to $105.63) found prompt support at its 50-day moving average (DMA) line ($99.62) after briefly undercutting prior highs in the $102 area. The recent low ($98.07 on 6/09/15) and its 50 DMA line define important near-term support where damaging violations may trigger technical sell signals. The weekly chart below shows its considerable rally over the past 2 years. After building a riskier "late-stage" base pattern, it wedged higher.

SWKS was last shown in this FSU section on 5/19/15 with annotated graphs under the headline, "Gains for New Highs Lacked Substantial Volume Conviction". Without heavy volume behind a breakout, investors are missing the necessary proof of serious institutional buying demand capable of contributing to a considerable and sustained advance in price. Members were previously reminded - "Gains backed by at least +40% above average volume while rallying above the pivot point may trigger a technical buy signal." SWKS failed to trigger a proper technical buy signal since highlighted in yellow with pivot point cited based on its 3/23/15 high plus 10 cents in the 5/01/15 mid-day report (read here).

 It showed sales revenues increases of +35%, 51%, +59%, and +58% during the Jun, Sep, Dec '14, and Mar '15 quarterly comparisons, respectively. That is a reassuring sign of great demand for new products or services (N criteria). Meanwhile, earnings increases were +54%, +75%, +88%, and +85% during that same period. Quarterly comparisons have shown earnings well above the +25% minimum guideline (C criteria). Annual earnings (A criteria) history has been strong.

It has earned a Timeliness rating of A, and a Sponsorship rating of B. There are 187.3 million shares (S criteria) in the public float. The number of top-rated funds rose from 714 in Jun '14 to1095 in Mar '15, a reassuring sign concerning the I criteria. The Electronics - Semiconductor Manufacturing group has a Group Relative Strength Rating of 83, a reassuring sign concerning the L criteria.


Gains for New Highs Lacked Substantial Volume Conviction - Tuesday, May 19, 2015

Skyworks Solutions Inc (SWKS +$0.96 or +0.93% to $103.99) hit another new 52-week high with today's gain backed by +19% above average volume. On the prior session its gain was backed by +27% above average volume. It recently found support near its 50-day moving average (DMA) line while building on a riskier "late-stage" base pattern. Without heavy volume behind a breakout, investors are missing the necessary proof of serious institutional buying demand capable of contributing to a considerable and sustained advance in price. Members were previously reminded - "Gains backed by at least +40% above average volume while rallying above the pivot point may trigger a technical buy signal."  

SWKS was last shown in this FSU section on 5/04/15 with annotated graphs under the headline, "Found Prompt Support at 50-Day Moving Average Line". It was highlighted in yellow with pivot point cited based on its 3/23/15 high plus 10 cents in the 5/01/15 mid-day report (read here). Subsequent volume-driven gains above the pivot point are still needed to trigger a technical buy signal.

It showed sales revenues increases of +35%, 51%, +59%, and +58% during the Jun, Sep, Dec '14, and Mar '15 quarterly comparisons, respectively. That is a reassuring sign of great demand for new products or services (N criteria). Meanwhile, earnings increases were +54%, +75%, +88%, and +85% during that same period. Quarterly comparisons have shown earnings well above the +25% minimum guideline (C criteria). Annual earnings (A criteria) history has been strong.

There are 187.3 million shares (S criteria) in the public float. Its Up/Down Volume ratio of 1.2 is an unbiased indication its shares have been under accumulation over the past 50 days. The number of top-rated funds rose from 714 in Jun '14 to 1029 in Mar '15, a reassuring sign concerning the I criteria. The Electronics - Semiconductor Manufacturing group has a Group Relative Strength Rating of 89, a reassuring sign concerning the L criteria.

Charts courtesy www.stockcharts.com
 

Found Prompt Support at 50-Day Moving Average Line - Monday, May 04, 2015

Skyworks Solutions Inc (SWKS +$0.82 or +0.83% to $99.11) found prompt support at its 50-day moving average (DMA) line, building on a riskier "late-stage" base pattern. It was highlighted in yellow with pivot point cited based on its 3/23/15 high plus 10 cents in the 5/01/15 mid-day report (read here). Subsequent volume-driven gains above the pivot point are needed to trigger a technical buy signal.

It reported earnings +85% on +58% sales revenues for the Mar '15 quarter, continuing its streak of quarterly comparisons with earnings well above the +25% minimum guideline (C criteria). Annual earnings (A criteria) history has been strong. Its Up/Down Volume ratio of 1.3 is an unbiased indication its shares have been under accumulation over the past 50 days. The number of top-rated funds rose from 714 in Jun '14 to 992 in Mar '15, a reassuring sign concerning the I criteria. The Electronics - Semiconductor Manufacturing group has a Group Relative Strength Rating of 95, a reassuring sign concerning the L criteria.