Our Stock Waves Charts of the Day video covers Philip Morris International Inc. (PM), Anthem, Inc. (ANTM), Thermo Fisher Scientific Inc. (TMO) and The Procter & Gamble Company (PG).
PM has started to pull back following the strong move up after earnings. The (c) wave looks like it is starting to fill out as an ending diagonal, with the recent high counting as wave 1 of the ED and price now pulling back in wave 2.
Under that assumption, usually you see a 50% or 61.8% retrace in wave 2 of the ED, which would be 82.50 down to 80 roughly as an ideal target to add to any positions and play for the next move higher as wave 3.
Let's look at some charts that are starting to turn back down after their earnings announcements.
ANTM had a decent drop Wednesday, but needs to next take out the prior low at the end of June to start confirming a top. That would be below 275.
TMO is another chart that's dropping further Wednesday, and even now has a possible micro 5 waves down from the high. There's a good amount of distance that still needs to be covered here until we start making lower lows, back below 260 to start confirming that trend change, but plenty of room to drop if we are finally starting a primary wave 4.
PG slightly exceeded the ideal 1.32 extension target at 114.20, but has since pulled back down below it. Making a lower low below 109 would be the initial indication of a possible top and the start to a wave 4 pullback.
I'm not suggesting that people jump in blindly short into these names, but
it's interesting to see some of them starting to show some weakness, If we can finally get the larger shift that is the market to start turning, then we'll definitely have some scalpable set-ups in the future.