5 Big Stocks to Trade for Gains as QE3 Ends

BALTIMORE (Stockpickr) -- The Fed is shutting the tap this week, ending the QE3 bond-.buying program that's arguably been one of the biggest structural drivers of the rally in stocks over the past couple of years. Or at least that's the plan.

Must Read: Warren Buffett's Top 10 Dividend Stocks

While the Fed's press release calls for an end to quantitative easing, this isn't the first time they've called an end to the buying spree before starting another one. With key data, such as forward inflation lower than it's been since Operation Twist in 2011, the possibility of QE4 (or QE5, depending on how you've been counting) is becoming more palpable by the day.

So far, stocks have had a pretty tepid reaction to the end of QE3. The decision was largely already baked into stock prices. As I write, there are some big-name trades that are starting to look very attractive as a result. Today, we're taking a technical look at five large-cap stocks worth trading this week.

First, a little on the technical toolbox we're using here. Technicals are a study of the market itself. Since the market is ultimately the only mechanism that determines a stock's price, technical analysis is a valuable tool even in the roughest of trading conditions. Technical charts are used every day by proprietary trading floors, Wall Street's biggest financial firms, and individual investors to get an edge on the market. And research shows that skilled technical traders can bank gains as much as 90% of the time.

Every week, I take an in-depth look at big names that are telling important technical stories. Here's this week's look at five big stocks to trade this week.

Must Read: How to Trade the Market's Most-Active Stocks

Capital One Financial

Up first is big banking company Capital One Financial (COF). Capital One has been in rally mode for much of the year, climbing more than 18% since the beginning of February. And while shares have been churning sideways for the last few months, that range-bound price action is the exact reason that COF looks tradable here.

COF has been consolidating sideways for the last few months, bouncing around in a rectangle pattern. The rectangle setup is formed by a pair of horizontal resistance and support levels that basically "box in" shares between $85 and $77.50. Consolidations such as the one in Capital One are common after big moves (like the one that started in February); they give the stock a chance to bleed off momentum as buyers and sellers figure out their next move.

Don't get thrown by the bear trap in COF. It was a false breakdown. The bullish divergence with momentum was a tip-off that the drop wouldn't hold.

From here, a breakout above $85 is the next buy signal on the way up -- a violation of support at $77.50 means more downside suddenly looks likely. Because Capital One's prior trend before it entered the rectangle was higher, a move through $85 looks like the more likely outcome for this stock.

Must Read: 5 Stocks Insiders Love Right Now

Bank of Ireland

Bank of Ireland (IRE) may be a lot smaller than Capital One, but its positioning as one of the biggest banks in Ireland gives this $13 billion firm considerable significance -- and trading volume. Bank of Ireland has been selling off for most of 2014, but buyers could be in for a reprieve this fall. That's because IRE is currently forming a long-term reversal pattern called a "double bottom."

The double bottom in IRE looks just like it sounds. The setup is formed by a pair of swing lows that bottom out at approximately the same price level. The buy signal comes on a push above $17, the price peak that separates those two lows in IRE. Shares are pointed lower this morning in reaction to the dollar rally that got kicked off by the Fed's QE3 announcement, but that move isn't technically significant as long as IRE stays above $13.50.

Meanwhile, the side indicator in the IRE trade is momentum, measured by 14-day RSI. Momentum has been making higher lows, even as shares hit the same lows in price – that's a bullish indication that buying pressure is building in this stock. Even so, don't be a buyer until $17 gets taken out; that's still a meaningful price barrier at this time.

Must Read: 10 Stocks George Soros Is Buying

Discover Financial Services

The financial sector is getting a lot of attention on today's list, and our next trade setup is no exception; we're looking at Discover Financial Services' (DFS) chart next. The good news is that you don't need to be an expert technical trader to figure out what's going on in shares of DFS. This setup is about as basic as it gets.

Discover has been bouncing its way higher in a well-defined uptrending channel for the better part of the last year now. That channel is formed by a pair of parallel trend line support and resistance levels that identify the high-probability range for shares to stay within. Put more simply, every touch of trend line support in 2014 has been an extremely low-risk opportunity to get into shares of DFS, and we're touching that level for a tenth time this week. It makes sense to buy this bounce off of support.

Waiting for a bounce off of support is a critical test for two big reasons: It's the spot where shares have the furthest to move up before they hit resistance, and it's the spot where the risk is the least (because shares have the least room to move lower before you know you're wrong). Remember, all trend lines do eventually break, but by actually waiting for the bounce to happen first, you're ensuring DFS can actually still catch a bid along that line before you put your money on shares.

Relative strength adds some confidence to that call. The relative strength line at the bottom of Discover's chart has been in a textbook uptrend since the end of last year. As long as that uptrend remains intact, DFS should keep outperforming the rest of the market.

Must Read: 5 Rocket Stocks to Buy for November Gains

Charter Communications

Charter Communications (CHTR) has been a name to own in 2014: since the calendar flipped over to January, shares of this $17 billion cable company have rallied more than 12%. That's nearly double what the S&P 500 has managed to accomplish over that same stretch. But don't worry if you missed the move. CHTR looks ready to kick off another leg higher this fall. Here's how to trade it.

CHTR is in the early stages of forming an inverse head and shoulders setup, a bullish reversal pattern that indicates exhaustion among sellers. You can spot the inverse head and shoulders by looking for two swing lows that bottom out around the same level (the shoulders), separated by a bigger trough called the head; the buy signal comes on the breakout above the pattern's "neckline" level (that's the $164 price level here).

Even though the right shoulder hasn't formed yet, any close above $164 from here is a buy signal in Charter.

Must Read: 5 Hated Earnings Stocks You Should Love

Philip Morris International

Last up is Philip Morris International (PM), a name that we first looked at a couple of weeks ago. At the time, PM was forming a bullish ascending triangle pattern, and the buy signal came on a breakout through $85. Since then, shares have moved up near our $89.50 price target – and PM is starting to look ready for a secondary breakout.

If shares can catch a bid above their previous high at $89.50, then we've got another big buy signal in this tobacco giant.

Why all of that significance at that $89.59 level? It all comes down to buyers and sellers. Price patterns like the ascending triangle are a good quick way to identify what's going on in the price action, but they're not the actual reason a stock is tradable. Instead, the "why" comes down to basic supply and demand for PM's stock.

The $89.50 resistance level is a price where there has been an excess of supply of shares; in other words, it's a spot where sellers have previously been more eager to step in and take gains than buyers have been to buy. That's what makes a breakout above $89.50 so significant. The move means that buyers are finally strong enough to absorb all of the excess supply above that price level.

Expect some downside today thanks to the dollar rally (PM is sensitive to upside in the dollar because it earns revenues in foreign currencies but reports in dollars), but $89.50 is the line in the sand to watch next. If you bought the $85 breakout, I'd recommend ratcheting your stop loss up to the 50-day moving average.

To see this week's trades in action, check out the Must-See Charts portfolio on Stockpickr.

-- Written by Jonas Elmerraji in Baltimore.

Must Read: 10 Stocks Billionaire John Paulson Loves in 2014

Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in the names mentioned.

Jonas Elmerraji, CMT, is a senior market analyst at Agora Financial in Baltimore and a contributor to

TheStreet. Before that, he managed a portfolio of stocks for an investment advisory returned 15% in 2008. He has been featured in Forbes , Investor's Business Daily, and on CNBC.com. Jonas holds a degree in financial economics from UMBC and the Chartered Market Technician designation.

Follow Jonas on Twitter @JonasElmerraji

Gilead Sciences’ Earnings Miss Forecasts as ACA Drives Higher Costs

Shares of Gilead Sciences (GILD) have dropped in after-hours trading following the release of disappointing earnings driven primarily by Affordable Care Act-related costs.

Paul Sakuma

Gilead reported a profit of $1.84 a share not including special items, missing forecasts for $1.92 a share, on sales of $6.04 billion, topping estimates for $5.98 billion. Those aforementioned Affordable Care Act-related costs knocked 21 cents off of earnings. Sales of Gilead’s Hepatitis-C treatment Sovaldi plunged 20% during the third quarter as patients waited for the FDA to approve Harvoni.

None of that appears terribly disappointing, so why have Gilead’s shares dropped 2.4% to $110.70 at 5:30 p.m.? I asked ISI Group’s Mark Schoenebaum that very question and his succinct reply: “b/c no upside surprises.”

With Gilead trading within spitting distance of its 52-week high, that’s more than enough reason.

Protect Yourself From Ebola Scams

Both the Better Business Bureau and the Federal Trade Commission are warning consumers to watch out for Ebola-related charity scams. And the Financial Industry Regulatory Authority is cautioning investors to steer clear of scams involving companies that claim to be developing products to prevent the spread of the deadly disease.

SEE ALSO: The Perils of Penny Stocks To avoid charity scams …

Only give to charities you know and trust. You can check out charities at the BBB's Give.org site, find a list of charities responding to the Ebola outbreak on CharityNavigator.org or give to the CDC Foundation, which helps the Centers for Disease Control and Prevention's Ebola response.

Don't give out financial information to unsolicited callers claiming to be with a charity. The BBB reports that consumers have received calls from someone claiming to be with a well-known charity's chapter in the Bronx, N.Y., that is raising money to help with Ebola, but no such branch exists.

Don't click on links or attachments in unsolicited e-mails. Opening attachments can install malware on your computer, according to the FTC. And the links can lead to fraudulent Web sites that might ask for your personal information that can be used to drain your accounts or steal your identity.

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Be wary of social media fundraising efforts. Just because you see an organization or fundraising effort touted on Facebook or Twitter doesn't mean it's legitimate. The FTC recommends that you research any solicitation before making a donation. You can use the sites listed above.

Don't give cash. Make a payment by check or credit card to have a record of the transaction for tax purposes. Also be aware that if you're giving money to a project run by an individual rather than a charitable organization, your donation might not qualify as a tax-deductible gift, the BBB reports.

To avoid stock scams …

Be wary of claims that a company is poised for dramatic growth as a result of a supposed cure or treatment for a disease such as Ebola, FINRA Senior Vice President for Investor Education Gerri Walsh said in a written statement. This could indicate an effort by scammers to artificially inflate the value of a stock in what is often referred to as a pump-and-dump scheme. In this scenario, scammers try to lure investors to buy a stock with promises of big returns. But once the stock's price increases the scammers sell off their shares at a profit, quickly driving down the price and leaving investors with worthless (or near-worthless) stock that no one wants to buy, according to FINRA.

Consider the source of the stock tip. According to FINRA, investors should be skeptical of emails or promotional materials from unknown senders hyping a company and its products. It's a red flag if you're flooded with numerous releases or e-mails about a company's stock focusing only on its upside and no mention of risk. This is the "pump" phase of a typical pump-and-dump stock scam. You can use FINRA's Broker Check or call your state securities regulator to find out if the person selling the stock or investment is properly licensed and his or her firm is registered with FINRA, the Securities and Exchange Commission and a state regulator.

Do your own research. FINRA recommends doing an online search of the company and its officials to look for red flags. Pay careful attention to recent or multiple corporate name changes, as well as recent indictments or convictions of company officials. Use the Securities and Exchange Commission's EDGAR database to see if the company files reports with the SEC. If so, read those reports to verify any information you might have received about that company.

Know where the stock trades. Most unsolicited investment recommendations involve stocks that don't trade on a major exchange, such as the Nasdaq or New York Stock Exchange. Instead, they likely trade "over the counter" on exchanges with looser listing standards, such as those run by OTC Markets Group. Although many over-the-counter stocks are issued by legitimate companies, the shares may trade infrequently, which means the price may move up or down substantially from one trade to the next. It also means that it can become difficult to sell shares when you want to -- especially if the price drops dramatically.

First Take: In the end, Samsung and Google won

SAN MATEO, Calif. — This time, the Great Patent War had the look and feel of a Samsung win, with a big assist to Google.

Two years ago, Apple was awarded nearly $1 billion in Round One of the legal slugfest. This year? $119.6 million, after a federal court jury Friday found Samsung infringed on some of Apple's smartphone patents.

NEWS: Federal jury says Samsung infringed two Apple patents

The jurors also found some Apple iPhones and iPods infringed a Samsung patent, and ordered Apple to pay $158,400 in damages to its South Korean rival.

Samsung can thank a top-notch legal team that wisely invoked Google as its primary defense. It persuasively argued that Apple's true legal beef was with Google and its Android operating system, which runs the nine Samsung smartphones and one Galaxy tablet targeted in Apple's patent lawsuit.

It was a convincing court victory that — coupled with Samsung's clear marketing mastery and, yes, innovative mobile products — has put Apple on its heels.

It's made for fascinating theater in court and in the marketplace, and changed the way consumers think about consumer-electronics products.

Here's hoping that Apple fights back with new products — not another patent case.

Why New Construction Homes Are a Hot Choice for Homebuyers

According to a recent Trulia survey, twice as many people prefer new homes to existing homes.

So what qualifies as "new"?

"New" means exactly that: just-built properties that have never been lived in before, or homes purchased in the pre-construction phase. On the flip side, "existing" or resale homes are considered pre-owned properties, most of which were built between the 1920s and the 1970s. For the same price, 2 in 5 Americans — a sizable 41% of the population — either somewhat or strongly prefer a newly built home over an existing one.

Existing or older homes have the advantage of architectural charm and sizable lots, and are generally located in more established neighborhoods. Older homes, especially ones that were not meticulously maintained or renovated each decade usually need a little TLC and are often slightly less expensive than a new construction home. However, new construction homes have advantages that just might outweigh their older, more established counterparts.

Let's take a look at why new construction seems to be the house of choice for so many Americans.

Floor Plans Designed For The Way We Live Today
One the biggest advantages of buying a new construction home is that they are designed and built for today's lifestyle. They come with the flowing open floor plans and features that meet modern-day demands, including open, eat-in kitchens, walk-in closets, large master baths, more access to outdoor entertaining areas, and even additional storage. Many older existing homes built between the 1920's and the 1990's often lack one or more if those features as part of their original home design.

More Choices and More Options
Today, more than ever, home builders are offering buyers the ability to customize their home with a vast number of options. Lighting, flooring, cabinetry, countertops, wall coverings, paint colors, even landscaping can often be selected from a wide variety of choices. Some of the choices are considered upgrades and will add to your base price, but now builders are adding options that are still considered part of the original price package. You'll be moving into a home that's customized for you!

Energy Efficient
Utilizing new construction materials, just-built homes are usually more energy efficient — and that means potentially lower utility bills. Not only are these newly built homes rated higher for insulation, many new homes are incorporating renewable sources of clean energy like solar. All of this new home tech could save you thousands over the course of the years you live in the home.

New Technology = Smart Home
New construction homes are often equipped with the latest technology built right in. Think cable, alarm systems, speaker systems, high-speed wired Internet, digital thermostats and detectors — when they're just the flip of a switch away, you save you lots of time and money, not to mention holes in the walls.

Less Maintenance and Repair Bills
With new construction or pre-construction purchases, the work is already done for you. You don't have to do a darn thing. You don't have to lift a finger (or a hammer). A big financial benefit to a new home is that you won't have much maintenance to do for quite a while. With modern, new appliances, plumbing, heating, and air, you should be able to live repair-free for a few years.

Financial Advantage
When you buy new from a reputable and established builder, you are able to include your selected upgrades into the original purchase price and mortgage amount, financing them. When you purchase an older home, you will have to secure a mortgage, buy the home, and then begin renovations on a separate line of funds. That means that the money for the renovations will have to come directly out of your pocket. This can be especially tough for homebuyers who are low on cash after plunking down a big down payment. New construction, however, allows you to make your choices of upgrades and additions and have those costs incorporated into the overall purchase price of the home. That way, you are able to finance these upgrades rather than pay for them in full, out-of-pocket.

New Trumps Retrofit
New homes are built with the latest building plans, designs, and materials. The systems (electrical, plumbing, sewage lines, central heating, and air) already meet today's codes and standards. It is always much more efficient and practical to have these systems built into a new home, rather than have to upgrade and retrofit existing older systems, which can sometimes mean ripping into the walls, floors, and ceilings to gain access to the key home systems.

Free Weekends
When you buy new, you get more time relaxing at home. You won't be spending all your weekends at home renovation stores as you try to tackle that "honey-do" list of home improvements each week. Buying a new construction home allows you to enjoy your weekends at home almost as soon as you are unpacked.

Easier On Your Relationship
While buying a home is never stress free, buying a new home certainly does avoid the long, drawn out process of stressful renovations and upgrades that come along with buying an older home and fixing up while you live in it. Yes, there are many advantages to purchasing an older home. However, there are some potential hazards to consider before signing up for the house that will need some serious work, including the strain it can put on your relationship. In fact, according to a survey by Houzz, 12% of couples admitted to considering a separation or divorce mid-remodel.

This article originally appeared on Trulia.com.

Top dividend stocks for the next decade
The smartest investors know that dividend stocks simply crush their non-dividend paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here.

Mid-Day Market Update: Amazon Drops On Downbeat Results; Digital River Shares Spike Higher

Related BZSUM Mid-Morning Market Update: Markets Flat; Ford Posts Upbeat Profit #PreMarket Primer: Friday, October 24: Ebola Fears Weigh On Markets

Midway through trading Friday, the Dow traded up 0.52 percent to 16,764.34 while the NASDAQ surged 0.39 percent to 4,470.29. The S&P also rose, gaining 0.46 percent to 1,959.85.

Leading and Lagging Sectors

In trading on Friday, telecommunications services shares were relative leaders, up on the day by about 1.19 percent. Meanwhile, top gainers in the sector included TIM Participacoes S.A. (NYSE: TSU), up 3.3 percent, and China Mobile (NYSE: CHL), up 2.9 percent.

Energy services shares fell by 0.12 percent on Friday. Top losers in the sector included Basic Energy Services (NYSE: BAS), down 8.6 percent, and Vaalco Energy (NYSE: EGY), off 5.7 percent.

Top Headline

Ford Motor Co (NYSE: F) reported better-than-expected third-quarter earnings.

The Dearborn, Michigan-based company posted quarterly net income of $835 million or $0.21 per share, down from $1.27 billion, or $0.31 per share, in the year-ago period. Its pretax profit slipped to $1.18 billion, or $0.24 per share, versus $2.6 billion, or $0.45 per share.

Its revenue dropped to $34.9 million from $35.8 million. Analysts were expecting a profit of $0.19 per share on revenue of $33.11 billion.

Equities Trading UP

Digital River (NASDAQ: DRIV) shares shot up 47.58 percent to $25.65 after the company agreed to be acquired by an investor group led by Siris Capital Group for $26.00 per share in cash.

Shares of BJ's Restaurants (NASDAQ: BJRI) got a boost, shooting up 24.37 percent to $41.29 on stronger-than-expected Q3 earnings.

KLA-Tencor (NASDAQ: KLAC) shares were also up, gaining 7.61 percent to $76.40 after the company reported better-than-expected Q1 results. The company announced a $16.50 per share special dividend and added 3.6 million shares to buyback.

Equities Trading DOWN

Shares of DryShips (NASDAQ: DRYS) were down 23.25 percent to $1.54 after the company priced 250 million shares of common stock at $1.40 per share.

Pandora Media (NYSE: P) shares tumbled 14.92 percent to $19.67 on quarterly results. The company reported upbeat quarterly results and raised its outlook for the fourth quarter and full year.

Amazon.com (NASDAQ: AMZN) was down, falling 6.96 percent to $291.38 after the company reported weaker-than-expected third-quarter results and issued a weak sales forecast for the holiday quarter.

Commodities

In commodity news, oil traded down 0.90 percent to $81.35, while gold traded up 0.10 percent to $1,230.30.

Silver traded up 0.07 percent Friday to $17.17, while copper rose 0.20 percent to $3.05.

Eurozone

European shares were mostly lower today. The eurozone’s STOXX 600 slipped 0.33 percent, the Spanish Ibex Index rose 0.13 percent, while Italy’s FTSE MIB Index gained 0.31 percent. Meanwhile, the German DAX slipped 0.66 percent and the French CAC 40 declined 0.69 percent while UK shares dropped 0.51 percent.

Economics

Sales of new homes gained at an annual rate of 467,000 in September, versus a revised 466,000 in August. However, economists were expecting sales rate to reach 470,000.

Posted-In: Earnings News Guidance Eurozone Futures Commodities Econ #s Markets

© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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10 Big-Name Stocks Going Ex-Dividend Next Week (Oct 27-31)

Ex-dividend dates are very important to dividend investors, since you must purchase a stock prior to its ex-dividend date in order to receive its upcoming dividend payout. For more information, check out Everything Investors Need to Know About Ex-Dividend Dates.

Below we highlight 10 big-name stocks going ex-dividend for the week of October 27-31.

1. Ford Motor Company

Ford Motor Company (F) is set to trade ex-dividend on October 29. The automobile company offers a dividend yield of 3.54% based on Wednesday's closing price of $14.13 and the company's quarterly dividend payout of 12.5 cents. The stock is down 8% year-to-date. Dividend.com currently rates F as “Neutral” with a DARS™ rating of 3.4 stars out of 5 stars.

2. Hasbro

Hasbro (HAS) is set to trade ex-dividend on October 30. The toy company offers a dividend yield of 3.02% based on Wednesday's closing price of $56.91 and the company's quarterly dividend payout of 43 cents. The stock is up 3% year-to-date. Dividend.com currently rates HAS as “Neutral” with a DARS™ rating of 3.4 stars out of 5 stars.

3. Texas Instruments

Texas Instruments (TXN) is set to trade ex-dividend on October 29. The technology company offers a dividend yield of 2.92% based on Wednesday's closing price of $46.62 and the company's quarterly dividend payout of 34 cents. The stock is up 6% year-to-date. Dividend.com currently rates TXN as “Neutral” with a DARS™ rating of 3.4 stars out of 5 stars.

4. Bank of Montreal

Bank of Montreal (BMO) is set to trade ex-dividend on October 30. The financial services company offers a dividend yield of 3.99% based on Wednesday's closing price of $71.34 and the company's quarterly dividend payout of 78 cents. The stock is up 7% year-to-date. Dividend.com currently rates BMO as “Neutral” with a DARS™ rating of 3.4 stars out of 5 stars.

5. Paychex

Paychex (PAYX) is set to trade ex-dividend on October 30. The staffing company offers a dividend yield of 3.40% based on Wednesday's closing price of $44.71 and the company's quarterly dividend payout of 38 cents. The stock is down 2% year-to-date. Dividend.com currently rates PAYX as “Neutral” with a DARS™ rating of 3.4 stars out of 5 stars.

6. Clorox

NBC's Dr. Nancy Snyderman to resume work in November

  Patients shun Dallas hospital hit by Ebola NEW YORK (CNNMoney) The mandatory Ebola-related quarantine is over, but Dr. Nancy Snyderman and the crew members who traveled to Liberia with her are not coming back to work yet.

In an internal memorandum on Wednesday, NBC News president Deborah Turness said the crew would be taking some more time off work, adding, "We very much look forward to their return next month."

Dr. Nancy Snyderman

The timing is noteworthy because Dr. Snyderman's apparent violation of a voluntary quarantine scared some members of her New Jersey community and stoked a major controversy earlier this month. Questions about her credibility have lingered, and she has not addressed those questions publicly.

The additional time off-air seems to be an effort to "put some space between her and this story," as one television blogger described it.

Snyderman was covering Ebola in Liberia with a crew that included a freelance photojournalist, Ashoka Mukpo, who was infected with Ebola. Mukpo was brought to the U.S. for treatment, and Snyderman and the other crew members said that upon return to the United States, they would voluntarily stay home for three weeks.

"We'll approach this very cautiously and probably more judiciously than other people because we want to send the right message," she said on NBC's "Today" show.

But Snyderman was subsequently spotted outside her New Jersey home, resulting in local news coverage that went national within a matter of days. The state of New Jersey decided to make the quarantine mandatory, which Snyderman eventually acknowledged in a statement read on "NBC Nightly News."

"Members of our group" violated the quarantine guidelines, she said, calling herself "deeply sorry for the concerns this episode caused."

Snyderman has had no further comment. The three-week quarantine period ended on Wednesday evening, according to Turness, and the members of her team "remain healthy and symptom-free, which is a great relief to all."

While in Liberia Dr. Nancy and her team delivered! first class, first-hand reporting from the front lines of this tragic and monumental story," Turness said in the memo. "Their subsequent departure from Monrovia, their return to the U.S. and period of quarantine has been a challenging time. We have encouraged them — and they have agreed — to take some time off with their families and friends to help restore some normalcy to their lives."

Turness added, "We very much look forward to their return next month."

  Melinda Gates on Ebola: 'Vast inequities'

The memo also expressed joy about Mukpo's condition. Earlier this week he was said by his doctors to be "Ebola-free" following treatment at a medical center in Nebraska.

In an interview on Wednesday's "Nightly News," Mukpo did not express regret about his work in Liberia.

"As a journalist, and as somebody who had a relationship to that country, it's not something that I will look back on and say, you know, it was the wrong decision to do," Mukpo said.

"I think it's important in life to take risks for things that you believe in," he added. "But it's also important to keep yourself safe. So, I mean, it's hard to call Ebola a learning experience. But I think that I'm gonna walk away from this with some important lessons for the future."

Can Starbucks Make Soda Cool Just Like It Made Coffee Hot?

www.starbucks.com These are hard times for the soft drink industry, but no one seems to be telling Starbucks (SBUX). The java giant introduced Fizzio this summer, serving up three flavors of handcrafted carbonated beverages. It's an odd time for Starbucks to be rolling out new soft drinks. Consumption in this country is waning. We saw that earlier this month when PepsiCo (PEP) posted quarterly results that were more flat than fizzy, with carbonated-soft-drink volume declining 1.5 percent in North America compared to the same period a year earlier. The Pepsi provider saw soda sales in North America slip 2 percent the quarter before that. We also saw that on Tuesday morning when Coca-Cola (KO) reported fresh financial results. Sparkling-beverage sales in North America declined by 1 percent, and that was with the company gaining market share on the heels of the relatively successful Share a Coke campaign, in which cans and bottles were emblazoned with names and terms of endearment. (Star)Bucking the Trend The world's two largest pop stars are faltering when it comes to carbonated drinks in this country, and they're not alone. Industry trade watcher Beverage Digest reports that overall soda volumes have fallen for nine years in a row. Sales plunged 3 percent in 2013, with diet sodas suffering an even bigger decline. Starbucks can always suggest that its foray into premium soft drinks is about more than what the masses are sipping. It's focusing on high-end root beer, ginger ale and lemon sodas that are made at the store just as they are ordered. Baristas mix up all-natural ingredients. The spiced root beer soda, for example, combines cane sugar, cinnamon, nutmeg, clove and star anise to flavor carbonated water. It's made with the same handcrafted detail and human theater as Starbucks' signature brews. The early results have been encouraging, and not just because it gives Starbucks yet another product line to sell. "Consumer response to Fizzio has been strong," Starbucks noted in July's conference call, pointing out that after introducing it through 3,000 stores in the Sun Belt a month earlier, successful tests in Japan and Singapore mean Fizzio will be added to select international markets in the coming quarters. It's not just about giving non-coffee drinkers something to do while their friends are sipping on their vanilla lattes and mocha cappuccinos. Starbucks hopes that these handcrafted beverages will attract customers during the afternoons and evenings, when things typically slow down for their coffee orders. It is also hoping that it results in a spike in food orders to go alongside the refreshing beverages. A Latte Potential Starbucks is trying to do for soda what it did for premium coffee. Starbucks was inspired by the artsy European coffeehouses, but it was ultimately about taking a throwaway morning beverage that consumers associated with greasy-spoon diners or caffeinated fuel to accompany the morning drudgery and transforming it into an aspirational product. It worked, of course. Starbucks serves 70 million customers a week through its growing empire that currently consists of 21,000 stores in 65 countries. It doesn't matter if soda sales have been slumping for years. Coffee wasn't very exciting until Starbucks made bean-water fashionable. Growing Fizzio's success both here and abroad won't be easy at a time when the fizz has gone flat for the carbonated beverage industry, but Starbucks knows a thing or two about turning a tired drink category into something that's relevant again. Coca-Cola and PepsiCo had better hope that Starbucks succeeds, because clearly they can't turn things around on their own. More from Rick Aristotle Munarriz
•It's Almost Time to Kiss Your Cable Bill Goodbye •Last Week's Biggest Stock Movers •Wall Street This Week: Forecasts by Microsoft, Ford on Deck

Netflix Wants to Stretch Its Lead Against Amazon With This Recent Move

Shares of online streaming maven Netflix (NASDAQ: NFLX  )  were up significantly today (about 7% as of the end of the trading day) as yesterday after the bell the company reported both better-than-expected earnings as well as a planned price increase that should help Netflix fight to maintain its lead against Amazon.com (NASDAQ: AMZN  ) .

Today's move still doesn't erase some of the recent losses that Netflix shares have suffered. Shares remain down roughly 10% over the last month and still sit below their all-time high of $454.88 from the beginning of March. However, with its shares still up well over 400% from early 2012 and considering the strength of yesterday's report, it's safe to say that times are good for Netflix and its shareholders.

Netflix by the numbers
In virtually every sense, the first quarter of 2014 was an unabashed success for Netflix.

Source: Netflix.

Netflix's revenue growth remains robust, increasing 36.5% during the quarter, and the inherent operating leverage in Netflix's model translated to even better bottom-line results for it. All told, Netflix's net income ballooned from $3 million in last year's Q1 to $53 million in this year's Q1.

Subscriber growth also remains brisk on both the domestic and international fronts for Netflix. For the quarter, Netflix managed to add 2.25 million net subscribers to its U.S. streaming business, ending the period with a grand total of 35.7 million domestic streaming members. International members increased by 1.75 million, lifting Netflix's international subscriber base to 12.7 million.

Going forward, Netflix guided that it expects continued execution on both the domestic and international fronts, although some seasonality in the coming months could lead to slowing subscriber growth in the short-term. Nevertheless, the main theme remains unchanged: Netflix is clicking on all cylinders.

And in the same vein, Netflix also announced one major move that should help it stave off increased competition from other streaming services, like Amazon's Prime.

Netflix ups the ante against Amazon
Netflix also took some time to humble-brag its superiority to other TV-based networks and streaming competitors. Netflix specifically cited a Morgan Stanley research report ranking it as second behind HBO's original programming, with about 17% of respondents identifying Netflix as the best service for original content. For comparison's sake, Amazon didn't crack the top 6, even as Amazon notches original content wins of its own with series like Alpha House.

And apparently Netflix plans to continue to press its advantage over other streaming rivals like Amazon by increasing prices for new streaming subscribers by $1 to $2 depending on geographic region. This will help Netflix greenlight more original content, as well as acquire new, exclusive rights to other third-party content, both of which should help pull new streaming subscribers toward Netflix and away from Amazon Prime's admittedly compelling value proposition.

In fact, Netflix specifically noted that with streaming competitors following its lead in original content, plus the ramp-up from traditional networks in response, competition for the kind of quality creative talent required to bring flagship series to market has never been higher. Netflix hopes that this price increase will help keep it ahead of the pack.

Up, up, and away
Netflix said it believes it can reach an eventual subscriber base between 60 million and 90 million U.S. subscribers in the years ahead, so there's plenty of growth on the horizon for the streaming pioneer.

Netflix's shares are by no means cheap, as they currently trade at roughly 130 times its last 12 months' earnings. However, Netflix has continued to prove that it is indeed a truly special company with the rare mix of talent, vision, and execution required to dominate a market with its recent earnings release, and that's certainly worth investors' attention.

Your cable company is scared, but you can get rich
You know cable's going away. But do you know how to profit? There's $2.2 trillion out there to be had. Currently, cable grabs a big piece of it. That won't last. And when cable falters, three companies are poised to benefit. Click here for their names. Hint: They're not Netflix, Google, and Apple. 

 

When Efforts to Save Money on Vacation Backfire

I thought my careful planning would save my family money when we took a vacation this past week. But you know what they say about best-laid plans …

SEE ALSO: 26 Secrets to Save on Travel

Our week-long trip involved flying to Salt Lake City, then driving to Yellowstone National Park and Grand Teton National Park. I booked our flights early enough to score the low fares on Southwest Airlines for the particular route we were taking. Plus, I had enough frequent-flyer points to offset the cost of some of the tickets (see How to Earn Airline Miles Without Flying). And by flying Southwest, we would be able to check up to two bags per person for free.

However, our flight was canceled the night before we were scheduled to depart because we were flying through Chicago, where a fire at an air traffic control center disrupted air travel across the U.S. When I saw the e-mail notifying me of the cancellation, I called Southwest while my husband started searching online for flights on other airlines. After staying on hold for more than an hour, I finally spoke to a customer service representative who gave me a full refund for our canceled flight. And my husband managed to find a flight to Salt Lake City on US Airways for about $40 more per ticket than our original Southwest flight. Although we took a hit, it could've been much worse.

But then US Airways charged us $25 per checked bag. So we were out $75 for three checked bags. Carry-ons weren't an option since we needed several layers of clothing for the five of us to wear in the mountains, as well as a large hiking backpack to hold our toddler during treks along trails.

I packed snacks to take on the plane, but we ended up buying a meal at the airport because we had to arrive before lunch for the first leg of our flight, then wait three hours before the second leg, which departed right at dinner time.

Then our first day in Yellowstone, we had to buy hats for the kids. I didn't pack any (even though my husband said I should) because the forecast was calling for highs in the 60s. But there were high winds, and it didn't get much above 50 degrees.

Fortunately, though, my planning did help offset some of the additional expenses we incurred.

Because our original flight was scheduled to arrive in Salt Lake City late in the afternoon, we had decided to stay the first night of our trip there before heading north the next day to Yellowstone. We also needed to book a room in Salt Lake City the night before our return home because we had an early flight. So I took advantage of points I had racked up with a hotel-branded rewards credit card to get two free stays at a hotel with free breakfast (see our picks for best hotel rewards cards).

My husband took advantage of a discount through his employer to get a deal on a rental car. And because we would be going to Yellowstone and Grand Teton, the only thing we had to pay for four days of sightseeing was a $25 fee that covered the entrance to both national parks.

If we had gone in the summer, we would've camped to save money. But with temperatures forecasted to drop into the 30s at night, and the bears in the parks in the process of fattening up ahead of winter hibernation, camping with three young kids wasn't a good option on this trip. We booked a room in one of Yellowstone's lodges for two nights, then took advantage of off-season rates at a lodge (with free breakfast) in Jackson, Wyo., near Grand Teton.

We also packed reusable water bottles so we wouldn't have to pay for overpriced bottled water. We also brought a collapsible cooler that we filled with food purchased before entering the national parks so we wouldn't have to pay for high-priced meals within the parks (see more ways to cut the cost of travel with kids).

And we told our two daughters beforehand that they had to use their own money to buy souvenirs. Our 2-year-old has no money of his own, so he didn't get a souvenir. But he did get to see Old Faithful, waterfalls, snow-covered mountains, elk, bison, moose, wolves and even a grizzly bear. That's better than any souvenir, right?

Citigroup earnings: here’s what investors can expect

NEW YORK (MarketWatch) -- Citigroup Inc. (C)  will release its first-quarter earnings on Monday at 8 a.m. Eastern. This is what investors can expect:

Earnings: The nation's third-largest bank by assets is expected to report net income of $3.56 billion, or $1.14 earnings per share, down from $3.8 billion, or $1.29 a share in the year-earlier period, according to analysts surveyed by FactSet.

/quotes/zigman/5065548/delayed/quotes/nls/c C 45.68, -0.55, -1.19% Citi shares got knocked this year

Revenue: The bank is expected to report a decline in revenue. The consensus estimate is $19.47 billion for the quarter, compared to $20.5 billion a year ago.

Stock react: Shares are trading at $45.68, down 12% year-to-date and 17% below their 52-week high. Shares have lagged the Financial Select Sector SPDR Fund (XLF) , which tracks financial stocks in the S&P 500 (SPX) and is down 2.7% year-to-date. Analysts have an average price target of $58.06, according to FactSet. Rival J.P. Morgan Chase & Co. (JPM)  shares fell 3.7% after it reported earnings Friday.

Key issues: Citigroup warned investors this week that it may miss a key profitability target, after the Federal Reserve rejected its latest capital plan. The bank was referring to its target for return on tangible common equity, a figure that lets investors compare its profitability with that of its peers.

Legal issues: Watch for comments on legal expenses following some recent settlements, and for any news on the fraud case at its Mexican unit, Banamex.

Citi Holdings: Citi's "bad bank" has been a drag on earnings and management has worked hard to reduce its impact. Citi Holdings currently accounts for just 6% of all Citigroup assets.

More from MarketWatch:

Wells Fargo is the best buy among biggest banks

Why J.P. Morgan's earnings miss is a win for Main Street

Why J.P. Morgan and Wells Fargo are diverging

A Fairly Profitable Midwestern Bank

In this article, let's take a look at Fifth Third Bancorp (FITB), a $150.37 billion market cap company, which is a diversified financial services company, based in Cincinnati, which operates 1,340 branches in 12 states, with a focus on Ohio, Michigan and Illinois.

Return over time

Fifth Third Bancorp operates with four business segments: Commercial Banking (over 35% of total revenues); Branch Banking (35% of revenues); Consumer Lending (14% of revenues); and Investment Advisers (about 8% of revenues).

The bank was a fairly profitable Midwestern bank, but then provisions for loan losses started to increase, real estate prices played unfavorably and the bank's primary markets (Ohio, Michigan and Florida) started to experience the losses. Since 2007, the mean return on equity was about 18% but then fell.

It is very important to understand this metric before investing, and it is important to look at the trend in ROE over time.

Pricing power

It doesn´t have lots of competitive advantages. In Michigan and Ohio, it enjoys a deposit market share of around 30%, giving pricing power that helped achieve a good track record of results. The average efficiency ratio is around 55% in the last ten years, somewhat lower than the average of its peers.

Credit quality

The credit quality is better now due to the actions the bank has taken and credit trends are improving. Now, the company´s allowances covers more than 150% of the bad-loan balance.

CCAR program

Some months ago, the Federal Reserve did not object the capital plan, earlier submitted under the 2014 Comprehensive Capital Analysis and Review (CCAR) program. This way, it can increase its quarterly common stock dividend to $0.13, from $0.12. it is expected common stock dividends for about $1.8 billion this year, and share buybacks of $650 million.

Revenues, margins and profitability

Looking at profitability, revenue declined by 9.22% and led earnings per share decreased in the most recent quarter compared to the same quarter a year ago ($0.49 vs $0.65). During the past fiscal year, the company increased its bottom line. It earned $2.01 versus $1.66 in the previous year. For the next year, Wall Street expects contraction of about 15% in earnings ($1.71 versus $2.01).

The gross profit margin is considered very high at 88.69%, and the net profit margin of 26.77% is above the industry median.

Finally, let´s compare the best measure of performance for a firm's management: the return on equity. The ROE is useful for comparing the profitability of a company to that of other firms in the same industry.

Ticker	Company	ROE (%)
FITB	Fifth Third Bancorp	10.72
HBAN	Huntington Bancshares Inc	10.74
BBT	BB&T Corp	8.23
STI	SunTrust Banks Inc	6.60
FRC	First Republic Bank	11.04
RF	Regions Financial Corp	7.14
	Industry Median	8.43

The company has a current ROE of 10.72% which is higher than the industry median and BB&T (BBT), Sun Trust Banks (STI) and Regions Financial (RT). In general, analysts consider ROE ratios in the 15-20% range as representing attractive levels for investment. First Republic (FRC) is the one that is more closely to those levels.

Relative Valuation

In terms of valuation, the stock sells at a trailing P/E of 11.2x, trading at a discount compared to an average of 15.0x for the industry. To use another metric, its price-to-book ratio of 1.19x indicates a premium versus the industry average of 1.16x while the price-to-sales ratio of 2.71x is below the industry average of 3.1x.

As we can see in the next chart, the stock price has an upward trend in the five-year period. If you had invested $10,000 five years ago, today you could have $23,305, which represents a 18.4% compound annual growth rate (CAGR).

Final comment

As outlined in the article, a significant improvement in loan credit quality should benefit the bank in the upcoming years, reaching profitability in a scenario that should need some protection against interest rate movements.

The PE relative valuation and the return on equity that exceeds the industry average and make me feel bullish on this stock.

Hedge fund gurus like Paul Tudor Jones (Trades, Portfolio), Charles Brandes (Trades, Portfolio), Robert Olstein (Trades, Portfolio), Richard Pzena (Trades, Portfolio) and James Barrow (Trades, Portfolio) added this stock to their portfolios in the second quarter of 2014, as well as Caxton Associates (Trades, Portfolio).

Disclosure: Omar Venerio holds no position in any stocks mentioned

Also check out: Paul Tudor Jones Undervalued Stocks Paul Tudor Jones Top Growth Companies Paul Tudor Jones High Yield stocks, and

5 Hated Earnings Stocks You Should Love

DELAFIELD, Wis. (Stockpickr) -- Short-sellers hate being caught short a stock that reports a blowout quarter. When this happens, we often see a tradable short squeeze develop as the bears rush to cover their positions to avoid big losses. Even the best short-sellers know that it's never a great idea to stay short once a bullish earnings report sparks a big short-covering rally.

Must Read: 5 Stocks Ready for Breakouts



This is why I scan the market for heavily shorted stocks that are about to report earnings. You only need to find a few of these stocks in a year to help enhance your portfolio returns -- the gains become so outsized in such a short time frame that your profits add up quickly.



That said, let's not forget that stocks are heavily shorted for a reason, so you have to use trading discipline and sound money management when playing earnings short-squeeze candidates. It's important that you don't go betting the farm on these plays and that you manage your risk accordingly. Sometimes the best play is to wait for the stock to break out following the report before you jump in to profit off a short squeeze. This way, you're letting the trend emerge after the market has digested all of the news.



Of course, sometimes the stock is going to be in such high demand that you risk missing a lot of the move by waiting. That's why it can be worth betting prior to the report -- but only if the stock is acting technically very bullish and you have a very strong conviction that it is going to rip higher. Just remember that even when you have that conviction and have done your due diligence, the stock can still get hammered if Wall Street doesn't like the numbers or guidance.



If you do decide to bet ahead of a quarter, then you might want to use options to limit your capital exposure. Heavily shorted stocks are usually the names that make the biggest post-earnings moves and have the most volatility. I personally prefer to wait until all the earnings-related news is out for a heavily shorted stock and then jump in and trade the prevailing trend.

With that in mind, here's a look at several stocks that could experience big short squeezes when they report earnings this week.

Must Read: 5 Dividend Stocks About to Hike Payments to Shareholders

Container Store Group

My first earnings short-squeeze play is storage and organization products player Container Store Group (TCS), which is set to release numbers on Monday after the market close. Wall Street analysts, on average, expect Container Store Group to report revenue of $199.24 million on earnings of 11 cents per share.

The current short interest as a percentage of the float for Container Store Group is extremely high at 20.8%. That means that out of the 16.69 million shares in the tradable float, 3.47 million shares are sold short by the bears. This is a large short interest on a stock with a very low tradable float. If the bulls get the earnings news they're looking for, then shares of TCS could easily rip sharply higher post-earnings as the bears rush to cover some of their trades.

From a technical perspective, TCS is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock has been trending sideways and consolidating for the last two months and change, with shares moving between $20.32 on the downside and $23.72 on the upside. Any high-volume move above the upper end of its recent range post-earnings could trigger a big breakout trade for shares of TSC.

If you're bullish on TCS, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some key near-term overhead resistance levels at $23.23 to $23.72 a share with high volume. Look for volume on that move that registers near or above its three-month average action of 455,380 shares. If that breakout hits post-earnings, then TSC will set up to re-test or possibly takeout its next major overhead resistance levels at $28 to its 200-day moving average of $29.76 a share. Any high-volume move above those levels will then give TCS a chance to trend north of $30 a share.

I would simply avoid TCS or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below some key near-term support levels at $21.11 to $20.65 a share and then below its all-time low of $20.32 a share with high volume. If we get that move, then TCS will set up to enter new all-time-low territory, which is bearish technical price action. Some possible downside targets off that move are $17 to $15 a share.

Must Read: How to Trade the Market's Most-Active Stocks

E2open

Another potential earnings short-squeeze trade idea is cloud-based and on-demand software solutions for supply chain management provider E2open (EOPN), which is set to release its numbers on Wednesday after the market close. Wall Street analysts, on average, expect E2open to report revenue $20.53 million on a loss of 14 cents per share.

The current short interest as a percentage of the float for E2open is extremely high at 20.7%. That means that out of the 18.04 million shares in the tradable float, 3.74 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period b 2.6%, or by 93,000 shares. If the bears get caught pressing their bets into a strong quarter, then shares of EOPN could easily trend sharply higher post-earnings as the bears rush to cover some of their positions.

From a technical perspective, EOPN is currently trending well below both its 50-day and 200-day moving averages, which is bearish. This stock has been downtrending badly for the last three months, with shares plunging lower from its high of $21.90 to its new 52-week low of $8.89 a share. During that downtrend, shares of EOPN have been consistently making lower highs and lower lows, which is bearish technical price action.

If you're in the bull camp on EOPN, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance levels at $9.67 to $10.96 a share and then above $11.30 a share with high volume. Look for volume on that move that hits near or above its three-month average volume of 280,178 shares. If that breakout kicks off post-earnings, then EOPN will set up to re-fill some of its previous gap-down-day zone from September above $11.30 that started near $16 a share.

I would simply avoid EOPN or look for short-biased trades if after earnings it fails to trigger that breakout and then drops below its new 52-week low of $8.89 a share with high volume. If we get that move, then EOPN will set up to enter new 52-week-low territory, which is bearish technical price action. Some possible downside targets off that move are $8 to $7 a share.

Must Read: 5 Stocks With Big Insider Buying

Monsanto

Another potential earnings short-squeeze candidate is agricultural products player Monsanto (MON), which is set to release numbers on Wednesday before the market open. Wall Street analysts, on average, expect Monsanto to report revenue of $2.41 billion on a loss of 23 cents per share.

The current short interest as a percentage of the float for Monsanto stands at 6%. That means that out of the 523.10 million shares in the tradable float, 31.37 million shares are sold short by the bears. This isn't a huge short interest, but it's more than enough to spark a decent short-covering rally post-earnings if Monsanto can deliver the earnings news the bulls are looking for.

From a technical perspective, MON is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock has been downtrending badly for the last three months and change, with shares moving lower from its high of $128.35 to its recent low of $109.36 a share. During that downtrend, shares of MON have been making mostly lower highs and lower lows, which is bearish technical price action. That said, shares of MON have now traded into some previous support levels from back in April at around $109 a share.

If you're bullish on MON, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance at $112 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 3.86 million shares. If that breakout begins post-earnings, then MON will set up to re-test or possibly take out its next major overhead resistance levels at its 200-day moving average of $114.60 a share to its 50-day moving average of $114.88 a share. Any high-volume move above those levels will then give MON a chance to tag its next major overhead resistance level at $116.33 a share.

I would avoid MON or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below some key near-term support levels at $109.36 to $109 a share with high volume. If we get that move, then MON will set up to re-test or possibly take out its next major support level at $103.33 to its 52-week low of $102.88 a share.

Must Read: 5 Breakout Stocks Under $10 Set to Soar

CalAmp

Another earnings short-squeeze prospect is wireless communications products and solutions developer CalAmp (CAMP), which is set to release numbers on Monday after the market close. Wall Street analysts, on average, expect CalAmp to report revenue of $59.06 million on earnings of 19 cents per share.

The current short interest as a percentage of the float for CalAmp is pretty high at 8%. That means that out of 34.05 million shares in the tradable float, 2.72 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 13%, or by 314,000 shares. If the bears get caught pressing their bets into a bullish quarter, then shares of CAMP could easily rip sharply higher post-earnings as the shorts move to cover some of their trades.

From a technical perspective, CAMP is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock has started to form a bottoming chart pattern over the last three months, since shares have found buying interest each time its pulled back below $17 a share. If that bottom can hold post-earnings, then shares of CAMP could set up to trend higher and break out above some near-term overhead resistance levels.

If you're bullish on CAMP, then I would wait until after its report and look for long-biased trades if this stock manages to break out above its 50-day moving average of $18.37 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 636,777 shares. If that breakout develops post-earnings, then CAMP will set up to re-test or possibly take out its next major overhead resistance levels at $20.84 to $22.36 a share, or even its 200-day moving average of $23 a share.

I would simply avoid CAMP or look for short-biased trades if after earnings it fails to trigger that breakout and then takes out some key near-term support at $16.03 a share with high volume. If we get that move, then CAMP will set up to re-test or possibly take out its next major support levels at its 52-week low of $14.74 a share.

Must Read: 7 Stocks Warren Buffett Is Selling in 2014

Alcoa

My final earnings short-squeeze play is aluminum, fabricated aluminum and alumina producer Alcoa (AA), which is set to release numbers on Wednesday after the market close. Wall Street analysts, on average, expect Alcoa to report revenue of $5.84 billion on earnings of 22 cents per share.

The current short interest as a percentage of the float for Alcoa sits at 1.9%. That means that out of the 36.73 million shares in the tradable float, 689,900 shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 2.2%, or by 1.34 million shares. If the bears get caught pressing their bets into a bullish quarter, then shares of AA could easily move sharply higher post-earnings as the shorts rush to cover some of their bets.

From a technical perspective, AA is currently trending above its 200-day moving average and just below its 50-day moving average, which is neutral trendwise. This stock has been downtrending a bit over the last month, with shares moving lower from its high of $17.36 to its recent low of $14.89 a share. During that move, shares of AA have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of AA have now started to bounce off that $14.89 low and it's quickly approaching a breakout trade that could trigger post-earnings.

If you're in the bull camp on AA, then I would wait until after its report and look for long-biased trades if this stock manages to break out above its 50-day moving average of $16.38 a share and then above more near-term overhead resistance levels at $16.34 to $$16.50 a share with high volume. Look for volume on that move that registers near or above its three-month average action of 17.47 million shares. If that breakout materializes post-earnings, then AA will set up to re-test or possibly take out its 52-week high of $17.36 a share. Any high-volume move above that level will then give AA a chance to trend north towards $20 a share.

I would avoid AA or look for short-biased trades if after earnings it fails to trigger that breakout, and then drop below some key near-term support levels at $15.50 to $14.89 a share with high volume. If we get that move, then AA will set up to re-test or possibly take out its next major support levels at its 200-day moving average of $13.74 a share to $13 a share.

Must Read: 10 Stocks George Soros Is Buying

To see more potential earnings short squeeze plays, check out the Earnings Short-Squeeze Plays portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.

RELATED LINKS:

>>Must-See Charts: How to Trade 5 Big Stocks for Big Gains

>>4 Stocks Breaking Out on Unusual Volume

>>3 Hot Stocks to Trade (or Not)

Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including

CNBC.com and Forbes.com.

You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.

How to Invest in the Best Minds in Silicon Valley in Just One Move

Note to Readers: The tech landscape is shifting rapidly, and no fewer than 10 top tech companies have recently installed new CEOs who were brought in to improve their companies' operations, cash flow, and profits. Here's how to invest in all 10 with one solid foundational play to hold for the long haul...

When longtime Oracle Corp. (Nasdaq: ORCL) Chief Executive Officer Larry Ellison stepped down Sept. 18, it took not one but two new chief executives to replace him.

The media treated it as if a pope were retiring - or maybe Derek Jeter.

But really, besides the double-headed CEO thing, this was hardly news.

More than half a dozen disruptive tech trends are hitting Silicon Valley all at once, and, well, the industry's veterans aren't getting any younger. And so, a quiet revolution is sweeping the top ranks of tech's biggest and most powerful companies.

Here's proof: In the past three years, 10 top global tech companies have announced new CEOs.

And today I'm going to show you how to invest in the 11 members (remember: Oracle takes up two slots) of this New Guard all at once for a price well below what many of these stocks cost.

This one investment has already thrashed the overall market by 46.5% so far this year.

Now let me tell you all about it...

The Changing of the Tech CEO Guard

In my 30-plus years knocking around Silicon Valley, I can't remember a similar stretch of time with so many CEO changes.

Despite the huge pace of change in technology, Silicon Valley has long been home to a number of senior leaders who stayed at the top for many years.

Just look at Ellison, now 70. Since cofounding Oracle's predecessor, Software Development Laboratories, in 1977, he had served as the company's only CEO. That's a nearly 37-year tenure, one that Bloomberg lists as the longest in the current tech industry.

At Microsoft Corp. (Nasdaq: MSFT), there were only two CEOs for most of the company's history - founder Bill Gates for 25 years followed by Steve Ballmer for 14 more.

Robert Kotick has held the CEO spot at Activision Blizzard Inc. (Nasdaq: ATVI) for roughly 23 years, and Steve Sanghi at Microchip Technology Inc. (Nasdaq: MCHP) is just a few months behind him. Next January, John T. Chambers will celebrate his 20th year as CEO of networking giant Cisco Corp. (Nasdaq: CSCO).

Jeff Bezos at Amazon.com Inc. (Nasdaq: AMZN), Steve Singh of Concur Technologies Inc. (Nasdaq: CNQR), and Scott Scherr at Ultimate Software Group Inc. (Nasdaq: ULTI) are all tied at 18 years. And Reed Hastings of Netflix Inc. (Nasdaq: NFLX) is right behind them with a 16-year stint.

Thus, until recently, Silicon Valley has placed a high priority on having stable leadership. That's because it's nearly impossible to find executives who have all the unique skills required to run far-flung global tech enterprises.

So a top tech company's board often must extend the CEO a long-term contract that includes a hefty amount of stock options. So, both the board and the chief executive have every incentive to lock each other up for many years.

But that dynamic is changing as the tech landscape shifts rapidly.

In just the past five years, we've seen the rapid rise of Big Data and the Internet of Everything as well as mobile and cloud computing.

These companies need great leaders who can adapt to the lightning-fast pace of change all around them. And that's why we pay so much attention to tech leadership.

At Strategic Tech Investor, we have a five-part system for investing in tech to put us on the road to wealth. Rule No. 1 states that "Great companies have great operations" - and that usually starts with leadership.

How to Invest in 11 New Tech CEOs All at Once - for a Bargain

Our job now is to profit from the rise of this new generation of Silicon Valley leaders.

These men and women are change agents who have been brought in to improve their companies' operations, cash flow, and profits.

Thus, the arrival of a new CEO can serve as an explosive catalyst for a stock's share price.

You'd think we can't invest in all 10 of these global tech stocks with new leaders at once.

But you'd be wrong.

Of the top 20 holdings of Technology Select Sector SPDR (NYSE Arca: XLK), the New Guard we've been talking about takes up half of those slots.

This exchange-traded fund (ETF) represents more than 70 high-tech stocks, covering semiconductors, e-commerce, Big Data, mobile computing, the cloud, software, and telecommunications.

It's the largest tech-focused ETF out there. And it's up 25% in the past year, smashing the Standard & Poor's 500's 17% rise.

And for our purposes this is an excellent way to invest in Silicon Valley's changing of the old guard.

Let's take a look at three XLK holdings with newly installed CEOs that are helping this ETF crush the overall market:

Fresh-Faced Tech CEO No. 1: Marissa A. Mayer, Yahoo! Inc. (Nasdaq: YHOO)

Yahoo was one of the great plays of the early Internet age and still counts some 800 million regular users. But growth had slowed significantly. Much worse for investors, shares had remained in a downtrend for years.

And since leaving Google Inc. (Nasdaq: GOOG, GOOGL) to take the top spot at Yahoo in July 2012, Marissa A. Mayer has had a huge impact on the company's stock.

Mayer quickly set about revamping operations and looking for new strategic acquisitions. For instance, last year she paid $1.1 billion for the micro-blogging site Tumblr as a way to generate more traffic for Yahoo.

And she's handled Yahoo's big stake in Alibaba.

While Yahoo is still in turnaround phase, Mayer has been great for shareholders. Since becoming CEO, the stock is up nearly 160%. Over that same period, the S&P 500 is up just 48%.

Fresh-Faced Tech CEO No. 2: Brian M. Krzanich, Intel Corp. (Nasdaq: INTC)

Brian M. Krzanich became CEO of Intel in May 2013 and has been coming on strong. He's quickly made up the ground Intel lost by missing the early stages of the mobile revolution.

Just days after landing the CEO job, Krzanich made a $90 million mobile merger, buying a unit of ST-Ericsson SA that makes wireless GPS chips. Krzanich is also using Intel's new line of Atom microprocessors to target tablet computers.

In mid-July, the chip legend revealed it had shipped a record number of products in this year's second quarter. That included 10 million tablet semiconductors in the period, one-fourth of Krzanich's goal of 40 million a year.

Also in the period, Intel posted a 40% jump in profit from a year ago. Since Krzanich was named CEO, Intel has rallied for gains of roughly 42%. Those returns are nearly twice those of the S&P over the same period.

Fresh-Faced Tech CEO No. 3: Satya Nadella, Microsoft Corp. (Nasdaq: MSFT)

Satya Nadella is only the third CEO in Microsoft's history. And he's been off to a great start since assuming the role in February.

He's cutting overhead as he moves more aggressively into mobile and cloud computing. Nadella inherited from Ballmer the $9.6 billion merger with Nokia's handset unit, which he's using to target more mobile sales.

The new CEO recently cut the company workforce by 18,000, a 14% cut that is the largest in the company's history. But he's using mergers to produce new rounds of growth beyond PC software.

In July, Microsoft paid an undisclosed sum to buy InMage, a startup that provides cloud connectivity. And in early August, Nadella lured Peggy Johnson away from wire chip leader Qualcomm Inc. (Nasdaq: QCOM) to serve as Microsoft's new head of business development.

Wall Street is a fan. Since Nadella became CEO - less than a year ago - the stock is up 29%, compared to a 14% move in the overall market.

Besides the six CEOs represented in the graph above, the rest of Silicon Valley's New Guard whom you'll find in XLK are Safra A. Catz and Mark V. Hurd at Oracle, Lowell C. McAdam at Verizon Communications Inc. (NYSE: VZ), Steven M. Mollenkopf at Qualcomm, and Larry Page at Google.

XLK is benefitting from all these leadership changes. Over the past year, XLK has returned 25%, which is 25% better than the S&P 500.

And again, Technology Select Sector SPDR is a bargain when compared to its holdings. It trades at about $40, much less expensive than most of its top 20 holdings.

I didn't mention Timothy D. Cook in today's column, but XLD is a great way to invest in Apple Inc. (Nasdaq: AAPL) via an ETF. The iDevice company makes up about 16% of XLK's "weight."

This is a great foundational investment that gives you cost-effective access to some of the world's top technology firms. It's an ETF you can hold for the long haul.

And it doesn't take many investments like Technology Select Sector SPDR to give your portfolio a solid tech base from which you can build true wealth.

More from Michael Robinson: Even with interest rates low and the economy improving, many nervous investors, worried about a correction, are selling off. Whenever this sort of negative noise is in the air, I tell you it's not a time to sell - it's a profit opportunity. Here's how to invest in a market downturn to reduce your risk and increase your profits...