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Readers' Mailbox: Part 2, iStock's View On AAPL, IBM, PM, MO, VOD, WAB, ASMI, CETV, MDCI And FB
By: Rich Bieglmeier   Wednesday, May 30, 2012 4:45 PM
Symbols: AAPL, ASMI, CETV, IBM, MDCI, MO, PM, VOD, WAB
Whichever side of the street Philip Morris crosses first will tell you if the price is headed higher or lower. However, upside will be more challenging as resistance levels at $87 (50-day average), again at $88, and finally at $90 will limit headroom.

Downside is less inhibited by previous support levels than upside. The first brief bout can be found at $80, and then things tighten up as more cushioning shows up at between $78 and $76.

Altria Group Inc. (MO) as long as MO stays on the right side of its 50-day average of $31.50, no worries, stick with it, and monitor MO's price relative to the 50-day mark.

Kraft Foods Inc.'s (KFT) chart is not looking so hot. It sure does look like the company's 12 and 26-day moving averages are going to bearishly cross its 50-day average, usually a sign of lower prices to come.

With the price on the lower edge of KFT's Bollinger Band, it could be an annoying, slow drip lower, then a little higher, and then a little lower… but Kraft is not a volatile stock and tends to move less than 50 cents a day one way or the other.

In all likelihood, Kraft Foods falls to maybe as low as $37, and then be dead money in range bound trading for the next three to six months.

Vodafone Group Public Limited Company (VOD) has traded in a tight range for the last year, from low of $24.31 to a high of $29.28. Right now, VOD has turned down and looks headed to $26.25ish. Since October, the mid $26s have been a good time to buy.

We might consider buying the stock if VOD hits $26.40, wait for it to approach $28 and write covered calls. Wash, rinse, and repeat while collecting a 3.5% dividend.

Westinghouse Air Brake Technologies Corporation (WAB) makes brakes for trains. Obviously, railroads are sensitive to ups and downs of the economy. While some fed members believe our banks can withstand a Euro meltdown, our economy cannot.

And, let me throw one other thing at you from what might seem like left field. As coal companies are shut down by new EPA regulations, less coal will be used for power generation. iStock has read that as many as one out of every five railcars are used to transport coal – think about it.

Since mid-April, WAB had been trending down until it rebounded in mid-May. However, red has returned, and if the stock closes below $72, then we believe it might dip to its 200-day average of $68.

ASM International NV (ASMI) is a stock that hops around from day to day like a jumping bean. There are a lot of little gaps between prices.


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