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Sears Holdings Corporation (NASDAQ:SHLD) – $73.34

News event: Reported a smaller than consensus third quarter loss.

Technical comment: Sears Holding Corporation currently has a positive intermediate technical profile. Intermediate trend is up. The stock trades above its 50 and 200 day moving averages. However, short term technical parameters have recorded an early warning sign this morning. The stock moved 4% higher in overnight trade, but immediately came under profit taking pressures at the opening. Selling pressure appeared near previous resistance at $79.35. Stochastics and RSI recorded a short sell signal when they moved below 80% and 70% respectively. Favourable seasonal influences usually end just after Black Friday for the company and its sector, but probably have ended earlier than usual this year. Downside risk is to support near $65.

Semiconductor HOLDRs (NYSE:SMH) – $24.99

News event: Bank of America/Merrill Lynch downgraded the semiconductor sector from positive to negative.

Technical comment: Semiconductor HOLDRs currently has a mixed intermediate technical profile. Units remain in a four month trading range between $23.47 and $26.80. The news this morning caused units to fall below their 50 day moving average. Units remain well above their 200 day moving average. Short term momentum indicators (MACD, RSI) recently recovered from oversold levels and currently are neutral. Stochastics already are overbought and showing early signs of rolling over. Seasonal influences are positive from early October to mid January. A test of support at $23.47 could provide an opportunity to add to positions.

Chart courtesy of StockCharts.com www.stockcharts.com

Don Vialoux

Director of the Canadian Society of Technical Analysts

Comments offered in this report are for information only. They should not be considered as advice to purchase or to sell mentioned securities. An attempt to provide accurate data has been made, but accuracy is not guaranteed. Comments are from Don Vialoux and not from the Canadian Society of Technical Analysts.

Tags - Previous posts for stock ticker: SHLD, SMH