I have been adding some names today in anticipation of some good post-earnings action. Two I've picked out Tuesday include Cerner (CERN) and Universal Display (PANL), which are both set to report within a week or so.
Starting with Cerner, you can see the massive share-price jump last quarter (I wrote about this one in February, as well). The stock has pulled in recently, and the technicals are now reset. The stock has built a nice base above the $70 level and is ready for a move higher.
Universal Display is an interesting one, as Tuesday's action marks the breakout from a steep downtrend line. The technicals are still rather bearish, but they're turning up, and indicators may just reach positive readings in the nick of time. If so, there will be room to run at the current high-$40s level.
The company's last report was a mess, with call buyers scorched by its quarter warning. However, at the time the stock was juiced up and had built in high expectations. That's not the case this time around.
Moving to the broad market, the S&P 500 chart above is a notable one. I've highlighted the two areas where the markets turned higher from similar patterns. With earnings season under way, I expect to see good guidance and numbers lifting the indices higher. As the market steps away from the most recent correction and reaches for higher ground, there is potential to hit highs for the year in short order.
More on earnings season: