Jan 13, 2010: Intel

Intel [INTC:NASD] reports fourth quarter earnings tomorrow after the bell, which are estimated at 30 cents a share. This would represent an increase in profits from last year, where fourth quarter results were a dismal 4 cents a share. This morning, however, Bank of America told investors to err on the side of caution and that sales are "likely to disappoint". The stock dropped as low as $20.44 on the news, but still managed to finish higher by 35 cents at $20.96. The stock itself has been trading sideways for the last six months, bouncing between a low of $19 and a high of $21, great if you're an options writer or position trader. On October 13, 2009, Intel's stock closed at $20.49 and surged after hours on a third quarter beat. Three days later, the stock would pummel below $20.49 and would continue to free fall near $19 before Halloween, a sign that investors and traders didn't believe in the valuation of the stock. So here we are again. A day before fourth quarter results, the stock has run up again back to $21. Will history repeat? The answer now lies on whether or not they can live up to their own standards. On October 13, Intel also upped fourth quarter guidance. For anybody who had bought at the low of the range, it may be a good time to take some profits. If it manages to break above $21 and stay there for two trading days (the standard for position trading) then we should see a nice move upwards.