The much talked about #earnings of #Google and #Facebook in two great infographics | #ActiveInvesting

Are these two indicators telling the same bullish story ?

I would describe myself as a value investor but can recognise some technical patterns or money outflow whenever I see some.

It would appear that the S&P500 is breaking out as shown on this graph:

Equally, it would seem that a significant outflow of money has been recorded from volatility investments which had dominated the market stories in the past weeks:

Some would see these two observations as a bullish indicator. While I keep this information in the back of my head, I remain a stock picker rather than just an investor who follows the herd.

An example of an undervalued computer hard disk drive manufacturers stock

If you look at the valuation of Western Digital ($WDC) these days you will find that the stock is very undervalued. According to YahooFinance it has a PEG ratio (5 years) of 0.2 !

As regards technical performance, the stock has lagged behind lately and is currently trading below its 20, 50 and 100 days moving average:

Western Digital Technical Analysis Chart | WDC | US9581021055 | 4-Traders

Value investing requires patience: even though the stock is trading at a discount with regards to projected future earning, timing is of the essence and one would need to watch if the market recognizes the value of Western Digital before starting a position.