http://www.youtube.com/watch?v=EHRjmfeNplQ
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As fate would have it, Morgan Stanley decided to spin off its Discover credit card operations on the cusp of one of the most vicious bear markets in several generations. Despite Discover falling off a cliff as soon as it IPO’d back in July 2007, the stock has made an impressive bearish to bullish reversal in recent years. You might say the same about most issues, but Discover has impressed me with how relatively shallow its corrections have been in both 2010 and this year. While everyone, including me, seems to be talking about the Mastercard and Visa secular bull stories in the credit card space, Discover looks as enticing a long setup as any right now.
I currently have no position, but will be giving this a careful look next week. Let’s start with the monthly chart and work our way up to the present timeframe for a complete analysis below. Note that Discover reports earnings on December 15.
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