Weekly FIS Stock Analysis Report - Oct. 21, 2007

This is the stock analysis report for Fidelity National Information Services (Symbol: FIS) for week 10/15-10/19.

News of the week

• Overall Market: The market was hit by the selling throughout the week due to the bad earning and rising oil price, option expiration on Friday escalated the selling , S&P500 dropped almost 40 points (2.6%) in a single day, overall S&P500 declined 3.9% this week.
• Financial Service Industry: The industry was hit very hard by bad earning and fear of recession, DJ US Financial Services Index dropped about 6.8% this week.
• FIS company: N/A.

Market movement

• S&P500 broke down major support 1540 and closed around next major support 1500.

FIS and Financial Service Industry

• FIS movement started to following the pace with the whole industry, but with lower volatility. (chart source: http://www.marketwatch.com/)

FIS Movement

• After trying to break resistance $48 and failing, FIS then followed the market downtrend and tested $47 throughout the week, and closed at $46.75. This week FIS declined 2.3% , much lower than the overall market, with lower trading volume, showed relative strength of the stock.

What to Watch Next Week

• Market: The market is still relatively bullish, even though not as strong as it was two week ago. Next week, major points such as 1460, 1500 and 1540 need to be watched closely. If market can defend the current support 1500 and try to break 1540 again, then bullish sentiment is still intact, but if 1500 was broken and market moved down to 1460 area, then downtrend may start to take the lead.
• FIS: FIS is still fairly strong comparing with the overall market and industry. Watch closely around 10/24 before and after FIS announces its 3rd quarter earning. If FIS can breaks up $48, then target price would be around $50-51, but if FIS breaks down $47 and towards $46, then it may be the time to unload most of your FIS shares to prepare for the future down time.
• Please note: earning season will continue adding the volatile to the market and FIS stock movement.

Disclaimer: This report is my personal opinions and thus does not constitute a recommendation. In no event I will be liable to you for any direct, special, indirect, consequential, incidental damages or any other damages of any kind.