As its name implies, an inverse head-and-shoulders is an upside down version of the normal head-and-shoulders. Ixia (XXIA) has a one such pattern with a neckline breakout this week. Notice that upside volume started increasing as the right shoulder unfolded.... READ MORE
- Charts Worth Watching: AET, CAT, DE, DIA, EMC, IMKTA, IR, IWM, JPM, LLY, OCR, QQQQ, SNPS, SPY, TTWO, TXT, WFC, XLF, XLI - Link to today's video (click here). -The next update will be Tuesday (June 9) by 9AM ET. ***************************************************************** Even though the major index ETFs are... READ MORE
Investors are showing a clear preference for corporate bonds over treasury bonds. The chart below shows the 10-Year US Treasury Note ($UST) and the DJ Corporate Bond Index ($DJCBP) going their separate ways since March. $UST is down around 7% since mid March, but $DJCBP is up around 9%.... READ MORE
Barclays Plc (BCS) came across the island top scan from Tuesday's close. Notice how the stock gapped up, held the gap for one day with a doji and then gapped down with high volume on Tuesday. The doji represents an island where buyers are now trapped with a... READ MORE
Even though stocks have been rising since early March, the cumulative Net New Highs indicator has been flat since early March. This shows a virtual stalemate between new 52-week highs and new 52-week lows. Obviously, the market can rally with a stalemate. Trouble could start if this indicator moves lower... READ MORE
- Charts Worth Watching:aa, aci, atmi, csco, DIA, fic, intc, IWM, jpm, ma, plcm, pmtc, QQQQ, shlm, smh, SPY, v, xlb, xlf - Link to today's video (click here). - The next update will be Friday (June 5) around 9 AM ET. ***************************************************************** After pointing out bullish consolidations... READ MORE
The Amex Airline Index ($XAL) surged around 5% with a big move off support on Monday. Notice how broken resistance around 16 turned into support in late April and again in May. Today's bounce reinforces support and makes XAL one of the industry group leaders on Monday.... READ MORE
The Euro ETF (FXE) has been red hot with a move from around 125 in early March to 141 in late May. Interestingly, the rise in the Euro coincides with a rise in stock over this same period. FXE is fast approaching a resistance zone around 142.5-145. This zone... READ MORE
With a huge rally from early March to late May, the S&P 500 ETF (SPY) is trading just above its 40-week moving average and a key momentum oscillator is overbought. The 40-week moving average is the weekly equivalent to the 200-day moving average (40 weeks x 5 days... READ MORE
Charts Worth Watching: amat, amln, apa, genz, hal, IWM, lltc, nvls, oih, QQQQ, slb, smh, SPY I am on the road and today's commentary is abbreviated. There is no video. Normal commentary and video will resume next Tuesday. The next update will be Tuesday (June 2nd) by 9AM... READ MORE
While the US Oil Fund ETF (USO) bottomed in February, the US Natural Gas Fund ETF (UNG) continued lower and recorded a new low in late April. There was a big surge in early May and then a deep pullback the last two weeks. Notice that this pullback ended abruptly... READ MORE
While the western stock markets have clawed their way back towards positive territory the last few months, the Hang Seng ($HIS) turned year-to-date positive in early April and now sports a 24.31% gain. Among the six world indices shown, the Nikkei 225 is a distant second with a 6.... READ MORE
The Nasdaq extended its battle with the 200-day moving average by jumping back above with a big advance on Tuesday. With this latest move, the index has now crossed the 200-day at least five times this month. Notice that today's surge occurred on the second lowest volume of... READ MORE
Charts Worth Watching: SPY, DIA, IWM, XLB, XRT AND IYT. Another update will be posted by 12PM ETon Tuesday (26-May). This will include the stock setups and the video. ***************************************************************** The major index ETFs are showing signs of weakness as a potential correction unfolds. These ETFs include the Dow Diamonds (DIA)... READ MORE
Charts: BA, DELL, HD, HON, INTC, K , KFT, LMT, LOW The next update will be Friday (May 29) by 9AM ET. Link to corresponding video. ***************************************************************** Weakness in Home Depot (HD) is negative overall. HD was hit hard with two sharp declines in May. The one-day wonder surge above 26 divides... READ MORE
- Charts Worth Watching:acv, amgn, amln , asei, bro, cah, cb, eric, hon, idcc, nke, swy, trv, vrtx - Link to corresponding video. The next update will be Tuesday (May 26) by 11AM ET. **************************************************************** I will start off today with two potentially bullish setups from the consumer staples sector. This... READ MORE
With the March-May advance, QQQQ has now retraced 38.2% of the May-November decline. Where does this number come from? It based on the Golden Ratio Congugate (.618). 1 - .618 = .382 or 38.2%. After a decline, like May to November, the Fibonacci Retracements Tool can be used to... READ MORE
The AD Volume Line for the Nasdaq broke its March trendline and formed a lower high in May. This indicator is a cumulative measure for the volume of advancing stocks less the volume of declining stocks. Notice that recent peaks and troughs in the Nasdaq coicided with peaks and troughs... READ MORE
Wal-Mart is tracing out a continuation head-and-shoulders pattern with neckline support around 47.5-48. It is a bit unusual because the neckline is sloping up, which reflects higher lows since early February. A break below support would confirm the pattern and signal a continuation lower. Conversely, a break above the... READ MORE
After a decline below 30, Sunoco (SUN) suddenl firmed with a high volume harami on Monday (18-May). These are potentially bullish candlestick reversal patterns that require confirmation with further upside. Look for volume to confirm any breakout.... READ MORE
Charts Worth Watching: ANF, AZO, CAL, CB, INTC, ITB, LUV, PGR, QQQQ, SMH, SWY, SYY, XLB, XLF The next update will be Friday (May 22) around 9AM ET. ***************************************************************** The moment of truth is close. Based on positive reports from State Street (STT) and Lowe's (LOW), stocks moved sharply... READ MORE
After a massive 9 week advance, the Dow ran into resistance with its biggest weekly decline since early March. There is a resistance zone coming into play around 8700-8800 from the falling 40-week moving average and the Oct-Nov consolidation. After establishing support in Oct-Nov, this triangle consolidation now turns into... READ MORE
Broken support turns into resistance. This classic tenet of technical analysis is coming into play for the 10-Year Treasury Yield ($TNX). Notice that the 10-Year Treasury Yield broke support around 33-34 (3.3-3.4%) and this area turned into resistance in early May.... READ MORE
Tidewater (TDW) formed a massive bearish engulfing that engulfed the prior five candlesticks. Volume surged to its highest level since January. What's more, this is the second bearish engulfing pattern in two weeks. These patterns reflect a raging battle at resistance from the January-February highs.... READ MORE
Today's Charts Include: AMZN, ANF, ARO, CEPH, CHRW, COV, CPRT, FDX, GILD, INTC, IYT, JBHT, JWN, RL, UPS, XRT. The next update will be Tuesday (May 19th) around 9AM ET. ***************************************************************** The consumer discretionary sector and the retail group were hit hard over the last three days. Actually, the... READ MORE
Best Buy (BBY) broke support and the 50-day moving average with a sharp decline over the last six days. Notice how the Aroon Oscillator turned negative just before this support break. In fact, this Aroon signal would have shown up on the Aroon scan last Thursday.... READ MORE
After a most impressive rally, the Dow Transports stopped just short of its 200-day simple moving average with a sharp decline the last four days. Also notice that this key average is trading below its prior reaction high (early January). Watch the rising 50-day moving average for potential support on... READ MORE
Today's charts include: SPY, ANF, BIIB, CHH, CL, FLML, GLD, IBB, ITB, LEN, MDC, NIKE, QQQQ, SEPR, SVU, VRTX, WMT, XLP, XLY. The next update will be Thursday (May 14th) morning around 9AM ET. ***************************************************************** Let's start with the broad market. Even though the S&P... READ MORE
With flat trading since late March, a volatility contraction for AT&T (T) is causing the Bollinger Bands to narrow. Bollinger Bands do not provide a directional bias, but last week's high volume decline shows selling pressure picking up steam.... READ MORE
The S&P Sector Carpet shows a color-coded version of the leading and lagging sectors. Dark green sectors are leading with financial and energy showing the biggest gains on Friday. The technology was conspicuously absent from the leadership board on Friday. In fact, technology was the worst performing sector... READ MORE
Charts Worth Watching: ANF, BIIB, CHH, CL, FLML, GLD, IBB, ITB, LEN, MDC, NIKE, QQQQ, SEPR, SPY, SVU, VRTX, WMT, XLP, XLY. Scheduling Note: The next posting will be on Tuesday, May 12 around 9AM ET. ***************************************************************** The Nasdaq declined with the highest volume of the year on Thursday. While a... READ MORE
Looking through the scans page, I noticed that Game stop broke below its lower Bollinger Band with a high volume decline. Moreover, the stock is showing relative weakness as the price relative broke below its March lows. GME is moving down while the S&P 500 has been moving... READ MORE
With 14-day RSI moving above 70 this week, the Nasdaq 100 ETF (QQQQ) became the first major-index ETF with an overbought reading. RSI is considered overbought when above 70 and oversold when below 30. For the Russell 2000 ETF (IWM), S&P 500 ETF (SPY) and Dow Industrials ETF... READ MORE
Demand for certain commodity ETFs is moving in the same direction as the stock market: UP. Economic growth translates into more demand for industrial metals (DBB), oil (USO), gasoline (UGA) and agricultural products (UGA). In a bit of a strange twist, natural gas (UNG) and livestock (COW) remain laggards.... READ MORE
With Monday's market surge, some lagging ETFs joined the bulls with consolidation breakouts. The next four charts show sector ETFs that were lagging SPY because they remained below resistance from the March-April highs. These sector ETFs are still lagging, but they are now trying to play some catch-up... READ MORE
Charts Worth Watching: BTU, CVX, ELON, EWW, KOL, LUB, MMC, RF and SLV. Even though Mexico is ground-zero for swine flu, the Mexico ETF (EWW) shows no signs of the bug as it challenges resistance from the January high. There was a gap down last week, but the ETF recovered... READ MORE
The PerfChart below shows the percentage change for the S&P 500 and the nine sector SPDRs. The S&P 500 acts as the benchmark for relative performance. Sectors with greater percentage gains are outperforming the S&P 500. Sectors smaller percentage gains are underperforming. Defining the... READ MORE
Check out theticker cloudto see what's hot every morning. While there will always be the old standby symbols like GLD, DIG, DUG, GOOG, QID and FXI popping up, you are also likely to see some the stars d' jour. For Friday morning, I noticed interest inAlcoa(AA)... READ MORE
- Sector ETF Leaders and Laggards (XLY, XLB, XLK, XLP, XLV, XLE) The Materials SPDR (XLB) was the latest to join the sector breakout club. With a surge from 18 to 26 (~30%), the ETF broke above its Dec-Jan highs over the past five days. The bottom indicator shows the... READ MORE
- Charts Worth Watching (APA, CLF, JOYG, NSM, NVDA, T, NKE, CL). Despite relative weakness in the energy sector, Apache (APA) broke consolidation resistance with a volume surge on Thursday. Also notice that the price relative turned up over the last few days and broke above the late January trendline.... READ MORE