BroadCom looks set to continue its long-term uptrend with a breakout and fresh 52-week high. The chart shows BroadCom (AVGO) with Bollinger Bands, the Bandwidth indicator and the Percentage Price Oscillator (PPO). First, notice that the stock hit a 52-week high in July and the PPO(50,200,0) has... READ MORE
T-Mobile is showing signs of life with an upturn off support and a positive divergence in RSI. As always, lets review the bigger picture before trying to make sense of current conditions. TMUS basically doubled from February 2016 to April 2017 with a 108% advance. This massive advance gave way... READ MORE
.... Amazon and Google Fool Billy Bear .... SPY and QQQ Edge Lower after New Highs .... QQQ Joins the Small-cap Dip .... IJR Falls Back into Flag Pattern .... 5 Sectors Hit New Highs - Tech Leads .... XLB Jumps to Fresh High .... XLF Breaks out of Flag .... XLK and XLI Extend with New Highs... READ MORE
.... Active Management Comes at a Cost .... Add Some Beta with the S&P 500 High-Beta ETF .... Get Serious Beta from the IBD 50 List .... Creating a ChartList of the IBD 50 .... Today I am going to step back and show how we can set up a ChartList to focus... READ MORE
Laboratory Corporation of America (LH) reported earnings today and surged above the 50-day moving average on the results. The trend since late July remains down, but recent price action is constructive and a breakout could be in the offing. The stock surged around 20% and hit a 52-week high in... READ MORE
.... Bonds, Gold and the Dollar .... XME Holds Breakout with Bullish Pattern .... Medtronic Hits Reversal Zone with Selling Climax .... Old School Tech Stocks Take the Lead .... Facebook and Amazon Stall .... Uptrends in Alphabet and Apple Slow .... Palo Alto Forms Bull Flag .... The short-term uptrend in the Dollar and short-term downtrend in... READ MORE
US Bancorp (USB) ended a long corrective period with an upside breakout and this breakout is holding. Note that USB is part of the Financials SPDR (XLF) and the Regional Bank SPDR (KRE). These two are up double digits over the last six weeks and this puts has sector and... READ MORE
The EW S&P 500 ETF, S&P MidCap SPDR and S&P 500 SPDR moved to new highs this week, but the S&P SmallCap iShares and Russell 2000 iShares are lagging and remain below their early October highs, which were 52-week highs. The PerfChart... READ MORE
.... Large-caps and Mid-caps Hit New Highs .... SPY has been "Overbought" Since mid September .... QQQ Hits Another New High .... Flags, Pennants and Short-term Consolidations .... IWM and IJR Remain with Falling Flags .... XLY Forms Bullish Pennant .... XLF and XLI Consolidate after Big Moves .... XLE Tests Flag Lows .... Tech, Healthcare and... READ MORE
.... Small-cap ETFs Form Falling Flags .... XLE Stalls as XES Breaks Down .... Watching Two Timeframes for Oil .... Shipping ETF Turns Up .... Oracle Bounces off Support .... There are lots of small consolidations on the charts as the market digests the gains from mid August to early October. The S&P 500... READ MORE
Chartists should watch Gilead (GILD), Amgen (AMGN) and Merck ($MRK) because all three are forming bullish continuation patterns. First and foremost, all three hit new highs in September so it is safe to assume that the long-term trends are up. AMGN and MRK have been trending higher the last 12... READ MORE
.... Finance Sector Ignores Flattening Yield Curve .... 2-yr Yield Hits New High .... Yield Curve is not a Problem Until .... Correlation between KRE and the 10-yr Yield .... Correlation is Not Everything .... Back to Chart Basics .... Play the Pullback .... Finance Sector Ignores Flattening Yield Curve What would happen to the EW Finance ETF... READ MORE
Bank of America (BAC) broke out of a large bullish continuation pattern three weeks' ago and this breakout is holding. Overall, BAC surged from June 2016 to February 2017 and then consolidated with a large triangle pattern. A consolidation within an uptrend is a bullish continuation pattern and the... READ MORE
Citrix (CTXS), which is part of the Internet ETF (FDN) and Software iShares (IGV), appears to have ended its correction and resumed its long-term uptrend. The stock hit a 52-week high in early 2017 and then declined from May to August. CTXS underperformed the market and its peers during this... READ MORE
.... Consumer Discretionary Weighs on Market .... SPY and QQQ Hit Fresh New Highs .... IJR Edges Lower after Big Run .... A Hat Trick in the Technology Sector .... Industrials Pick up the Slack .... Materials Sector Leads with More New Highs .... Finance Sector Stalls Near New High .... Bullish Continuation Patterns Form in Energy .... XLU... READ MORE
.... Microsoft Leads Fab Five with New High .... Alphabet Breaks Triangle Line .... Apple Reverses after Oversold Reading .... Amazon Breaks Wedge Line .... Avago Pattern Evolves into Ascending Triangle .... Cornerstone OnDemand Forms Double Bottom .... Universal Display Firms at Support and Zoetis Turns Up .... Understanding Cryptos and Blockchain .... Bitcoin Index Hits New High .... Microsoft... READ MORE
A recent double top and failure at the 200-day SMA point to lower prices for Comcast (CMCSA). The double top formed from May to early September with two highs around 42 and a low around 38. Comcast broke this low with a sharp decline and then became oversold. The stock... READ MORE
.... Nearing the Moment-of-truth for TLT and $TNX .... How the 10-yr Yield Affects other Names .... Gold, Silver and Gold Miners Reverse Near Key Retracement .... Newmont Forms Bull Flag .... Working with High-Low Percent Indicators .... Finance, Industrials, Tech and Materials Lead New High List .... New Highs Expand for XLK .... Three Different Sector Views... READ MORE
The S&P 500 is near all time highs and we are in a bull market, but Advance Auto Parts (AAP) did not get the memo and recent signals point to new lows. First and foremost, the long-term trend is down because the 50-day SMA is below the 200-day... READ MORE
The Energy SPDR (XLE) is the top performing sector SPDR since mid August with a double digit advance over the last seven weeks. On the price chart, XLE broke out of the channel, exceeded its summer highs and pushed RSI above 70 for the first time this year. It was... READ MORE
.... Small-caps Lead Broadening Rally .... Small-caps High-Low Percent hits 2017 High .... Death of QQQ Greatly Exaggerated .... IJR Extends on Breakout .... Sectors Reflect Broad Strength .... Tech, Finance, Industrials and Materials Lead .... HealthCare SPDR Turns Up after Pullback .... XLY Catches a Strong Bid .... XLU Goes for a Flag Breakout .... Energy Stalls after Big... READ MORE
.... Testing the Basic PPO Signal Line Cross .... Setting the Benchmark .... Consulting, Software and Data .... System Ground Rules .... PPO Signal Line System .... A Winning Chart and a Losing Chart .... Breaking a Tie and Favoring Momentum .... Backtest Results Favor Large-caps .... Profit Factor Metric .... Conclusions and Caveat Emptor .... Testing the Basic PPO Signal... READ MORE
Alphabet, which some of you may know as Google, surged off a support zone with good volume and broke short-term resistance. This breakout could evolve into more because the big picture is also bullish. GOOGL advanced to a new high in May and then consolidated with a long consolidation. The... READ MORE
.... The Little Bull that Could .... Industrials, Finance and Tech Lead New High List .... Cyber Security and Networking ETFs Turn Up .... Strategy Note - A New High in the Future .... Metals-Mining and Steel ETFs Bid to End Pullbacks .... Freeport McMoran Stalls within Uptrend .... Nucor and Steel Dynamics Attempt to End Corrections... READ MORE
3M (MMM) is helping itself and the Dow Industrials with a breakout in mid September. As a price-weighted average, the stocks with the highest price carry the most weight and MMM, which is the third highest-priced stock, accounts for around 6.5% of the Dow. On the price chart, the... READ MORE
.... VIX Extends its Low Run .... Revisiting Seasonality .... QQQ Lags, but Doesn't Drag .... Small-caps and Micro-caps Take the Lead .... Biggest Momentum Surge in 10 Years for IJR .... Sector Participation Supports Bull Market .... Industrials and Finance Lead with Fresh Highs .... Technology and Materials Not Far Behind .... Healthcare and Utilities Correct... READ MORE
Most of us are familiar with positive and negative divergences in momentum indicators. These divergences suggest that directional momentum is slowing and there could be a trend reversal. There is just one problem. Most divergences are at odds with the bigger trend. Most negative divergences form in an uptrend and... READ MORE
The US Dollar ETF (UUP) is made of five currency pairings. The Dollar/Euro ($USDEUR) pair accounts for 57.6%, Dollar/Yen ($USDJPY) weighs 13.6%, Dollar/Pound ($USDGBP) is 11.9%, Dollar/Canadian ($USDCD) is 9.1% and Dollar/Swiss ($USDCHF) is 3.6%. Clearly, the Dollar/Euro relationship... READ MORE
.... Small-caps Extend to New Highs .... Broad Selling in the Nasdaq 100 .... XBI and IBB Edge Higher .... COPX and JJC Correct within Uptrends .... TLT Turns Up within Uptrend .... Charts to Watch: DAL, CB, LEN, RMD, SBAC .... Small-caps Extend to New Highs The S&P SmallCap iShares (IJR) and the Russell... READ MORE
Costco (COST) fell on hard times this summer with a plunge from the low 180s to the 150 area. Despite this gap and sharp decline, the stock firmed in July-August and surged above the red resistance zone in September. Notice that the stock found support in the 150 area with... READ MORE
.... An Abrupt Change in Leadership .... News and No Man's Land .... New High Parade Continues .... Uptrends are Slowing, Not Reversing .... A Strong Surge for Small-caps .... Finance, Tech, Industrials and Materials Lead .... Healthcare and Utilities Take a Dip .... Consumer Discretionary Gets Anemic Bounce .... Energy SPDR Breaks Summer Highs .... Strong Selling... READ MORE
This is my third straight DITC posting with a semiconductor stock. The first featured Texas Instruments forming a cup-with-handle pattern and the second featured Intel with a surge towards long-term resistance. Today's chart focuses on Broadcom, which is actually lagging the S&P 500 SPDR over the... READ MORE
.... 52-week Highs Reflect Broad Strength .... Materials, Industrials and Technology Lead New High List .... Alphabet, Amazon and Facebook are Dragging .... CSCO Hits Multi-Month High .... Fiserv Turns Up after Pullback .... AMD Bounces off Key Retracement .... CHD and CL Start Turning UP .... How to Handle Overvalued Stocks .... 52-week Highs Reflect Broad Strength Large-caps,... READ MORE
Some sixty stocks in the S&P 500 were up 5% or more last week, and Intel was one of them. Intel's importance seems to have diminished over the years, but it is still an industry gorilla that accounts for around 11% of the Semiconductor ETF (SMH)... READ MORE
We all know what a trend line is, but does a trend line actually dictate the trend? In other words, does a trend line break actually signal a trend reversal? Or, is a trend line break telling us something else? We cannot use a tool unless we fully understand it... READ MORE
.... Small-caps Extend Newfound Leadership Role .... AD Lines Hit New Highs .... RSI Notches another Overbought Reading for SPY .... IJR Continues to Grind Higher .... Tech, Industrials, Healthcare and Materials Lead .... XLI and XLB Extend after Breakouts .... XLF Fully Recovers with Flag Line Break .... XLY Puts Double Top on the Back Burner .... XLE... READ MORE
Price Characteristics and Indicator Effectiveness There is NO SUCH thing as the perfect indicator. Further more, even if you find the almost perfect indicator, there is no such thing as the optimal setting. A 50-day SMA works great for one stock and lousy for another. 14-day RSI nails the oversold... READ MORE
Texas Instruments (TXN), the semiconductor behemoth, formed a bullish cup-with-handle pattern and a classic volume-based indicator points to a breakout. The chart shows TXN hitting resistance in the 83-84 area from June to September (red zone). In between these resistance points, the stock dipped to the 76 area in June... READ MORE
.... Sticking with a Strategy (IJR) .... Finance Sector Rebounds .... Broker-Dealer ETF Holds Up Better .... TD Ameritrade and Etrade Lead Brokers .... Industrials Sector Breaks Out .... Airlines Finally Perk Up .... Delta and American Lead Bounce .... Cisco, Teradata and Skyworks .... Sticking with a Strategy (IJR) Sticking with a strategy is perhaps the hardest part... READ MORE
Johnson & Johnson (JNJ) appears to be ending its consolidation period with a surge and triangle breakout over the last three days. Overall, the stock is in a long-term uptrend because it hit a 52-week high in June and remains well above the rising 200-day moving average. JNJ consolidated after... READ MORE