Trading could get real tricky (volatile) has we head into the fiscal-cliff endgame and holiday season. First, the markets will become extra sensitive to the news flow out of Washington over the next two weeks. Second, trading volume will thin, which means any uptick in volume could cause an outsized... READ MORE
Intraday P&F charts are good for capturing short-term and medium-term price movements. The chart below is a 60-minute P&F chart for KB Home (KBH). Notice how the stock broke the Bearish Resistance Line and forged a breakout at 15 this week. Click this image for a... READ MORE
Stocks extended their uptrends on Monday-Tuesday, but fell back after the Fed meeting and declined on Thursday. Even though a post-Fed decline may seem negative, it could be just a little buy-the-rumor and sell-the-news at work. In addition, the fiscal cliff circus continues to dominate the news. With stocks holding... READ MORE
Stocks retreated after the Fed announcement. Of course, the fiscal cliff deadlock got the blame. Never mind that the S&P 500 was up some 6% from its mid November lows and ripe for a pullback or consolidation. Thursday's decline was not enough to reverse the short-term... READ MORE
With the consumer staples sector showing some relative strength on Thursday, I went to the sector summary to find the strong industry groups within this sector. The image below shows the 10 industry groups with the DJ US Drug Retailers Index ($DJUSRD) leading the way. Users can click on the... READ MORE
Stocks were all over the place on Wednesday. The major index ETFs opened strong, pulled back in the late morning, surged after the Fed announcement and pulled back again in the final hour. The end result was mixed as the S&P 500 ETF (SPY) and Nasdaq 100 Equal-Weight... READ MORE
AMT Breaks out to a 52-week High. CCL Forms Ascending Triangle within Uptrend. Plus DHI, M, STLD This commentary and charts-of-interest are designed to stimulate thinking. This analysis is not a recommendation to buy, sell, hold or sell short any security (stock ETF or otherwise). We all need to think... READ MORE
The NYSE AD Line ($NYAD) reflects broad market strength with a move above the September-October highs this week. In fact, the indicator is trading at a 52-week high. There are no signs of weakness here. Click this image for a live chart.... READ MORE
The bulls kept up the pressure on Tuesday with the technology sector leading the charge. The Semiconductor SPDR (XSD) led tech stocks with a 2.71% surge. There was also strength in the Airline ETF (FAA), which advanced 2% and hit a new 52-week high (intraday). Elsewhere, the Steel ETF... READ MORE
The technology sector is showing upside leadership with the average stock gaining 1.3% on Tuesday. The red ovals highlight the top five stocks in the S&P 500 today. Three of the top five are in the consumer discretionary sector, one comes from the sector and one from... READ MORE
Stocks edged higher in mixed trading. The major index ETFs ended the day with small gains, but the sectors were split. In particular, the Finance SPDR (XLF) and the Consumer Discretionary SPDR (XLY) edged lower, while the Technology SPDR (XLK) and the Industrials SPDR (XLI) moved higher. Buoyed by recent... READ MORE
ATVI Forms Bull Flag at Resistance. CHRW Consolidates with Triangle. Plus BMY, BSX, CRM, MDR, VIP This commentary and charts-of-interest are designed to stimulate thinking. This analysis is not a recommendation to buy, sell, hold or sell short any security (stock ETF or otherwise). We all need to think for... READ MORE
After a surge from mid to late November, Expeditors International (EXPD) hit resistance from the early November high around 38. A falling flag formed into early December and the stock broke flag resistance with a surge above 38 on Monday. This signals a continuation of the prior advance and the... READ MORE
Stocks remain dazed and confused. After falling sharply the first two weeks of November, stocks bottomed in mid November and surged the next two weeks. These gains wiped out the early November losses and made it as if November never really happened. Despite this strong rally, stocks hit a wall... READ MORE
Gasoline Jan13 (^RBF13) formed a lower high and broke support with a sharp decline this week. First, notice that the trend since mid September is down with a series of lower lows and lower highs taking shape the last few months. This week's breakdown signals a continuation of... READ MORE
Apple (AAPL) tested its mid November low and long-term support with a dip below 520 on Thursday. Support in the 520 area extends back to the May low. Notice how the stock forged an intraday reversal for the second time in two months. Also notice that volume exceeded 40 million... READ MORE
Stocks held their gains with consolidations this week and two upgrades pushed the indicator summary back into positive territory. Nasdaq and NYSE Net New Highs turned bullish again. Nasdaq Net New Highs are not as strong as NYSE Net New Highs though. The momentum group also turned bullish as the... READ MORE
Stocks will simply not give up the bid or the hope of a fiscal cliff solution. The major index ETFs became short-term oversold last week and pretty much consolidated this week. The Russell 2000 ETF (IWM) and the S&P MidCap 400 SPDR (MDY) held up the best with... READ MORE
The Market Vectors Semiconductor ETF (SMH) is challenging resistance with a big surge over the last few weeks. Aroon confirms strength as Aroon Up (green) moved above Aroon Down (red) and hit the +100 level. This sometimes signals the start of a new trend. You can read more about Aroon... READ MORE
Stocks continued to drift on Wednesday with the major index ETFs finishing mixed. The Dow Industrials SPDR (DIA) advanced .66% as the Nasdaq 100 ETF (QQQ) plunged 1.11%. Apple led the way lower for QQQ. Note that the Nasdaq 100 Equal-Weight ETF (QQEW) was up .37% and it was... READ MORE
AMTD Forms a High and Tight Pennant. CERN Consolidates after Massive Gap. Plus BTU, JOY, LSI, SYMC This commentary and charts-of-interest are designed to stimulate thinking. This analysis is not a recommendation to buy, sell, hold or sell short any security (stock ETF or otherwise). We all need to think... READ MORE
Acheck on the sector summary shows the finance, industrials and utilities sectors leading the market on Wednesday afternoon with 1+ percent gains. Users can click on the sector names to drill down and see which industry groups are leading and lagging within the sector. Click this image for a live... READ MORE
After a sharp advance the prior two weeks, stocks became short-term overbought and stalled the last two days. Resistance levels from prior consolidations and key retracements were also evident on the daily charts. Stocks looked ripe for at least a pullback, but downside has been limited this week. SPY is... READ MORE
Aaron (AAN) surged above 32 and then fell all the way back below 29. Even though this decline looks excessive, note that it retraced 62% of the prior decline and the stock firmed near broken resistance. A break above the mid November high on good volume would be bullish. Click... READ MORE
It was drop and pop last Wednesday as stocks opened weak and then rallied. Monday was different as stocks opened strong and then sold off. The S&P 500 was up just over 1/2% in early trading, but fell after the ISM Manufacturing Index was reported. ISM fell... READ MORE
ARO Forms Ascending Triangle. DE Holds Gap within Short-Term Downtrend. Plus HON, MMM, MS, X This commentary and charts-of-interest are designed to stimulate thinking. This analysis is not a recommendation to buy, sell, hold or sell short any security (stock ETF or otherwise). We all need to think for ourselves... READ MORE
After hitting big resistance in the 26 area, the Coal ETF (KOL) moved sharply lower and then formed a rising flag the last two weeks. These are bearish continuation patterns that typically form after a sharp decline. A move below flag support would signal a continuation lower. Click this image... READ MORE
Despite all this talk on the fiscal cliff, it seems that the Euro is more important to the stock market right now. On the 60-minute chart, the indicator window shows the Euro Currency Trust (FXE) bottoming on 13-Nov and the S&P 500 ETF (SPY) bottoming on 16-Nov. Both... READ MORE
The Home Construction iShares broke below support in mid November, but this break did not hold as the ETF quickly surged back above 20. A flat consolidation has since formed and traders should watch these boundaries for the next directional clue. An upside breakout signals a continuation higher, while a... READ MORE
<div style="width: 600px;">With a sharp rally the last two weeks, several indicator groups were upgraded. Namely, the NYSE AD Line surged to its October-November highs and is close to a 52-week high. The cumulative line for NYSE Net New Highs hit a new high.... READ MORE
On the 60-minute chart, SPY edged higher on Thursday and moved to the top of its resistance zone. Broken support, the early November highs and the 61.80% retracement mark resistance in the 143 area. Even though the bigger trend may be down, this short-term upswing remains in play as... READ MORE
First Solar (FSLR) is leading solar stocks with an ascending triangle breakout on expanding volume. As a bullish continuation pattern, the breakout signals a continuation of the prior advance and targets a move to the low 30s. Click this image for a live chart.... READ MORE
Stocks started the day weak as the major index ETFs gapped down on the open. This gap did not last long as stocks rallied the rest of the day and closed higher. The actual gains were not huge, but the ability to rally after a gap down shows resilience. The... READ MORE
AA Bounces off Support with mini-breakout. ORCL Advances Nine Days Straight. Plus ALTR, BOOM, KLAC, LLTC, ORCL, TJX This commentary and charts-of-interest are designed to stimulate thinking. This analysis is not a recommendation to buy, sell, hold or sell short any security (stock ETF or otherwise). We all need to... READ MORE
Momentum is improving for lululemon (LULU) as MACD turned positive for the first time since late October. On the price chart, the stock is challenging the upper trend line of a falling channel. A breakout would signal a continuation of the August-September advance and target a move to new highs.... READ MORE
Stocks edged lower on Tuesday as the major index ETFs worked off short-term overbought conditions. Eight of the nine sectors were lower with the Finance SPDR (XLF) and Energy SPDR (XLE) leading the decline. Both lost around .90% on the day. The Utilities SPDR (XLU) bucked selling pressure with a... READ MORE
After a sharp decline the first half of November, the Utilities SPDR (XLU) firmed for two weeks and then surged above its first resistance level. Notice that upside volume also surged twice in the last six days. Broken support turns next resistance in the 35.75-36 area. Click this image... READ MORE
ATVI Hits Momentum of Truth after Big Game Release. AKAM Fails to Partake in Market Surge. Plus ARUN, CHS, GOOG, KSS, MMM This commentary and charts-of-interest are designed to stimulate thinking. This analysis is not a recommendation to buy, sell, hold or sell short any security (stock ETF or otherwise)... READ MORE
The markets started November in risk-off mode as stocks and the Euro moved sharply lower. Both became quite oversold mid month and the major index ETFs formed hammers on Friday, November 16th. These minor selling climaxes marked a short-term turning point as the markets devoured risk the following week. Stocks,... READ MORE
The Nikkei 225 ($NIKK) is getting a boost from weakness in the yen. Notice that the index broke resistance as the Yen Index ($XJY) broke support. The Nikkei benefits because a weaker Yen makes Japanese exports more competitive and this helps the overall economy. Click this image for a live... READ MORE