Don't Ignore This Chart

December 2010

Don't Ignore This Chart

Leading S&P 500 Stocks for 2010

by Arthur Hill

Hot off the press from our scan engine, 51 of the 500 stocks in the S&P 500 are up over 50% over the last 250 trading days, which is around one year. That’s just over 10%, which makes for a pretty amazing year. 3 stocks are up more than 100% for the year. Netflix, which was added to the index on December 10th, is the top performer. Cummins and F5 Networks are the other two.  Read More 

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Top 10 Technical Developments in 2010

by Arthur Hill

Here are the top 10 technical charting developments that happened during 2010 as selected by our crack staff of technical analysts.  See if you agree 10. Apple surpassed Microsoft in market capitalization on May 26th and gained over 50% on the year. Apple is currently valued around $298 billion, while Microsoft’s market cap is around $239 billion. Both recorded around $65 billion in sales for the prior year. No prizes for guessing which is growing the fastest. 9. Shanghai Composite continues to show relative weakness Read More 

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Band Width Contracts as Dow Transports Stall

by Arthur Hill

The Dow Transports have been flat for four weeks as the Average forms small weekly candlesticks in the 5000-5100 area. A visual assessment indicates that these are the smallest candlesticks of the year. Bollinger Band Width (10,2) contracts as the Average stalls. This volatility contraction could give way to a volatility expansion in 2011. Watch the direction of the price break for the first clue. Read More 

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Ichimoku Conversion Line Remains Bullish for XLY

by Arthur Hill

The Consumer Discretionary SPDR (XLY) remains in bull mode as the Conversion Line (blue) holds above the Base Line (red). The Kijun-sen (Base Line) equals: (26-period high + 26-period low)/2)). The Tenkan-sen (Conversion Line) equals: (9-period high + 9-period low)/2)). These two act like moving averages, one slower and one faster. The trend is up as long as the Conversion Line (faster) holds above the Base Line (slower). Read More 

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Year-to-Date Sector Leaders

by Arthur Hill

The S&P Sector PerfChart shows the consumer discretionary and industrials sectors leading the way in 2010. All sectors are up for the year, but these two are clearly the big leaders. Energy and materials came in a distance third and fourth, respectively. In a surprising twist, technology (XLK) is one of the lagging sectors. Perhaps this has something to do with the performance of Cisco (CSCO) and Visa (V). Yes, Visa is part of XLK.  Read More 

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Regional Bank SPDR breaks Resistance with Strong Move

by Arthur Hill

Point & Figure charts provide clear support and resistance levels. The P&F chart below shows the Regional Bank SPDR (KRE) breaking above resistance that extends back to June (red 6 on the chart). The 2010 high around 30 marks the next target for this breakout.   Read More 

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Intel Underperforms Nasdaq 100 in December

by Arthur Hill

Stocks remained strong overall in December, but Intel (INTC) has been a noticeable laggard. The pink line shows the INTC:$NDX ratio. This relative strength comparative rises when Intel outperforms the Nasdaq 100 ($NDX) and falls when Intel underperforms. Intel has been lagging since mid November, which is when this ratio peaked. Read More 

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Trina Solar Consolidates at Key Retracement

by Arthur Hill

After declining from mid October to mid-November, TSL firmed near the 62% retracement mark over the last few weeks. The stock also has support here from the August consolidation. A break from the December range will trigger the next signal. Read More 

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Affymetrix Breaks Triangle Resistance

by Arthur Hill

After a big gap down in July, Affymetrix began the long process of digesting this big loss. A long triangle consolidation formed over the last five months. December has been good to the stock with a steady advance and breakout over the last two days. Read More 

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Utilities SPDR Battles Resistance

by Arthur Hill

The Utilities SPDR (XLU) is underperforming the broader market as it battles resistance from broken support. Also notice that a rising wedge formed the last few weeks. A break below wedge support would signal a continuation of the downtrend that has been in place since late October. Read More 

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Hindenburg Omen Triggers as McClellan Oscillator Turns Negative

by Arthur Hill

With a surge in NYSE new 52-week lows this week, the Hindenburg Omen has triggered once again. The last such signal was in mid August. There is some debate on the exact criteria and thresholds. The chart below details the criteria set forth from James Miekka. According to Miekka, the signal “deactivates” when the McClellan Oscillator turns positive. Read More 

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A High-Volume Break Away Gap for Amgen

by Arthur Hill

Amgen is off to the races today with a gap and breakout on big volume. This gap comes after the November decline and looks like a breakaway gap. High volume validates this move and the gap/breakout is bullish as long as it holds. Read More 

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Currency CandleGlance Charts Show Euro Leading the Way

by Arthur Hill

The Dollar is getting hammered on Monday with most other currencies moving higher. CandleGlance charts provide an easy way to reveal the leaders. The image below shows four or the 10 Candleglance currency charts. The Euro Currency Trust (FXE) is the clear leader with a 1.86% gain. Click on the image to see the other six. Read More 

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Lumber Moves Higher Along with Other Commodities

by Arthur Hill

The Homebuilders SPDR and the Home Construction iShares (ITB) both surged this week and we are also seeing strength in Lumber ($LUMBER). On one hand, this increases building costs. On the other hand, it shows an increase in demand and this could mean more construction. The late November low marks support for Lumber. Read More 

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Cisco Hits Key Retracement on the Weekly Chart

by Arthur Hill

While the Networking iShares (IGN) trades near a 52-week high, Cisco (CSCO) flounders near a 52-week low. Who would have thunk it? Cisco is one of the top ten components in this ETF. This year's decline puts the stock at an interesting juncture: a key retracement on the weekly chart. Read More 

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Dow Industrials Hits Resistance from November High $INDU

by Arthur Hill

The Dow Industrials remains in an uptrend overall, but the senior Average is hitting some resistance from the November highs just above 11400. It is possible that a trading range takes shape after the sharp advance from 10000 to 11400. Key support is based on the lows extending from mid October. Read More 

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$XLU Underperforms and Hits Resistance

by Arthur Hill

Despite a bounce the last five days, the Utilities SPDR (XLU) remains an underperformer since September. Notice how the price relative peaked and moved lower the last 3 months. On the price chart, the ETF is running into resistance from broken support around 31.30. Read More 

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Tech Sector Lags Offensive Sectors

by Arthur Hill

Except for technology, the offensive sectors are leading the market over the last two weeks. Relative to the S&P 500, consumer discretionary, industrials and finance are all positive on this relative strength PerfChart. Utilities, consumer staples and healthcare, which make up the defensive sectors are lagging. Read More 

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Echostar Hits the P&F Triple Top Breakout Scan $SATS

by Arthur Hill

The Nasdaq Point & Figure Triple Top Breakout scan featured over 200 stocks on Friday morning. The chart below shows Echostar (SATS) breaking resistance marked by five columns of X’s, which previous reversed at 22. This breakout is P&F bullish with a price objective (PO) of 29.  Read More 

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Finance Sees Green in Sector Carpet

by Arthur Hill

The finance sector sprang to life on Thursday with a sea of green squares filling its portion of the Sector Carpet. M&I Corp (MI) is the top performer with an 11+ percent gain. Click a square to see the corresponding chart in the upper right. Read More 

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Russell 2000 Challenges April High and Leads the Market

by Arthur Hill

The Russell 2000 ($RUT) and small-caps are leading the market higher. The index is the first of the major indices to break above its November high. With today’s move above 740, the index is also challenging its April high. Notice that CCI turned positive with the 18-Nov gap and momentum remains bullish. Read More