Don't Ignore This Chart

« September 2012 | November 2012 »

Building Materials, Industrial Suppliers and Construction Lead after Sandy

A look at the Dow Jones industry groups shows strength coming from the DJ US Building and Fixtures Index ($DJUSBD), the DJ US Industrial Suppliers Index ($DJUSDS) and the DJ US Heavy Construction Index ($DJUSHV). These three groups, which are in the industrials sector, are likely benefitting from the rebuilding required after Hurricane Sandy. Users can click on the names to see the individual stocks within these groups.

Screen Shot 2012-10-31 at 15.03.14
 
Click this image for a live chart.

Bombardier Triangulates with Expanding Volume

Bombardier (BBD/B.TO) got a big surge in early September and then formed an extended triangle the last six weeks. Upside volume within the triangle is picking up as OBV moves higher in the indicator window. A triangle breakout would signal a continuation of the September surge.

121029bbdbto
Click this image for a live chart.

 

TELUS Corp Makes a Breakout Bid

TELUS Corp (T.TO) is showing signs of price strength with a channel breakout in late September and a surge over the last four days. This four day surge reinforces support in the 61-62 area. TELUS is on the verge of a breakout, but volume has been weak and has yet to confirm strength on the price chart.

121029tto
Click this image for a live chart.

Three Bearish Engulfings Mark Resistance for ITB

The uptrend in the Home Construction iShares (ITB) is stalling as three bearish engulfing patterns formed in the 26 area. ITB was poised to break resistance with a surge on Thursday, but failed to hold its gains and continued lower on Friday. The Sep-Oct lows mark key support.

121026itb
Click this image for a live chart.

Nordstrom Tests Support as CCI Plunges

Nordstrom (JWN) surged last week, but gave back these gains with a sharp decline the last six days. JWN is now testing support from the late September low. Momentum abruptly shifted as well. Notice that CCI plunged below -100 and this may signal that a new downtrend is emerging for JWN.

121025jwn
Click this image for a live chart.

Nasdaq Tests 200-day Moving Average

With a sharp decline the last five weeks, the Nasdaq is poised to test its rising 200-day moving average. The red line is the 200-day and this key average was last tested in early June. Note that the index is underperforming the S&P 500 as the price relative moved below its early August low.

121024naz
Click this image for a live chart.

Transports Buck the Selling Pressure with Gain

The image below comes from a Major Indices Market Carpet. The Dow Industrials is getting hit hard, but the Dow Transports is holding up rather well thanks for strength in UPS. The Nasdaq 100 ($NDX) is also holding up rather well with gains coming from Yahoo and Virgin Media.

Screen Shot 2012-10-23 at 18.21.51
Click this image for a live chart.

A Bearish MACD Crossover for OpenTable

OpenTable (OPEN) shows signs of rolling over as a lower high takes shape and MACD moves below its signal line. Notice that OPEN hit resistance near the 61.80% retracement just above 46. MACD is barely in positive territory and this downturn puts it on the trajectory to turn negative.

121019open
Click this image for a live chart.

The License Number of the Google Truck

Here's a huge PRO-level chart of the 1-minute price action for Google today:

GOOG

(Be sure to click it once or twice in order to see it at its full size.  PRO members can click here to see a live version.)

Check out the two tiny test trades that got recorded between 1:30 and 1:45.  Not sure what those were about.  Also, a moment of silence please for the brave traders that bought GOOG during the 12:32 minute - probably before learning what had happened.

Big Red Boxes Fill the Market-Cap Sector Carpet

Now wonder the Technology SPDR (XLK) is getting slammed. The image below shows the technology sector in market capitalization mode on the Sector Carpet. Three of the biggest boxes are red. Google (1) is down the most, Apple (2) is down almost 2% and IBM (3) is down almost 3%. Weakness in these mega-caps is weighing on market-cap-weighted indices like the S&P 500 and Nasdaq 100.

Screen Shot 2012-10-18 at 21.14.07
Click this image for a live chart.

SCTR Surges for First Solar and Dean Foods

Chartists can use the StockCharts Technical Rank (SCTR) table on an intraday basis to find stocks making big moves. A sort of the “change” column shows First Solar and Dean Foods improving the most in early trading. Also notice that four financial stocks and three technology stocks are in the top ten.

Screen Shot 2012-10-17 at 3.50.55 PM
  Click this image for see a live table

Sector Carpet Shows All Materials Stocks Gaining

The Sector Market Carpet is a great way to find market leaders. Today, the Basic Materials SPDR (XLB) is the strongest sector with the average stock up around 1.9%. Drilling down into the sector shows all 30 components moving higher. Alcoa (AA) has the smallest gain (.91%) and Cliffs (CLF) has the largest gain (5.44%).

Screen Shot 2012-10-16 at 21.10.49
Click this image for a live chart.

Spanish IBEX Hits Resistance in the Middle of Triangle

The Spain Bolsa de Madrid IBEX 35 Index ($IBEX) surged from mid July to mid September and turned back the last three weeks. Despite a 30% bounce off the lows, the index is still in a bigger downtrend and resistance is nigh. The center of the prior triangle marks a big congestion level that should signal resistance.  

121015ibex

Click this image for a live chart.

December Corn Makes a Break For It

Corn surged during the summer drought news and then corrected as summer drew to a close. This correction appears to be ending as December Corn ($CZ12) broke channel resistance and the Percent Price Oscillator (PPO) turned up. This week’s low now marks key support at 725.

121012cz12
Click this image for a live chart.

Sector PerfChart Shows Why the S&P 500 is so Mixed Up

The Sector PerfChart shows the Finance SPDR (XLF) leading the S&P 500 since September and the Technology SPDR (XLK) lagging the S&P 500. These two sectors are by far the biggest sectors in the index. Moreover, this performance split explains the trading range in the S&P 500 since over the last four weeks.

Screen Shot 2012-10-11 at 17.52.26
 Click this image for a live chart.

Finance Sector Shows Some Green on the Market Carpet

The Sector Market Carpet is mostly red on Wednesday, but there are some pockets of strength. Overall, the finance is holding up the best and the energy sector is faring the worst. The consumer discretionary and materials sectors also show red and relative weakness on Wednesday.

Screen Shot 2012-10-10 at 21.39.52
Click this image for a live chart.

Russell 2000 Tests 50-day SMA

The Russell 2000 ($RUT) is leading the market lower and closing in on its rising 50-day simple moving average. Broken resistance from the May-August highs also marks potential support in the 820-830 area. Small-caps ($RUT) are leading the market lower since mid September.

121008rut
Click this image for a live chart.

FirstTrust Internet ETF Hits Resistance from Shooting Star

The FirstTrust Internet ETF (FDN) peaked in mid September with a shooting star candlestick. After dipping below 37.50, the ETF bounced back to this peak and formed a bearish engulfing last week. These two affirm resistance at 39. A break below 38 would confirm the bearish engulfing pattern.
 

121008fdn
Click this image for a live chart.

QQQ Turns Into Underperformer

The Nasdaq 100 ETF (QQQ) is up since late August, but the price relative is down. The price relative is the QQQ:SPY ratio, which measures relative performance. This ratio peaked in late August and moved sharply lower the last 5-6 weeks. This means QQQ is underperforming the broader market.

121005qqq
Click this image for a live chart.

Finance and Energy Sectors See Green on Market Carpet

The Sector Market Carpet shows the Energy SPDR (XLE) and the Finance SPDR (XLF) with the most green. The average energy stock is up 1.6% and the average finance stock is up 1.1%. XLE is getting an oversold bounce after Wednesday’s decline. XLF is poised for its fourth straight gain.

Screen Shot 2012-10-04 at 17.03.06
Click this image for a live chart.

Apple Forms Doji at 50-day SMA

After hitting a new high above 700 in mid September, Apple (AAPL) gapped down and declined to around 660. Three items mark support in this area. The early September low, the 38.2% retracement and the rising 50-day moving average. With a doji signaling indecision and the Stochastic Oscillator turning oversold, Apple could be ripe for a bounce.  

121003aapl
Click this image for a live chart.