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Randgold Forges a Double Top Breakout on P&F Chart

by Arthur Hill

Gold stocks remain down in the dumps and in long-term downtrends, but signs of short-term strength are emerging. Randgold (GOLD) formed a higher low in May and the current X-Column broke above the prior X-Column to forge a P&F breakout. This breakout, however, is still below the Bearish Resistance Line that extends down from October. Read More 

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Nikkei 225 Hits First Support with another 5+ Percent Decline

by Arthur Hill

For the second Thursday in a row, the Nikkei 225 ($NIKK) fell over 5% and extended its correction. While the decline from 15900 looks dramatic, it is still just a correction within a bigger uptrend and pales in comparison to the prior surge. The November trend line and broken resistance mark first support in the 13500 area. Next support I near 12500.  Read More 

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REITs, Utilities and Treasuries Fall Off a Cliff

by Arthur Hill

The Utilities SPDR (XLU) and the 20+ Year T-Bond ETF (TLT) both peaked in early May and declined sharply the last four weeks. The Real Estate iShares (IYR) continued higher into mid May, but peaked last week and fell sharply the last four days. Interest rate sensitive issues are not having a good time right now.     Read More 

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Three Fan Lines Take Shape on the Spot Light Crude Chart

by Arthur Hill

Spot Light Crude ($WTIC) has been quite volatile the last few weeks with two declines from the 97 area and two bounces off the 92 area. It is possible to draw three trend lines extending up from the mid April low. The mid May lows and third fan line mark support in the 92-93 area. Read More 

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Lumber Prices Plunge, but Housing Stocks Remain Strong

by Arthur Hill

An interesting divergence is brewing between lumber and housing stocks. Lumber Futures ($LUMBER) fell around 25% the last two months, but the Home Construction iShares (ITB) hit a 52-week high recently. Something may need to give because lumber and housing stocks are positively correlated for the most part. Read More 

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Solar Stocks Dominate the Scan for Big Volume Gainers

by Arthur Hill

Solar stocks are on the move today and volume is increasing in several names. The image below comes from the “strong volume gainers” scan on the pre-defined scans page. Click any of the headings to sort this table. There are five solar-related stocks making the cut.   Read More 

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Oil & Gas Equipment/Services SPDR Surges to 52-week High

by Arthur Hill

Energy related stocks are catching a bid as Spot Light Crude ($WTIC) challenges the $97. The chart below shows the Oil & Gas Equipment/Services SPDR (XES) breaking flag resistance and hitting a 52-week high on Monday. The flag zone now turns into support. Read More 

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Cisco and Network Appliance Show Biggest Gains in StockCharts Technical Rank

by Arthur Hill

Chartists can view the StockCharts Technical Rank (SCTR) for stocks in the S&P 500, S&P SmallCap 600, S&P MidCap 400 and Toronto Stock Exchange. These ranks can be sorted by change to find the biggest movers. Simply click the column heading the sort. Cisco (CSCO), Network Appliance (NTAP) and Molson Coors (TAP) are leading Thursday’s charge. Click this image for a live table. Read More 

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Networking iShares Hits Moment-of-truth of Truth as Cisco Looms

by Arthur Hill

The Networking iShares (IGN) moved lower from early February to mid April and then bounced the last five weeks. This bounce is forming a rising wedge and nearing broken support, which turns resistance. RSI is also in its resistance zone (50-60). Thus, the moment-of-truth of truth is near with Cisco reporting earnings after the bell. Read More 

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Bounce in Commodities Weighs on Treasuries

by Arthur Hill

The overall trend for the CRB Index ($CRB) is down this year, but the index bounced back above 288 this month. It looks like a strong jobs report and rebound in commodities was more than Treasuries could take as the 30-Year US Treasury ($USB) fell over 4% this month. Notice that $USB is negatively correlated with $CRB. Read More 

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PowerShares Energy Trust Leads Rebound in Commodity Trusts

by Arthur Hill

The chart below shows six commodity group ETFs from PowerShares. The Silver Trust (DBS) and Precious Metals Trust (DBP) are the weakest year-to-date, while the Energy Trust (PBE)  and Oil Trust (DBO) the only ones with gains, albeit small gains. These year-to-date gains stem from strength in Natural Gas ($NATGAS) and the recent rebound in West Texes Intermediate ($WTIC). Read More 

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Percentage of S&P 500 Stocks above their 200-day Reaches Extreme

by Arthur Hill

The S&P 500 %Above 200-day SMA ($SPXA200R) is a breadth indicator that measures the degree of participation. The S&P 500 is trading near a 52-week high and over 90% of its components are above their 200-day moving average. This shows a high degree of participation and the indicator is at its highest level since May 2011. At this point, the indicator is at an extreme and still bullish. A break back below 80% would provide the first sign of material weakening. Read More 

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Defensive Sectors Run out of Gas

by Arthur Hill

The S&P 500 ETF (SPY) surged to new highs in May, but the defensive sectors did not go along for the ride. The CandeGlance charts below show the Healthcare SPDR (XLV), Consumer Staples SPDR (XLP) and Utilities SPDR (XLU) peaking in late April. XLP and XLV have traded flat, while XLU declined below its 20-day moving average.   Read More 

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60-minute P&F Chart Shows Clear Support for S&P 500

by Arthur Hill

Point & Figure charts filter out the noise and ignore time to give chartists a clean look at price action. On the 60-minute P&F chart below, the S&P 500 bounced off the 1540 level three times since mid March. This is about as clear of a support level as you will see and chartists should watch it going forward. Read More 

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Dow Theory Affirms the Bull Market

by Arthur Hill

According to Dow Theory, a bull signal is in force when both the Dow Industrials and Dow Transports move to new highs. Well, this happened today as both the Dow Industrials and Dow Transports forged fresh 52-week highs. The April lows become the first levels to watch for signs of a bearish signal.   Read More 

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Chinese Internet Stocks are on the Move BIDU SINA YOKU SOHU

by Arthur Hill

Three of the four Chinese internet stocks shown below broke resistance with surges over the last 1-2 weeks. SOHU hit a new high with a break above 50. SINA broke wedge resistance and then gapped up. YOKU broke resistance with a high volume surge to 20. BIDU is the laggard as it bounces off support from the March-April lows.   Read More 

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Nasdaq Outperforms NY Composite for First Time This Year

by Arthur Hill

The Nasdaq underperformed the NY Composite ($NYA) from September to January as the $COMPQ:$NYA ratio plunged for five months (yellow area). The ratio stabilized over the last few months, but the Nasdaq did not start outperforming until this week when the ratio broke above its January high. The Nasdaq is now leading the NY Composite this year.   *LINEBR** Read More 

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Microsoft and Intel Leave Google and Amazon in the Dust

by Arthur Hill

The Nasdaq 100 ETF (QQQ) sprang to life in April with the help of two unusual suspects. We would normally expect Google, Amazon or Apple to lead a big tech rally, but April saw the return of old tech as Microsoft and Intel stole the show. Both were up double digits and up more than five times their nearest competitor.   Read More 

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A Few Greenies in a Sea of Red as AMD Surges

by Arthur Hill

The stock market was down sharply on Wednesday, but there were a few big gainers. Chartists can spot the rebels by looking for green on the Sector Market Carpet. Today, we have AMD surging over 14% and T-Mobile (TMUS) advancing over 6%. Three of the top five gainers came from the technology sector.   Read More