Don't Ignore This Chart

September 2013

Don't Ignore This Chart

Sector Carpet Reveals Pockets of Strength within Healthcare

by Arthur Hill

The image below comes from today’s sector Market Carpet. Notice that four of the top five performers in the S&P 500 come from the healthcare sector (ISRG, STJ, REGN and THC). All sectors were down on Monday, but Healthcare was the best performing sector because it declined the least. Click this image for a live carpet  Read More 

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Top Up and Top Down SCTRs Highlight the Big Movers

by Arthur Hill

Looking for the relative movers and shakers in the market? Look no further than the StockCharts Technical Rank (SCTR) on the StockCharts home page. These tables can be found mid way down the home page. Today we can see Nasdaq OMX (NDAQ), Regions Financial (RF) and Microsoft (MSFT) showing relative strength surges. On the flip side, notice that Cicso (CSCO), International Paper (IP) and International Gaming Tech (IGT) are showing an increase in relative weakness.   Click this image for a live table. Read More 

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A September Surprise in Inter-market Correlations

by Arthur Hill

The PerfChart below shows six inter-market related ETFs. Notice that stocks are up with the Russell 2000 ETF (IWM) leading the way (blue). Bonds are also up for the month and this is strange because stocks and bonds are usually negatively correlated. On the other side, notice that gold, oil and the Dollar are down, which means they are positively correlated. This is also unusual because the Dollar is usually negatively correlated with commodities. Read More 

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A September Surprise in Inter-market Correlations (video)

by Arthur Hill

The PerfChart below shows six inter-market related ETFs. Notice that stocks are up with the Russell 2000 ETF (IWM) leading the way (blue). Bonds are also up for the month and this is strange because stocks and bonds are usually negatively correlated. On the other side, notice that gold, oil and the Dollar are down, which means they are positively correlated. This is also unusual because the Dollar is usually negatively correlated with commodities. *LINEBR** Read More 

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Autozone Breaks Out of Bollinger Band Contraction (video)

by Arthur Hill

Autozone (AZO) surged off support and broke above the upper Bollinger Band with big volume on Wednesday. I found this stock because it made the predefined scans list (intraday). This move affirms support and opens the door for a continuation of the bigger uptrend. *LINEBR** Read More 

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Netflix Hits New High, but Forms Bearish Reversal Pattern (video)

by Arthur Hill

Netflix opened at a new on Monday, but selling pressure quickly took hold and drove prices below 203 by the close. This intraday reversal forged a bearish engulfing pattern just above first support. Follow through below last week's low would argue for a deeper correction towards the 260-270 area. *LINEBR** Read More 

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JP Morgan Traces out Bearish Reversal Pattern (video)

by Arthur Hill

JP Morgan (JPM) broke short term support with a sharp decline on Monday. With a lower high taking shape, the stock is forming a larger head-and-shoulders reversal over the last few months. Also notice that JPM shows relative weakness and the Accumulation Distribution Line already broke the summer low. Read More 

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Two Year Yield Gets Hit Hard on Fed Taper Change

by Arthur Hill

The Treasury market was thrown for a loop this week as the Fed unexpectedly decided not the taper. The chart below shows the 2-Year Treasury Yield ($UST2Y) bearing the brunt of this “adjustment”. Notice how the yield advanced as tapering talk took hold from April to August. After stalling in the .50% range for two weeks, the yield plunged below .35% as short-term yields bore the brunt of the re-pricing. *LINEBR** Read More 

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Regional Bank SPDR Breaks Flag Trend Line (video)

by Arthur Hill

The Regional Bank SPDR (KRE) perked up with a bounce above 36 on Tuesday, but gave it back with a sharp decline on Wednesday-Thursday. Broken support and the late August gap ultimately held as resistance. The flag break signals a continuation lower. Also notice that KRE shows relative weakness as the price relative (KRE:SPY ratio) broke its July low. Click here for a live chart. Read More 

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Falling Dollar Boosts Commodities

by Arthur Hill

The Dollar fell sharply on Wednesday and this provided a big boost to precious metals, copper and oil. The screen shot below comes from the Intraday Market Summary Page. The Silver Trust (SLV) led precious metals with a 6.44% surge. The Copper ETF (JJC) advanced over 3% and the US Oil Fund (USO) gained 2.5%.  Click this image for a live summary page Read More 

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Most Active Stocks Power the Nasdaq Higher

by Arthur Hill

The Nasdaq is moving higher with eight of the ten most active stocks advancing. DELL and QQQ are also up, but I am leaving them out of the top ten. Facebook (FB) is leading the charge with a 5+ percent gain, and Intel is up over 1.5% on the day.  Click here for a live CandleGlance Chart Read More 

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Six Sector SPDRs Record Multi-year Highs

by Arthur Hill

The screenshot below comes from the Predefined Technical Alerts Summary. There is a lot of strength in the stock market with the Russell 2000 and Nasdaq hitting multi-year highs. Also note that six sector SPDRs also recorded multi-year highs. Read More 

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Intel Breaks Out with Second Gap in Two Weeks

by Arthur Hill

Intel is on the move with its second gap of the month. Intel started September strong with a small gap and surge above 22.50. After a small three day pullback this week, the stock continued higher again with a gap above 23. Relative strength is also improving as the StockCharts Technical Rank (SCTR) challenges 50 for the first time since early July. Click here for a live SharpChart. Read More 

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XLY, XLF and XLI Lead the Sectors in September

by Arthur Hill

It has been a good month for eight of the nine sectors. Eight of the nine are up month-to-date with the Consumer Discretionary SPDR (XLY), Industrials SPDR (XLI) and Finance SPDR (XLF) among the leaders. It is positive to see three of the four offensive sectors leading during a broad market advance. See video below and click here for a live chart. Read More 

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S&P 1500 AD Line Breaks Short-Term Resistance

by Arthur Hill

The video and chart below shows the AD Line for the S&P 1500 breaking above its mid August highs with a surge the last few days. This move appears to have ended the short-term downtrend that began in early August.   Click here for a live chart Read More 

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Finance SPDR Breaks Key Trend Line

by Arthur Hill

The Finance SPDR (XLF) is starting to perform with a nice surge over the last two weeks. Notice how the ETF broke the August trend line and filled the late August gap to signal an end to the current correction. The Vortex Indicators confirmed as +VI moved above –VI. Read More 

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In Honor of Joe Granville; Volume May Lead Price for BAC

by Arthur Hill

Bank of America (BAC) hit a 52-week high in late July and then corrected with a falling flag or channel the last five weeks. Despite this correction, the indicator window shows On Balance Volume (OBV) remaining strong and hitting a new high last week. This suggests that BAC is still under accumulation and prices could breakout. Joe Granville, creator of OBV and a pioneer in technical analysis, passed away on Monday. He was 90. *LINEBR** Read More 

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Walgreen Forms Inverse Head-and-shoulders Pattern

by Arthur Hill

After a big surge from November to May, Walgreen (WAG) consolidated with an inverse head-and-shoulders pattern. This version of the head-and-shoulders is a bullish continuation pattern. Also notice that the pattern from mid June to September looks like a cup-with-handle. A breakout at 51 would confirm and signal a continuation higher. Read More 

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Steel ETF Challenges 200-day Moving Average

by Arthur Hill

The Steel ETF (SLX) is making some noise with a break above the flag trend line and challenge to the 200-day SMA. This moving average flattened just below resistance, which extends back to the May highs. With the 50-day turning up, price action is looking bullish and a flag breakout projects a move above the resistance zone.  *LINEBR** Read More 

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Altera Leads Semis with Rim Breakout

by Arthur Hill

Altera (ALTR) is showing upside leadership with a breakout and 52-week high on good volume. Overall, the pattern at work looks like a cup-with-handle, which is a bullish pattern. The rim breakout completes the pattern and argues for higher prices. Broken resistance turns first support to watch on a throwback.  *LINEBR** Read More 

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Utilities SPDR Breaks Pennant Support

by Arthur Hill

The Utilities SPDR (XLU) broke down as the 10-year Treasury Yield ($TNX) moved back above 2.8% on Monday. XLU was already in a downtrend after the lower high in July and mid August breakdown. After stalling with a pennant, the ETF broke pennant support to signal a continuation lower. The price relative (XLU:SPY ratio) is also trending lower as XLU shows relative weakness. Read More