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BIOF Has Some Volume Fuel In This Move

by Greg Schnell

The ticker cloud on the home page had a new name on it today. BIOF was highlighted, so I clicked through.   This stock really started to move a few weeks ago and look at the volume come piling in week after week. This rally was the first time that BIOF was able to push through the downtrend.  We try to keep our articles informative and entertaining. Make sure you check out the other blog writer articles in Mailbag, Chartwatchers, Traders Journal, Decision Point and The Canadian Read More 

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Utilities Lead on Equal-Weight Sector PerfChart

by Arthur Hill

The Equal-weight Utilities ETF (RYU) is the best performing sector year-to-date with an 8% gain. The Equal-Weight Consumer Discretionary ETF (RCD) is the only sector in the red with a 2.23% loss. Absolute weakness in RCD and relative weakness in the Equal-weight Industrials ETF (RGI) are the main reason the Equal-Weight S&P 500 ETF (RSP) sports only a 1.91% gain. Notice that the Equal-weight Technology ETF (RYT) is the third strongest sector overall and strength in the technology sector is countering weakness in the consumer discretionary sector. Read More 

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100 Hammers Hit the Pre-defined Scans Page

by Arthur Hill

Chartists looking for specific candlestick reversal patterns should check out the predefined scans page, which is updated intraday and end-of-day. Thursday's end-of-day results show a surge in the number of hammers (from 42 to 100 for a +58 gain). This indicates that many stocks dipped after the open and then rallied to close near their open. Of note, Kona Grill (KONA) and Web.com Group (WWWW) made the scan. Click this image for a live table Read More 

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Google and LinkedIn Try to Hammer Out Short-Term Bottoms

by Arthur Hill

Google, LinkedIn and other momentum stocks fell sharply this month and became short-term oversold this week. Signs of a short-term low are emerging early Thursday as Google (GOOG) and LinkedIn (LNKD) trace out hammer patterns. Keep in mind that it is still early and these hammers are subject to change until the close. A hammer is a bullish candlestick pattern that forms when prices dip after the open and then recover to close near the open. Read More 

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Is Apple AAPL The New Walmart WMT?

by Greg Schnell

Apple was loved for growth earlier in the decade but it looks like it is now loved for cash flow. Recently WMT made a move above its 200 DMA and AAPL also started moving. That was intriguing. After glancing at the price action on both charts, I noticed they were starting to behave the same. So I created this chart.  It could be that investors are moving to safety and still trying to find some upside. The correlation has been very high for 8 of the last 10 months. It could just be an Read More 

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Cree Breaks Down with Expanding Volume CREE

by Arthur Hill

After lagging the market and the semiconductor group this year, CREE finally succumbed to selling pressure with a triangle break the last few days. Note that the S&P 500 SPDR and Semiconductor SPDR hit new highs in March, but CREE fell well short of its January high. The triangle break signals a continuation of the January decline and targets a move to the low 50s. Read More 

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GMCR - Is The Coffee Break Over?

by Greg Schnell

GMCR recently signed a partnership with Coca Cola. The stock absolutely rocked higher. It pulled back, I posted the chart with the green arrow, showing the climb out of the valley. Well, here we are a few days later. The MACD failed to give us a positive cross. That is usually a giant warning.  Stops have to be very close as this could break down quickly. If the Nasdaq continues it's underperformance, I would expect these high multiple growth stocks to pull back. This is the chart I use to demonstrate the Nasdaq underperformance.   Read More 

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Will Divergent Make The LGF Stock Roar Like A Lion

by Greg Schnell

Lions Gate Entertainment LGF released Divergent as the first in a 3 part trilogy with Insurgent and Allegiant yet to come. The stock was also divergent. One of the great qualities of the stock market is the investors try to buy early for a big move up or sell early when they don't see new catalysts for the stock. We would like to see if that behavior reflected in the stock price of Lions Gate Entertainment. Perhaps the title of the movie will be the plot of the stock. First glance, the investors don't expect the next Harry Potter series here. After being in a strong up trend, the stock Read More 

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AMD Breaks Pennant Resistance

by Arthur Hill

he other charts (CSCO, DRI, EL and MRVL) can be found at Art's Charts (subsciption required) Read More 

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Amazon Forms Big Spinning Top at Key Retracement

by Arthur Hill

Amazon (AMZN) remains in a short-term uptrend, but the stock is nearing a potential reversal zone. First, notice that the stock broke down with high volume in late January. After some bouncing in February, AMZN mounted an advance the last four weeks and retraced around 62% of the prior decline. Second, notice that broken support is turning into resistance as a large spinning top formed last week. The 380 area is a prime suspect for a reversal zone. A move below the channel trend line would provide the first sign of weakness and a break below last week's low would fully reverse the Read More 

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The Transports - 1 Out Of 3 Is Not So Bad

by Greg Schnell

I was looking through the charts last night and came across this gem. It is a chart of the Transportation Indexes. I have set the slider to cover off two years of data. I wanted to show the relatively flat trend of all the transports in 2012. Then, almost shockingly, the airlines have taken off. We have been talking about the great performance in the rails and the airlines. But it is not even close. Since 2012, or even January 2013, the trucking index is behind in performance by 30%. The Read More 

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US Steel Tops the List of SCTR Movers

by Arthur Hill

US Steel (X) is getting a bounce off support on the price chart and its SCTR is breaking above 50 with a big move. This list below shows eleven S&P 500 stocks with the biggest changes in their StockCharts Technical Rank (SCTR). Two are HMO stocks (UNH, WLP), two come from the biotech group (AMGN, GILD) and three are in the tech sector (MSFT, NVDA, LRCX). Click this image for a live table Read More 

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GMCR This Coffee Roaster Heats Up

by Greg Schnell

Looking through the ticker cloud today, and noticed some interest showing up on GMCR. After clicking on the chart, I see why. Recently, it gapped up. It pulled back to test support of the gap, and looks to have reversed here. It has a very strong SCTR, so it is behaving better than 95% of the stocks. When that happens, it usually is a place institutions like to put money. Outperforming stocks that they can buy on a pullback. Good trading, Greg Schnell, CMT Read More 

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Climactic TRIN Reading

by Erin Swenlin

On a day with plenty of selling, you will often see a downward spike in the TRIN reading. Readings of over 2.0 are frequently followed by a price rebound the following day. Indeed, many of these high readings actually precede price bottoms. It is most likely too early to say whether we will get more than just a snapback out of this, especially when you note that the 10-DMA has not reached the same oversold readings that accompanied previous major market bottoms.  Happy Charting, Erin Read More 

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Do Currencies, Equities, Bonds and Commodities Use The Same Brush?

by Greg Schnell

When flipping through the charts, sometimes you see a certain sequence of events show up. Obviously the $COMPQ, $RUT, $SPX,$INDU track each other. Sometimes, different components rotate to outperform. Currently that is the case with the $INDU underperforming. Here is a chart of some mystery assets over the last 6 months. I would say they track each other pretty well. The degree of the moves is different, but in general they move with some similarity. The Cyan (light blue) line is a little different, but they all fell in October, rose in November December, fell in January Read More 

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Utilities Light up the Sector MarketCarpet

by Arthur Hill

Stocks in the utilities sector stood out on Wednesday. As the Sector MarketCarpet below shows, the utilities sector has the most, and darkest, green of the nine sectors (blue outline). Only one square (ED) was red.  This showed broad strength within the sector and it was enough to power the Utilities SPDR (XLU) to a 1.26% gain. Click this image for a live MarketCarpet Read More 

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Yelp Traces out a Rare Three Black Crows Pattern

by Arthur Hill

Yelp ($YELP) came across the Three Black Crows scan on Tuesday. It all started with a black candlestick three days ago (Friday). The stock then opened above the Friday's close on Monday and sold off to form another black candlestick. The stock opened above Monday's close on Tuesday and again sold off to form the third long black candlestick. This is a bearish reversal pattern that does not require confirmation. Read More 

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The Euro Pushes To A New High

by Greg Schnell

The Euro continues to push higher. It seems to have more momentum currently. The last three breakouts only lasted a week. However,  at the last breakout, the $XEU chart spent 4 weeks hovering below resistance. This week we have surged to new highs once again. Gold had been tracking the Euro higher for the last few weeks. Today Gold is down hard and the Euro is up again. With a change in some of the linkages, we might see the Euro behave differently as well. Time to watch closely! For now it's another 2 year high and it looks like we'll close the week there Read More 

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Identifying Fund Leaders with the Fidelity MarketCarpet (video)

by Arthur Hill

Chartists can identify mutual fund leaders and laggards using the Rydex, Fidelity and Profunds MarketCarpets. Note that these are updated after the market close. As the MarketCarpet below shows, the Gold Fund, Leisure Fund, Latin America Fund, Japan Fund and Nordic Fund led on Thursday. Funds associated with Biotechs, Healthcare, Pharma and Treasuries lagged with losses. Read More 

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Boeing Turns Down Right Dull

by Arthur Hill

Boeing (BA) took a hit in January, rebounded in early February and then moved into a tight consolidation. Volatility has slowed to a crawl as the stock traded between 126 and 131 since February 11th. Trading volume is also slowing because Thursday's volume was the lowest of the year. The coil is tightening and chartists should watch the range boundaries for the next directional signal. Read More 

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$WHEAT Weekly Moves Higher To Join The Commodity Surge

by Greg Schnell

In the Market Message last week, I wrote about the fact that all the commodities were doing so well, with the exception of Wheat. Well, what a difference after the situation in Ukraine elevated. Wheat was hanging around a major support/ resistance line at  600. We can see this week, it got blown higher in the commodity pits. The breakout on the MACD was very important. Wheat has now joined the rest of the commodities on an upward surge. A break through the 21 month downtrend line would be bullish! This would also be a break above the down trending 40 WMA. Read More 

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Bank Of America BAC Makes Another Trend Line Breakout

by Greg Schnell

Bank of America has been running since Warren Buffet stepped in at around $5.00. Running up that is. It's pretty nice chart, with excellent support and resistance lines. The SCTR seems to float between 45 and 90. The stock has been a large volume favorite and is a very nice swing stock with pullbacks and solid moves through trend line breaks. You can see all the diagonal trend lines. It has been a great stock to see the acceleration from those break outs. The MACD looks like it is resetting nicely at the zero line, and we may see a positive histogram as Read More 

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International PerfChart Shows Strength in Developed Markets

by Arthur Hill

The PerfChart below shows the year-to-date performance for ten country indices. Notice that US, European and Australian stocks are up this year. Asia shows some weakness because the Shanghai Composite, Hang Seng Composite and Nikkei 225 are down. The Bovespa, a big emerging market, is also down sharply this year.   Read More 

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ETF Rankings Point To Emerging Market Corporate Bonds Break Out

by Greg Schnell

On days with the potential for major trend changes, I like to look around to see what might be moving that I did not expect. Today, I came across this ETF. It is the Bank of America - Emerging Market Corporate Bond ETF.  This is a 52 Week High Break out.   Now the volume is tiny. But what caught my eye was the size of the move on both Friday and Monday. These bond traders can be some of the smartest. I would not have been thinking about emerging market corporate bonds this morning Read More 

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A Rounding Bottom Takes Shape for CORN

by Arthur Hill

The Corn Trust ETF (CORN) sports a rounding bottom and breakout over the last few months. The rounding bottom extends from mid November to the end of February with a big bullish engulfing in the middle. The breakout is still a work in progress as CORN stalls with a flat flag the last two weeks. A break above flag resistance would signal a continuation higher, while a break below support would question the rounding bottom. Read More