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Goldman Sachs (GS) Looks To Do A 180 Again

by Greg Schnell

I did a presentation for a chapter of the CSTA back in July. At the time, Goldman Sachs (GS) was mired below the 40 WMA. I like to use Goldman Sachs as a warning bell. If the deal makers are below their 40 WMA, we can probably expect the overall economy to be beneath the longer moving average not far after. Well, good ol' market ($SPX), ignored Goldman's move down. Another failed clue about banks smelling danger first. But more importantly, Goldman Sachs looks to do a $180 this week. Why is that a good thing? Well, Goldman Sachs has struggled at the $180 level since the financial Read More 

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Trina Solar Is Looking For Blue Sky

by Greg Schnell

Trina Solar (TSL) is poised to break out here, but it has important resistance to get through first. The RSI has stayed bullish throughout the 1 year pullback. The stock has drifted sideways since last August. After breaking the down sloping trend line, Trina Solar is trying to get through the 40 WMA. It has struggled here for two weeks, so this is becoming more meaningful. The MACD recently crossed above the signal line and the Relative Strength has turned up above the down sloping trend. A horizontal line could be drawn across the last 6 months peaks. If Read More 

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German DAX Reverses Near Key Retracement

by Arthur Hill

The German DAX Index ($DAX) is at an interesting juncture because it broke down in July and then retraced 62% of the prior decline with a bounce in August. Notice that broken support turns into resistance in the 9600 area as well. The index stalled on Wednesday and was trading near 9450 on Thursday.    Read More 

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Volume Drying Up On DJIA

by Erin Swenlin

Dollar-Weighted Volume (DWV) is a short-term indicator. Generally the DWV and the price index run pretty close together, with tops confirming tops and bottoms confirming bottoms. What we look for are positive/negative divergences and for instances where volume doesn't confirm price, meaning that volume either leads or lags price. When this happens, look for a change in the short-term price trend. Right now we are seeing a divergence between DWV and price on the Dow Jones Industrials. Currently price is moving up faster than volume. This tells us that volume is drying up and support for the Read More 

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The Emerging Energy In Emerging Markets

by Greg Schnell

The Emerging Markets ETF (EEM) continues to post new highs today. The SCTR ranking has moved into the cherished top quartile, and the EEM segment looks to be powering higher. Although the SCTR broke out in early July into the top quartile, the ETF traded between $43 and $45 since then. Today marks a new breakout from that range. Good trading, Greg Schnell, CMT Read More 

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Consumer and Capital Spending Sectors Lead in August

by Arthur Hill

Contrary to seasonal tendencies, August has been a strong month for the stock market. The Sector PerfChart shows the S&P 500 SPDR (SPY) up just over 3% since July 31st. Of the nine sectors, the Industrials SPDR (XLI) and the Consumer Discretionary SPDR (XLY) are up over 4% and showing upside leadership. This is a positive because the consumer discretionary sector covers the consumer-spending portion of the economy and the industrials sector represents companies that benefit from capital spending.   Read More 

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Morgan Stanley (MS) Knocks On Old Ceiling Plaster At $33.50

by Greg Schnell

Morgan Stanley (MS) had a beautiful run in 2013. In 2014, MS continued to make mostly higher lows but the ceiling was capped in the $33 - $33.50 range. Today it is back there testing it again. While we commonly look at charts over the past 2 years, how about looking at 15 years of history for Morgan Stanley. Here is just a crazy coincidence. Back in 1998 MS hit $33.50. When looking across the chart this was a massive support and resistance zone for Morgan Stanley. It oscillated around it all of 1999, it was not broke until 9/11/2001. It became resistance for the 2002 -2003 lows Read More 

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Finance Sector Takes the Green on Sector Carpet

by Arthur Hill

The finance sector is showing strength as the annual conference in Jackson Hole gets under way. Fed Chair Janet Yellen will speak tomorrow and this could move Treasury yields and further affect the group. The image below comes from the Sector Carpet and shows the finance sector leading with a dark green. Also notice that technology and consumer staples are leading today. Click on the arrow at the top to see the individual squares. A more detailed Carpet can be seen after the jump.      Read More 

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NuCor (NUE) Makes New All Time Highs

by Greg Schnell

Some of the Steel sector has been moving up aggressively. But poking out to new 52 week and All Time Highs today was NuCor (NUE). This chart has great technicals. The RSI has stayed in bull mode above 40 for 2 years. The MACD has gently pulled back to the zero line and completed its reset and is off to the races with a big weekly histogram bar.  The SCTR has not quite moved into Top Quartile yet, but it looks to be headed up there. There are a few in the industry group that look worthy of attention.  To find them, click on sector summary on the home page. Go to the Read More 

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Breakouts Turn Support on S&P 500 P&F Chart

by Arthur Hill

The Point & Figure chart below, which is based on 10 points per box, shows the S&P 500 with successive upside breakouts in April, May and June. A key tenet of technical analysis is that broken resistance turns into support. The green support box, therefore, is based on these three breakouts and marks a significant support zone in the 1880-1900 area. Notice that the S&P 500 held the top of this zone with the July-August decline (red 8).  Read More 

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Ross Stores (ROST) Leaves The Roost

by Greg Schnell

The Consumer Cyclicals have been spiralling into the leading zone on the RRG charts. The stocks have been surging. Arthur Hill and I have been pointing to Consumer Cyclicals since mid July. Home Depot (HD) broke out last week and Arthur covered it in the Market Message to subscribers yesterday Arthur Hill's Market Message.  ROSS Stores (ROST) is snapping a major downtrend line that bottom fishers might be interested in. It is also surging compared to the S&P 500 shown in purple (SPURS), the red area chart shows it breaking out compared to the Consumer Cyclical sector , and the Read More 

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Delta Flies Above Key Moving Average

by Arthur Hill

Delta Airlines (DAL) appears to be ending its two month correction with a surge back above the 50-day moving average. Notice how the stock successfully tested the 35 level twice and did not even test the rising 200-day. The recent move above the June trend line and 50-day moving average is medium-term and signals a continuation of the long-term uptrend. The indicator window shows momentum improving as MACD turns positive again.  Read More 

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Time To Nibble On Today's Breakout In Corn?

by Greg Schnell

The chart of Corn (CORN) has been moving sideways for a month. We have been watching corn closely. On the big downward intraday reversal today, CORN held the gap on the open. The RSI has not broken out yet and this is bottom fishing. But the volume trend looks different this week than it has for four months. Plan your trade, complete with stops. This could be a wild ride on a harvester. Good trading, Greg Schnell, CMT Read More 

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WuXi Surges to Form Bullish Reversal Pattern

by Arthur Hill

WuXi PharmaTech (WX) is a mid cap stock showing a big gain in its StockCharts Technical Rank (SCTR) on Thursday. Notice that the SCTR surged above 50 and to its highest level since May. On the price chart, the two lows in the 30.5 area form a possible double bottom. A breakout at 35 would confirm this pattern and target a ~15 percent advance from the breakout area.    Read More 

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Will This Be The Tesla (TSLA) Top Or The Tesla Takeoff?

by Greg Schnell

Tesla (TSLA) generates lots of discussion these days. From the Consumer Reports with no door handles appearing to giga factories and new SUV's, the stock couldn't be more in the news. Today, TSLA is testing the thrust high from February 2014 with a peak at $265.  It has made a new high as the Open, High, Low, Close information has $265.64 as the daily high. Five things make this chart compelling to analyze at this point. The small channel, the large channel in light blue, the recent cup with handle, the potential double top, and the MACD turning higher. Read More 

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Is Abercrombie And Fitch (ANF) Doing Some Heavy Lifting?

by Greg Schnell

As retail starts shining with Back-To-School and the early ramp into US Thanksgiving and Christmas, the Consumer Cyclicals sector is in prime focus. Abercrombie And Fitch Co. (ANF) is an apparel retailer associated with a younger demographic.  For those of you at Chartcon, in the presentation on the SCTR, I mentioned the SCTR kickoff that starts to say the sentiment is changing in the stock.  This is a great example. The SCTR started to perk up, but the stock was still migrating from a downtrend to an uptrend. Now as it starts to make higher highs, it is Read More 

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Priceline (PCLN) Moves Above The Line

by Greg Schnell

After a fantastic Chartcon 2014 conference with technicians, we are all fired up to find the best stocks with the best tools. With all of the attendees travelling from multiple countries and continents, looking at Priceline (PCLN) seems only fitting today. Dick Arms created a new style of candle that includes volume but also builds on the intra day trading range. StockCharts launched this new candle style last fall and Dick took a seat in the middle of the audience at Chartcon 2014 to walk us through his logic on the candle and why he thinks it is revolutionary and potentially the most Read More 

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Boeing Hits Big Support Zone and Becomes Oversold

by Arthur Hill

It has been a rough year for Boeing, but the stock may be poised for an oversold bounce. After a big plunge in January, the stock firmed for a few months and then worked its way higher in April-May. BA peaked in early June and fell back to support over the past week. Notice that RSI dipped below 30 for the first time since early February. The stock is still in the falling knife category, but is ripe for at least an oversold bounce. Watch this week's high for a short-term breakout.  Read More 

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Lam Research Makes Three Bearish Scans $LRCX

by Arthur Hill

Chartists can search pre-defined scans to find out if their favorite stock or ETF triggered any scans. The chart below shows Lam Research (LRCX) triggering three bearish scans today. The Elder bar turned red, the stock moved below the lower Bollinger Band and the Commodity Channel Index (CCI) moved below -100.  Read More 

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Did You See The Soaring Volume On XLY?

by Greg Schnell

Rolling through the sector ETF's I noticed something that was way,way out of scale. Here is the one year daily chart of the Consumer Cyclical(Discretionary) sector SPDR (XLY). Look at the volume profile for the month of July. While the market was still near to the all time highs, all of a sudden some massive volume candles came in. 4 days inside 4 weeks that closed higher than the previous day and three of the top four largest volumes for the year. The four candles accounted for 83 Million shares and in June the average volume was below 5 Million a day. I want to Read More 

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Gold Miners ETF Gets a Momentum Breakout

by Arthur Hill

The Gold Miners ETF (GDX) is reacting to strength in gold with a gap and 2+ percent surge. The chart below shows GDX forming a wedge above the 50 and 200 day moving averages. The ETF gapped up within this wedge and StochRSI surged above its July highs for a momentum breakout. A follow through breakout at 27 would be bullish for GDX.  Read More 

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The Red Technical Alerts are Piling Up

by Arthur Hill

The pre-defined technical alerts page is a great place see the positive and negative events of the last few days. The image below shows a green (positive) alert for the Russell 2000 and a red (negative alert for the Materials SPDR (XLB). Prior to today, there were eleven negative alerts on July 31st and August 1st.  Read More 

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Potash Player Gets MACD Cross on Good Volume

by Arthur Hill

Intrepid Potash (IPI) fell to support in July, firmed for a few days and then surged above first resistance with good volume. Support stems from the March-April lows, and now the July low. The indicator window shows MACD moving above its signal line the last two days. This breakout is valid as long as the stock holds 14.75.  Read More