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Semiconductors Surge To Fresh New Highs

by Tom Bowley

Just a couple days after finally clearing two month resistance at 1950, the Dow Jones U.S. Semiconductor Index closed above 2000 for the first time in 14 years late last week.  Semiconductors tend to move quickly in both directions so given the breakout, I'd be looking for further appreciation in the near-term.  Previous highs in December 2014 and March 2015 had marked resistance over the past six months while lows in February and March had marked support.  This rectangular consolidation followed a sharp rise in October and November of 2014.  The daily MACD is now Read More 

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FireEye (FEYE) Threatens To Break Out

by Greg Schnell

FireEye (FEYE) has been a stormy stock. It launched onto the exchange with an IPO price of $20, but the opening week doubled. After a massive first week, the stock tried to find a level between $33 and $44. The next three months built a consolidation pattern in that range. A breakout in December 2014 saw the stock launch in a vertical breakout that doubled the stock price by the first week of March 2014. This parabolic move was subsequently reversed as they typically are and went all the way down to the lower ranges of $25 just as fast. Whew, tough ride! In February Read More 

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ABIOMED Testing Gap Support

by Tom Bowley

ABIOMED (ABMD) has fallen much of the past three weeks after surging on better-than-expected quarterly earnings results on May 5th.  ABMD posted revenues of 67.56 million in its latest quarter, easily surpassing Wall Street forecasts of 62.33 million.  In addition, ABMD's EPS trounced estimates, .28 vs. .12.  Prior to the positive earnings surprise, ABMD received FDA approval for its heart pump during the latter part of March, triggering another surge and gap higher.  Technically, the recent selling not only filled the gap from earnings, but now ABMD has filled that Read More 

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Palladium Holds Up Better than Gold

by Arthur Hill

The Palladium ETF (PALL) caught my eye on Tuesday because it held up quite well when other metals were getting hit hard. Gold was down around 1.5%, while platinum and silver fell around 2%. PALL was down just .26% and the ETF is edging higher in early trading on Wednesday. The chart below shows two month performance for the Palladium ETF (PALL), Gold SPDR (GLD), Silver ETF (SLV) and Platinum ETF (PPLT). Notice that PALL is up and the other three are down.  The chart after the jump shows a potentially bullish setup emerging.  Read More 

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Live Nation (LYV) Shoots For The Stars

by Greg Schnell

Live Nation (LYV) is the premier ticket booking system for concerts with website properties like Ticketmaster. Today, Live Nation broke to new all time highs. This chart looks bullish making new highs while the overall market was down 1%. That's a nice show of strength. The SCTR is above 75, the relative strength is improving and the price action is very good. After making new highs in early May, the stock pulled back but held near the breakout level. Last week, it pushed above resistance again. Today, it soared to new highs and closed close to the high of the day Read More 

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Shake Shack (SHAK) Is Shakin' All Over !

by Greg Schnell

Every now and then a new stock comes into the market that appeals to a wider audience that just regular investors. Recently Shake Shack (SHAK) went public as a burger joint with some seriously good management behind it. GoPro was another stock that had wider public appeal than just regular investors. If you are in these stocks when they go ballistic, it can be a fun ride.  In the case of the Shake Shack shareholder, this one has milkshake on the ceiling today! One of the best ideas as a share owner is to figure out how to exit as they come back to the regular stock market Read More 

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Penn National (PENN) Awaiting Breakout

by Tom Bowley

The Dow Jones U.S. Gambling Index ($DJUSCA) has been under pressure for quite some time with many gambling stocks under pressure as well.  That has not been the case for Penn National Gaming (PENN), however, as it's been in an uptrend and has been a tremendous relative performer, waiting on the doorstep of another potential breakout, one that would measure up another 12-13%.  Notice the highs reached in each of the last four months?  They're all close to 17.00 with the low in April close to 14.80.  That gives us a measurement of roughly 2.20 to add onto the 17.00 Read More 

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What Matters Most for the S&P 500?

by Arthur Hill

The S&P 500 is in the midst of one of the strongest and most consistent trends ever. The chart below shows the S&P 500 twice. The top window shows the index with a 7% Zigzag indicator in pink and the bottom window shows a 10% Zigzag. The Zigzag indicator filters out price movements that are less than the parameter. As the top window shows, the S&P 500 has experienced just four 7 to 9 percent pullbacks since October 2011 (blue arrows). Even the plunge in October 2014 did not hit the 10% threshold.  The bottom window is even more remarkable because the 10% Zigzag is a Read More 

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Johnson & Johnson Jumps (JNJ)

by Greg Schnell

Johnson & Johnson (JNJ) had a great day on Monday. However, on the chart, JNJ had some meaningful technical signals. Starting at the top in purple, The relative strength is turning to the upside after being in a downward trend. It is at 1 month highs and the .49 level on the left scale would be a three month high. Reading the legend, you can see we are right at the 3 month highs. The SCTR is very weak, shown in black, with the stock behaving better than 37% of the companies. However, there is a long downtrend on the SCTR, and you can see the down trend is clearly broken. I overlay Read More 

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Dow Joins S&P 500 with New High

by Arthur Hill

The S&P 500 hit a new high last week and the Dow Industrials followed suit with a new high this week. Overall, the Dow broke triangle resistance with a surge on Thursday and this breakout signals a continuation of the current uptrend. Broken resistance turns first support to watch. A strong breakout should hold and a quick move back below 18000 would show cold feet. The March-April lows mark key support in the 17600 area. The triangle is around 700 points high (18300 to 17600). Chartists can add this distance to the breakout zone for a rough estimate of an upside target (18150 + 700 = Read More 

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Deere (DE) Has Trouble Breaking Higher Ground

by Greg Schnell

On Thursday, Deere and Co. (DE) pushed to new highs. But the equipment could not hold the breakout and rolled over swiftly falling hard today.  Deere is sitting at a critical point on the chart. We can see the rising trend in the price action and this test of the previous high was an important one. After making it $0.03 above the previous high, the selling started. Deere gapped down this morning and looks to test the bottom trend line. If Deere holds and bounces it could be a great entry on the way to higher highs. If Deere fails to hold the trend line this will be Read More 

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Paccar Holds Big Breakout and Goes for Another

by Arthur Hill

Paccar (PCAR) sports a bullish looking chart with two breakouts in as many months. The stock surged from October to December and then corrected with a decline that retraced 62%. After three bounces off the 62% retracement area, the stock broke out with a surge in mid-April. This breakout ended the correction from late December to March and signaled a continuation of the October-December advance. More details are posted below the chart.     The broken resistance zone around 64 turned into support as the stock fell back into early May Read More 

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Will Sotheby's Get A Bid After Christie's Sells Picasso's Women Of Algiers for $179.3 Million?

by Greg Schnell

The art world is abuzz with Picasso's Women of Algiers selling for $179.3 Million where the commissions to Christie's were 12% or $19.3 Million! That all wraps up as a selling price of $160 Million. Christie's is not publicly traded, but I thought a look at Sotheby's (BID) might be in order. This stock has some great technical patterns. First of all, we can see it has formed a rising series of cup shaped patterns. The pullback of each one has been about 50% to 60% of the previous cup. The horizontal red line marks a major form of resistance for Sotheby's but a bid above that Read More 

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Energy SPDR Fails at Long-term Moving Average

by Arthur Hill

The Energy SPDR (XLE) is in a long-term downtrend and it looks like the short-term uptrend reversed over the last few days. The chart below shows XLE failing at the falling 200-day moving average with a bearish engulfing last week and breaking below short-term support at 81. The ETF bounced above 81 on Friday, but fell back below 81 with a sharp decline on Monday. The bearish engulfing is confirmed and short-term support has been broken. Also note that XLE is the weakest of the nine sector SPDRs because it has the lowest StockCharts Technical Rank (SCTR) of the nine.  A small ranking Read More 

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With The Russell Starting To Underperform, Watch The Action Closely

by Greg Schnell

Recently the Russell 2000 was outperforming the $SPX. Early in April, it stopped out-performing as you can see on the purple ratio. As the Russell Tracking ETF (IWM) hit new highs, it was underperforming the $SPX as the purple area drifted lower. Right now, the IWM has some great technical signals on it, making the next few weeks very important. Next, the SCTR shows IWM dropping from the 90 area to the 50 area. This loss of strength relative to the other ETF's makes this bounce very important to watch. If the IWM can break out to new highs here, we really want to see it pick Read More 

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BroadCom Forms Bullish Continuation Pattern

by Arthur Hill

It has been a rough month for stocks overall, but Broadcom (BRCM) is bucking the selling pressure and challenging resistance. There are two bullish continuation patterns possible on this chart. First, an inverse head-and-shoulders pattern extends back to early March. Second, the right two-thirds of the pattern looks like a cup-with-handle, which is a bullish continuation pattern. This pattern was popularized by William O'Neal of IBD. The stock is also showing relative strength as the BRCM:$SPX ratio hit a new high today. A break above the red resistance zone would signal a continuation of Read More 

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Merck Holds Up and Outperforms its Sector

by Arthur Hill

Stocks have been under pressure the last eight days with the S&P 500 SPDR (SPY) down around 2% from its late April high and the HealthCare SPDR (XLV) down around 4% from this high. At times like this, it is good to look around and see what is holding up and showing relative strength. I noticed Merck (MRK) with a big gap and breakout that is holding. The StockCharts Technical Rank (SCTR) broke out and the stock is outperforming its sector (XLV). You can find more stocks and ETFs with relative strength by checking our SCTR tables. Hint: Click the column heading to sort by "change" and Read More 

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A Rough Ride for Utilities

by Arthur Hill

The chart below shows the Sector MarketCarpet over the last five days (29-Apr to 5-May) and utility stocks are the weakest. The average stock in the sector is down over 2% during this timeframe, which is why the box is dark red. Healthcare and technology stocks also came under selling pressure, but not as much as utilities. The average healthcare stock and average technology stock are down around 1%. Materials are holding up the best and this sector is the only one still in the green, which means the average stock in the sector still shows a gain, albeit a small gain.  Read More