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Nike (NKE) Suggests The 2017 Race Is Not Over

by Greg Schnell

Nike (NKE) popped up 8% this morning on earnings right at the mid point of the year. Nike accelerated straight up for 3 years before topping in 2015. After retracing 20%, the stock tried to climb and it looks like its working to take the lead. The chart is setting up two classic patterns. The first is a breakout through a downtrending line. The second is the horizontal support/resistance area at $57.70 looks pretty important to get through. You'll also notice the blue dashed line also represents a neck line for a head and shoulders base.  The MACD Read More 

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Yields Soar, Banks Explode Higher

by Tom Bowley

The stubbornness of treasury buyers has kept a lid on treasury yields and, as a result, banks ($DJUSBK) have struggled to determine which direction they should move.  Well..this morning's reaction to an upwardly-revised GDP number (TNX up 7 basis points to 2.29% at last check) for the first quarter and the Fed's decision to lift restrictions on banks paying dividends and buying back shares seems to have resolved that issue.  The 10 year treasury yield ($TNX) is having its biggest spike in a few months and banks are benefiting.  Check out this chart: That's a Read More 

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XRAY Traces Out a Classic Bullish Continuation Pattern

by Arthur Hill

Dentsply International (XRAY) has a large cup-with-handle pattern forming over the last twelve months and the stock is on the verge of breaking rim resistance. Popularized by William O'Neil of Investors Business Daily, the cup-with-handle is a bullish continuation pattern. This means it forms as a consolidation after an extended advance, which runs from October 2014 to a 52-week high in June 2016. The handle is a smaller consolidation after the January-February surge. Either way you slice it, a breakout would be bullish and argue for a continuation of the uptrend. Traditional measuring Read More 

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Valeant (VRX) Investors Putting In A Valiant Bid For Investor Interest

by Greg Schnell

Valeant (VRX) investors watched their stock top out 2 years. Anyone still holding the stock from back then needs a return of 100's of % to get back to where they once were. Frustrated investors sold VRX to claim their capital losses. Hedge funds sold their shares in full public view, frustrated by the fall. While the company does not sell a potion for healing investor ills, it may be that they have a new group of investors that have not lived through the trauma.  With technology stocks being the ride of the year for winning investing horses, it seems Read More 

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HCA Healthcare Bounces off Breakout Zone

by Arthur Hill

HCA Healthcare (HCA) is turning up at a key level and showing signs that the long-term uptrend is resuming. HCA is in a long-term uptrend because it broke out in January and recorded a 52-week high. This breakout zone turned into support around 82 as the stock fell back to this area with a “throwback”. A classic tenet of technical analysis is that broken resistance turns into first support. HCA successfully tested this newfound support zone with a bounce the last two weeks. Also notice that the PPO(5,30,5) turned up, which means upside momentum is moving in the right direction. Read More 

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First Solar Starts Generating Some Power (FSLR)

by Greg Schnell

First Solar (FSLR) has been down and out for a while. The SCTR ranking has been below 10 for a long time. The SCTR started to surge in early May but fell back. This week it kicked back up to 85. With Friday's high close, FSLR is starting to generate some price power. With new volume hitting the stock recently and the MACD turning up while above zero, this looks like a stock that wants to move higher. Good trading, Greg Schnell, CMT, MFTA   Read More 

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BLUE Looking At Blue Skies Ahead?

by Tom Bowley

Biotechnology stocks ($DJUSBT) were the second best performing industry group last week, trailing on renewable energy ($DWCREE).  Both groups appear poised to continue their rally based on their longer-term weekly technical outlook.  Therefore, it's probably not a bad idea to look at stocks in these groups that pull back to find critical price support levels from where they're likely to continue their push higher.  Bluebird Bio (BLUE) had a rough Friday (-5.49%) after a huge advance 60% advance over the three prior weeks.  For short-term aggressive traders, keep an eye Read More 

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BioMarin Next In Line For Breakout Among Biotechs?

by Tom Bowley

BioMarin Pharmaceutical (BMRN), like the overall biotech industry ($DJUSBT), has struggled for the past 18 months to clear overhead price resistance.  But over the past couple trading sessions, we have seen one biotech company after another clear resistance on strong volume and accelerate.  It appears that BMRN is awaiting its turn.  While its gains this week have been strong, the best may await on a breakout.   Here's the longer-term weekly chart: You can see that interest is picking up in BMRN as weekly volume is its highest in eight weeks to accompany a 9.7% move Read More 

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MACD Histogram Teeters as AT&T Breaks Wedge Line

by Arthur Hill

Despite a strong stock market in 2017, AT&T ($T) is having a tough time with a breakdown in early May and a sharp decline below the 200-day SMA. The stock rebounded after a double-digit decline with a bounce back to the 200-day SMA, which is now falling. Thus, we can clearly say the long-term trend is down for this stock. Short-term, the rebound ended as the stock broke the wedge line and moved below support at 38.50. This signals a continuation of the prior decline and argues for further weakness, perhaps back to the November lows.  The indicator Read More 

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Clorox (CLX) Polishes A New High

by Greg Schnell

Clorox (CLX) is a big Consumer Staples company showing off a new 52-week high this week. The breakout jumps above a 2016 top and a high touched in March 2017. The volume has been tepid the last 4 or 5 weeks so that is a little concerning, but everything else on the chart looks polished! Good trading, Greg Schnell, CMT, MFTA   Read More 

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Breakout in Biotech SPDR Signals Trend Continuation

by Arthur Hill

The Biotech SPDR (XBI) is starting to lead the market again with a consolidation breakout and 52-week high. The chart shows the ETF hitting an initial 52-week high in February and then consolidating for four months. It looks like this consolidation is ending and the bigger uptrend is resuming with this week's breakout. Using a parallel channel for a target, the upper trend line extends to the upper 80s by August-September. The indicator window shows the PPO(10,40,1) in positive territory since August 2016 and this confirms the long-term uptrend.  Read More 

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Cerner Corp Tests Key Price Support

by Tom Bowley

It's always nice to go back to the basics of technical analysis.  Broken resistance becomes support.  That's currently the case with Cerner Corp (CERN) where the stock recently cleared price resistance just above 65.00 and, with recent profit taking, we've seen a return to that price support level.  There's also a nice 2017 uptrend in play that shows multiple touches and CERN is slightly above that trendline support as well.  Here's the chart: Should 65 price and trendline support fail to hold, the next key level for CERN would be gap support just above 62. Read More 

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Amazon Delivers "Clean Up In Aisle 1" Message To Grocers

by Greg Schnell

Amazon (AMZN) stepped up and bought shares of Whole Foods (WFM) for $13.7 B. While Whole Foods shareholders saw some relief from the prolonged pain of holding the stock, the rest of the industry group plummeted on the news. The weekly chart of WFM shows the shareholder pain for the last five years. The Industry group dropped broadly on the news. Amazon's delivery prowess just doubled down the biggest risk to market share by adding physical locations in primary markets. Amazon moved $30 higher on the news as well. Retail continues Read More 

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Would The Real Bank Trend Please Stand Up?

by Tom Bowley

One look at the 10 year treasury yield's ($TNX) decline the past several months provides proof that the bond market isn't exactly agreeing with the Federal Reserve's stated position that they see economic improvement in the months ahead.  The Fed announced on Wednesday that it sees another rate hike in 2017 and further hikes in 2018.  That would suggest a strengthening economy.  Yet a strengthening economy should trigger the selling of treasuries and higher treasury yields.  But that has not been the case.  Who's right, the Fed or the bond market? Read More 

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Celgene Holds Breakout Zone and Turns Up

by Arthur Hill

Celgene (CELG) is a large biotech stock that is part of the Biotech iShares (IBB) and the Biotech SPDR (XBI). Overall, I would suggest that the long-term trend is up because the stock hit a 52-week high in mid-March and the 50-day EMA is above the rising 200-day EMA. The stock also broke out with a gap-surge in November and this breakout zone held (blue area). Also notice that a rising channel of sorts is taking shape since December.  The stock caught my eye recently because it found support around 115 twice in late May and broke above short-term Read More 

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Citi (C) Holds It's Breakout

by Greg Schnell

Citi (C) rallied last week to push to new highs. This week, Citi is holding up with the Fed meeting tomorrow. The SCTR is close to moving into the top performing area above 75.  The MACD is turning up above zero which is very bullish and Citi increased the dividend in July of 2016. Perhaps another dividend increase is in store. Good trading, Greg Schnell, CMT, MFTA   Read More 

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NUE Shows Early Signs of Ending its Correction $NUE

by Arthur Hill

Nucor (NUE) is flat year-to-date and lagging the S&P 500, but the bigger trend is up and short-term momentum is turning up. The bigger trend is up because Nucor surged to a 52-week high in early December and the 10-week EMA remains above the 40-week EMA, even after the recent decline. Notice that this decline retraced around 50% of the prior advance and returned to the rising 40-week EMA the last few weeks. The retracement amount is typical for a correction, as is the dip back to the 40-week EMA. The PPO (5,30,5) show early signs of an upturn and NUE closed back above the 10-week EMA Read More 

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Applied Optoelectronics Follows Other High SCTR Stocks Lower On Friday

by Tom Bowley

If you're someone that finds great investments among the high SCTR (StockCharts Technical Rank) stocks, you probably enjoy better than average returns most of the time.  However, Friday was not one of those times.  The NASDAQ 100, clearly the best performing index among our major indices in 2017, was trounced on Friday.  The technology sector (XLK)?  Again, the XLK is our best performing sector and it was trounced.  The high SCTR stocks (ie, best relative performers) also were trounced on Friday as everything that had been workingsuddenly stopped working Read More 

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State Street (STT) Turns Up The Hill

by Greg Schnell

State Street (STT) turned up to new highs this week with a stronger consolidation pattern than the big banks have shown. State Street did not drop down to test the lows recently and still has not tested the 200 DMA which most of the bank stocks have been doing. The SCTR suggests this is resuming the up trend with the SCTR staying in strong territory. The stock shows above average volume coming in all week and the MACD is turning higher from above zero. All positive developments as the stock breaks out. Tom Bowley and I recorded a new edition of StockCharts Read More 

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Industrials Back Test Their Ascending Triangle Breakout

by Tom Bowley

Over the past week, it's been about an even split among sectors in terms of winners and losers.  Industrials (XLI) is one sector that's been slightly lower over the past week, but technically things still look very bright in this space.  Broken price resistance generally becomes solid price support - that's TA 101.  In the case of the XLI, broken price resistance also was the top of a very bullish ascending triangle pattern as you can see below: After the XLI rose well above 68, we saw it pull back to test not only price/triangle support, but also its rising 20 day EMA Read More 

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Vulcan Materials Consolidates above Breakout Zone $VMC

by Arthur Hill

After struggling the first three months of the year, Vulcan Materials (VMC) is showing signs of life since late March with good upside volume and a breakout in early May. Notice that the stock broke above a resistance zone in the 122-125 area and this zone turns into support. The stock fell back into this zone and then consolidated with a triangle of sorts. We can debate where to draw the triangle lines, but this misses the bigger picture. The stock is consolidating above the breakout and this consolidation is a bullish continuation pattern. Look for a breakout at 130 to signal an end to Read More 

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Gold Finally Breaks Out With The Miners

by Greg Schnell

Investing in Commodities has been tough for the first 1/2 of 2017. Every rally was a false breakout and every opportunity seems to have dried up. From Agriculture, energy, precious metals, industrial metals, steel, copper and cocoa, it has been a hard spring for trading from the long side. Today, Gold gives us a glimmer of hope that this may be changing. The miners alsolutely soared today up 4.5% in the GDX ETF. The volume was even more impressive with 98 million shares today with an average of 55 million normally.  While this is very bullish and Read More 

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UPS Goes for a Breakout

by Arthur Hill

United Parcel Service (UPS) has been lagging the broader market this year, but may be turning around as it bounces off support and momentum turns up. UPS surged to a 52-week high in December and then retraced 50% with a sharp decline in January. The stock managed to firm near broken resistance and consolidated after this plunge. There is clearly a lot of support in the 102.5 area and the stock surged off this zone the last two weeks. Also notice that weekly MACD turned up and crossed above its signal line. This improving technical outlook increases the odds for a resistance breakout and a Read More 

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Fortinet In Strong Industry, Tests Gap And Price Support

by Tom Bowley

Fortinet (FTNT) is down roughly 5% from its recent price high as money rotates within the software industry ($DJUSSW).  It's up close to 30% year-to-date, however, so a little profit taking in the short-term is likely providing an opportunity.  FTNT looks to be approaching and testing a key price and gap support level that's been holding for the past 6-7 weeks.  RSI is in the mid-40s as FTNT has been underperforming the software industry as a whole during its consolidation period.  Here's the chart: Note that software ($DJUSSW) has been a major outperformer Read More 

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Abbott Labs (ABT) Cracks The Glass

by Greg Schnell

Abbott Labs (ABT) has been trapped under the $45 level for about 18 months. This week, the stock blew through the glass ceiling, cracking new highs. The recent breakout in late February was a cautionary signal the stock was trying to go higher. This week it is looking to close near the top end of the weekly range. The volume bar is higher than the last week but we also are missing a trading day, so this is a nice volume response with the breakout. It is good to see volume expand on the breakout. Tom Bowley and Greg Schnell will be Read More 

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Coal Facing Poor Technical Conditions And Historical Headwinds

by Tom Bowley

The Dow Jones U.S. Coal Index ($DJUSCL) spent 2016 bouncing from the ashes after a disastrous 2015 in which the DJUSCL lost 90% of its value.  The "dead cat bounce" looks as though it may have ended as price action has rolled over and the weekly MACD has clearly turned bearish.  Here is the current technical view: The strength ended in December 2016 with the printing of a negative divergence.  That slowing upside momentum reversed into a downtrend where 20 week EMA resistance has been problematic for the bulls in both April and May.  If the DJUSCL is to reverse Read More