Don't Ignore This Chart

Facebook (FB) Recovers From Global Grilling

by Greg Schnell

Facebook surged to new three month highs with the potential to retest the all time high later this week. Obviously one of the best buy points was when they announced that Mr. Zuckerberg would testify in Congress. That marked the bottom of the stock. Now what to do with the stock? After the 4 months consolidation, Facebook is trying to break $200 over the next few days or weeks. The stock is moving back above 75 on the SCTR ranking so that is very positive in my work. A top performing stock is bullish, not over bought. We can also see the stock is making new highs in relative Read More 

Don't Ignore This Chart

A Bullish Continuation Pattern Forms in the Biotech iShares

by Arthur Hill

The Biotech iShares (IBB) surged off support in mid-May and then stalled the last two weeks with a bull flag taking shape.  A bull flag is a short-term bullish continuation pattern. These patterns form after a sharp advance and represent a rest or consolidation. This is often needed to digest the gains and prepare for the next leg higher.  Flags can be flat or slope down and they fly at half-mast. Thus the pole we see in the chart below is only a half pole. A flag breakout would signal a continuation of the prior advance and project a similar move higher. Thus, the length Read More 

Don't Ignore This Chart

TripAdvisor (TRIP) Takes Its Own Advice

by Greg Schnell

TripAdvisor (TRIP) has become a mainstay tool for frequent travellers. Last week I was in Greece and we used it all the time. Checking out ratings on restaurants, patios, plays, and hotels is so easy on TRIP. The website created ways to book restaurants and hotels directly through the site without going to restaurant booking tools or another travel site.  While this is starting to show up in the stock. After being in a 3-year downtrend, TRIP took its own advice and left the base for travels up and away. After two big earning thrusts, the stock recently made new 52-week Read More 

Don't Ignore This Chart

Career Education (CECO) Looks Ready For Advancement

by Greg Schnell

Career Education (CECO) is breaking out above an up trending consolidation. The stock continues to push higher. The SCTR continues to hover around 75, suggesting the stock is a continuous top performer. This is a typical top performing stock configuration. Higher highs, higher lows. Ascending relative strength shown in purple is textbook for a strong performer. The daily MACD continues to be above zero most of the time. The MACD pulls back to the zero line, resets and starts another run. There is a lot to like when you see a strong chart setting up Read More 

Don't Ignore This Chart

Bull Flags in JP Morgan and Morgan Stanley

by Arthur Hill

I highlighted a number of bull flags in Tuesday's show (On Trend), and there were some breakouts. These breakouts, however, were not very convincing because stocks closed weak and gave back their early gains.  Today I will highlight the flags in JP Morgan (JPM) and Morgan Stanley (MS). Note that JPM is the largest holding in XLF and accounts for 11.36% of the SPDR. MS weighs in at 2.22%.  The chart below shows both stocks challenging their April highs (red zone) with surges in early May. Both stocks then fell back last week and formed falling flag patterns. With a bounce the Read More 

Don't Ignore This Chart

Can Advance Auto Parts (AAP) Put The Chart In Drive?

by Greg Schnell

Advance Auto Parts has been significantly beaten up over the last year. The last six months shows the stock building a nice base. The stocks sets up nicely here, but lets review the technicals. First of all, the SCTR shows it becoming one of the top stocks for price movement. That is a big plus as momentum investors find this stock showing up in the scans.  The Relative strength is near 11 month highs but not quite there yet.  Price has consolidated sideways since January along with the broader market index ($SPX).  The volume trend Read More 

Don't Ignore This Chart

Hasbro Hits Stiff Resistance Zone

by Arthur Hill

I do not often highlight stocks with bearish setups during a bull market, but Hasbro shows some serious weakness over the past year and looks poised to peak again.  First and foremost, the chart shows Hasbro (HAS) hitting a 52-week low in early April and this means the long-term trend is down. Also notice that the 50-day EMA is below the 200-day EMA and price is below the falling 200-day EMA. Hasbro recently broke a support zone in March and bounced back to this zone in April-May. A basic tenet of technical analysis is that broken support turns into resistance. Also notice that the Read More 

Don't Ignore This Chart

Las Vegas Sands (LVS) Checks At Prior Highs

by Greg Schnell

The Gambling industry group has been performing well as of late. This week the chart of Las Vegas Sands (LVS) is attempting to break to new highs. Technically, the stock is performing well. The SCTR is above 75, and the Relative Strength in purple shows LVS outperforming the $SPX. The recent consolidation since the beginning of the year looks like it is just setting up for the next leg higher.  The MACD looks extended here and the stock might need to pull back for a few days which might make for a safer entry. The consolidation range is $10 which Read More 

Don't Ignore This Chart

These Two Materials Stocks are Looking to Lead

by Arthur Hill

The Materials SPDR (XLB) is having a good month with a 4+ percent gain so far in May. Within the sector, I am seeing some strength in two big chemical stocks, Air Products (APD) and Eastman Chemical (EMN).   Before looking at the charts, note that both are above their rising 200-day EMAs, and their 50-day EMAs are above their 200-day EMAs. APD hit a new high in January, while EMN hit a new high in March. Both are in long-term uptrends and this means my bias is bullish.  The first chart shows Air Products with a large triangle forming here in 2018. This Read More 

Don't Ignore This Chart

Four Days From A Buy Signal In Gold?

by Greg Schnell

The Gold chart gapped below the 200 DMA again today. This is the fourth time in the last year. However, look at the trend after the gap down below the green moving average line. Approximately one week later, Gold reversed and started a long up trend in the three previous cases. If that is going to work again, we should see a bottom formation early next week. Below is the Bullish Percent Index for the gold miners. It was starting to look very bullish by rising above 50%. We'll see if we get a pullback. I am watching closely to see if this transpires because Read More 

Don't Ignore This Chart

Pfizer Surges within Consolidation

by Arthur Hill

The healthcare sector is coming alive on Monday and leading the broader market. As with the S&P 500, this sector struggled in 2018 and the Health Care SPDR (XLV) is up around 1.5% year-to-date. SPY, for reference, is up almost 3% this year.  The chart below shows Pfizer (PFE) with a steady uptrend until January and an erratic range since late January. The range started with a sharp decline into early February and traced out a triangle of sorts the last three months.  Despite an erratic 2018, I still think the long-term trend is up Read More 

Don't Ignore This Chart

Lowes (LOW) Constructs A Small Base

by Greg Schnell

Lowes (LOW) perked up today. The chart shape is nice with multiple technical signals. The Relative Strength is making a minor signal with a break of the downtrend on the purple area panel. The SCTR is moving above 50 in the top panel which is ok but not great. I like it when it pushes above 75. I think what is particularly encouraging about the chart is the price was outperforming the $SPX before the big correction in the indexes. It looks poised to resume the run after moving above major horizontal support today.  The MACD is also giving us a Read More 

Don't Ignore This Chart

BHP Billiton Mines A New High

by Greg Schnell

BHP Billiton is a global mining stock. It continues to perform well and has consolidated recently. The commodity related stocks are trying to break out here. BHP, RIO and VALE succeeded this afternoon. Below is the chart of BHP. The SCTR has moved above 75, The full stochastics are surging  and can stay above 80 for a while. Price broke out to a new high. Volume looks quiet. But the quiet volume in November to December 2017 shows the stock climbing straight up.  The PPO has just given a positive cross. This looks very bullish indeed. If I have Read More 

Don't Ignore This Chart

Ringing the Bell for Hilton

by Arthur Hill

Hilton (HLT) led the market in the second half of 2017 and then took a breather in 2018. This is looking like the pause that refreshes as the stock challenges resistance.  First and foremost - you know the drill - the long-term trend is up and this means I am only interested in bullish setups. HLT hit a new high in January and is above the rising 200-day EMA.  The stock fell back into April as it retraced 50% of its August-January run with a falling channel. Both the retracement amount and the channel are typical for corrections within a bigger uptrend.  Read More 

Don't Ignore This Chart

General Electric (GE) Tries To Change The Trend

by Greg Schnell

General Electric (GE) is base building as we roll into May. The plummeting stock has stopped its free-fall and has now built a small head shoulders setup. Head and shoulders refers to a changing trend. The momentum is improving on each low and the stock starts to make higher lows which shows up as two shoulders around the low. The SCTR still is very low. The Relative Strength is very close to 3-month highs which is usually a good scan to run on stocks. It will take a while to work the SCTR higher and it is a long way to the 200 DMA at $18.58. One of the main components of the SCTR is the Read More 

Don't Ignore This Chart

Discount Brokers Lead the Market

by Arthur Hill

The discount brokers are showing strength in the broader market with E-Trade Financial (ETFC) and Interactive Brokers (IBKR) hitting new highs in May. Schwab (SCHW) is breaking out of a small triangle, while TD Ameritrade is bouncing within a bigger triangle. A picture is worth a thousand words and the chart below shows all four with some annotations.  E-Trade and Interactive Brokers are the strongest because they have the freshest new highs. Schwab is close behind as it nears its March high. TD Ameritrade is the laggard, but the chart looks strong because a triangle is a Read More 

Don't Ignore This Chart

Mosaic (MOS) Seems To Be Completing The Picture

by Greg Schnell

Mosaic's chart looks like an endless river of pain. So much so, why would anyone look at the stock for investment? Well, a couple of signals have kicked up that make it worthy of a second look now. First of all, the SCTR recently gave us a signal by moving above 75. Then the SCTR scaled back to 45 and moved back above the 75 level. This is a common occurrence on stocks when they start to outperform. So that is a real positive that I like to see. Full stochastics have pushed back above 50. The stock price has bounced off the 40 week moving average which is bullish. It has also formed Read More 

Don't Ignore This Chart

Alphabet: Is it time to Bounce?

by Arthur Hill

It has been a rough year for Alphabet, also known as Google, but the stock is still in a long-term uptrend and firming near a solid support zone. This could give way to a bounce.  First, the stock advanced some 30% and hit a 52-week high in January. Second, the PPO(50,200,0) is positive and this means the 50-day EMA is above the 200-day EMA. Even though the stock is some 13% below its January high, I still think the long-term trend is up.  This year's decline occurred with three legs: down into early February, up into mid March and down Read More 

Don't Ignore This Chart

Stryker Strikes A Fresh New High

by Greg Schnell

Stryker (SYK) pushed to new highs this week. The medical equipment maker has consolidated for the first four months. The surge to new highs comes after a strong run over the last three weeks. While the stock will probably pull back a little her, this looks like one for the watch list. The SCTR is moving above 75. The relative strength is soaring which will attract more investors. The volume has been surging lately so the interest is strong.  If it gets a little time to pull back, this looks set to continue its strong run. Good Read More