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Verizon (VZ) Tries To Connect With New Highs

by Greg Schnell

Lately the telecoms have performed pretty well. As Verizon has new highs in site, its important to check what needs to happen. Verizon (VZ) has had an important resistance layer at $51.50 which has frustrated shareholders for a couple of years. The last four tall volume bars are up weeks. I do like the strong momentum on the PPO. The full stochastics sits on the top of the range which is bullish. The SCTR appears to have a support resistance layer at the fifty level. I think if the uptrend is going to continue, the stock needs to continue Read More 

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US Bancorp Makes a Break for It

by Arthur Hill

US Bancorp lagged the broader market the first half of the year, but managed to firm from March to June and lead with a breakout in July. The chart shows USB falling from 57 to 49 with a sharp decline from late January to late March. The stock managed to firm after this decline and traded in the 48 to 52 range for over three months. Signs of buying pressure began to appear with the island reversal at the end of May. This reversal occurred with a surge in upside volume and upside volume continued to outpace downside volume in June and July. With Read More 

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Best Buy Sits Just Below A Buy Point (BBY)

by Greg Schnell

Best Buy (BBY) was all but thrown out in the retail washout a few years ago. 2017 was a huge year for the stock. In 2018, the stock has consolidated all year. Now Best Buy sits just below a buy point on a breakout trade plan. The SCTR is holding in above 50 but is still pointed down at this point. After consolidating for so many months, it has lost a little price momentum.  The Full Stochastic indicator suggests the trend is turning up again. Currently the stock trades sideways in a 7-week sideways consolidation, holding just above the 10 week moving average. The PPO shows a gentle Read More 

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Danaher Traces out Large Bullish Continuation Pattern

by Arthur Hill

Danaher is part of a strengthening sector (healthcare) and accounts for around 5.5% of the Medical Devices ETF (IHI), which is one of the strongest industry group ETFs this year. XLV is one of the best performing sectors over the last three months and IHI sports a parade of 52-week highs over the last few months. On the price chart, the long-term uptrend is up because the stock recorded 52-week highs in January and July. Even though price action has been flat the last five months, an ascending triangle formed and this is a bullish continuation pattern. Read More 

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NASDAQ 100 Tracking ETF (QQQ) Ups The Risk Profile

by Greg Schnell

The Nasdaq 100 tracking ETF (QQQ) suffered a rough day today. It closed higher but without question the afternoon showed signs of the bullish trend weakening. After a strong gap up in the morning on Alphabet's earnings backdrop, the intraday chart rolled over quite hard. What makes this a little more difficult is that the momentum shown by the MACD is lower currently than on the June high. This setup looks very similar to the March 13th high. One other clue is if the QQQ starts underperforming the $SPX. If that happens, money will rotate away if the QQQ starts to underperform. This Read More 

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Honeywell Bids to End Correction

by Arthur Hill

Honeywell (HON) kicked off earnings season for the big industrial stocks last week and surged on high volume. The stock is already in a long-term uptrend and the correction in the first half of 2018 appears to be ending. The stock is in a long-term uptrend because it hit a 52-week high in January and the PPO(10,40,0) is positive, which means the 10-week EMA is above the 40-week EMA. After hitting a 52-week high, the stock corrected with a falling wedge and decline to the 140 area (blue lines). Note that falling wedge patterns are typical for corrections within a Read More 

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VF Corp (VFC) Sports New Highs

by Greg Schnell

VF Corp is a large cap stock with a wide brand portfolio. It wouldn't be a stretch to imagine at least one of their brands are in every household in North America. With this vast product portfolio and a hot jobs market with high employment, consumers could be stepping up to buy products. This could be a great time to get onboard with back to school, Thanksgiving and the run up to the holiday season. The chart suggests lots of investors getting onboard as the stock breaks out to fresh highs after consolidating. The SCTR has moved up above 90. The Full Read More 

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A Momentum Divergence for the Regional Bank SPDR

by Arthur Hill

I do not use bullish and bearish divergences with momentum indicators very often because they usually form in the direction of the bigger trend. For example, most bearish divergences form in uptrends and most bullish divergences form in downtrends. I trade in the direction of the bigger trend and prefer to ignore such divergences. The Regional Bank SPDR (KRE) fits my divergence criteria because it is in a long-term uptrend. The long-term trend is up because the ETF recorded 52-week highs in mid-March and mid-June, and the 50-day EMA is above the 200-day EMA (not shown). Read More 

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Why Gold Can Trade A Lot Lower

by Greg Schnell

With all the discussion of trade wars, recently the Chinese Yuan and the Japanese Yen have been falling. If a product is made in another country and the currency of that country drops, that makes the product less expensive to import for other countries. This is one method of dealing with trade imbalance. The total value of imported goods will drop bringing the trade imbalance closer in line. It could also mean more products get imported because other products are cheaper which doesn't solve the trade imbalance. A lower currency may create more imports rather than Read More 

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Manitowoc (MTW) Tries To Change Trend

by Greg Schnell

Manitowoc is trying to break the downward trend. There are a few bullish signals on the chart. The Full Stochastic is moving above 50. The PPO is kicking off a buy signal this week. There is a little four month trend across the highs on the chart that could quickly be broken with a sudden surge. Late July 2017 was a fabulous surge to get on board for a 40% move.  If you are missing clues on signals in the market, follow me on Twitter and check out my Vimeo Channel often. Bookmark it for easy access! Read More 

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Paypal (PYPL) Breaks Out After Consolidating For 6 Months

by Greg Schnell

Paypal (PYPL) has been consolidating for 6 months. and this week it is breaking out fresh new highs along with Visa And Mastercard. These are very supportive consolidation patterns. Anyone who bought the stock in the last 6 months is now in a profit position and less likely to be a seller. The SCTR shows Paypal outperforming 89% of the stocks. The full stochastic is holding above 80 which is very bullish. The PPO has pulled back and just broke the downtrend line. This is very bullish. Last weeks volume was anemic and this week's volume is very light after four days on a weekly volume bar Read More 

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REGN reversing its downtrend?

by Julius de Kempenaer

On the Relative Rotation Graph that shows all members of the Health Care sector (XLV) against the XLV benchmark, REGN stands out in a positive way. On the weekly RRG, the stock is positioned inside the improving quadrant, close to leading and moving at a strong RRG-Heading while the week-to-week distances on the tail are increasing. When we bring REGN back to a regular chart there are a few technical observations to be made. In the first place the downtrend that was in play since mid-2017 was broken when price moved above the falling Read More 

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TransOcean Floats To New Highs $RIG

by Greg Schnell

TransOcean (RIG) is starting to hit higher highs and higher lows. This weeks high continues the trend. The SCTR shows the stock being a top performing Mid Cap for the last three months. The full stochastic shows the price staying near the high end of its range. The green line shows the closing price relative to history. Clearly the momentum is up and the stock looks set to continue. With lots of energy stocks continuing to soar to new highs, a broad move is happening. Here is the fresh new July 8th edition of the Commodity Countdown. I Read More 

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NOK/JPY, a FOREX pair trade from RRG

by Julius de Kempenaer

Relative Rotation Graphs are not only used to look at sector-rotation or help with asset allocation decisions but can also help you to pinpoint potential forex trades. Most currency traders are short-term orientated so the RRG above is a daily chart showing the rotation of the Norwegian Krone and the Japanese Yen vs the US dollar. You can easily re-create this chart by selecting the pre-defined group "G10-FX USD base" from the drop-down box on the RRG page and set the interval to daily. The chart will show all G10 currencies related to the USD. Ie, 9 currencies Read More 

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Alibaba Keeps Trying To Hold The Breakout (BABA)

by Greg Schnell

Alibaba has been consolidating for about 9 months after a huge climb in 2017. Friday marked a fresh surge out of a small base around the 200 day moving average. The relative strength has been flat since August of last year. This is shown in the purple area chart. This means that the stock is performing in line with the $SPX, rather than outperforming the index like it was on the left side of the chart. This location on the chart has some benefits for taking a long position on Alibaba (BABA). First of all, a stop around $187 would suggest the stock is not done consolidating yet. This means Read More 

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Medtronic Looks To Have The Right Tonic (MDT)

by Greg Schnell

Medtronic (MDT) is a great example of a stock continually retesting the highs. Usually when these patterns break, there is a significant upside move. Medtronic has a two year ceiling that it is fighting to break through. After breaking the downtrend in momentum on the PPO, the chart shows a flat PPO wave currently. If the stock can finally push through this resistance, there is a good chance the price action can run significantly.  Why is that? Well, when the price is above previous highs, everyone who owns the stock is in a profitable position and no one really wants to sell now Read More 

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I just picked GE from the Relative Rotation Graph of most active stocks in the S&P 500

by Julius de Kempenaer

A good start of the day, at least for me is to go to the StockCharts.com dashboard and look at the Top 10, most active, market movers, in the S&P 500 index. The table gives a quick idea of what has happened the previous day. From there I open up the (daily) RRG for this universe to see if any of these tickers are showing meaningful rotational patterns. This RRG shows the stocks that showed up this morning and the one that caught my attention is GE. Well inside the improving quadrant at roughly a 30-degree heading and close to Read More 

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Infosys (INFY) Sprints To New Highs

by Greg Schnell

Infosys (INFY) Is breaking out to new highs this week. Last week it closed in new high territory even while the overall market was pulling back. Nice to see the relative strength. Now it is continuing to power higher as the overall market seems to be trying to rally into earnings. The SCTR at 96 suggests a very strong stock. The full stochastics indicator is high because the stock is at a new all time high. That doesn't mean it needs to be sold. With no overhead resistance, this stock could continue to run.  I produced another edition of The Final Bar Read More 

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Wide rotation for ALGN on RRG

by Julius de Kempenaer

This (DAILY) Relative Rotation Graph shows the rotation of the Health Care stocks against their XLV benchmark. One stock really stands out because of its wide rotation.  ALGN crossed over into the leading quadrant, from improving, last May and sharply moved higher on the price chart since then while building up a solid uptrend in relative strength. This push higher lasted until roughly mid-June when price and RS peaked roughly at the same time. On the Relative Rotation Graph, the tail of ALGN rolled over and started Read More