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Campbell Soup is Looking Rather Bland

by Arthur Hill

Soup season is upon us, but Campbell Soup ($CPB) is having none of it as the stock trends lower and lags its sector, the Consumer Staples SPDR (XLP). First and foremost, the long-term trend is down with a 52-week low in June, the 50-day below the 200-day and the 200-day EMA falling. The stock bounced back to the 200-day in August, but turned back down the last few months. CPB gapped up in June and held this gap for over a month, but selling pressure picked up again in August and the stock broke support levels. Note the lower lows in late August and September. The stock is currently Read More 

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Tiffany's Lines Up Support $TIF

by Greg Schnell

Tiffany's stock has pulled back 25% since July. While that is not good, it is very similar to a significant number of consumer discretionary stocks. There are lots of nice setups on retail stocks currently. Tiffany's lines up support at $100. The $SPX made it's low so far this week, but Tiffany's is building on a bounce off the $100 level last week.  A few of the indicators look ready to turn but the PPO only appears to be heading lower. If the histogram can start to improve here, that would be a start. The full stochastic below 20% looks like a nice place to find a reversal Read More 

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Comparing the Current Month with the Last 20 Years

by Arthur Hill

The S&P 500 is down around 7.5% so far this month and this is shaping up to be the worst monthly decline in over five years. Keep in mind that there are still a few days left in October and the last monthly bar will not complete until the close on Wednesday. The seven blue lines and one red line show eight monthly declines that exceeded 8%. The first four occurred during the bear market in 2001-2002, the next three in the bear market in 2008-2009 and the last in early May 2010 (flash crash). The biggest monthly decline in the last 20 years occurred in October 2008, which was smack dab Read More 

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Amazon $AMZN Sets Up For The Holidays

by Greg Schnell

Amazon has had a rough month in October. With the stock dropping $450 or 20% from its highs, it is clearly being marked down. The real question is can we buy the stock for the holiday season? Can Amazon be a set up for the holiday season? I like the weekly Full Stochastic signal here. This is a once a year signal that shows up for Amazon and typically leads to a great run in the stock.  This means the stock is in the setup zone and we need to wait for a confirming signal to buy if you are a weekly chart investor. The last time price dipped below the 40 Week moving average was on the Read More 

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Can I have some fries with that please?

by Julius de Kempenaer

On the Relative Rotation Graph holding the 30 stocks in the DJ Industrials index, McDonald's (MCD) is one of the names that pop up as potentially interesting. The stock is positioned inside the improving quadrant for a few weeks now and moving towards the leading quadrant at a strong RRG-Heading. Especially the last segment of the trail shows the increasing relative strength against the S&P 500. Bringing up the price chart for MCD this morning was actually a pleasant surprise among all the misery on global stock exchanges around the Read More 

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This Software Stock is Holding up Well in October

by Arthur Hill

The pickings are getting slim after sharp declines in October, but some stocks are holding up better than others. The Software iShares (IGV), in particular, held up better than most industry group ETFs and Adobe (ADBE) is a leader in this group. The chart below shows Adobe falling sharply in the first half of October, but managing to hold the summer lows and 200-day SMA. The S&P 500, in contrast, broke its 200-day during the October decline. This means Adobe is holding up better. On the price chart, the stock bounced off support in mid October and managed to hold Read More 

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Invitae Corp (NVTA) Prints A Hammer Candle

by Greg Schnell

Invitae Corp is a small biotech that has been in an uptrend since April. Over the last month the stock has pulled back to find support at the recent lows. On Tuesday, Invitae Corp (NVTA) printed a nice hammer candle that you can see in the zoom panel.  With the wide ranging pullback in the overall market, finding strong stocks like this that give an opportunity to pick up on a pull back are nice to watch. If the stock can start to bounce from here, this looks like a nice entry with a stop just below. Here are the three most recent videos I have Read More 

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Using the Measured Move Technique for Citigroup

by Arthur Hill

Citigroup (C) is leading the Financials SPDR (XLF) lower with a lower high in September and a rising wedge break in October. The chart shows weekly bars for Citigroup over the last three years. The stock led the market higher in 2016 and 2017 with a gain exceeding 100% from low to high. This big bank turned into a laggard in 2018 because it never challenged its January high and formed a lower high in September. The summer bounce to the 75 area formed a rising wedge and these patterns are typical for counter trend rallies. C broke the lower trend line and the August low over the last Read More 

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Fortis (FTS) Starts To Move

by Greg Schnell

Fortis is a North American utility company that is set up quite nicely here. The annual dividend is 4%  and the quarterly payment is due in November. This chart intrigues me because the setup across a lot of the pipeline and utility charts is similar. The Relative Strength is breaking a one year down trend. The SCTR ranking has been improving for the last three months and is now at 52 week highs. The down sloping price trend line is being tested today. The Full Stochastics is giving off a particularly nice setup. When the stochastic pulls back from the 80 level and bounces around Read More 

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Is the bond market sending us a message?

by Julius de Kempenaer

When markets are in transition and the bigger picture needs our attention it is always good to keep an eye on the yield curve. The absolute yield levels of the various maturities on the curve, starting at 3-Months all the way out to 20+ years are important to monitor. But what's probably even more important to monitor is the change of the shape of the curve. Relative Rotation Graphs can be of help analyzing the shape and the change in shape of the curve. The picture above shows the rotation of the various maturities around the 3-7 year maturity which is the benchmark (center) for this Read More 

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This Entertainment Leader is Still Crushing It

by Arthur Hill

The S&P 500 fell to its lowest level since early July and pierced its 200-day moving average last week. Chartists looking for stocks that held up better during this decline can use these levels for comparison. Stocks that did not break below their August lows and 200-day moving averages held up better and show relative "chart" strength. The chart below shows Activision Blizzard (ATVI) with a series of higher highs and higher lows over the past year. The stock fell with the rest of the market in early October, but did not even test its August low and did not break the 200-day EMA Read More 

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Revlon Makes A Base For A Fourth Quarter Makeover

by Greg Schnell

Revlon (REV) showed up on the 52 week high scan today. On the chart there were some intra-week moves to higher levels but based on close only daily data, Revlon is pushing up. What is really important is the relative strength of Revlon. While the overall market was dropping quickly, Revlon stock was being bought up. The Relative Strength area chart in purple shows new 52 week highs as well as on the price panel. The SCTR is moving up after being at the bottom of the range. This sort of thrust is usually a helpful indicator of new interest.  With the volume picking up and Read More 

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Ultra Beauty Turns After Pullback

by Arthur Hill

The broad market environment is a bit shaky right now, but Ultra Beauty (ULTA) is holding up relatively well with a normal pullback after a big breakout. First and foremost, the stock is in a long-term uptrend after a breakout, surge and 52-week high in September. Also note that the 50-day EMA is above the 200-day EMA and price is above the rising 200-day EMA. After surging some 25 percent, the stock fell back to the 50-day EMA in early October with a normal pullback. While stocks were falling sharply on Thursday, the stock closed with a small loss and managed to hold above the rising Read More 

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Gold Kicks Up In The Dust Up

by Greg Schnell

$GOLD had a big day on Thursday with a $34 move.   While Gold has been out of favor so long, everyone has ignored it. If you are looking for something moving positive while the market stresses here, Gold related trades might be part of your solution. Good trading, Greg Schnell, CMT, MFTA. Read More 

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Japan against the rest of the world!

by Julius de Kempenaer

When markets around the world start to rumble it's usually a good exercise how all these moves compare against one another. The Relative Rotation Graph shows the relative picture for a number of major world equity markets against the Dow Jones World Index as the benchmark. The Indian $NIFTY index is on its way down backed by a long tail that is sending it lower on both axes well inside the weakening quadrant. A similar rotation, albeit with less strength, is visible for the Canadian. The weakest rotation is found for the European $STOXX600 Read More 

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Walmart Makes a Move with Good Volume

by Arthur Hill

Walmart (WMT) is making waves again with a massive breakout in August and a small breakout on Tuesday. WMT underperformed the market the first half of the year with a 25% decline from the January high to the May low. The stock firmed in May, began rising in June and broke resistance in early August. This breakout was solidified with a massive gap on big volume in August 16th. The advance and gap created an overbought condition that needed to be worked off. The stock alleviated this condition with a falling wedge, which acts as a correction or the pause that refreshes. Read More 

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Apache Corp (APA) Tries To Break Out

by Greg Schnell

Apache (APA) has been building a base between $35 and $50. A measured move would suggest a retest of the highs at $66 over the next year. Apache also pays a dividend.  Looking through the technical indicators, the SCTR is showing the highest reading since 2016 and has just moved above $75. The relative strength line looks to make new 52 week highs. The PPO just turned up a few weeks ago with the first positive cross above zero in months. The outlook for both oil and gas is also accelerating and the stock looks to be one of the strongest in the sector. Read More 

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This Biotech Bucked the Selling Pressure Last Week

by Arthur Hill

Last week was tough on stocks as the S&P 500 SPDR declined around 1%, the Nasdaq 100 ETF fell 3% and the Biotech iShares plunged 4.5%. Despite a rough week, note that some 180 stocks in the S&P 500 closed higher and bucked the selling pressure. Many of these names came from the finance, utilities and healthcare sectors. Even though BioMarin (BMRN) is not part of the S&P 500, the stock closed higher last week and the price chart caught my eye. The chart shows BMRN breaking resistance levels in May and June as the 50-day EMA crossed above the 200-day EMA. The Read More 

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AT&T calling!

by Julius de Kempenaer

After yesterday's close (10/4) I ran a Relative Rotation Graph of the Top-10 Market Movers inside the S&P-500 index. One of the names that popped up as potentially interesting was AT&T (T) as it is inside the improving quadrant and moving towards the leading quadrant at a strong RRG-Heading. The Daily version of that RRG (above) shows the strong rotation of T over the last 30 trading days which recently rolled over inside the leading quadrant and crossed over into weakening before  "hooking" back up and moving (almost) back into leading. The Read More 

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KIM at lower boundary of trading range

by Julius de Kempenaer

One of the names that popped up today on my alert for potential "Turtle Soup" setups is KIM. After opening up the chart for further inspection I noticed an interesting situation. It is very clear that the stock is in a trading range since June. The upper boundary around $ 17.25 has been tested a few times and so has the lower boundary that shows up near $ 15.50. With yesterday's low at $ 15.74, KIM is testing that lower boundary again at the moment. What makes the chart interesting is the fact that the trigger for a TS(+1) buy for today Read More 

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This Medical Devices Stock Looks Poised to Play Catchup

by Arthur Hill

The Health Care SPDR (XLV) is the best performing sector over the last six months with a 21% gain and the Medical Devices ETF (IHI) is one of the top performing industry group ETFs with a 25% gain. There are dozens of healthcare stocks hitting new highs and showing big gains, but there are also a few stragglers that may play catchup. Hologic (HOLX) is part of the medical devices group and in the "medtech" industry. The stock is up around 11% over the last six months, but lagging the sector and its industry group. This may change because I am seeing some bullish signs on the chart Read More 

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CVS: A healthy stock in a healthy sector

by Julius de Kempenaer

The Healthcare sector is getting a lot of attention lately. Not surprisingly as it is THE leading sector at the moment. Yesterday when I was working on my most recent RRG blog, XLV made it to the headline. And for good reasons. At the moment it is the only sector inside the leading quadrant on a Relative Rotation Graph and it is pushing higher on the JdK RS-Ratio scale. Very likely this means that there are some interesting stocks to find if we zoom in to the RRG that holds all members of XLV. The RRG above shows the Read More 

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UnitedHealth Powers Healthcare Providers to New High

by Arthur Hill

The Health Care SPDR (XLV) is the strongest sector over the last six months (+19%) and the HealthCare Providers ETF (IHF) is one of the strongest industry groups (+27%). UnitedHealth (UNH) is the top holding in IHF and accounts for 12.5% of the ETF. UNH has a small bullish continuation pattern working and momentum is turning up. The chart shows UNH within a long-term uptrend. The 50-day EMA is above the 200-day, price is well above the rising 200-day EMA and the stock hit a new high in early September. After hitting this high, UHN stalled with a small triangle. Small Read More