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Forces Are Shifting in The Battle Between INTC and MSFT

by Julius de Kempenaer

When you open up StockCharts.com and go to Your Dashboard, one thing you'll find is a section called "Market Movers", located in the top-right corner of your screen. I currently have this section of the page set up so that it shows the top 10 most active stocks inside the Dow Jones Industrials index. This way, it gives me a quick overview and general idea about the market behavior for the day. To expand that overview a bit further, I can then click on the RRG link below the table, which will run the Relative Rotation Graph for those ten stocks Read More 

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Semis are Back in Gear and this Stock is Poised to Extend Higher

by Arthur Hill

The S&P 500 SPDR and Technology SPDR (XLK) hit new highs this month. Thus, the S&P 500 is signaling a bull market and the technology sector is leading. The Semiconductor SPDR (XSD), which is a broad-based semiconductor ETF, is also showing leadership as it challenges its April high. This tells semiconductor stocks have sector and industry group strength on their side. Programming Note: Art's Charts is open to all - no membership required. Click here to read: Four Stocks Poised to Continue their Uptrends.  The next chart shows NXP Semiconductor (NXPI) Read More 

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Regularly Restocking The Rack

by Greg Schnell

Retail can be a hard game, as the vast majority of retail stocks are in significant downtrends. However, there are a few that continue to perform. I like the price action on Lululemon (LULU) as it continues to expand the component of men's wear and broaden out the clothing lineup in their stores.  The SCTR ranking for LULU has been pinned near the top for the last two years, with two pullbacks. The stock continues to be one of the top movers. LULU's relative strength, in purple, continues to outperform, while the weekly full stochastic appears comfortable up around the 80 level Read More 

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The Consumer Staples Sector is Leading and this Stock is About to Break Out

by Arthur Hill

The S&P 500 hit a new 52-week high last week and three sectors joined the index with new highs of their own: the Technology SPDR, the Consumer Discretionary SPDR and the Consumer Staples SPDR. Note that I am basing the new highs on price chart using unadjusted prices, which do not include dividends. StockCharts users can place an underscore before the symbol to see unadjusted prices (_XLK, _XLY, _XLP). One of these three sectors does not belong in this group. The technology and consumer discretionary sectors are offensive sectors, but the consumer staples sector is a defensive Read More 

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Cameco - Can this Dog Bark?

by Greg Schnell

Cameco (CCJ) has been in the doldrums for years. As the big dog in the Uranium Miners dog park, the chart keeps tempting us, but it has been a swing trade only. While that is the method for investing in commodity-related stocks, Cameco really hasn't barked out a big win in a while.  A few years ago, Cameco started to restrict supply to help improve the price of Uranium. The chart has a rising trend line on the lows, and the SCTR shows the stock living in the top zone through much of last year. So if this is the start of the move after a spring pullback, could this Read More 

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A Strong Rotation on RRG and a Break to New Highs Make For a Killer Combination

by Julius de Kempenaer

At present, the Technology sector is rotating through the weakening quadrant on the Relative Rotation Graph. Following a strong move in the first months of this year, relative strength for XLK started to level off and has remained more or less flat since April. We'll have to wait and see if the sector can pull off a rotation back to leading without first hitting the left side of the RRG canvas. The rotations for the individual stocks in the Technology sector are showing big differences, varying from very strong (like MSI and SNPS) to very weak (like Read More 

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This Cannabis Stock is Higher than the Rest

by Arthur Hill

Sorry, I could not resist the pun in that head line. Relative and absolute strength is often dependent on timeframe. One stock may show upside leadership on a one month timeframe, but be lagging on the three and six month timeframes. For example, Tilray (TLRY) is up 16.37% over the past month, but down 43.35% over the last six months. This is why chartists should compare performance across different timeframes. The PerfChart below shows 3-month performance for the Alternative Harvest ETF (MJ) and six cannabis stocks. Only one stock is up over the one, three and six month timeframes: GW Read More 

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This Stock has a New High in its Sights

by Arthur Hill

Stocks that hit new highs are in clear uptrends and show upside leadership. A new high does not have to be within a few days or even a few weeks. Sometimes stocks hit new highs and then correct for a few months to digest prior gains. It is all part of the ebb and flow of an uptrend. Corrections provide opportunities to participate in uptrends before the next round of new highs. AES Corp (AES), a utility stock, appears to be ending its correction and resuming its uptrend.  In a separate, but related note, the PerfChart below shows XLU leading the 11 sector SPDRs with the biggest gain Read More 

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Financial Charts - Rockets or Shovels

by Greg Schnell

Raymond James Financial is setting up nicely here to surge higher, as seen in the chart below. However, it is also at an important inflection point where we can set a tight stop if it does break down.  The relative strength (in purple) needs to move up here. When a stock breaks to new 52-week lows in relative strength, this can be a reason for an institutional shop to lighten up on the position size, leading to more selling. The full stochastic bouncing near 50 is a bullish trait, so we should be prepared for an upside move and we can be buying into the stock as it starts. If it Read More 

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Brexit is SOOO 1776!

by Julius de Kempenaer

Happy Fourth of July! On this public holiday - for the US, anyway; not so much for me ;) - I looked up a bit more about the history of Independence Day and, while doing so, it occurred to me that even back then, the British were involved in a separation Okay, okay, maybe not entirely the same situation, but it involved an "exit" from the "Brits" so I thought it would make for a cool headline. ;)  The day prior to this holiday, markets closed at record highs and, sure enough, we cannot argue with the price as things cannot Read More 

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This is the Strongest Industry Group ETF within the Strongest Sector

by Arthur Hill

On a closing basis, only one sector hit a new high on Tuesday and that sector just happens to be the biggest sector in the S&P 500. According to SPDRs.com, the Technology SPDR (XLK) accounts for 21.63% of the S&P 500 and is by far the biggest sector. The Health Care SPDR (XLV) is second at 14.16% and the Financials SPDR (XLF) is third at 13.18%. The chart below shows XLK with a new closing high and the lower window shows XLK with a larger one year gain than SPY. The Mobile Payments ETF (IPAY) is the strongest of the tech-related ETFs Read More 

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This 2018 IPO Just Carded A New High. Now What?

by Greg Schnell

Cardlytics (CDLX) made its initial public offering a little over a year ago. While it is not uncommon for a newly listed stock to take time to build a trading range, CDLX broke to a new high for the first time in a long time since September 2018. The relative strength also soared to a new high today, which is very bullish. The volume has been surging over the last three days as the stock broke out to new highs. The question now is this: Should you jump on this stock? Usually, after such a big push higher, I wait for a move like this to consolidate before taking a position in the Read More 

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Dine Brands Serves up Some Tasty Technicals

by Arthur Hill

Dine Brands (DIN) is the parent company for the Applebees and iHop restaurant chains. Regardless of what you think of the restaurants or food, business must be good because DIN is one of the best performing restaurant stocks this year (+44%). It is clearly leading on the price charts and should be on our radar. The table below shows 16 restaurant related stocks ranked by their year-to-date performance. DIN is the fourth best performing stock this year. On the price chart, the stock is in an uptrend overall because it recorded a new high in February and remains well above the rising Read More