Don't Ignore This Chart

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About this blog: The blog contains daily articles with intriguing or unusual charts selected by one of our Senior Technical Analysts, along with a short explanation of what exactly caught their attention and why they believe the chart is worth noting.

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Don't Ignore This Chart

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 

Don't Ignore This Chart

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 

Don't Ignore This Chart

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 

Don't Ignore This Chart

Can This Flame Light Up Your Portfolio?

by Greg Schnell

The frustration of watching the market trade sideways for a year goes on. After the Fed meeting and Options Expiration, the market has wandered sideways yet again; from Tuesday's close to the following Thursday close, the market is up 0.25%. I am currently looking for setups near support and oversold conditions that could bounce while keeping a tentative eye on the new highs list. One of the charts that pops up is the Natural Gas chart. The reason this chart is interesting is that the price is near 10-year lows. Looking in on the zoom panel, a few reversal bars are showing up Read More 

Don't Ignore This Chart

This Sector Just Returned to the Leading RRG-Quadrant AND Shows an Outperformance 71% of the Time in July

by Julius de Kempenaer

I do not believe that there is just one single tool, strategy, method, etc. that fits all our needs as investors or traders. For me, the power of research and analysis lies in combining information from various sources and subsequently putting all that together into a market-view, strategy, system, etc. That is why I always encourage people to NOT use RRG as a standalone tool, but to always combine it with information from other sources and embedding their use into an investment process. Today I was looking at seasonality charts that Read More 

Don't Ignore This Chart

Here's a Food Stock with Performance Written All Over It

by Arthur Hill

The Consumer Staples SPDR (XLP) is the third best performing sector over the last three months and one of only three sector SPDRs to record a new high here in June (along with XLU and XLRE). In addition, the S&P 500 is trading comfortably above its 200-day SMA. Overall, we can assume that the S&P 500 is in bull mode and consumer staples is a leading sector. Looking within the sector, I came across Performance Food Group (PFGC) in my trend-momentum scan. The stock is in a long-term uptrend and consolidating with a bullish triangle taking shape. Read More 

Don't Ignore This Chart

Is This Dow Stock Laced Up For A Fall?

by Greg Schnell

Everyday, the market presents new investing ideas. Sometimes it's a common brand resurgence, other times it's a macro thesis driving industry groups higher. This week, I noticed that the chart of Nike is not behaving nearly as well as Brooks Koepka, one of their celebrity brand ambassadors. Let's take a look at the indicators. First of all, the SCTR shows Nike behaving in the bottom 40% of the stocks out there. While this is a weakness, it also shows that Nike is underperforming large-cap peers. The purple area chart, showing the relative strength to the $SPX, has Read More 

Don't Ignore This Chart

Pfizer Hits a Milestone for 2019

by Arthur Hill

The S&P 500 hit a new high last week and the Health Care SPDR (XLV) broke out of a large symmetrical triangle with a big surge in June. The stock market is in bull mode and healthcare is coming alive. XLV was the worst performing sector from January to May (+1.27%), but turned around in June and is one of the top performing sectors (+7.85%). Also note that healthcare is the third largest sector (14.3%) in the S&P 500. Thus, strength in healthcare contributes to strength in the S&P 500. On the price chart, PFE broke out of a large falling wedge with a big Read More 

Don't Ignore This Chart

The Dollar Beats All Currencies In The G10 Except For The Japanese Yen

by Julius de Kempenaer

Relative Rotation Graphs can be used to visualize the relative movement of much more than just stocks and sectors. In the example below, the RRG shows the relative rotation for the G10 currency universe using USD as the base currency. In this case, you will see nine currencies, all expressed in USD terms, rotating around the USD. Because currency pairs in and of themselves are already relative strength lines, we need to set the "Benchmark" for this RRG to $ONE. Looking at the chart Read More 

Don't Ignore This Chart

GE Takes the Lead with a 3-month High

by Arthur Hill

I featured GE in mid-May as it attempted to break out of a falling wedge (DITC on May 15th). The breakout failed as the stock fell back in May, but a higher low formed and a triangle evolved. Overall, some sort of bullish consolidation formed from February to June and the stock is attempting another breakout. The chart shows GE with the failed wedge marked in gray and the current triangle marked in blue. Notice that the stock held support in the 9 area with bounces in March, April and late May. This is positive because it reflects a basing process with a clear support zone to watch going Read More 

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