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

Using Hedged And Unhedged ETF's

by Greg Schnell

Recently I received an email asking about when to invest in foreign market ETF's.  I had discussed the $USD might not be heading lower on my Commodities Countdown and on the Canadian Technician video recordings. Now in fact it might be reversing and start heading higher which would be a headwind for US investors in foreign market tracking ETF's. That just goes contrary to all the news about a new US Dollar bear market as seen on all the major business news channels.  So how do you decide when to use hedged ETF's versus unhedged ETF's? Below Read More 

Don't Ignore This Chart

P&G Weighs on Consumer Staples Sector

by Arthur Hill

The Consumer Staples SPDR (XLP) is one of the worst performing sectors year-to-date with a loss greater than 8 percent. The sector is also the second weakest in February because it failed to hold its bounce over the last two weeks.  The chart shows XLP with its biggest component (P&G) and its 10th largest component (CL). Procter & Gamble and Colgate are clearly in related businesses and these two are weighing on the 6th largest sector in the S&P 500. XLP accounts for 7.55% of the index.  XLP broke below its 200-day SMA with the plunge in early Read More 

Don't Ignore This Chart

When Miners Dig Their Way Higher

by Greg Schnell

The global miners have been rolling pretty well lately. They also rolled over with the general market. Rio Tinto rolled over 15% and has come bouncing back, trying to take out the previous highs today. This is an important bounce. First the stock broke out in late December above $50 to $57. It fell back to test support. This pullback is considered the test of the support level ($50) and it held. The bounce is important after holding above the 6 month long resistance. As long as $50 holds, this is a great support level.  Good Read More 

Don't Ignore This Chart

Humana Tests Breakout Zone as PPO Turns

by Arthur Hill

Humana (HUM) is part of the HealthCare Providers ETF (IHF) and this group led the market from mid-October to late January with a 20+ percent surge to new highs. The group pulled back in February, but the long-term trend is up and this bodes well for stocks in the group.   First and foremost, all indications point to a long-term uptrend. HUM broke a major resistance zone in January and hit a series of new highs that month. Second the 50-day EMA (green) is above the 200-day EMA (red) and HUM is above the rising 200-day EMA.  The stock fell back to the Read More 

Don't Ignore This Chart

This Stock Is Breaking Trend

by Greg Schnell

After the pullback in February, it is apparent that technology is still a strong area of the market. The chart of Micron (MU) looks real strong here after bouncing off the 200 DMA. It also sports a couple of great technical features. The relative strength to the $SPX is starting to outperform. The SCTR is at 97.2 which suggests the price action is in the top 3% of the market. On Friday, the chart popped above the down sloping trend line on great volume.  The MACD has also returned to positive territory which is another bullish signal.  The Read More 

Don't Ignore This Chart

Regional Bank ETF Rises to the Top

by Arthur Hill

Even though I am currently in the "correction" camp for the broader market, there are clearly pockets of strength in some key groups. The Software iShares (IGV), Cyber Security ETF (HACK), Internet ETF (FDN) and Networking iShares (IGN) are leading the technology rebound and all are close to new highs. In addition, the Bank SPDR (KBE) and Regional Bank SPDR (KRE) are up over 1% so far today and close to new highs.  The chart below shows the Regional Bank SPDR (KRE) retracing around 50% of the November-January advance with a sharp throwback in February. The ETF found support in the Read More 

Don't Ignore This Chart

Palo Alto Networks Closes On A New High

by Greg Schnell

Palo Alto Networks (PANW) has been climbing nicely off a huge gap down on earnings in late February 2017. Unfortunately for the investor it has been a round trip back to the beginning. On Tuesday's weak overall tape where the Dow was down 250, PANW pushed up to close at a new high. That's bullish.  This year, PANW will be reporting earnings on Monday, February 26th, 2018 which is only a few days away. While the earnings a year ago were a bomb, the price action here looks strong. To keep the risk out of the trade, it might be better to wait for Read More 

Don't Ignore This Chart

VeriSign (VRSN) Breaks Out To New Highs

by Greg Schnell

VeriSign (VRSN) is showing signs of a powerful breakout. The SCTR ranking is surging above 75. The Relative strength is making new 2-month highs and not far from its all-time highs. The price is breaking out shortly after the big pullback in the overall market suggesting more strength. There is lots to like about the chart. If it fails to hold the breakout, I'd let it go. We released a book trailer for the Stock Charts For Dummies book.  It does a great job of telling the story.  Read More 

Don't Ignore This Chart

Gold Tests The Breakout Again

by Greg Schnell

The chart of Gold is getting interesting again. It keeps retesting this level. There are reasons to believe the breakout is at hand. I have used GLD to represent Gold here. The MACD is turning up above zero for the first time in 18 months shown on the chart. This is also the two year anniversary of the commodity low in 2016 when everything started to kick up. One of the reasons that Gold is kicking up is the weakness in the USD. If that can continue, this will be an excellent trade. There are a couple of major hurdles for the USD crosses like the ($EURUSD) and the Read More 

Don't Ignore This Chart

A Short-term Disconnect between VIX and SPY - Watch the Pennant

by Arthur Hill

There is another disconnect working between the VIX and SPY. The S&P 500 SPDR (SPY) opened weak with a dip below 265, but the S&P 500 Volatility Index ($VIX) also declined. This is an interesting dynamic because the VIX usually moves opposite of SPY. I am also intrigued that SPY opened weak and quickly rebounded.  Note that this disconnect could also be due to the options expiration for VIX  contracts because many expire today (14-February). See the CBOE website for more details.  The current correction started when SPY and the Read More 

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