Don't Ignore This Chart!

November 2016

Don't Ignore This Chart!

Base, Breakouts and Consolidation Bode well for this Big Biotech

by Arthur Hill

Celgene (CELG) showed bullish price action throughout 2016 and recently formed a bullish pennant that could set up an even more bullish 2017. Let's work from left to right on this chart starting with the big base that looks like a double bottom... Read More 

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Hilton Hotels Books A Room A Little Higher Up (HLT)

by Greg Schnell

Hilton Hotels (HLT) finally broke above a base it has been building for a year. The new 52 week highs are important. The SCTR is breaking above 75 in concert with the breakout on the stock. The Relative Strength shown in purple is breaking out to new highs as well... Read More 

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Big Blue Notches a 52-week High

by Arthur Hill

Even though its bell-weather status diminished over the years, IBM is still a big blue chip stock and remains a titan in the technology sector. Thus, a 52-week high in IBM bodes well for the market overall and the tech sector... Read More 

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Ignore Renewable Energy Stocks Until This Happens

by Tom Bowley

Renewable energy ($DWCREE) has been among the worst areas of the stock market to invest since topping over two years ago. There could be reason for hope, however, as rising crude oil prices ($WTIC) could trigger interest in the group again... Read More 

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General Motors (GM) Tests The Trend

by Greg Schnell

General Motors (GM) is testing the 3-year trend line it has been driving under since the release of the 2014 models. On the Trump jump, GM surged above previous 9-month resistance around $33. Last week it pulled back a little but this week resumed the pressure to the upside... Read More 

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Give American Express Some Credit

by Tom Bowley

After a double top and nearly two years of downtrending price, American Express (AXP) has finally turned the corner and its stock price is rising... Read More 

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Exxon Mobil is Lagging, but MACD is Firming and could be Turning

by Arthur Hill

The Energy SPDR (XLE) hit a new 52-week high this week, but its largest component, Exxon Mobil (XOM) remains well below its summer high and is not participating... Read More 

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Macy's (M) Lights It Up Before The Thanksgiving Day Parade

by Greg Schnell

Macy's (M) has been deflating for the better part of a year. However, in November Macy's has started to light it up before their famous Macy's Thanksgiving parade this weekend. Photo:Macy's... Read More 

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Technology SPDR: Lagging for 3 Weeks and Leading for 3 Years

by Arthur Hill

Despite relative weakness the last few weeks, XLK remains in a clear uptrend and shows no signs of weakness on the price chart. First, note that XLK recorded 52-week highs throughout 2016 and is currently less than 2% from a new high... Read More 

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There's Only One Thing That Slows Starbucks

by Tom Bowley

One of the best stock market stories of this century has been the remarkable growth of Starbucks (SBUX) and over the past five years, I can only point to one thing that slows the price appreciation. Coffee prices... Read More 

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This Ag Stock Appears To Be Bottoming

by Tom Bowley

It's been downhill for a long time for CF Industries (CF), but finally its downtrend was broken and volume has been pouring into the stock at these lower prices. CF's short-term strength has taken it to a 50 week SMA test for the first time since August 2015... Read More 

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Cyber Security Comes Back (HACK)

by Greg Schnell

One of the things about investing in Cyber Security is the preponderence of negativity around it... Read More 

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Watch this Key Stock for Clues on Housing and Retail

by Arthur Hill

Home Depot is the perfect cyclical stock because it sits at the crossroads of retail, housing and the consumer. The stock was a poster child of the bull market with a 200+ percent gain from 2013 to 2015. It did not stop there and even managed to hit new highs into 2016... Read More 

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SemiConductors (SMH) Break Above Recent Highs

by Greg Schnell

While the big moves on the back of the election have not included technology broadly, today represented a slight change. The Nasdaq was the best performing index today and the tech stocks were broadly bid. The Semiconductor ETF (SMH) is poised for its highest close in 5 weeks... Read More 

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Russian Index Looks Vulnerable after Breakdown in Brent

by Arthur Hill

The Russian Trading System Index has yet to break down, but it is positively correlated to Brent Crude and the recent breakdown in Brent could foreshadow a breakdown in the Russian Index... Read More 

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Don't Take This Stock For Granite

by Tom Bowley

President-elect Trump has suggested that his presidency will focus on infrastructure and, as a result, heavy construction ($DJUSHV) finished last week higher by 12.36% to lead all industrial groups... Read More 

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Bank Of America Moves Above A Major Resistance Zone (BAC)

by Greg Schnell

Bank of America (BAC) has moved above a major resistance zone that has frustrated the shareholders for 3 years. This surge is meaningful. As long as the $18 level holds, this looks like a classic breakout. The volume surge on the breakout is also very bullish support... Read More 

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Surging Treasury Yields Paving The Way For Financials

by Tom Bowley

Over the past two trading sessions, treasuries are being sold hand over fist with corresponding yields soaring. Financials have exploded higher on this development. This is simply a continuation of what we've seen since the Brexit-related lows in June... Read More 

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Steel Stocks Lead Stock Market with New Highs

by Arthur Hill

The Steel ETF (SLX) is leading the stock market on Monday with a 10% gain in early trading. Notice that this gain is simply extending an existing trend. In other words, chartists would have done just find by looking at the chart and ignoring the news... Read More 

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Finance SPDR Leads Market with New High

by Arthur Hill

The Finance SPDR (XLF) is leading the sector SPDRs with a new 52-week high on the price chart and with the price relative. On the price chart, XLF triggered its first breakout in early August with a move above the red resistance zone... Read More 

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Are Shareholders Withdrawing From PayPal?

by Tom Bowley

The past two weeks have not been kind to PayPal (PYPL) as the online payment enabler has dropped roughly 10% since reporting stellar quarterly results and witnessing a breakout to its post-IPO all-time high. PYPL beat estimates on both revenue (slightly) and EPS (.29 vs ... Read More 

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FireEye Printing Bullish Candle On Weekly Chart At Support

by Tom Bowley

FireEye (FEYE) hasn't had much to brag about since June 2015, but for those traders with high risk tolerance levels, FEYE could provide very nice returns from its current price level... Read More 

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The Market Hunts For A Place To Bounce - SPY

by Greg Schnell

The $SPX has been drifting lower about a 1/2% a day for a couple of weeks now. No real menacing selloff, just a continued lack of buyers at higher levels. With the election fast approaching, we have some nervousness... Read More 

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Walgreens Bucks the Selling Pressure and Shows Relative Strength $WBA

by Arthur Hill

It's been a rough five weeks for the broader market, but a few stocks and groups are still shining. The S&P 500 SPDR (SPY) is down around 2.5% and eight of nine sectors are down since the end of September. The Finance SPDR (XLF) is the only sector showing a gain... Read More 

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Gold Makes A One Month High

by Greg Schnell

Gold (GLD) has been resting on the 200 DMA for the last three weeks. Today, GLD has gapped up above resistance and traded sideways throughout the day. GLD is sitting near the highs of the day at time of writing. This is a tough call directionally... Read More