Don't Ignore This Chart!

Discount Brokers Lead the Market


The discount brokers are showing strength in the broader market with E-Trade Financial (ETFC) and Interactive Brokers (IBKR) hitting new highs in May. Schwab (SCHW) is breaking out of a small triangle, while TD Ameritrade is bouncing within a bigger triangle. A picture is worth a thousand words and the chart below shows all four with some annotations. 

E-Trade and Interactive Brokers are the strongest because they have the freshest new highs. Schwab is close behind as it nears its March high. TD Ameritrade is the laggard, but the chart looks strong because a triangle is a continuation pattern and the bigger trend is up. 

Plan Your Trade and Trade Your Plan.

- Arthur Hill, CMT

Senior Technical Analyst,

Book: Define the Trend and Trade the Trend
Twitter: Follow @ArthurHill

Arthur Hill
About the author: , CMT, is the Chief Technical Strategist at Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London. Learn More
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