Don't Ignore This Chart

February 2018

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 

Don't Ignore This Chart

CME Group Embraces Volatility and Bucks Selling Pressure

by Arthur Hill

The CME Group (CME), which has a number of volatility-based futures products, runs a variety of futures and options exchanges including the CME, CBOT, NYMEX and COMEX.  While the S&P 500 fell 8.82% over the last two weeks, CME Group actually gained ground and advanced 1.09%. CME was one of 21 stocks in the S&P 500 that closed higher over the last ten trading days. I will include a list of these stocks at the end of this blog post.  The price chart shows a long-term uptrend with a 52-week high six days ago. In addition, the 50-day EMA (green) is above Read More 

Don't Ignore This Chart

Shake Shack (SHAK) Has A Nice Flavour Here

by Greg Schnell

Shake Shack (SHAK) has been an interesting story. The stock IPO'd as a parabolic stock, then fell out of the sky. That's kind of how parabolic stocks go. But in 2017, Shake Shack started to show up on the radar again. Shake Shack Starts Shaking. Reviewing the chart you'll see why. The breakout from a two-year base was beautiful. The real question is now. What to do now? There are lots of warnings on this chart. The PPO has rolled over, price is at support, the Full Stochastics are at 50, and the SCTR is making a lower high near 75. We Read More 

Don't Ignore This Chart

Vectren (VVC) Kicks Up

by Greg Schnell

Vectren (VVC) has been in a great uptrend. With the recent market pullback, it also came in a little. However, today kicked in one of my favorite signals. The price turned up the Weekly Stochastic on the second panel. This stock has given a buy signal on the indicator from below 20 to back above 20. The strong volume this week is expected given the turbulence in the overall market. However, the stock has been in a strong uptrend and looks like it could continue. We are in volatile times so make sure you have a stop if this fails to hold. Here is a link Read More 

Don't Ignore This Chart

Intel Holds Support with Three Day Reversal

by Arthur Hill

Intel (INTC) was hit hard the first three days of February, but the stock managed to hold support with a high volume reversal over the last three days.   First and foremost, the long-term trend is up because Intel recorded a 52-week high in late January and the 50-day EMA is above the 200-day EMA.  Second, the stock has solid support in the 42-43 area. The stock tested this level with bounces in mid-December and mid-January. Intel managed to hold just above this support zone with Tuesday's low.  I expect this support zone to Read More 

Don't Ignore This Chart

GM Pins A Strong Bounce

by Greg Schnell

GM had a nice bullish reversal today along with the market. The fact that it took out yesterday's high when the overall market only made half of the previous loss (600 up vs. 1175 down) suggests good energy here. A tight stop at $41 is probably in order. If it starts to move into the lower half of today's candle, I'd let it go. Watch closely for stocks trying to surge out of bases on new highs here. Stocks that make new highs as the market bounces are also good candidates. Good trading, Greg Schnell, CMT, MFTA. Read More 

Don't Ignore This Chart

Palo Alto Holds above Breakout Zone

by Arthur Hill

The stock market was hit with hard selling pressure last week, but Palo Alto Networks (PANW) held up rather well and move below its breakout zone. Stocks that hold up best during a broad market correction are often the ones that lead on the rebound.  The chart shows PANW in a clear uptrend with the 50-day EMA above the 200-day EMA. Both EMAs are also rising. PANW also recorded a 52-week high in late January and remains just a few percent below this high.  The broken resistance zone in the 151-153 area turns first support and this is the Read More 

Don't Ignore This Chart

Exploration And Production ETF (XOP) Fracks The Zone

by Greg Schnell

The Exploration and Production ETF (XOP) has shown a level of respect for the 50 day moving average (DMA) over the last year. From February 2017 to August 2017 it stayed below the 50 DMA. From September 2017 to January 2017 it stayed above the 50 DMA. Today it moved below the moving average into a new zone. While it seems early in the fact that the $SPX is just a few percent off the highs, trade each sector or stock individually and take cues from the industry group. This one is giving you a 'protect your portfolio' signal for Read More 

Don't Ignore This Chart

A Bank Stock With Interest (CSFL)

by Greg Schnell

CenterState Banks (CSFL) showed up on the Parabolic predefined scan today. With a really nice high volume push off support, the stock looks set to break above the table top it has built over the last year. This $26 level has been hard to push through. With the solid volume that was more than double the average, the breakout of this 6-week downtrend is attracting some interest.  As the popular names are continually waved in the press, some of these other companies look to be building solid setups. I have recorded two videos this week. One for Canadian Read More