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Pfizer Bounces within Uptrend

by Arthur Hill

The pickings are slim as the market corrects and may charts turn ugly. I am noticing some strength in big pharma with Merck (MRK) up in March and Pfizer (PFE) holding above the early February low (so far).  The chart shows PFE with a zigzag uptrend since June. The stock surged to a new high in late January and then plunged back to the October low in early February. Price action remains a volatile as the stock bounces in this range.  I still consider the trend up because the 50-day EMA is above the 200-day EMA, the stock hit a new high two months ago and the 200-day EMA is Read More 

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Another One Breaks Support

by Greg Schnell

It has been a wild start to the year, and we haven't finished the first quarter yet. Netflix now has a larger market cap than GE. Facebook is out of favor and Twitter is in favor. What's next? With all the wild price gyrations in the index, Tesla broke support today. So what is an investor to do with the changing market and Tesla. Well, Tesla has broken support 4 times in the last four years. It's easy in hindsight to identify which was the final bottom before moving up. It is very difficult in real time. The spike low in 2016 feels similar to the current spike low. The overall market Read More 

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An RSI Failure Swing in Ross Stores

by Arthur Hill

The S&P 500 was shaken with a plunge below its 200-day SMA on Friday and this gives chartists a reference point to compare with other charts.  Personally, I do not think moving averages represent support or resistance levels. Moving averages provide price points that chartists can use to gauge the trend and compare performance.  The chart below shows Ross Stores (ROST) just below its falling 50-day SMA, but well above its rising 200-day SMA. This suggests that the medium-term trend is down and the long-term trend is up.  Read More 

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Newmont Gets Some Strength

by Greg Schnell

The Gold stocks have been rallying this week. Gold sits about $20 below 52 week highs. Newmont (NEM) looks like it is changing direction by breaking the down trend. Notice the Relative Strength line is making new 5-month highs. The SCTR is also breaking out. The MACD is just turning up so there is lots of room above here. The Commodities Countdown also covers off numerous reasons why the precious metals looks good here. Good trading, Greg Schnell, CMT, MFTA Read More 

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Maybe Its Not About Steel Tariffs

by Greg Schnell

Today, under the cover of tariffs and China trade, Deutsche Bank (DB) stock gapped down hard. The chart looks gappy because the main trading on DB is traded in Europe. The real problem here is that in the midst of a global expansion, why is a big bank making 52 week lows? The SCTR is at 2.1 suggesting 98 % of the large caps are behaving better than DB. When banks are below the 200 Daily Moving Average (200 DMA), in general, more caution should be applied. The bankers in NYC have told me when there is a problem, it will show up on bank charts. You won't know what the problem is, but Read More 

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Small-caps Catch a Little March Madness

by Arthur Hill

The S&P SmallCap iShares (IJR) held up better than the S&P 500 SPDR (SPY) during last week's decline and small-caps are outperforming large-caps in 2018.  The chart shows IJR moving above its late February high with a surge above the blue zone in mid-March. The ETF fell back after this surge, but held above the rising 50-day SMA and did not close below the February high. SPY, in contrast, is below its late February high and its 50-day SMA.  Even though I cannot draw a picture-perfect wedge or flag, the throwback looks like a short correction after a Read More 

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Put This On Your Dance Card?

by Greg Schnell

Payment systems had a fabulous year last year and the shape of the charts has been pretty good this year. Visa (V) looks great here.Visa just keeps banging its head on the the $125 level. The SCTR has started to push up in the last few days. The Relative Strength line has hit new 52-week highs suggesting more upside. With the 50 period moving average trying to support the stock, I would keep $120 as a stop. There are some opportunities being shown after this recent dip. Believe it or not, Energy had some nice moves in individual names today.  Read More 

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Investors Cut the Cord on Disney

by Arthur Hill

Dow component Disney (DIS) is feeling the heat today with a triangle break and move below the 200-day moving average.  Disney has been one of the weaker stocks in the Dow Industrials over the last few years. The stock peaked way back in August 2015 and formed lower highs the last 2+ years. Most recently, the January high peaked below the April 2017 high.   The stock appears to be breaking down with the third move below the falling 200-day SMA and a triangle break. This is not the most symmetrical or picture-perfect triangle, but the shaded area marks a consolidation and Read More 

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When Rental Cars Start Flying

by Greg Schnell

Avis / Budget (CAR) is finally breaking out of a long term horizontal move.  Recently it pushed above $42 and went sideways. At this point, the consolidation after breaking out looks like it is ready to accelerate to the upside. The SCTR ranking looks good. The new high in Relative Strength is shown in purple. The price action is really starting to turn higher. If your looking at a rental car, you may chuckle that the insurance per day is more than the car rental fee per day. But so far this profit margin appears to be turning the tide Read More 

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Centene Moves to Recapture 50-day SMA

by Arthur Hill

Centene (CNC), which is part of the healthcare sector, sports a steady uptrend over the past year and recently surged towards its 50-day SMA. First and foremost, the long-term trend is clearly up because the stock recorded a 52-week high in January, the 50-day SMA is above the 200-day SMA and price is above the 200-day SMA.  The stock fell back in early February and moved below the 50-day SMA. Even though this may seem short-term negative, it is still viewed as a correction within a bigger uptrend. This means the pullback may present more of an opportunity than a threat.  Read More 

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Newmont Mining Sets Up

by Greg Schnell

Newmont Mining (NEM) has been subtly building a trend of higher highs and higher lows. It is set up for a move now. The Full Stochastic indicator looks like it is bottoming at 50 % which usually happens when strong stocks pull back. With the price in such a narrow range the decision is coming soon. The recent breakout to 52 week highs and then a failure to hold the breakout was concerning. But it could not go on to make a lower low. This suggests to me the upcoming move is to the upside. My stop would be close at $36.85. There is something Read More 

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Momentum and Money Flow Take a Turn in LabCorp

by Arthur Hill

Laboratory Corporation of America Holdings (LH) is looking bullish as the Moving Average Convergence Divergence (MACD) turns up and Chaikin Money Flow pops.  On the price chart, the long-term trend is up because LH hit a new high in January, the 50-day EMA is above the 200-day EMA and price is above the 200-day EMA.  The stock led the market with a 20+ percent gain from mid-November to late January and then consolidated after the February plunge. A triangle is taking shape and the stock is challenging the upper line already this week.  Read More 

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Vertex (VRTX) Makes A New Vertical

by Greg Schnell

Vertex Pharmaceuticals (VRTX) pushed to a new all time high Friday to close out the week. The stock has been in a general uptrend for years. After consolidating for a few months, the stock price moved sharply higher. With the SCTR moving back above 75 and a fresh breakout, it is one of my favorite setups. The biotech sector continues to outperform so this breakout helps continue the relative strength. If the breakout fails to hold above $170, there is a good reason to be stopped out there. This is the third attempt to breakout which looks likely to hold as it keeps persisting. Read More 

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Doctor, Doctor! Are You There?

by Greg Schnell

One of the most interesting things about new IPO stocks is how they behave technically. Some stocks soar and plummet all in the first six months. This particular stock Teladoc (TDOC) did too. It soared on the opening day and worked itself higher for one month, almost doubling. Then it let it all go and dropped well below the IPO price of $19. The lows came in at $9. Ouch! But since then, the stock has made a steady recovery. The reason it makes the list for this week is the chart recently broke out to all-time highs! Technically everything is in sync. The SCTR is surging into Read More 

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Revenge of the Small Caps

by Arthur Hill

The S&P 500 SPDR (SPY) is pretty much unchanged over the last five trading days and the respective sector SPDRs are mixed. The story is a bit different for small-caps because the S&P SmallCap iShares (IJR) is up over 3% the last five days and the small-caps sectors are suddenly leading.  The table below is a screenshot from a summary page of a ChartList that has all eighteen sectors. These include the ten sector SPDRs, the nine equal-weight sectors and the nine small-cap sectors. I will include a symbol list at the bottom of this article. The table is sorted by the five-day Read More 

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This Chart is Lighting Up

by Greg Schnell

Stocks that build big bases generally have a prolonged move when they break out of them. This week CREE is soaring on news of an acquisition that closed today. This stock has all the markings of a new run starting. SCTR is clearly trying to stay in the top quadrant, above 75. Price broke out above a two-year base, backtested the resistance line and bounced. This now makes the red line support. The PPO is turning up while above zero for the first time in a long time. Looks great! Today's big push is a little hard to buy into, but any weakness should Read More 

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Electronic Arts Leads and Stalls at the Same Time

by Arthur Hill

Electronic Arts (EA) is one of the leading stocks in a strong video game industry group. Note that Activision (ATVI), one of its main competitors, hit a 52-week high in late January and is challenging this high here in early March. Take-Two (TTWO) is the weakest of the big three, but still above the rising 200-day EMA and in a long-term uptrend.  EA looks promising because it is consolidating within a long-term uptrend. The long-term trend is clearly up because the stock surged over 25% from early December to late January and hit a 52-week high. Also note that the 50-day EMA is above Read More 

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One Commodity ETF is Trying To Go Higher!

by Greg Schnell

Commodities have been under pressure for over a month. But one of the rebels in the Commodity space has been Agriculture over the last few weeks. Look at the DBA ETF. The SCTR is putting in the strongest move in 18 months. The price is clearly breaking out of the 4-year downtrend. Volume is the best in 18 months. There is a lot going on at StockCharts. Check out all the new information! I have posted two new videos this week on my Vimeo Channel. Greg Schnell. Remember to click the follow button on Vimeo if you would like to be notified Read More 

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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