Jack Dorsey and Square sparked interest with their $50 million Bitcoin purchase this week. However a bigger story may be brewing in Ethereum: Coindesk just reported that CME is tossing around the idea of Ethereum futures and options.
The news comes at an interesting time for the ETHUSD chart, which is trapped in a triangle.
Bollinger Band Width % has...
T-Mobile US has chopped sideways after gapping higher. Now it may be ready to break out.
TMUS jumped to $115 for the first time ever on August 7 after its quarterly results. The shares inched slightly higher by early September before pulling back with the rest of the market.
This consolidation now resembles a bullish flag or high basing pattern. TMUS has...
Ulta Beauty had a big run between late 2014 and the middle of last year. It crashed in August 2019 and remained under pressure through the coronavirus selloff in March.
Since then, it’s squeezed into a range and may now be nearing a breakout.
The first thing that stands out on the chart is the large triangle converging around its current price. ULTA had a...
Tesla soared in August and consolidated in September. Now it may be poised for a breakout.
As we highlighted on September 25 , TSLA was forming a triangle with potential for a move toward $440. That panned out last week and the stock has gone nowhere since.
But Elon Musk’s electric car maker could be doing some important work along the way.
First, TSLA is...
One of the more interesting dynamics since the Nasdaq-100 swooned last month has been the relative strength of Chinese technology stocks like Alibaba.
This hourly chart compares the Golden Dragon China Index with the Nasdaq-100 . First you have the simple outperformance since the low. Second, notice that HXC made a higher low in late September, while NDX...
If any company represents the unprecedented social, economic and technological disruptions of the coronavirus pandemic, it would have to be Zoom Video Communications.
The teleconferencing stock not only joined the Nasdaq-100 in April. It’s also the index’s top gainer in 2020, up about 600 percent. Its market cap of $138 billion ranks it ahead of venerable names...
Materials have quietly outperformed in the last three months as the global economy recovers. Last week’s numbers somewhat confirmed that trend, with strong job gains in areas like construction and factories that can boost materials demand. Perhaps even more important, Chinese manufacturing data (PMIs, profits) were strong across the board.
Today’s idea fits into...
The Philadelphia Semiconductor Index formed an interesting pattern this month as the market pulled back. It initially dove toward 2100, and then managed to hold that level even as the Nasdaq-100 and S&P 500 proceeded to make lower lows.
Not surprisingly, that relative strength led to more bullishness this week as SOX jumped above its 50-day simple moving...
Of all the non-technology corners of the market, housing has been pretty much the strongest group this year. Most people know the story: lean inventories, low interest rates, demographic trends and a post-Covid surge in suburban living.
As often happens, this fundamental backdrop has played out technically. The iShares US Home Construction ETF barely pulled back...
The U.S. dollar had its worst month in nine years in July. It continued lower in August but is now trying to bounce. The greenback is also squeezing between some potentially important levels.
To the upside, DXY is hitting resistance at the March low of 94.65.
To the downside, DXY is testing the 94 area. This was a support zone in September 2018, and then...
Market correlations are always interesting because they can reveal how investors are thinking.
One correlation recently been similar movement between semiconductors and industrials. (This chart shows the 10-day correlation between the Philadelphia Semiconductor Index and the SPDR Industrial ETF .)
This isn’t a huge surprise because both are relatively cyclical....
Relative strength can often be a useful concept. There are indicators to measure relative strength , but one simple method is simply looking for stocks that hold their ground when the market crashes.
Semiconductor company Nvidia seems to fit this bill.
NVDA is a member of the Nasdaq-100 , Philadelphia Semiconductor Index and SPDR Technology ETF . All three...
Industrial stocks remain underperformers thanks to the coronavirus recession. However, a few companies struggling before the crisis have started breaking out.
One of them was Deere . The animal spirits have also been at work in Caterpillar.
The first chart feature for CAT is a weekly downtrend in place since early 2018. This ran along the pre-covid high and...
Tesla’s been a big name this week because of Battery Day. Behind all the excitement and letdown, some interesting things have happened technically – especially on the hourly chart.
Consider the price action around $380 on August 18-19. TSLA jumped to that level after the stock split was announced. (It was a new record high at the time, split adjusted.) For two...
The S&P 500 is down again this week, but it’s trying to stabilize. Looking back to the left of the chart, a potentially important level could be in play.
3214.68 was the low on January 31. It was the last meaningful support level before the coronavirus panic swept the market in late February.
Scrolling back to an intraday chart from that fateful time of February...
Auto-part retailers have been one of the stronger parts of the brick-and-mortar universe during the pandemic. (People are owning cars longer than ever and performing more do-it-yourself work.)
AZO showed that trend on Tuesday morning with a double-beat on earnings and revenue. It tried to open higher but lost a tug-of-war with bearish short-term momentum. Sellers...
Roku was one of the market’s most explosive growth stocks in 2018 and 2019. It’s chopped around with the rest of the Nasdaq during the time of the pandemic, however recent price action shows some interesting relative strength.
First, ROKU made a new 52-week high on Monday, even as the Nasdaq-100 hit a two-month low.
Next, ROKU bounced at its 50-day simple...
Chinese technology stocks have held their ground better than their U.S. counterparts. The Nasdaq Golden Dragon China Index is 8.5 percent below its 52-week high, while the SPDR Technology Fund is down 12 percent.
Alibaba, a key name in the group, has some interesting patterns on its chart.
First is the bullish-triangle breakout in August, which it’s now...
