Chips have been one of the stronger parts of the market lately as the economy rebounds from coronavirus and applications like cloud computing and videogaming flourish.
Lam Research is a provider of chip-making equipment. It rallied on a strong earnings report in late July, but then stalled and has now pulled back.
LRCX has stabilized in the last week or so. It...
Electric-car maker Nio has been one of the most explosive stocks in the last three months, more than tripling since the end of May.
However, it’s been rangebound since early July as it digested a lot of those gains, and now the price action is starting to resemble a bullish ascending triangle.
NIO peaked around $15.30 on a big high-volume candle July 8. It’s...
Positioning against the dollar has become a common trade lately thanks to the Federal Reserve’s aggressive monetary stimulus. However, there are some signs of the trend running its course.
First, the U.S. Dollar Index made consecutive weekly lows around 92.55 at the end of July and the start of August. It tried to break under that level last week but quickly...
Tesla has obviously had an amazing run. This morning it spiked as high as $2,129, more than 900 percent above its 52-week low one year ago.
But TSLA hasn’t held that level. Its high occurred in the first minute of trading, and prices quickly knifed under $1,940. That’s resulting in a large outside candle on the daily chart.
This is a potential reversal pattern –...
Avis Budget was one of the top “reopening” plays back in May and June, more than tripling from its lows to highs. It’s consolidated since, and now the chart may be lining up for another potential move to the upside.
CAR formed a bullish triangle between mid-June and early August. It broke out of that triangle last week but was over bought at the time. (See ...
Gold and silver have been explosive recently as the U.S. dollar slides and the Federal Reserve keeps interest rates low. The Market Vectors Gold Miners ETF pulled back between August 6-11, not a surprise given the pace of its rally. But the trend remained intact and now momentum followers may be active.
Last week’s retreat landed GDX back around the July 9 peaks,...
Bitcoin grabbed some attention three weeks ago as it broke above the February high around $10,500. It’s consolidated in a tight range since, which now resembles a bullish ascending triangle.
The pattern is noteworthy because its low of $10,559.59 on August 2 was slightly above the previous peak. It flirted with $12,000 a few times without attempting a breakout –...
Energy stocks were some of the biggest losers of coronavirus. Not only did petroleum demand fall off a cliff in March and April. They’ve also faced a big institutional shift toward ESG investing (electric vehicles and solar energy).
But few things last forever in the stock market. The fundamental backdrop for energy has improved as travel and the economy...
Spotify has come into its own as a new-media disruptor in recent months. It broke out to new highs in May after signing Joe Rogan. Other luminaries like Kim Kardashian and Michelle Obama have followed.
SPOT muscled up to $299.67 on July 22 but then pulled back. Its last earnings report wasn’t terrific, but the real story on this name is its widening program list...
Cloud computing has been one of the strongest growth trends in the market this year, and now one of the most important names has pulled back to some interesting levels.
Salesforce.com has followed an upward-sloping trend line since early June, making successively higher highs and higher lows. The two most recent peaks were all-time highs above its pre-crash...
Investors are rotating back to “reopening” sectors like airlines, financials and energy. This runs against the dominant theme for most of the coronavirus period, which focused on stay-at-home stocks.
Netflix is obviously one of the biggest examples of that “Covid trade.” Not surprisingly, it’s lagged recently as other parts of the market have taken off.
The...
As most people know, sentiment has been running uber-bearish. That’s lifted gold and depressed interest rates. But now the action in bond prices may be showing an end to the move.
The iShares 20+ year Treasury Bond ETF tracks the prices of long-dated bonds. And they may have recently hit a peak around $172, near the same level where it was rejected in...
As anticipated last week, sentiment has pivoted sharply toward cyclical reopening stocks like small caps and industrials. Meanwhile the Nasdaq has struggled.
Now one of the most iconic industrial stocks of all has some potentially bullish reversal patterns: General Electric.
GE has lost more than three-quarters of its value since the end of 2016. Its troubles...
Precious metals have flown higher over the last month as the market woke up to the Federal Reserve’s uber-dovish policies and this country’s lag in the fight against coronavirus.
However the U.S. economic data has shown some signs of improvement and now gold is showing a potential reversal pattern.
XAUUSD touched a new all-time high of $2,075.28 today. It then...
Financials have been one of the weakest corners of the market lately, thanks to credit worries and falling interest rates.
Of all the big names, Morgan Stanley has held up the best. It’s down less than 3 percent on the year, compared with drops of more than 20 percent for other key stocks like Bank of America and JPMorgan Chase.
MS has performed better...
Growth stocks and the Nasdaq have outperformed for most of the market’s recovery over the last four months. This is consistent with the disciplined approach of sticking with winners and trying to avoid value traps.
However, there have been two periods that small caps showed relative strength: late April-early June and late May-early June. (See Smart RS on chart...
Etheruem had a sharp pullback over the weekend, but a look at the chart shows little technical damage was done. The bullish trend appears to remain intact less than a day before the much-awaited Medalla testnet begins.
Today we’ll look at the monthly and hourly charts.
First, the monthly shows an important price area between $358.40 (low of April 2018) and...
The S&P 500 has had its biggest trailing four-month gain since 2009, but a new month is about to start. It might be a time to be aware of some potentially bearish chart patterns.
First is the bearish gap from February 24. The index tested into it last week but stalled. This is also close to the year-to-date breakeven line of 3231.
Next, the index had a bearish...
