Last week, we cited the unusual relative strength in Bitcoin and its decoupling from the S&P 500. Today we want to look at some other patterns.
The main thing standing out on the daily chart is BTCUSD’s consolidation in a key price zone between $13,880 and $12,920.54. That was the intraday range between the high and the close on June 26, 2019. (BTCUSD’s...
Semiconductors are behaving more bullishly than the rest of the technology sector.
First, the Philadelphia Semiconductor Index made a higher high in mid-October. Meanwhile, the SPDR Technology ETF and Nasdaq-100 made lower highs.
Second, SOX pulled back to hold its 50-day simple moving average (SMA) while XLK and NDX sank all the way to their 100-day...
Several positive things have happened in China lately. The Asian country’s coronavirus cases have remained low and economic data has been strong. Just today, the Caixin manufacturing index had its biggest gain since 2011.
That’s helped push the yuan to its highest level against the U.S. dollar in over 1-1/2 years.
The other big story has been the rise of China...
If we learned anything in March, it’s that Bitcoin can be susceptible to selloffs in the broader market. However it’s been bucking that tide recently.
This chart compares BTCUSD with the S&P 500. Notice how it’s advanced since October 12, while SPX has skidded lower over the same period.
This pushed the 10-day correlation down to -0.7. That’s the lowest since...
One of the main features of the market lately has been a rotation to non-megacap technology names. Zoom Video Communications, Twilio, Roku, Snap, Pinterest, Zendesk, Etsy, Match, Digital Turbine, Appian, Fiverr and others (including solars) have all shot to new highs lately. Meanwhile the biggest names like Amazon.com and Apple have drifted since the...
Everyone knows about Zoom Video Communications , but Twilio is another cloud-based beneficiary of the coronavirus pandemic.
TWLO has had a trio of positive headlines this month:
10/2: Guidance raised
10/12: Acquires customer-data firm Segment
10/26: Earnings and revenue beat
TWLO has declined along with the rest of the market in the last two weeks....
Sometimes the Japanese yen is viewed as a “safe haven” because it can gain when investors dump risk assets like stocks. That could make the Asian currency’s recent price action important.
This chart highlights a clear descending triangle forming in USDJPY. (It falls when the yen strengthens.) Notice how its steadily tracked its 50-day simple moving average (SMA)...
Crunch time has arrived. Earnings hit hard and fast in coming sessions, while the Presidential Election is in exactly one week.
A few things stand out on the S&P 500 as we enter this key time.
First, the potential kicker we cited last week was never confirmed. Instead of bouncing strongly at 3425, SPX lingered above it before knifing through that key level on...
Cryptos have come to life recently as Bitcoin’s limited supply post-halving combines with a wave of blockchain adoption: Square , PayPal and now JPMorgan Chase .
Ethereum’s been quieter since the summer, following a hard rally in July and August. But now it may be showing its own signs of life.
The main thing standing out on the chart today is an apparent...
The Select Sectors Financials ETF is closely associated with stimulus and a reopening of the U.S. economy. Now that those hopes are fading, it may present a downside opportunity.
The main thing jumping off XLF’s chart is the falling 200-day simple moving average (SMA). This has cut down like a knife since the pandemic began, quashing rallies in June and early...
Zoom Video Communications has clearly benefited from the coronavirus pandemic, but it’s not alone. The crisis has also lifted several other software and cloud-based service companies. Many of them, including ZM, pulled back last week as sentiment swung toward the reopening trade. This week they could be worth a look as new daily infections shoot over 80,000 for...
Tesla has obviously been a major growth stock in 2020, but the chart may be showing some fatigue 12 months after its blistering rally began.
First and most important was the muted reaction to Wednesday’s better-than-expected quarterly report. The biggest takeaway seems to be concern about another capital raise more than the results. After all, TSLA has yet to...
Marvell Technologies has been one of the better-performing chip stocks this year. It’s up 52 percent in 2020, while the Philadelphia Semiconductor Index has gained just 28 percent.
MRVL broke out in May, well before most others. It spent the next four months in a long consolidation pattern, grinding higher but not really breaking out. That is, until ripping...
Precious metals surged earlier in the year as Covid-19 hammered the economy. They’ve snoozed the last few months but could now be setting up for further gains.
The main feature on VanEck Vectors Gold Miners ETF is its broad triangle forming since the summer. It hasn’t broken out yet, but is worth watching.
Next, GDX has found support at its 100-day simple moving...
Recent weeks have seen hot and cold action in the S&P 500: Big up candles (October 5, 12) followed by painful hemorrhaging lower (October 13, 14 and 19).
Let’s review some key things that have happened.
First, we need to focus on 3425. This level was resistance in Labor Day week and remained a painful barrier for the next month – especially on October 6 when...
Bitcoin started moving on October 8 after Square made a $50 million strategic purchase.
Since then, BTCUSD has proceeded to pull off several feats.
First, it took out the mid-September high of $11,183 on October 10.
Next, it had a bullish inside day on October 11, followed by a large bullish outside candle on Monday, October 12.
That bullish outside candle...
Last month we covered the breakout in Draftkings . Now its sports-betting rival, Penn National Gaming, may have some potentially bullish patterns.
First is its relationship with the 8- and 21-day exponential moving averages (EMAs). Notice in early August and early September how it squeezed into the 21-day EMA. In both cases it paused there for a few candles, but...
Ferrari’s chart has all kinds of interesting things happening.
The main thing today is the large bullish engulfing candle on heavy volume. RACE tried to open at a low for the week and instantly got bought.
Next, the October 6 candlestick initially looked like a win for the bears. But prices quickly returned above $180, resulting in something of kicker pattern: a...
