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...
Biotechnology has been one of the stronger sectors this year. It’s benefited from the combination of Covid treatment hopes (vaccines + therapeutics), and the macro backdrop (low rates/negative GDP).
As we highlighted earlier in the month, the iShares Nasdaq Biotechnology Index ETF broke out to new highs in late June and has been holding its ground above those...
The SPDR Health Care ETF broke above its pre-Covid highs on July 17. Now it’s pulled back and is bouncing at those old levels. Is a stealth breakout taking place?
XLV has also formed a bullish ascending triangle, which it’s broken to the upside.
Health care is interesting because it lost more than 1 million workers amid the coronavirus lockdowns (according to...
The last week has been huge for cryptocurrencies. We learned that testing for Ethereum 2.0 may begin as early as Aug. 4. The Office of Comptroller of the Currency (OCC) also decided that U.S. banks can hold cryptos on behalf of customers. MasterCard and Visa both had took incremental steps toward the space as well.
Price action has been following the news. ...
Housing stocks have emerged as a beneficiary of the coronavirus economy. The U.S. entered the crisis needing more houses. Builders were ramping up construction before the lockdowns, and now most indicators suggest they’ve picked up where they left off. (Unlike many other parts of the economy.) Angst at tight urban living and low interest rates have only added to...
Chinese stocks have been surging this year as investors embrace the country’s flourishing digital economy. However, one of its most established names hasn’t broken out yet: Baidu – “the Google of China.”
BIDU entered the current environment in a weak place after years of revamping its search and advertising business. However it’s reported strong results in the...
The U.S. dollar has been sliding, with at least three major catalysts now weighing on the greenback:
1-Better economic numbers overseas, especially Chinese GDP last week
2-No QE boost from the European Central Bank last week, or the People’s Bank of China this week
3-A key stimulus deal by EU leaders this week
Meanwhile back in the U.S., politicians are...
Facebook has lagged other big tech and FANG stocks recently. It’s up just 4 percent in the last month, less than half the gain of the Nasdaq-100 in the same period.
One reason is that it was overbought after breaking out to new highs on May 20. It then reeled on news of an advertiser boycott last month, but quickly returned to its old range above the January...
Precious metals have steadily gained in recent weeks as investors adjust to a world of weak economic growth and central-bank stimulus. Gold is the obvious commodity most people watch, but silver has been gaining momentum as well.
XAGUSD is now trying to break its 19.65 peak from last September, which was the highest level since September 2016. This follows a...
A lot of bullish things have happened on the S&P 500’s chart in recent weeks. It bounced at 3,000 and its 200-day simple moving average (SMA) twice. It’s also had a “Golden Cross,” with the 50-day SMA rising above the 200-day SMA.
But one thing it hasn’t done is BREAK OUT. The index has now gone 28 sessions without closing at a new high. It’s the longest stretch...
Big-box retailer Target has been amazingly stable for the last two months. It’s squeezed into a triangle on either side of $120, lurking below its 2019 high of $130.24.
During that time, its 50-day simple moving average (SMA) rose up and above the 200-day SMA. That kind of “Golden Cross” can signal longer-term momentum is turning more bullish.
TGT also has...
This one is short and simple: JD.com just had its first decent pullback since it started running in May.
JD has a few things going for it. First, the Beijing-based e-commerce stock spent almost all of June consolidating on either side of $60. It ripped over that level after the Independence Day weekend and has now retraced that surge. Will the old resistance zone...
Biotechnology has quietly moved up the industry rankings in the last month. We recently highlighted the long-term breakout in the iShares Nasdaq Biotechnology ETF and now its biggest holding (8% of assets) has some interesting patterns: Amgen.
AMGN broke out to new highs in late 2019 and crashed along with the rest of the market in March. It then proceeded to...
Software and e-commerce have mostly led the rally in technology and the Nasdaq. But now chips are trying to participate as earnings season approaches.
The Philadelphia Semiconductor Index broke out to new highs on Monday and has held its ground since. That may draw buyers who wanted more of a pullback but never got it.
This chart also features our Smart...
Ethereum, like Bitcoin , has been trapped in a super-tight range since the beginning of June. (See Average True Range.)
ETHUSD has faced resistance at a trendline spanning the peaks of February and June. ETHUSD tried to break it several times without success, but today may be different for two reasons.
First, MACD just turned positive.
Second, the 50-day...
As we cited yesterday, a “ weak dollar ” trend is taking shape in the currency markets. This has been accompanied by strength in commodities like copper, gold and silver.
The iShares Silver Trust (SLV) could be the most interesting today because its 50-day simple moving average (SMA) just rose above its 200-day SMA, resulting in a “Golden Cross” for the Silver...
