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...
A lot of bearish things seem to be happening with the U.S. dollar index.
First was a giant doji candlestick on the monthly chart in March. This occurred near the previous high from January 2017. A big reversal pattern at resistance is nothing to ignore.
Second was a tightening range throughout April and most of May. DXY exited that pattern to the downside and...
Everyone’s attention is focused on today’s strong jobs report, but an under-the-radar sector is breaking out: biotechnology.
The iShares Nasdaq Biotechnology Index ETF hit new 52-week highs before the rest of the Nasdaq. And it wasn’t just any old breakout. It was the first move above $130 since mid-2015: a historic push to important long-term levels.
IBB did...
Sports-betting disruptor DraftKings was one of the most explosive stocks of the second quarter, almost quadrupling at its high-water mark in early June. It then stalled for a secondary stock offering (40 million shares at $40 each) and knifed lower into some interesting support areas.
First and most important is the 50-day simple moving average (SMA). DKNG came...
Netflix was already one of the market’s leading New Economy stocks before coronavirus, and the pandemic has simply raised its status as a recession-proof growth name.
Now a few things could be lining up in its favor again. First, a rebound in coronavirus cases revives the odds of more social distancing and binge watching. Second, NFLX earnings are scheduled for...
Global stocks had a nice bounce in early June, outperforming the S&P 500 by a wide margin as the “reopening” trade took hold and the Federal Reserve kept the spigots of easy money flowing.
The MSCI Brazil ETF (EWZ) rode that wave higher at the time but has fallen flat more recently. Weakening of energy prices and a spreading coronavirus outbreak in the Latin...
Last week , we noticed how the S&P 500 was trapped inside a range from the June 16 spinning top candlestick. Prices remained within that range until Wednesday’s sharp drop, which may now create the potential for more downside.
The weekly chart has some warning signs. First, there was a bearish outside candle in the week ending June 12. That came after the Federal...
One of the biggest stories in the last month has been the breakout in the Nasdaq-100 . But the Market Vectors Semiconductor ETF has failed to join the breakout.
It’s not a surprise because chips are economically sensitive and struggle when manufacturing slows. That’s happened now.
SMH’s lack of breakout shows weak relative strength and fundamentals. That could...
Stocks fell hard after the June 10 Federal Reserve meeting. The S&P 500 bounced after holding 3,000, and some interesting changes have occurred amid the volatility.
Simply put, money is rotating back to “growth” and away from “value.” Recent weeks saw a big surge of interest in beaten-down “reopening” stocks like airlines, banks, industrials, energy. But now it’s...
Homebuilders have emerged as one of the standout industries in the post-Covid world. Plenty of technology names, like Zoom Video Communications , benefited from lockdowns. But it’s also boosted housing in a few ways. First, surveys show millennials finally want to buy single-family suburban homes. Second, interest rates are low. Third, credit-card spending data...
Energy is the leading sector this quarter by a wide margin. SPDR Energy ETF was up 38 percent since the end of March through Thursday’s close. That’s 7 percentage points ahead of the No. 2 consumer-discretionary fund . This creates the potential for some positive window dressing with just eight sessions remaining in the second quarter.
There are also...
The S&P 500 had its biggest drop since March last week, bounced hard and now it’s dead in the water. What’s happening?
Several things, it turns out.
This chart shows how SPX has been trapped inside Tuesday’s candle for the last two sessions. But it’s holding the 8-day exponential moving average (EMA), which suggests the short-term trend is still positive.
The...
Chipotle Mexican Grill joined the 4-digit club a month ago, riding positive momentum from its strong results on April 21.
Since then it’s squeezed into a very tight range as the economy reopens. Once or twice, prices tested and held that important $1,000 level, which suggests it’s building support up at these new highs.
CMG took a stab lower on Friday, below...
Advanced Micro Devices was the S&P 500’s top performer in both 2018 and 2019. It’s having another positive year, but remains trapped at a key resistance line that started in late February.
AMD tried to break out last week after finding support at its 50-day simple moving average (SMA). It peaked out after the Fed meeting, along with the rest of the market and...
Amazon.com barely flinched when coronavirus slammed markets in February and March. Along with Netflix, it was one of the first major names to break out in April. And now it’s showing signs of continuation to the upside.
Few stocks seem to have a stronger fundamental story than AMZN because coronavirus has boosted both halves of its business: e-commerce and cloud...
The S&P 500 is having its worst drop since mid-March. On days like today it can be useful to scan for stocks under accumulation before the selling hit. One of those is Ericsson.
ERIC started running last month after President Trump moved against Huawei. Analysts see that helping the Swedish telecom supplier gain market share in U.S. 5G networks.
ERIC was...
