Don't Ignore This Chart

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About this blog: The blog contains daily articles with intriguing or unusual charts selected by one of our Senior Technical Analysts, along with a short explanation of what exactly caught their attention and why they believe the chart is worth noting.

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Don't Ignore This Chart

Oh WELL... What Can I Say?

by Julius de Kempenaer

On the Relative Rotation Graph, the Real-estate sector is one of the better performing sectors vis-a-vis the S&P 500 index. The RRG above shows the rotation of all the stocks in XLRE against XLRE. This gives us a picture of the relative positions for all these stocks against XLRE and against each other. A few names stand out in a positive way. EXR, VTR, HCP, and WELL are all traveling higher on both axes and in a relative uptrend against XLRE. One stock, in particular, is sending very bullish signals. Read More 

Don't Ignore This Chart

Mind the Gaps in L Brands

by Arthur Hill

A long-term downtrend, two gaps down and a move back below the falling 200-day could spell trouble for L Brands. The stock has been quite volatile since summer, but the overall trend remains down. L hit a 52-week low in early September, the 50-day SMA (not shown) is below the 200-day SMA, the 200-day SMA is falling and price is back below the 200-day SMA. The stock gapped above the 200-day SMA in mid November, but this gap did not hold as the stock gapped down twice. The second gap was back below the 200-day SMA. Even though L bounced after this gap, the bounce again failed to hold above Read More 

Don't Ignore This Chart

Is Shopify On Your Shopping List?

by Greg Schnell

Shopify appears to have all the makings of a stock ready for its next move. Relative strength is starting to rise, full stochastics are striding higher, the stock is about to break a 6-month resistance line and the PPO is resetting at zero! This high growth stock is really looking good. Considering how tight a stop under this week's low would be, this looks all set to rise. If it needs more time, I want out anyway. This stock is listed in Canada as well at SHOP.TO. Here are some of my videos from the last week. The Final Bar video discusses what to look for Read More 

Don't Ignore This Chart

Southwest Airlines Reverses with a Gap

by Arthur Hill

Southwest Airlines (LUV) is in a long-term downtrend and the recent failure near the death cross points to further downside. First and foremost, the long-term trend is down because LUV hit a new 52-week low in late October and price is below the 200-day SMA. In addition, the 50-day SMA just crossed below the 200-day. After gapping down and hitting a new low, the stock bounced back to the 55 area in early December. This bounce, however, just retraced 50% of the prior decline, which is normal for a counter-trend bounce. The bounce hit resistance Read More 

Don't Ignore This Chart

Is This Stock About To Collapse?

by Greg Schnell

Canopy Growth Corporation (CGC) sits at support to close out the weekend. Is it about to collapse or surge? If you are interested in the most recent parabolic trading industry, marijuana legalization, it matters, as Canopy is widely seen as a leader in the group. For most investors, the sudden surge in August caught them off guard. Now would be the time to monitor CGC for a possible entry with a close stop. There is nothing on the chart that is a buy signal as of Friday, but there are lots of technical reasons to consider trading this stock in the near future. Read More 

Don't Ignore This Chart

Why Is Everybody Talking About The Yield Curve? What Is All The Fuss About?

by Julius de Kempenaer

The yield curve has become a popular subject recently. Also, a few commentators on the site have mentioned the yield curve and its recent movements in their blogs recently. Read articles by Chief John, Greg Schnell, and Arthur Hill. In my DITC contribution of 18 October, I showed how Relative Rotation Graphs can be used to monitor the (shape) of the yield curve. You can find a more detailed explanation of combining RRGs with the Dynamic Yield Curve tool in this RRG blog. In this DITC I want to point, again, to the Dynamic Read More 

Don't Ignore This Chart

An Emerging Market Trading above its 200-day

by Arthur Hill

The S&P 500 is below its 200-day moving average and most country indexes are also below their 200-day moving averages. Two emerging countries, however, stand out in this crowd: Indonesia and the Philippines. The first chart shows the Indonesia iShares (EIDO) and the DJ Indonesia Index ($IDDOW) with their 200-day SMAs. The index (lower window) found support in the 1225-1250 area from July to October and broke above its summer highs with a surge in November-December. This is one of the few country indexes trading above its summer highs and above its 200-day SMA. The upper window shows Read More 

Don't Ignore This Chart

Yields Invert - Dow Drops 800 - Whoa!!!!

by Greg Schnell

The yield curve has been the talk of the town as the Fed has raised interest rates. With lots of discussion, a part of the yield curve finally inverted this week. The issue at this point in time is the bond market has seen the 2, 3 and 5-year yields invert. How can we show that on a chart? The real problem for chartists is getting the settings right to make it easy to see. On the chart below, I have used the Price (same scale) overlay tool rather than the Price selection as an indicator. By using the Price (same scale) it separates each of the lines nicely. However, Monday Read More 

Don't Ignore This Chart

Cisco Holds Up Well and Maintains Uptrend

by Arthur Hill

Relative strength, an uptrend and a bullish continuation pattern point to higher prices for Cisco (CSCO). First and foremost, Cisco is in a long-term uptrend. The stock recorded a 52-week high in early October, the 50-day SMA is above the 200-day SMA and price is above the 200-day. Second, Cisco held up better than the S&P 500 and the Technology SPDR during the recent pullback. Both $SPX and XLK broke below their 200-day SMAs, but CSCO held this moving average in late October and again in late November. In addition, CSCO formed a higher low from late October to late November as $SPX Read More 

Don't Ignore This Chart

Workday (WDAY) Puts In A Full Shift

by Greg Schnell

Workday has been a big performer but over the last nine months it has built a floor around $120. Friday saw the stock soar above the previous highs. While it is hard to buy after a 12% surge in one day, this stock looks like a good buying candidate on a pullback.  The SCTR shows it as one of the strongest stocks out there. The relative strength soared to new heights. The November double bottom was an important base and the $50 move off that is very impressive. The stock obviously attracted a lot of volume interest as well. With this volatile market, I would follow the stock Read More 

Don't Ignore This Chart

Market is still playing defense!

by Julius de Kempenaer

The recent rally of the S&P 500 index off the lows near 2600-2625 is nice but is it sustainable? The Relative Rotation Graph above shows the rotation of the 11 SPDR sector ETFs against SPY and the message is very clear! There is a clear split between the sectors. Four sectors are inside the leading quadrant and they are all still heading higher on the Jdk RS-Ratio scale, i.e. gaining relative strength versus the S&P 500. There are six sectors inside the lagging quadrant and only one (XLF) is in the improving quadrant. Read More 

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