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

One Semiconductor Equipment Stock Stands Out

by Arthur Hill

The Semiconductor SPDR (XSD) broke out to new highs last week and hit another new high on Tuesday. Despite strength in this broad-based semiconductor ETF, there are still pockets of weakness within the group. Namely, the semiconductor equipment stocks have been weak in 2018. These include Applied Materials (AMAT), Lam Research (LRCX) and Teradyne (TER). One semiconductor equipment stock, however, is bucking the selling pressure and should be on our radar. The chart below shows year-to-date price bars for KLA-Tencor (KLAC). Price action has been choppy most of the Read More 

Don't Ignore This Chart

The Nasdaq Exchange Tests A Breakout (NDAQ)

by Greg Schnell

The NASDAQ OMX Group (NDAQ) has consolidated recently for the last few months. For September it looks like it wants to start the month pushing for a break out to the upside. The SCTR shows the company holding in the top quartile. Relative Strength is still holding but closer to four month lows.  Like most parts of the market, the volume has been quieter lately, so I would suggest that just fits in with the overall view. I think a breakout through $96 is an attractive entry and a stop at $92 should give it room to wiggle. Good trading, Greg Schnell Read More 

Don't Ignore This Chart

Bank Momentum Looks A Little Tepid

by Greg Schnell

The big banks have been wandering sideways lately. JP Morgan (JPM) spent the month trying to push to new highs. Today's price action looks a little tepid to close out the month. To review the indicators, there is a downtrend in relative strength in the shaded area. Price is stuck below the highs of the first quarter. While the volume looks weak, the bigger concern is the amount of red bars vs. green bars in the last three weeks. With only 1/3 of the bars closing positive on the day it warrants a closer look. In the zoom panel you can see the price has been jerked up on three big bars Read More 

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Semis Send a Message to the Market

by Arthur Hill

Chips are leading the market again as the broad-based Semiconductor SPDR (XSD) broke out of a triangle consolidation and hit a new high. A new high in this cyclical group is positive for the technology sector, the Nasdaq and the broader market. First note that XSD has 34 components and they are relatively equally weighted. AMD, which as a market cap of $24 billion, is the largest holding (5.23%) and Intel (2.77%), market cap $224 billion, is not even in the top ten. The Semiconductor iShares (SOXX), in contrast, is weighted towards large-caps with the top ten stocks accounting for 59% of Read More 

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EEM Emerging Markets ETF Kicks Off

by Greg Schnell

The emerging markets have been falling as the US Dollar was rising. With the sudden reversal on the $USD there are some charts shaping up nicely. The EEM chart has nice positive divergence on the Full Stochastic. If the $USD continues to weaken, this trade should continue to improve. For now, its a nice breakout with a signal. A stop that gets hit below last weeks low of $42 would suggest the trade is not going to work. There have been a wide variety of new videos over the last week. Here are links to them. The Canadian Read More 

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Treasury Bond ETF Hits Major Road Block

by Arthur Hill

The unadjusted 20+ YR T-Bond ETF (_TLT) surged to resistance on Friday and backed off on Monday. The long-term trend is down and this resistance level could mark a near term top. First note that the chart shows unadjusted prices for TLT by preceding the symbol with an underscore (_TLT). This removes the monthly distributions from the price. Second, note that the long-term trend is down because the 50-day EMA is below the 200-day EMA and price hit a 52-week low in May. On the price chart, TLT hit resistance in the 122-123 area in late March, late May and early July Read More 

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ING Bank Looks Ready To Pop Here

by Greg Schnell

ING Bank has seen some large volume surges in the last two months suggesting the potential for some capitulation low. On the MACD we can see a positive divergence in momentum. The relative strength is obviously very weak as is the SCTR ranking.  The weekly chart also has some nice information. We can see the two volume pillars are the largest in 5 years! Recently the full stochastic tried to move above 20 and pulled back but so far has a higher low. This positive divergence is worth keeping an eye on especially in light of the volume spike. The PPO and the Relative Strength both Read More 

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Hibbett Sports (HIBB) Breaks Through To New Highs

by Greg Schnell

This little sporting company, Hibbett Sports (HIBB) sports an average of 600,000 shares a day. It has struggled in a wide range between $22 - $29 for a good six months. Today it forged a new intraday high and a new closing high. This run up has been sharp. I might expect it to pause after breaking out and pull back. The pullback would be a better time to catch it with a tight stop. Good trading, Greg Schnell, CMT, MFTA Read More 

Don't Ignore This Chart

Semiconductor ETF Forges a 4 Candlestick Reversal

by Arthur Hill

The Semiconductor iShares (SOXX) has been locked in a trading range the last few months, but the big trend is still up and a recent candlestick reversal could signal the start of an extended advance. It is important to keep perspective, even when looking at a short-term pattern. In the case of SOXX, keep in mind that the ETF was up around 172% from September 2016 to March 2018 and hit a 52-week high in March. This is a massive move and the ETF is entitled to a rest after such an advance. I think the long-term trend is still up because the 50-day EMA is above the Read More 

Don't Ignore This Chart

TEVA Breaks Out

by Greg Schnell

Teva Pharmaceuticals (TEVA) pushed to new highs and looks good to correlate with Arthur Hills article yesterday of Healthcare leading. Lots of nice things on this chart but the breakout is the best signal. I wouldn't let it breach the 10-week moving average on the downside. The PPO is making a turn up while above zero which is particularly bullish. It's a good week to pay attention to the broader industries as the $SPX tests the prior high. Be a little more cautious if the breakout fails to hold over the next few days. Good trading Read More 

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