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

TJX Bucks the Selling Pressure

by Arthur Hill

TJX Companies (TJX) is part of the S&P 500 and the Consumer Discretionary SPDR (XLY). It is also part of two growth ETFs (PWB and PXLG). Even though TJX is part of an economically sensitive sector, I would put them in a different category because they are known as an "off price" retailer for apparel and home furnishings. The stock sports a strong chart and is trading at its high of the year (2019). TJX held up better than the market in October, but succumbed to selling pressure in November and December. The stock rebounded with the rest of the market in January with a big surge back Read More 

Don't Ignore This Chart

Is This The Final High? And Was The Top In 2018?

by Greg Schnell

Much has been made of the 10-year yield dropping below the 3-month yield. In this week's case, it was particularly acute. The equity market (stocks) plummeted as the yields fell hard. US banks dropped significantly. When the scale of interest rates loses its normal "sort order" of longer term (10-year or 30-year) rates having higher yields than shorter term (3-month or 1-year) rates, this is referred to as an inverted yield curve. While it does not make a top by itself, it is important. Follow me through why this looks the same as 2000 and 2007 Read More 

Don't Ignore This Chart

Energy Stands Out on Relative Rotation Graph For Indian Sectors

by Julius de Kempenaer

The list of pre-defined groups in the RRG-menu has been expanded with the universe covering Indian sectors against the Nifty 500 index as the benchmark. Very recently also the universe of individual stocks making up the Sensex 30 index was added. With the Nifty 50 group already on the list, we now have three universes covering the Indian market. The Relative Rotation Graph above shows the rotation for these sectors. The one that stands out for me is the Energy sector ($CNXENERGY). The sector is inside the leading quadrant and traveling at a strong Read More 

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Third Time Lucky for Advance Auto Parts?

by Arthur Hill

Advance Auto Parts (AAP) hit a new high in November and then moved into a corrective phase. Keep in mind that a correction can involve a decline or a consolidation, or even a combination of the two. AAP fell back towards the rising 200-day SMA in December and then stalled the last few months. Overall, this looks like a big correction with an even bigger uptrend. There are signs that this correction could be ending. The stock found support in the 150-155 area three times in the last four months (green zone). The first two bounces did not hold as the stock retested Read More 

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Flight Simulators See Some Upside

by Greg Schnell

In the aftermath of the Boeing 737 Max 8 issues, I was looking around the industry to see charts that might be affected by the subsequent grounding of the aircraft. Last week, a beautiful breakout occurred on CAE Systems (CAE), which makes flight simulators to train pilots on. The company has a long history of working with aircraft manufacturers to help them train the pilots who will be flying the planes. This chart has a number of nice features. The stock has been trending up nicely for the last few years and has been consolidating since June 2018, but it now seems to have Read More 

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Amazon Makes a Threat

by Arthur Hill

Amazon is lagging the Nasdaq 100 ETF (QQQ) and the broader market over the last two months because it has yet to clear its January high and remains below the 200-day SMA. This is part of the reason the Invesco Momentum ETF (SPMO) is underperforming the Invesco Minimum Volatility ETF (SPMV). AMZN accounts for 8% of SPMO. Also keep in mind that Amazon accounts for a whopping 22.73% of the Consumer Discretionary SPDR. Despite some recent underperformance, the stock made a move this week and challenged the January highs. Yep,  Amazon is threatening a breakout. The stock surged with the Read More 

Don't Ignore This Chart

CheckPoint Checks All The Boxes

by Greg Schnell

Check Point Software (CHKP) has been a consistently strong stock over the years. For the last 18 months, the stock has been consolidating and, as of this week, looks ready to make its next move to higher highs.  As long as the breakout holds above $120, the stock looks great. I like the higher volume showing up as the stock confirms the breakout.  Wednesday's Market Buzz talked about the bank stocks. Click on the Market Buzz below to watch. Here is the the Canadian Market Roundup for mid-March.  Read More 

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One A In FAANG Just Turned Back towards the Leading Quadrant

by Julius de Kempenaer

The Relative Rotation Graph shows the FAANG stocks against $NDX on a daily basis. The strong move of GOOG is evident and tracks the recent break of resistance. Out of these five stocks, four are at the right-hand side of the graph, indicating a relative uptrend against the Nasdaq 100 index. NFLX is the only one on the left and inside the lagging quadrant, moving deeper into it at an RRG-Heading of almost 270 degrees suggesting that this is the stock to avoid in this universe. AMZN is entering the leading quadrant but at a heading that has already Read More 

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Diodes Returns to the Trend Mean

by Arthur Hill

Diodes (DIOD), a semiconductor stock, is returning to the trend mean and this could provide a bullish setup to take part in the long-term uptrend. The chart below shows DIOD with a breakout and surge to new highs in February. Note that the stock also recorded new highs in autumn 2017, summer 2018 and now winter 2019. The long-term trend has been up for over two years. The red line marks the 200-day SMA, which can also be considered the trend mean or average. The stock has broken this average several times during its overall uptrend, but dips below this trend mean were more of an Read More 

Don't Ignore This Chart

Microsoft Readies A Test For A New High

by Greg Schnell

Microsoft (MSFT) is currently up near the previous highs. This comes after a great rally to start the year. As a technician, I consider a previous high as resistance. As the next few weeks progress, it will be important to watch the charts of the strongest software companies out there  in my opinion. I want to see if investors are willing to pay more than ever before. Microsoft is one of those anchor tenants since the arrival of Satya Nadella.  This chart looks great. The chart has everything pointing the right direction. The quiet volume is a small worry Read More 

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