Earlier this month, the iShares 20+ Year Treasury Bond ETF had a “ death cross .” It proceeded downward as expected after that signal, only to rebound. This creates the potential for another continuation trade to the downside.
Today’s idea highlights two other features on TLT’s daily chart. First is the descending price channel in place since the beginning of...
Ethereum had a bullish weekend. It pushed above the previous 2020 high of $489 on Friday morning and quickly proceeded above $500. It held its ground above that level and has continued upward through today.
This is important because there’s no obvious resistance on ETHUSD before the May 2018 high of $832. That’s about 40 percent away. Meanwhile, Bitcoin is near...
EBay was one of the surprise breakouts of early 2020. The online-auction and e-commerce stock ripped to new 52-week highs in May and kept flying on raised guidance in June. The strong numbers kept coming in July and October, but the stock just drifted and then slid lower.
The pullback landed EBAY back at a key level around $47, the old record peak from 2018. It...
Last week we cited the falling trendline in Apple. So far, it hasn’t broken out. Not surprisingly, this pattern appears in other key names like Facebook and Advanced Micro Devices. Most importantly, it’s also on the Nasdaq-100’s daily chart.
The tech-heavy index has been fighting this downward trend for most of November. This morning it made an attempt to rally...
Many stocks have hit new highs this month, but Amgen isn’t one of them.
The biotech may be showing signs of topping out. The main thing jumping off its chart now is the falling 50-day simple moving average (SMA). Current prices have dropped back to the 200-day SMA. If the trend continues, it could produce a “death cross.”
Next, why is AMGN’s 50-day SMA falling?...
United Parcel Service has been one of the bullish surprises of 2020 and the coronavirus pandemic. New CEO Carol Tome has shaken up the once-dull shipping company with a major focus on profitability, launching its share to new all-time highs in July.
The last earnings report on October 28 was also strong. However, investors had “bought the rumor” beforehand and...
Alibaba is the most prominent of the major Chinese technology stocks that have soared in 2020. It fell sharply after authorities suspended the initial public offering of its Ant finance arm on November 3.
That decline has landed BABA deep in oversold territory, according to stochastics. This is the most oversold since June 2019 when Beijing and Washington were...
Some traders may remember the historic selloff in the U.S. dollar that began in late 2002. Current conditions appear similar.
Notice on this chart how the U.S. dollar index pushed to a new 52-week low and then consolidated. Notice how the 50-day simple moving average (SMA) tried to turn higher but failed. Notice how DXY also tested the 100-day SMA and failed....
Recent sessions have seen shift toward cyclical stocks and value names like energy and financials. This follows hopes of Pfizer’s coronavirus vaccine restoring things to normal.
The key word, of course, is hope . Even if the vaccine works, we don’t know how quickly the economy may return to its previous pace.
But for a tech stock like Apple there are things we...
Housing stocks outperformed earlier this year thanks to low interest rates, an exodus from cities and tight inventories. They recently pulled back but could now be at support.
The iShares US Home Construction ETF is sitting around the same $52 zone where it bounced in September and late October. ITB is also near its 100-day simple moving average (SMA), a line it...
Bitcoin recently consolidated in a tight range below its bear-market high before breaking out. Ethereum may now be following a similar pattern.
ETHUSD started rallying at the start of last week before pausing below its September peak of $489. Instead of dropping sharply as before, it has squeezed into a triangle pattern. November 8th, 9th and potentially the 10th...
Netflix was an early beneficiary of coronavirus as stay-at-home orders boosted demand. That makes today’s news of potential vaccine success from Pfizer a clear negative.
NFLX has other issues. In particular, a bearish gap on October 21 after subscriber growth missed estimates. Management warned that would happen in July because the pandemic was essentially...
Bonds have drifted lower since the start of August. There could now be signs of acceleration.
One important feature on the IShares 20+ Year Bond ETF is the declining 50-day simple moving, now on the verge on the crossing under the 200-day SMA. A “Death Cross.”
Next is the downward channel in place since early September. TLT failed at the top line yesterday and...
On Tuesday, we cited the pullback in the Philadelphia Semiconductor Index. Today, we’re looking at a member stock that’s been dead in the water all year: Micron Technologies.
Worries about the Covid recession have dragged on the memory-chip maker, despite strong results. Analysts at Deutsche Bank and Citi also think pricing will improve over the winter.
MU’s...
The S&P 500 has had a violent rebound from Friday’s oversold levels. It’s rallied more than 5.5 percent so far in the week, the index’s best three-day gain since early April.
The bounce has brought prices back to a new level that may be resistance: 3465. This was the high on October 21 and near the close on Friday, October 23. (Daily and weekly close.)
The level...
Last week, we cited the unusual relative strength in Bitcoin and its decoupling from the S&P 500. Today we want to look at some other patterns.
The main thing standing out on the daily chart is BTCUSD’s consolidation in a key price zone between $13,880 and $12,920.54. That was the intraday range between the high and the close on June 26, 2019. (BTCUSD’s...
Semiconductors are behaving more bullishly than the rest of the technology sector.
First, the Philadelphia Semiconductor Index made a higher high in mid-October. Meanwhile, the SPDR Technology ETF and Nasdaq-100 made lower highs.
Second, SOX pulled back to hold its 50-day simple moving average (SMA) while XLK and NDX sank all the way to their 100-day...
Several positive things have happened in China lately. The Asian country’s coronavirus cases have remained low and economic data has been strong. Just today, the Caixin manufacturing index had its biggest gain since 2011.
That’s helped push the yuan to its highest level against the U.S. dollar in over 1-1/2 years.
The other big story has been the rise of China...
