Bitcoin started moving on October 8 after Square made a $50 million strategic purchase.
Since then, BTCUSD has proceeded to pull off several feats.
First, it took out the mid-September high of $11,183 on October 10.
Next, it had a bullish inside day on October 11, followed by a large bullish outside candle on Monday, October 12.
That bullish outside candle...
Last month we covered the breakout in Draftkings . Now its sports-betting rival, Penn National Gaming, may have some potentially bullish patterns.
First is its relationship with the 8- and 21-day exponential moving averages (EMAs). Notice in early August and early September how it squeezed into the 21-day EMA. In both cases it paused there for a few candles, but...
Ferrari’s chart has all kinds of interesting things happening.
The main thing today is the large bullish engulfing candle on heavy volume. RACE tried to open at a low for the week and instantly got bought.
Next, the October 6 candlestick initially looked like a win for the bears. But prices quickly returned above $180, resulting in something of kicker pattern: a...
This week has been all about Apple. It jumped on Monday amid iPhone 12 optimism, hit a wall and has been consolidating since.
This brings up an important level on multiple time frames.
First, on the weekly chart, AAPL’s high the week ended September 11 was $120.50. Monday’s rally broke above it and today’s pullback revisited it. This level could be very...
PayPal has been a major beneficiary of coronavirus and the boom in e-commerce. It’s moved sideways since the end of July but now the chart may be attempting a breakout.
PYPL formed a bullish flag since the start of September, with the trendline running down through the early October levels. Yesterday it closed above that trendline.
Prices also consolidated at...
Dell Technologies is a blast from the past. At one point it was one of the top technology stocks, but now it seems to get very little interest.
Still some interesting things are happening on the chart.
First is the pair of bullish gaps after strong earnings reports in May and August.
Next is the ascending triangle that formed since the last gap higher. DELL has...
One common pattern this year has been sporadic rallies in the Russell 2000 , followed by longer periods of malaise. We saw it in June, early August and again in the last 1-2 weeks. Each time, it’s been followed by a shift back to Big Tech, Growth and the Nasdaq-100.
The same process seems to be happening right now. This chart shows our Smart Relative Strength ...
Jack Dorsey and Square sparked interest with their $50 million Bitcoin purchase this week. However a bigger story may be brewing in Ethereum: Coindesk just reported that CME is tossing around the idea of Ethereum futures and options.
The news comes at an interesting time for the ETHUSD chart, which is trapped in a triangle.
Bollinger Band Width % has...
T-Mobile US has chopped sideways after gapping higher. Now it may be ready to break out.
TMUS jumped to $115 for the first time ever on August 7 after its quarterly results. The shares inched slightly higher by early September before pulling back with the rest of the market.
This consolidation now resembles a bullish flag or high basing pattern. TMUS has...
Ulta Beauty had a big run between late 2014 and the middle of last year. It crashed in August 2019 and remained under pressure through the coronavirus selloff in March.
Since then, it’s squeezed into a range and may now be nearing a breakout.
The first thing that stands out on the chart is the large triangle converging around its current price. ULTA had a...
Tesla soared in August and consolidated in September. Now it may be poised for a breakout.
As we highlighted on September 25 , TSLA was forming a triangle with potential for a move toward $440. That panned out last week and the stock has gone nowhere since.
But Elon Musk’s electric car maker could be doing some important work along the way.
First, TSLA is...
One of the more interesting dynamics since the Nasdaq-100 swooned last month has been the relative strength of Chinese technology stocks like Alibaba.
This hourly chart compares the Golden Dragon China Index with the Nasdaq-100 . First you have the simple outperformance since the low. Second, notice that HXC made a higher low in late September, while NDX...
If any company represents the unprecedented social, economic and technological disruptions of the coronavirus pandemic, it would have to be Zoom Video Communications.
The teleconferencing stock not only joined the Nasdaq-100 in April. It’s also the index’s top gainer in 2020, up about 600 percent. Its market cap of $138 billion ranks it ahead of venerable names...
Materials have quietly outperformed in the last three months as the global economy recovers. Last week’s numbers somewhat confirmed that trend, with strong job gains in areas like construction and factories that can boost materials demand. Perhaps even more important, Chinese manufacturing data (PMIs, profits) were strong across the board.
Today’s idea fits into...
The Philadelphia Semiconductor Index formed an interesting pattern this month as the market pulled back. It initially dove toward 2100, and then managed to hold that level even as the Nasdaq-100 and S&P 500 proceeded to make lower lows.
Not surprisingly, that relative strength led to more bullishness this week as SOX jumped above its 50-day simple moving...
Of all the non-technology corners of the market, housing has been pretty much the strongest group this year. Most people know the story: lean inventories, low interest rates, demographic trends and a post-Covid surge in suburban living.
As often happens, this fundamental backdrop has played out technically. The iShares US Home Construction ETF barely pulled back...
The U.S. dollar had its worst month in nine years in July. It continued lower in August but is now trying to bounce. The greenback is also squeezing between some potentially important levels.
To the upside, DXY is hitting resistance at the March low of 94.65.
To the downside, DXY is testing the 94 area. This was a support zone in September 2018, and then...
Market correlations are always interesting because they can reveal how investors are thinking.
One correlation recently been similar movement between semiconductors and industrials. (This chart shows the 10-day correlation between the Philadelphia Semiconductor Index and the SPDR Industrial ETF .)
This isn’t a huge surprise because both are relatively cyclical....
