From the beginning of 2017 to now, we've seen an abundance of optimism enter all sectors of the US equity markets, from large cap Dow stocks to small cap Russell. Since the "Trump Rally" of late 2016 to present day, a period of consolidation transpired in which the 20,000 threshold on the Dow Jones was … Continue reading Indecision
Day: February 8, 2017
What Do They Know?
There's no question that the most significant event that's been holding the stock market's activity to a tight range is a clear resolution of the US presidential election. There has been ample speculation as to what the markets are discounting and or expecting, so I may as well add my view. We show the chart of the … Continue reading What Do They Know?
There's an old Chinese saying which is actually a curse and it goes, "may you live in interesting times". Related to that is "be careful what you wish for" warning. These sentiments come to mind upon viewing the aftermath of the US elections. Our read was correct on market expectations and subsequent activity...we just didn't expect it all to … Continue reading Now What?
Now What Part 2
Stock markets continue to ratchet closer to 20,000 on the Dow Jones in the aftermath of the Trump victory. I am reminded of Al Gore's famous explanation of Global Warming, "it's like gravity, it just is". In the case of the stock market's advance, it seems to defy gravity as it just keeps going up. As the … Continue reading Now What Part 2
There are 4 stocks, collectively referred to as the "FANG" stocks, Facebook, Amazon, Netflix and Google, that have been the most powerful issues driving the stock markets higher over the past few years. As we've noted a number of times over the year, while the markets have been able to drive higher, there are warning signs that … Continue reading De-Fang’d
Ramping Up…Or Not
A sudden interest in base metal stocks has propelled CENX into the next area of logical resistance, albeit from almost 2 years ago at the 15 area. The surge in interest in metal stocks has elevated heretofore dull companies such as X and AKS, both steel producers as well as FCX and SCCO, both copper companies. … Continue reading Ramping Up…Or Not
Today, we explore the weekly setups of two companies, unrelated to each other in industry but both exhibiting similar upside chart potential. One is CENX and the other is IBKR. CENX has gone through a long multi year period of basing after the steep sell off almost two years ago. Recent activity is encouraging as the stock … Continue reading Ramping Up
After reaching the $35 level on a price spike down in gold, AEM found support at that level and has mounted the expected reversion trade back towards the $45 area. Today's price print of $43 validates the bottom pick, only slightly longer than the expected time frame called for. Zooming into the hourly chart reveals … Continue reading AEM Bounce
AEM Last Chance To Glitter
A few weeks back, we brought up the chart of AEM as being at an interesting trade position. After a run-up in the price of Gold this year, the metal has experienced a steady downdrift, retracing much of the year's gains. AEM has tracked similar price action. As shown in the above chart, the price … Continue reading AEM Last Chance To Glitter
Dow Roadmap Part 3
21. Microsoft, MSFT, $62.14 Microsoft was one of the steadiest performers of the Dow in 2016 with price action consistently showing a higher relative strength than the S&P. Despite the steady advance all year, the SCTR still remains high at 78 and looks very strong. The PNF chart shows a long pole rising and our … Continue reading Dow Roadmap Part 3