Stocks & ETFs

Why The Oil And Gas ETF (XOP) Is Rallying

The Oil and Gas ETF (XOP) suffered a tremendous decline from the 2014 all-time high at $84. In sum, XOP retraced 50% of the move from $23 to $84 from the bear market low in 2009 to its peak in 2014. The precise 50% retracement level is $53.53. Technicians like to find a confluence of technical significance when identifying support and resistance. And with this in mind, we can see

Bounce or More? A Look At Where The SPX Rally Headed

In my last comment about the S&P 500, I argued that as long as a demand zone at 1986-1953 held the stock market would stay on course toward higher highs. That area of technical support failed and SPX sold off sharply; 1986-1953 now represents technical resistance. After the recent decline, it’s time to reassess. On Wednesday SPX put in a substantial bullish hammer candlestick (small real body, longer lower shadow

Small Cap Outperformance: Pointing to a Market Bottom?

One positive mentioned plenty in the market this week is small cap outperformance. One might suggest that we are at a sign of a bottom because of it. Well, that may be a farce. Let’s take a look, starting with the Russell 2000. The Russell 2000 iShares ETF (IWM) has broken a major 1 year topping pattern, pushing below 2014’s year-to-date support in February and May near 107. It’s unorthodox, but

5 Stock Charts Calling The Shots: F, HD, KO, TWTR, GPRO

During bull or bear markets, it’s always important to be on the lookout for changes in market behavior. For instance, when market pullbacks are consistently bought at 2 to 4 percent declines, it becomes worrisome when we the markets dip deeper. Or when leaders and momentum stocks get sold and defensive stocks get a bid. These examples are apparent in the current stock market decline and are a representative mix of what

S&P 500 Technical Support Update: Levels And Breadth

The past two months have seen several developments take shape that remind me of the February sell-off. I’m not saying that this pullback will unfold the same way, but I do think that issues with small caps and emerging markets (a good risk gauge), coupled with poor market breadth have once again played a role in taking the S&P 500 (SPX) lower. How much lower? No one knows for sure, which is

Chart Flip: Is A Russell 2000 Breakout In The Cards?

From time to time I like to look at various markets from a different perspective, as I am always on the lookout for chart patterns showing breakouts and breakdowns. Earlier this year, I wrote a “Market Masters” article for See It Market showing that sometimes standing on your head can help improve your investment results! I enjoyed writing that article so much that I thought I’d try it out again.

Twitter Upgraded To Overweight, Stock Battles Resistance

Earlier today, JP Morgan analyst Doug Anmuth upgraded Twitter (TWTR) to an overweight rating, raising his price target to $64/share. This was enough to buoy the stock price amidst a sea of red in the Tech sector. But perhaps even more important than the Twitter upgrade this morning is the developing technical setup on the TWTR stock chart. The move higher this morning saw the stock fall short of eclipsing a critical resistance level

Why GoPro Stock (GPRO) Is Set For A Pullback

Wow, GoPro (GPRO) has been another amazing rocket ship post-IPO stock. Shares of GoPro stock have been on a continuous ride higher since the IPO date. But investors also need to be careful when stocks push too far too fast. Just the other day GPRO reached up as high as $96.45 on the unveiling of 3 new GoPro cameras. This surge higher has put the stock price near my calculated pattern

Emerging Markets Fall Sharply In September to Un-Remember

September wasn’t kind to the Emerging Markets (EEM). After ripping higher throughout much of the summer, EEM has been punished by what appears to be a shift in capital flows, as the US Dollar has risen smartly while US Equities have held up pretty well. All told, investors watched the Emerging Markets fall 7.77 percent in September. That’s pretty unreal considering that was the performance for a single month. And although

Why Tesla’s Stock (TSLA) May Be Headed In Reverse

Tesla Motors has been dominating news headlines lately and has become a darling of the stock market. Recent news included a software update for Tesla owners that allows them to map out a route based on current traffic congestion. Amazing stuff really. Other features for Tesla Model S owners include remote start from an iPhone and the ability to raise suspension when going over ridges or bumps. This latter feature