Archive for the ‘Chart of the Day’ Category

JD.com Continues To Hold Major Support

jd

JD.com Inc. suffered a deep sell off after leaving behind an ominous spike high in mid June.  Over the last four weeks the stock has been consolidating near a major support zone.  This key area, marked by a massive earnings driven breakout gap, has held six of the last ten monthly lows.  Is a low risk entry opportunity developing? 

Is A Big Rotation Coming?

aae653c8-2fd9-4f1b-b745-34dc92c37806-original

From Investopedia:   The S&P GSCI is a composite index of commodity sector returns which represents a broadly diversified, unleveraged, long-only position in commodity futures. The S&P GSCI is intended to provide exposure to broad-based commodities. The S&P GSCI was previously known as the Goldman Sachs Commodity Index (GSCI) but was purchased by Standard & Poor’s from Goldman Sachs in 2007.

Crude

Crude has a bearish (head & shoulders) pattern on this Daily Chart.  It is just holding its trend line on a Weekly.

Screen Shot 2018-08-09 at 7.00.11 AM

 

PFE

Screen Shot 2018-08-08 at 6.51.18 AM

Toll Brothers Builds a Foundation

tol

Toll Brothers has had a very rough go this year.  At last month’s low the stock had fallen nearly 35% from the January highs.  In late June TOL appeared to have reached a significant low as the 40 week moving average came into play.  As the month dragged on shares fell to new 2018 lows while putting in a sixth straight lower monthly low.  So far this month the stock is showing signs of stabilization.  TOL is working on a higher monthly low while tracing out a divergent MACD pattern.  In the near term we consider the stock a low risk buy near current levels. 

Trading notes:

TOL put in a major low in August of last year.  From the Aug. 22, 2017 lows the stock surged nearly 40% by the start of December.

The stock’s 40 week moving average($36.00)has proven to be quite heavy in the past(Q4 of 2017, Q4 of 2016).  A close back above this level would be very encouraging. 

TOL should be considered a low risk buy near current levels.  A close back below $34.00 would violate the July low indicating the 40 week moving average is continuing to apply pressure.

Earnings are due August 21.  The August earnings report last year marked a major bottom.

At time of publication we do not have a position in TOL.

 

 

Closing In

From Ryan Detrick:   The current bull market is less than a month away from becoming the longest bull market ever….

Dj7R3YqW4AAkdrz

JPM

Screen Shot 2018-08-07 at 6.48.38 AM

Profit Margins?

We got your profit margins right here:

Dj65uNrWsAAsoMD

Profit margins for companies in the S&P 500 Index rose to 11.7% in the 2nd quarter,  their highest level in history.

Rollbacks matter...

Very bullish, but, there’s this from legendary investor Jeremy Grantham “Profit margins are probably the most mean-reverting series in finance, and if profit margins do not mean-revert,  then something has gone badly wrong with capitalism.” 

Invest wisely my friends.

More on Jeremy Grantham:   www.wikipedia.com

Hat tip Charlie Bilello

 

USD

Nice looking chart for the “Buck” as it hits multi month highs out of a basing pattern.

Screen Shot 2018-08-06 at 1.45.31 PM

TSLA

Monthly Chart – For all the bad news on Tesla, it remains a bullish chart.

Screen Shot 2018-08-05 at 9.52.46 AM

Return top

* * * *

Welcome fellow traders and investors!

As Money Managers and Traders, the mission of our Blog and Radio Show is to go on record and further educate our readers and listeners in technical analysis and proper money management across all asset classes.

Our methods are not the traditional advice you hear repeated and repackaged over and over again, but that’s exactly the point and the reason why we know how to advance and prosper in every kind of market.

To Your Success,

Doug & Gary