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Wednesday - June 14, 2006

Value Picks Via Markman

Jon Markman of MSN Money talks with two value pros, Matt Feshbach and Tom Kahn, for some value picks with little or no debt. The idea is pretty straight forward. Good companies with little or no debt don’t need to worry about rising interest rates. Kahn likes Audiovoxx (VOXX), Hologic (HOLX), NY Community Bancorp (NYB) and IDT (IDT). Here is a chart look at two.

Audiovoxx has good risk-reward ratio at current levels and is consolidating at support. VOXX has been trending lower since early 2004 and formed a large falling price channel. The stock moved to support from the lower trendline and there is also support around 11 from the 2003 lows. The stock consolidated the last few months and a break above 13.2 would signal the start of a move off support.

NY Community Bancorp is another interesting play and it pays a 6% dividend. I personally wonder if this stock is not a value trap. On the price chart, NYB has been wallowing between 15 and 19 for over a year. There is lots of support just above 15, but no catalyst and no breakout. Where are the buyers? There was a surge in March and then the stock fell back to the 16-17 area (gray oval). I would like to see the stock hold above the prior lows and move above 18 before jumping in.

Click here for the full article from Markman.

By Arthur B. Hill - Wed 14-Jun-06 at 07:42AM in Stocks
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Tuesday - June 13, 2006

J&J Benefits from Tech Exodus

Where has money gone over the last six weeks? Not all HealthCare stocks benefited, but money moved out of Technology and into stocks like JNJ. This is a hybrid pharma and consumer staple company that does find no matter what the economy is like.

By Arthur B. Hill - Tue 13-Jun-06 at 10:31AM in Stocks
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Juniper Flag

Juniper Networks (JNPR) has a bull flag working. Watch for a break above 17.5 to signal a continuation of the late May/early June surge. The stock shows good relative strength and could lead a rebound.

By Arthur B. Hill - Tue 13-Jun-06 at 10:30AM in Stocks
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Friday - June 09, 2006

Bullish Candlestick Reversals Abound

Stocks declined in the morning and rallied in the afternoon. As a result a number of bullish candlestick reversal patterns formed on Thursday. These include piercing patterns, hammers and bullish engulfings. The hammer is a single candlestick pattern and the others form with two candlesticks. All three require confirmation and follow through over the next day or two is needed to forge a short-term bullish reversal. Ideally, follow through should come with expanding volume. Follow through on low volume would show lack of confidence. Today I will highlight a number of stock charts with these bullish candlestick reversals.

Energy stocks rebounded yesterday and RIG formed a big hammer near its May lows. Volume surged and this reinforces support around 75. Follow through above 80 is needed to confirm the hammer.

Anadarko Petroleum (APC) formed a piercing pattern on high volume. The piercing patterns forms when the open is below the low of the black candlestick and the close is above the mid point. This pattern formed at support from the March low and a break above 50.5 would confirm the pattern.

Sealed Air (SEE) formed a high volume hammer at support. A break above 52.5 would confirm the hammer and turn the short-term trend bullish.

Dow component 3M (MMM) formed a piercing pattern at support from the prior gap.

Lowes (LOW) formed a bullish engulfing with above average volume. The stock found support near the late May gap and a break above 64 would turn the medium-term trend bullish.

Apple (AAPL) formed a bullish engulfing at support yesterday. Support stems from the March low and the reversal formed on good volume. Now for some follow through above 68 to confirm.

By Arthur B. Hill - Fri 09-Jun-06 at 06:58AM in Stocks
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Stocks Showing Strength

This next group shows stock exhibiting strength over the last few days and showing good upside volume.

Komag (KOMG) attempted a breakout towards the end of May, but this breakout failed and the stock moved to a new low. While the broader market dipped early yesterday, KOMG opened firm and held above its early June low. The stock finished strong with a long white candlestick on good volume and I would expect a trendline breakout in the coming days. .

RSA Security (RSAS) held firm at the end of May and broke resistance yesterday. While the Nasdaq was breaking to new lows, RSAS was trading above its May lows and showing some relative weakness. The breakout occurred on good volume and this stock will likely lead if the Nasdaq reverses its current downtrend.

Gentiva Health (GTIV) held firm in May and showed some relative strength. This firmness turned into buying pressure over the last seven days and the stock looks poised to break triangle resistance at 18.25.

General Electric (GE) is looking relatively strong. The stock held up pretty good in May and formed a bullish engulfing on 24-May (gray oval). While the broader market swooned the last two weeks, GE held firm and upside volume continues to outpace downside volume. This shows accumulation and I would expect a breakout at 35.2.

Within the biotech group, Millennium (MLNM) is showing signs of life with good volume. The stock bottomed at the end of May and broke above trendline resistance in early June with good upside volume. The stock met resistance at 9.7 yesterday, but strong upside volume suggest more upside in the stock price.

By Arthur B. Hill - Fri 09-Jun-06 at 06:57AM in Stocks
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Tuesday - June 06, 2006

As IBM Goes….

As IBM goes, so goes the overall market. This stock was stuck in a range from March to mid May and then broke support in May. The stock consolidated for a few weeks and moved lower the last two days. Broken support turns into resistance at 81.3 and it would take a move back above this level to revive the bulls. As long as 81.3 holds, I expect lower prices in this tech bellwether.

By Arthur B. Hill - Tue 06-Jun-06 at 03:01PM in Stocks
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AMD Breaks Support

AMD may be winning the war against Intel (INTC), but the stock just broke down and cannot buck overall weakness in techs. Actually, the stock came down hard in March and stayed down in April and May. Even though the stock traded flat when the Nasdaq cratered, it failed to follow through on the gap off support and broke below 30 on Monday. This is not a good sign and the next support zone is around 25.

By Arthur B. Hill - Tue 06-Jun-06 at 03:00PM in Stocks
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Thursday - June 01, 2006

CHKP, UIS and MER

I am starting to see signs of buying pressure in CheckPoint Software (CHKP). The stock fell apart in late March and early April, but managed to firm in mid April and May. A double bottom formed over the last two months and the advances in April-May show above average volume (gray boxes). In addition, notice that On Balance Volume formed a higher low and positive divergence over the last two months. CHKP consolidated over the last four days and I am looking for a continuation of last week’s surge to break 20 and turn bullish.

Unisys (UIS) is finding a mind of its own with a gap and three day surge above resistance at 6.5. Yesterday’s breakout occurred on above average volume.

As brutal as the current decline in Merrill Lynch (MER) looks, it is no worse than that seen in March-April 2005. In fact, I see at least two similarities. Both peaks formed with rising consolidations and both declines found support near prior consolidations (blue circles). It took MER over a month to find its footing and start moving higher in April 2005. I would expect at least the same now. After the decline from the low 80s to the upper 70s, it will take a few weeks for the stock to establish its footing (base) and the best we can expect is flat trading the next few weeks.

By Arthur B. Hill - Thu 01-Jun-06 at 07:34AM in Stocks
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Wednesday - May 31, 2006

ADI Nears Long-term Support

Analog Devices (ADI) has been range bound since August 2004 and is currently closing in on the lower end of this range. The stock bounced between 31 and 33 four times over the last two years. I will be watching for a reversal as the stock nears the support zone. This may come in the form of a hammer, harami, bullish engulfing of a gap up on big volume. Failure to hold support and a break below the 2005 lows would signal a continuation of the 2004 decline and this would be bearish for the Semiconductor group.

By Arthur B. Hill - Wed 31-May-06 at 07:47AM in Stocks
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AT&T Attempts to Buck the Market

AT&T tried to buck the market trend with a gap and trendline breakout last Friday, but the stock fell back with the rest of the market on Tuesday. The gap is still holding and this is positive. The stock needs to move above 26.5 to complete the breakout and turn fully bullish again. Notice that T firmed near the 200-day SMA and the Dec-Jan resistance zone (gray box). In addition, the decline formed a falling wedge and retraced 50-62% of the prior advance. The pieces for a continuation breakout are there. Now, show me the breakout at 26.5.

By Arthur B. Hill - Wed 31-May-06 at 07:47AM in Stocks
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Merck Breaks Down

Merck (MRK) was holding up better than the rest of the HealthCare sector in early May, but the recent breakdown on high volume signals a continuation lower and this will weigh on the group. The stock gapped down in April and then formed a rising wedge. This is a bearish consolidation and the stock broke the lower trendline last week. There was a brief attempt to undo this breakout on Friday, but the stock totally fell apart on Tuesday with a close below 33.5 on high volume. As a continuation of the prior decline, I expect a move to around 30 or another 10% down.

By Arthur B. Hill - Wed 31-May-06 at 07:46AM in Stocks
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Tuesday - May 30, 2006

Consumer Staple Stocks Heating Up

Consumer Staples Heating Up

Consumer Staples stocks were strong last week with Alberto Culver (ACV) leading the way higher. ACV is a consumer good conglomerate that makes everything from furniture polish to artificial sweeteners. Maybe those two things have similar ingredients. Regardless, the company makes things we need in good times and bad. The stock surged in February, consolidated in March-April and broke resistance last week. Volume was a bit light on Friday, but the stock shows good relative strength. Moreover, strength in Consumer Staples reflects a defensive risk-averse market environment.

A 52-week high for Pepsico (PEP) further confirms the rotation of money into Consumer Staples stocks. PEP has been outperforming Coke (KO) the last few years and continues to lead the way higher. The stock consolidated between 56 and 60.5 the last few months and surged off support with expanding volume the last few weeks (blue box). The move was strong enough to break resistance and forge a 52-week high. While I would not buy the breakout, I would put this stock on my radar for a pullback that could result in a buying opp.

Elsewhere within the sector, I found a double bottom breakout in Coca Cola Bottling (COKE). The stock declined the last three years and formed a base in 2006. There was some high volume surges earlier in the year (blue box) and a resistance breakout this month. The move above 48 broke the November high and exceeded the Dec-04 trendline. Keep in mind that this breakout is occurring at the S&P 500 broke down over the last few weeks. COKE shows relative strength and the breakout is bullish.

By Arthur B. Hill - Tue 30-May-06 at 08:23AM in Stocks
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Wednesday - May 24, 2006

KOMG, QLGC, T and SNDK

AT&T Testing Support

AT&T continues to test support around 25. This support level stems from the 200-day SMA and the prior consolidation (gray box). In addition, the recent decline marks a 50-62% retracement of the prior advance. The bears have the upper hand as long as the falling price channel holds. Look for a move above the upper trendline and May high (26.5) to signal a breakout and turn bullish again.
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SNDK Breaks Support

Sandisk (SNDK) had been holding up a lot better than the Nasdaq over the last few weeks, but finally broke down with a support break at 60 yesterday. This move signals a continuation of the prior decline and targets further weakness below the March low. Needless to say, this bodes ill for the Semiconductors and Nasdaq.
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Komag Breakout Fails

I reported a breakout in KOMG last Friday and the stock was showing good relative strength. However, not many tech stocks can withstand a broad decline in the Nasdaq. The stock opened strong on Tuesday and closed weak to form a long black candlestick on high volume. Weakness on low volume would have been tolerable, but weakness on high volume is not and this breakout is likely to fail.
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Qlogic Forms Flat Flag

I reported relative strength in QLGC last Friday as well, but the stock failed to follow through. The pattern over the last few weeks now looks like a sharp decline and flat flag. Downside volume remains relatively tame and I will be watching recent boundaries for a signal. A break above 18.6 would be bullish and a break below 17.7 bearish.

By Arthur B. Hill - Wed 24-May-06 at 07:32AM in Stocks
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Friday - May 19, 2006

Three Techs That Held Firm This Week

Komag (KOMG) has been bucking the trend over the last five days and is moving higher on good volume today. The stock formed a falling price channel and is breaking resistance on Friday. The combination of good relative strength and an oversold Nasdaq could extend this bounce next week.
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Qlogic (QLGC) also held firm over the last few days and shows less weakness. The stock gapped down in early May and found support around 18. While the Nasdaq tanked the last six days, QLGC held support and is moving above resistance at 18.5 today.
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Cisco (CSCO) is the third stock that held firm over the last 5-6 days. The stock fell sharply 10-11 May and then firmed around 20. A large hammer formed on Monday and an inverted hammer on Thursday. The stock is moving higher on respectable volume today and shows good relative strength. If the Nasdaq rebounds, look for CSCO to lead.

By Arthur B. Hill - Fri 19-May-06 at 03:12PM in Stocks
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Thursday - May 18, 2006

First Data, Merck and Energizer

First Data (FDC) firms near trendline support and broken resistance (gray oval). The broader market was weak the last two days, but FDC held firm and this shows relative strength. Also notice that upside volume was strong yesterday (blue oval)
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Merck looks in trouble with a rising wedge and high volume decline. The stock broke support with a gap down and high volume decline in April. The current advance traced out a bearish rising wedge and is meeting resistance in the gap zone. A move below 33.8 would signal a continuation lower.
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Energizer (ENR) is bucking the trend with three straight advances. The stock declined to support around 49 and firmed over the last few weeks. There was a high volume advance in late April, but the stock pulled back to support in May. The stock is once again bouncing on good volume. This is pretty impressive in the face of broad market weakness.

By Arthur B. Hill - Thu 18-May-06 at 07:50AM in Stocks
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Wednesday - May 17, 2006

Cable Stocks Remain Hot

I featured Comcast (CMCSA) has it broke double bottom resistance in late April. The stock then gapped higher and looks headed for a bout with its 2005 high around 34.5.

TimeWarner (TWX) has lagged CMCSA lately, but appears to be playing a bit of catch up. The stock surged above 17.2 on good volume in late April and help 17 on the early May pullback. While the broader market tanked last week, TWX held firm and advanced over the last five days with above average volume. Money is moving into TWX and I am looking for a resistance test around 19.

By Arthur B. Hill - Wed 17-May-06 at 07:50AM in Stocks
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Monday - May 15, 2006

IBM Holds Range Support

The Nasdaq and tech stocks bore the brunt of recent selling pressure and led the way lower over the last few days. Even though IBM is not part of the Nasdaq, I consider it a key tech stock and am impressed with its ability to hold firm last week. The stock formed a triangle over the last few months and remains above support at 80.5. I still find this chart bearish overall become of the large gap and resistance around 85-86. However, continued firmness and a nice breakout at 84.5 could not be ignored and I would then turn bullish. A break below 81 would signal a continuation lower and this would be bearish for the stock, the Nasdaq and techs.

By Arthur B. Hill - Mon 15-May-06 at 03:16PM in Stocks
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SYMC Shows Some Relative Strength

Symantec (SYMC) has been beaten up over the last few 15 months and managed to firm over the last three months. The big trend is clearly down, but I was impressed with the ability of this stock to hold firm the last three days. Volume was above average three of the last four days and the stock is consolidating around resistance at 16.5 (gray oval). There have been a number of false breakouts in the past year and there is reason to be skeptical. However, the stock shows good relative strength the last few weeks and would likely break resistance with a tech turnaround. A move above 18 opens the door to the low 20s.

By Arthur B. Hill - Mon 15-May-06 at 03:15PM in Stocks
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Thursday - May 11, 2006

ICGE Making a Comeback

Remember those internet incubators? Internet Capital Group (ICGE) was one of the high flyers in 1999 and has been trading flat since 2002. The stock broke falling flag resistance with a surge in March and this breakout is holding. There is massive resistance around 10 and a break above this level would forge a multi-year high. I think price action is currently bullish and expect a breakout. This is a high risk stock and I would watch the April low for signs of trouble.

By Arthur B. Hill - Thu 11-May-06 at 08:56AM in Stocks
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The Noose Tightens for BMC

The trading range for BMC Software (BMC) has narrowed over the last few weeks and a triangle break is near. A nice sharp break on good volume (either way) would provide a clear signal. A move above 22.2 would be bullish and a move below 21 bearish.

By Arthur B. Hill - Thu 11-May-06 at 08:56AM in Stocks
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Wednesday - May 10, 2006

Radio Shack Rises from the Dead

While Best Buy (BBY) went from 44 to 59 this year, Radio Shack (RSH) went from 23 to 17. Even though BBY is winning the battle (and the war), RSH finally shows some signs of life with a long white candlestick on the highest volume since February. The stock established support around 17 in late April and early May. The move above 18 broke trendline resistance and reinforces support. Notice that Chaikin Money Flow moved close to positive territory in early April and remained near the zero line over the last six weeks. Despite the decline from 20 to 17, selling pressure was quite mild according to Chaikin and the indicator turned positive on Tuesday.

By Arthur B. Hill - Wed 10-May-06 at 07:06AM in Stocks
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Bearish Candlesticks For Sandisk

Sandisk rebounded after a sharp decline earlier this year, but bearish candlesticks over the last few months could foreshadow a reversal soon. The current advance retraced 50% of the prior decline and the stock met resistance around 60 four times in the last five weeks. A shooting star formed in early April (blue oval), a bearish engulfing in early May (gray oval) and another shooting star formed yesterday (red oval). There is clearly a lot of selling pressure just above 65, but the stock has yet to break down and confirm these bearish candlesticks. For confirmation, I would look for a move below the early March trendline (blue) and early May low (60). This is a volatile stock and trading is best suited for nimble players that can tolerate the risk.

By Arthur B. Hill - Wed 10-May-06 at 07:06AM in Stocks
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Tuesday - May 09, 2006

AT&T Forms Falling Wedge

AT&T (T) is also a big telco with a recent surge. The stock moved from 22 to 28 and broke the 200-day SMA last year. T corrected over the last few months with a falling wedge and returned to the 200-day SMA. In addition, the Dec-Jan consolidation turns into support and there is a nice support zone around 25. The stock bounced last week and is challenging the upper trendline of the falling wedge. A move above 26.5 would break this trendline and open the door to 30.

By Arthur B. Hill - Tue 09-May-06 at 11:07AM in Stocks
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Verizon Hits Support

Remember the big telecom rally a few months ago? These stocks have faded from the limelight, but traders should keep them on their radar. VZ surged above its 200-day SMA and broke resistance in February. Broken resistance turns into support and the stock is right back at its 200-day SMA, which also turns into support. In addition, there is the trendline extending up from the October low and it all converges on the 22-22.5 area. A bounce from here would likely turn the 200-day SMA up and start the next leg up.

By Arthur B. Hill - Tue 09-May-06 at 11:06AM in Stocks
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Tuesday - April 25, 2006

Cable Companies and Earnings Season

The Wall Street Journal reports:

Cable-TV Companies Hold Great Expectations. There have been plenty of high-fives in the cable-television industry as major operators prepare to release first-quarter earnings, starting Thursday with Comcast Corp. While the first quarter is typically a good one for operators, this is expected to be one of the best in years in terms of revenue growth and other financial measures for companies such as Comcast, Time Warner Inc. and Cablevision Systems Corp. All three are expected to add more subscribers than they have for years, setting the stage for the industry to show an annual gain in customers for the first time since 2002.

Comcast has already surged and broke resistance at 28.5 on good volume. The pattern looks like a big double bottom and the breakout projects further strength towards 31. Also notice that the pattern looked like a head-and-shoulders in late March (gray box). However, this bearish pattern was never confirmed with a support break (neckline) and the stock broke the high of the right shoulder on its way up.

Relative to CMCSA, Time Warner (TWX) is underperforming and has yet to breakout. The stock managed to firm over the last few weeks and form an outside reversal on 10-Apr. There was even a high volume advance on 18-Apr, but the stock pulled back. Watch for a move above 17.2 to trigger a mini breakout.

By Arthur B. Hill - Tue 25-Apr-06 at 03:45PM in Stocks
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Monday - April 24, 2006

DELL Cut to SELL

Barry Ritholtz of Ritholtz Research notes: Citigroup analyst Richard Gardner has heard the whining. He cuts Dell to a Sell, advises them to work on customer support. Gardner Note: "In our view, it would be preferable for Dell to reduce margins, and even near-term growth, rather than destroy 20 years of brand equity"".

Not kidding. I wonder if he peaked at the chart and why he was so late to the party. DELL formed a clear descending triangle, which is a bearish continuation pattern, and gapped below support.

By Arthur B. Hill - Mon 24-Apr-06 at 03:26PM in Stocks
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Thursday - March 09, 2006

BUD Bubbles

Although not in the top tier, BUD was also a standout performer. The stock is challenging resistance from its Jan-Feb highs with a surge on good volume yesterday.

By Arthur B. Hill - Thu 09-Mar-06 at 06:33AM in Stocks
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Walgreen Holds Gap

Walgreen (WAG) gapped up and broke trendline resistance in mid February with high volume. After a pullback the last two weeks, the stock reversed and the gap is holding. The gap offers support and yesterday’s high volume move keeps the breakout in play and the uptrend in place.

By Arthur B. Hill - Thu 09-Mar-06 at 06:32AM in Stocks
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KO Also Comes To Life

Coca-Cola (KO) broke trendline resistance in February and consolidated the last two weeks. The breakout is holding and the trendline extension is turning into support around 41.5. Notice that On Balance Volume (green line) is stronger than the stock and this shows that upside volume is outpacing downside volume.

By Arthur B. Hill - Thu 09-Mar-06 at 06:31AM in Stocks
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Thursday - March 02, 2006

Double Bottom Breakout for Cisco

Just how high is Cisco? Would you believe a 52-week high. The stock formed a big base over the last 18 months and broke above the summer highs with a high volume surge yesterday. The whole pattern from Nov-04 to Mar-06 looks like a massive double bottom and the breakout opens the door to the mid 20s.

By Arthur B. Hill - Thu 02-Mar-06 at 06:52AM in Stocks
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Tuesday - February 28, 2006

Microsoft Leads Nasdaq Bounce

The Nasdaq caught a bid yesterday and Software stocks led the way higher. MSFT still has a $279 billion market cap and is plenty big enough to move the Software HOLDRS (SWH), Nasdaq and Nasdaq 100. The stock broke triangle resistance yesterday, but volume was low. This is a negative, but the breakout is positive until proven otherwise. I will be watching yesterday’s gap and the February lows for a complete failure. A break below 26 would be bearish for the stock, software and the Nasdaq. You can also see that the pattern over the last two months looks like a head-and-shoulders. It is out of place for such a reversal pattern, but a break below 26 would be bearish all the same.

By Arthur B. Hill - Tue 28-Feb-06 at 06:40AM in Stocks
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Wal-mart Stays Home

The Retail HOLDRS (RTH) surged yesterday, but Wal-Mart was not swayed and remains below resistance. LOW and HD led the way higher for RTH and this is quite positive. However, WMT is still the king of retail and this group is not going far without help from the big cheese. The long-term trend is down and WMT has consolidated over the last two months (gray oval). A break above 47 would be bullish for the stock, the retail group, the Consumer Discretionary sector and the S&P 500. Yes, WMT holds a lot of clout. Failure to break 47 and a move below 44.5 signals a continuation lower and this would adversely affect the S&P 500 et al.

By Arthur B. Hill - Tue 28-Feb-06 at 06:40AM in Stocks
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Sandisk Helps Out Semis

The Semiconductors have been lagging the Nasdaq, but Sandisk SNDK is trying to change that. The long-term trend is up, but the stock corrected sharply in Jan-Feb. A bullish engulfing formed on above average volume last week and the stock gapped higher yesterday. The gap held and the stock closed above 60 on the highest volume of the month. Not bad and this falling wedge breakout is bullish as long as the gap and February low hold. Careful, this is one volatile bugger.

By Arthur B. Hill - Tue 28-Feb-06 at 06:39AM in Stocks
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Friday - February 24, 2006

Microsoft Still a Nasdaq Gorilla

Whatever your opinion Microsoft as a technology company (cutting edge or behind the curve), it is still mega cap with a large influence on the Nasdaq. The stock gapped up in late January, but that gap has been filled with a sharp decline. I find this quite negative and it reinforces long-term resistance at 28.5. The stock formed a pennant over the last two weeks and I am watching 26-27 for the next signal. A move above 27 would be bullish, while a move below 26 bearish. The direction of the break will influence the Nasdaq.

By Arthur B. Hill - Fri 24-Feb-06 at 05:33AM in Stocks
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GE Gaps Lower

GE is to the S&P 500 what Microsoft is to the Nasdaq. The stock rebounded over the last few weeks with a rising wedge advance. The move retraced 38% of the prior decline and stall just below 34. The hanging man candlesticks formed last week (gray circle) and the stock gapped down this week. Further weakness below 33 would get the decline back on track and this would weigh on the S&P 500.

By Arthur B. Hill - Fri 24-Feb-06 at 05:32AM in Stocks
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Wednesday - February 22, 2006

How Far Without Intel?

Stocks surged last week and the Nasdaq was on the verge of a breakout. However, a gap down in Intel drug the Semiconductors and Nasdaqs through the mud the last two days. Intel had a surge and breakout in early January, but this failed to hold and the stock gapped down on 18-Jan. Upside volume was low on the breakout and this warned of the failure. The stock is trading in the low 20’s and gapped down again last Friday. As long as this gap and resistance at 22 holds, the Semiconductors will be under pressure and this will put a lid on any Nasdaq gains.

By Arthur B. Hill - Wed 22-Feb-06 at 12:07PM in Stocks
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Apple Holding Relatively Strong

Despite Tuesday’s decline, Apple held relatively strong and the breakout is holding. The stock broke falling price channel resistance with a surge above 70. In contrast to the Nasdaq 100, Apple is still above last Wednesday’s low. I will be watching this stock for clues on Technology in general. Apple is a leader and it is important that this stock hold above 67. A move below 67 would make for a failed breakout and weigh on the Naz.

By Arthur B. Hill - Wed 22-Feb-06 at 12:06PM in Stocks
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Google Fills Gap

Google is the other tech leader to watch. The stock gapped down on 13-Feb, formed three doji and then surged with a long white candlestick. The move filled the gap and set support at 340 (give or take $100). The stock consolidated over the last two days the next move is important. A break above 380 would be bullish for all concerned, while a move below 360 would be negative.

By Arthur B. Hill - Wed 22-Feb-06 at 12:05PM in Stocks
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Thursday - February 16, 2006

Goldman Warns

From Gregory Zuckerman of the Wall Street Journal:

***Hold on Tight: Cuts in Profit Estimates Loom*** It is unusual for a major investment firm to urge investors to steer clear of a big stock. It is even more unusual for a firm to tell investors to avoid 30 such companies. But that is what analysts at Wall Street's Goldman Sachs Group Inc. are saying about a slew of companies, including Broadcom Corp., MedImmune Inc., Agere Systems Inc., Marsh & McLennan Cos., Janus Capital Group Inc., Salesforce.com Inc., and Emmis Communications Corp. The worry: Over the next few months, analysts will be slashing earnings estimates for all these companies as employee stock options begin to be counted as an expenses.

Jee, what do you think would happen to Broadcom (BRCM) on an estimate trim? There is consolidation support just below 60 and trendline support around 50.

By Arthur B. Hill - Thu 16-Feb-06 at 06:04AM in Stocks
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Tysabri and Biogen Coming Back

CBS MarketWatch Reports: Tysabri OK'd for MS patients. Biogen Idec and Elan can begin giving their pulled drug to some patients.

BIIB is still some 20 points below the levels it held before Tysabri problems appeared in February 2005. Recent price action is positive. The stock corrected with a falling wedge over the last few weeks and firmed over the last four days. The break above 45 is positive and further strength with a close above 46 would signal a continuation of the Oct-Dec run.

By Arthur B. Hill - Thu 16-Feb-06 at 06:02AM in Stocks
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Tuesday - February 14, 2006

Waste Connections Breaks Triangle Resistance

Waste Connections (WCN) breaks triangle resistance with good volume. The stock surged in November and then consolidated the last 2 months. The breakout signals a continuation higher and the upside target is 38-38.5. Key support is set at 33.9 and a move below this level would reverse the bull signal.

By Arthur B. Hill - Tue 14-Feb-06 at 07:15AM in Stocks
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Omnicom Gaps Up on Big Volume

Omnicom (OMC) is off to the races with a gap and long white candlestick breakout. The move broke channel resistance and exceeded the early February high on good volume. Key support is now set at 81.5 and it would take a move below this level to negate the breakout.

By Arthur B. Hill - Tue 14-Feb-06 at 07:13AM in Stocks
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Wednesday - February 08, 2006

Yahoo! Enters Support Zone

Yahoo!, a key stock in the Internet HOLDRS (HHH), traded down to support over the last few weeks. I should say the stock free fell to support with a big gap. The stock is clearly oversold and there is support around 32-33 from the February trendline and September lows. The stock formed a doji with a long lower shadow yesterday and is starting to show some firmness.

By Arthur B. Hill - Wed 08-Feb-06 at 09:39AM in Stocks
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Thursday - February 02, 2006

Can Cisco Follow Through?

What’s it going to be Cisco? The stock surged in early January on good volume and then fell back to broken resistance around 18. A pullback to broken resistance is quite normal and the decline formed a falling flag. CSCO broke falling flag resistance last week, but has not been able to hold the breakout this week. A move above 19 would be bullish and open the door to 20, which marks a massive resistance zone that extends back to Nov-04.

By Arthur B. Hill - Thu 02-Feb-06 at 09:08AM in Stocks
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Biomet Forms Inverse Head and Shoulders Reversal

Biomet (BMET) has an inverse head-and-shoulders working with neckline resistance at 39. The stock formed an outside reversal week at the end of January and follow through above 39 would be most bullish.

By Arthur B. Hill - Thu 02-Feb-06 at 09:08AM in Stocks
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Leggett & Platt Legs Higher

Leggett & Platt (LEG) is getting a leg up with a consolidation breakout on good volume. Notice that upside volume surged at the beginning and the end of January. The breakout reinforces support just below 23 and a move below the January low would be bearish.

By Arthur B. Hill - Thu 02-Feb-06 at 09:07AM in Stocks
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Gap Inc Gaps Higher

Gap Inc (GPS) got a gap higher on pretty good volume at the end of January. That is not quite enough though. The stock formed a triangle over the last 2 1/2 months and has yet to break above the upper trendline. In fact, the gap/surge stopped right at trendline resistance and it would take a move to 18.5 to signal a continuation higher.

By Arthur B. Hill - Thu 02-Feb-06 at 09:06AM in Stocks
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Wednesday - February 01, 2006

Kemet Breakout

KEMET (KEM) is in the S&P MidCap Index, Technology sector and electronics sub-sector (industry group). The company has been losing money, but swung to a profit last quarter and may be turning the corner. The following paragraph from the company website sums up their:

***Today, KEMET leads the capacitor industry in producing high-performance solutions, including the world’s most complete line of surface-mount tantalum, ceramic, and aluminum capacitor technologies provided with near-perfect quality and on-time delivery at competitive prices to customer locations worldwide. KEMET capacitors are fundamental elements used in every type of electronic equipment, including computers, telecommunication, automotive electronics, military electronics, medical electronics, and consumer electronics. “High-Reliability” versions of our capacitors have shared in every important military/aerospace effort from the first Telstar to Viking, the Apollo moon landing, the Patriot missile, the Mir and International Space Stations, and the Pathfinder/Sojourner exploration of Mars. Production is measured in the billions of pieces per year.***

On the price chart, KEM shows signs of strong buying pressure with a triangle breakout and move above the August high. The stock is current challenging its 52-week high and this is the second surge on big volume. As a low priced stock, risk is above average and traders might put this one on the radar to buy on a dip.

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By Arthur B. Hill - Wed 01-Feb-06 at 11:07AM in Stocks
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Tuesday - January 31, 2006

Cramer Likes Silver and Pan American Silver (PAAS)

Jims goes on to say: Want a silver play to help make money from inflationary pressures in the market? Cramer said to look at Pan American Silver (PAAS) a Canadian company. The company's margins are expanding and that its growth is accelerating. Combine that with rising silver prices, and, he said, there's a lot to like.

Obviously Jim is not alone as PAAS moved from the low 12s to the low 22s. The stock formed a nice rising price channel over the last eight months and recently moved above the upper trendline on big volume. This has created an overbought situation and the stock is ripe for a pullback or consolidation. Now is not the best time to buy and I would be more inclined to wait for the Stochastic Oscillator to become oversold (gray ovals) for a better risk-reward ratio.

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By Arthur B. Hill - Tue 31-Jan-06 at 06:34AM in Stocks
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Ink-o-dem Ready to Take a Bite out of Hewlett and Lexmark

The Wall Street Journal Reports: Even as computer prices have steadily dropped, the cost of one high-tech necessity has remained stubbornly high. Printer cartridges are so costly that printer giant Hewlett-Packard Co. has long made more than two-thirds of its profit from selling them. Now, in a move that could save consumers hundreds of dollars in replacement costs, several major retailers are starting to offer speedy refill services that replace the ink rather than the entire cartridge.

This picture shows the Ink-o-Dem. Walgreen’s is rolling out this service in half of its 1500 stores. Think what would happen when Wal-mart gets wind of this! Lexmark and HP can say goodbye to a big percentage of their profits.

HPQ had a great run over the last 18 months (16 to 32) and is meeting resistance around 31-32. The stock formed a bearish engulfing on 20-Jan and a dark cloud on 26-Jan. These are potentially bearish, but the stock has yet to fold and break even minor support at 31. I think this Ink-o-Dem could take the bid out of HPQ and at least stall the advance. There is nothing in the chart to show weakness yet, but I will be watching closely.

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By Arthur B. Hill - Tue 31-Jan-06 at 06:31AM in Stocks
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Thursday - October 06, 2005

Value in Microsoft ?

Fred Volgelstein of Fortune thinks Microsoft is a value play. The stock has been working its way higher the last few years and formed a massive rising wedge. As long as the wedge rises and key support at 23.8 holds, the bulls have the long-term edge. However, a break below 23.8 would be long-term bearish and call for a continuation of the prior decline (2002). This would also be bearish for software, the Nasdaq and the S&P 500. Google and Microsoft are clearly headed in different directions.

By Arthur B. Hill - Thu 06-Oct-05 at 07:00AM in Stocks
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YUM is Yummy In China

Chinese growth fueled a 16% profit surge at YUM Brands (KFC, Taco Bell, Pizza Hut). The stock gapped higher and closed higher with above average volume. However, the stock closed near the intraday low and succumbed to selling pressure. There is lots of support around 45-47 and a break above 51 would be bullish. I cannot remember the last time I went to Pizza Hut!

By Arthur B. Hill - Thu 06-Oct-05 at 06:59AM in Stocks
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Wednesday - October 05, 2005

Hardware Upgrade and 52-week Lows

Goldman Sachs upgraded the hardware group (EMC and IBM) and Lexmark slashed its earnings outlook by 50%. LXK fell sharply and joins DELL on the 52-week low list. I wonder how long HPQ can hold out.

By Arthur B. Hill - Wed 05-Oct-05 at 06:07AM in Stocks
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Sun Sees the Light

SUNW shot higher on news of a partnership with Google to promote OpenOffice. This is the only competition to Microsoft Office. In addition, Google also notes that we do not need Windows to see the future. Google is red hot and MSFT is not. Look out.

By Arthur B. Hill - Wed 05-Oct-05 at 06:05AM in Stocks
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Tuesday - October 04, 2005

Lockheed Looking Toppy

Lockheed Martin (LMT) formed a large head-and-shoulders this year. There is a neckline, but I prefer the support zone around 48.5-49.5. The head-and-shoulders is not confirmed as long as 48.5 holds and the uptrend remains in play. A move below would break the uptrend and confirm this big bad bearish reversal pattern.

By Arthur B. Hill - Tue 04-Oct-05 at 11:55AM in Stocks
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ELY Drives Higher

Callaway Golf (ELY) advanced to 15 in late June and then consolidated the next three months. The stock found support at 14 and you know the drill by now. The gap and high volume surge off support solidify support and argue for a continuation higher. A move below 14 and all bullish bets are off.

By Arthur B. Hill - Tue 04-Oct-05 at 11:55AM in Stocks
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CHIC Gaps Off Support

Charlotte Russe HLDG (CHIC) surged above resistance in July and this resistance turned into support. The stock tested support in August and September. Monday’s gap and surge above resistance solidifies support and calls for a continuation of the prior advance.

By Arthur B. Hill - Tue 04-Oct-05 at 11:54AM in Stocks
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Kemet Breaking Out

Kemet (KEM) surged in late July with gap and held the gap throughout August and September. The stock move above resistance at 8.5 on Monday with above average volume and this signals a continuation of the prior advance.

By Arthur B. Hill - Tue 04-Oct-05 at 11:54AM in Stocks
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Monday - October 03, 2005

SBC Forms Another Bullish Engulfing

SBC formed a bullish engulfing at support on above average volume.

By Arthur B. Hill - Mon 03-Oct-05 at 06:45AM in Stocks
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Jabil Surges Back Above Resistance

JBL surged back above resistance with high volume.

By Arthur B. Hill - Mon 03-Oct-05 at 06:44AM in Stocks
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X Cannot Fill Gap

X cannot fill the 20-Sep gap and cannot hold gains.

By Arthur B. Hill - Mon 03-Oct-05 at 06:44AM in Stocks
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EW Scripts Showing Good Upside Volume

SSP shows good upside volume in Sept and a break above 51.2 would be bullish.

By Arthur B. Hill - Mon 03-Oct-05 at 06:43AM in Stocks
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OATS Turning It Up

OATS formed a falling flag over the last two months and surged on big volume Friday.

By Arthur B. Hill - Mon 03-Oct-05 at 06:43AM in Stocks
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Friday - September 30, 2005

Wal-Mart At Long Term Support

James Cramer of Mad Money and Gary Smith of TheStreet.com recently recommended Wal-Mart as it trades near multi year support. While it may be at support and oversold, the chart looks sick to me. The triangle break and heavy downside volume show that the bears are clearly in control.

By Arthur B. Hill - Fri 30-Sep-05 at 08:15AM in Stocks
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Wednesday - September 28, 2005

Kirby Surges Through Resistance

Its another high volume breakout for Kirby Corp (KEX) as energy related stocks continue to lead the pack. The stock formed a falling flag that

By Arthur B. Hill - Wed 28-Sep-05 at 10:31AM in Stocks
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Hain Gaps Higher

Hain Celestial (HAIN) formed a rather strange looking flag in July and August. Even though the flag expands like a megaphone, I think this is a valid correction. Regardless of the technical beauty, the stock firmed and surged above the upper trendline with big volume. The gap is also bullish and this Consumer Staples stocks looks like it is headed higher.

By Arthur B. Hill - Wed 28-Sep-05 at 10:30AM in Stocks
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Tuesday - September 27, 2005

Paccar Breaking Down

Paccar (PCAR) formed a large triangle over the last few months and broke trendline support last week. Volume is relatively subdued, but the stock is down six days in a row and clearly under selling pressure.

By Arthur B. Hill - Tue 27-Sep-05 at 10:30AM in Stocks
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Colgate Leading Staples Lower

The Consumer Staples sector used to be the place to hide when the market looked frothy or vulnerable. However, one must be choosy even in this sector. Colgate Palmolive (CL) gapped up in early September, but failed to hold this gap and filled it the very next week. The stock then gapped lower last week and broke support at 51.8. Stay away for now.

By Arthur B. Hill - Tue 27-Sep-05 at 10:29AM in Stocks
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Regency HS Top

Regency (REG) formed a classic head-and-shoulders top over the last few months. Volume expanded on the decline from 63 and again over the last few days. A neckline break would project further weakness towards 50.

By Arthur B. Hill - Tue 27-Sep-05 at 10:29AM in Stocks
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Intersil Looking Scary

The big trend is clearly up, but the stock got overextended and declined on high volume the last seven days (gray ovals). A trendline break would be the next bearish signal and I see support around 17.5-18.

By Arthur B. Hill - Tue 27-Sep-05 at 10:27AM in Stocks
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Monday - September 26, 2005

JDSU Surges on Big Volume

JDS Uniphase has been featured twice at BullBearInvestor.com: once mid July and once in mid September. The stock continues to move higher on good volume moved further above resistance at 1.75. This breakout is for real as long as 1.45 holds.

By Arthur B. Hill - Mon 26-Sep-05 at 06:53AM in Stocks
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Will Ciena Follow JDSU?

Ciena is another poster child of the dot-com fiber-optic bubble. The stock has consolidated since May and a triangle formed over the last few months. Upside volume is picking up and a breakout above 2.35 would be quite bullish.

By Arthur B. Hill - Mon 26-Sep-05 at 06:52AM in Stocks
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Friday - September 23, 2005

Donaldson Finds Support

Donaldson (DCI) has a piercing pattern working. Actually, it formed on Tuesday and Wednesday. The stock gapped higher on Thursday and upside volume has been quite strong over the last seven days. A trendline break is the next hurdle to reverse the seven week downtrend.

By Arthur B. Hill - Fri 23-Sep-05 at 03:50PM in Stocks
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MAGS Pennant

Isreali security company Magal Security (MAGS) formed a pennant and a breakout at 11.5 would be bullish.

By Arthur B. Hill - Fri 23-Sep-05 at 03:50PM in Stocks
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COCO Gets Hot

COCO has lots of support around 12.5 and recent broke resistance at 13 with a good move and a positive story in Barron’s

By Arthur B. Hill - Fri 23-Sep-05 at 03:50PM in Stocks
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GD Breaks Resistance

Defense is still hot as General Dynamics breaks to a new 52-week high on good volume.

By Arthur B. Hill - Fri 23-Sep-05 at 03:49PM in Stocks
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Wednesday - September 21, 2005

HPQ Looking Frothy

Dell (DELL) and Lexmark (LXK) have tanked recently, but Hewlett Packard (HPQ) continues to charge ahead and make new highs. I would be might nervous holding this perennial disappointer after such a run. The stock reached the upper trendline of a rising price channel that extends from mid May and formed a bearish engulfing (red oval). It is still a top picking exercise, but this stock could easily correct back to 25.

By Arthur B. Hill - Wed 21-Sep-05 at 12:20PM in Stocks
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Dell Reaches Support

When comparing the charts for DELL and HPQ, one would be inclined to think they are in different industry groups. DELL is testing support that extends back to 2004 and cannot hold a bid. Meanwhile, HPQ is recording 52-week highs and pushing all the right buttons. DELL is a leader and this kind of performance bodes ill for the broader market and the industry. The stock is getting oversold and at support. While this may provide a reprieve, the damage done over the last few weeks will have lasting affects.

By Arthur B. Hill - Wed 21-Sep-05 at 12:20PM in Stocks
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Qlogic Reaches Retracement

Storage is a hot industry group and Qlogic is part of it. However, the chart pattern does not look so hot. QLGC retraced 50% of its prior decline with a rising price channel advance to around 35. This was a laborious advance with relatively light upside volume. Volume is fuel and low fuel tells me this was a corrective advance. The stock is running into trouble around 35 and a move below the lower trendline (32) would signal a continuation of the prior decline.

By Arthur B. Hill - Wed 21-Sep-05 at 12:18PM in Stocks
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Monday - September 19, 2005

HON Cup with Handle

Honeywell (HON) is testing resistance and a breakout would confirm the cup-with-handle pattern. The cup extends from February to July, the handle from August to September and the rim marks resistance at 39.5. A breakout would signal a continuation higher and forecast higher prices.

By Arthur B. Hill - Mon 19-Sep-05 at 06:48AM in Stocks
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Hi Ho Silver

Not only are gold stocks breaking out and surge on good volume, but silver stocks are also joining in on the action. Coeur D’Alene (CDE) broke resistance in mid August, corrected and surged again in September. Notice that CDE moved back below the August breakout, but held the consolidation lows. The stock gapped higher in early September and surged on good volume Friday. The precious metals group is moving higher.

By Arthur B. Hill - Mon 19-Sep-05 at 06:47AM in Stocks
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Yahoo! Feeling Google Heat

While Google (GOOG) tests its July highs and resistance around 300, Yahoo! (YHOO) continues to wallow near its July lows. The stock never recovered from the gap down and consolidated the last two months. There is support at 32.5 and resistance at 35. Traders should watch these boundaries for a signal. Given the unfilled gap and inability to bounce, I think the stock will continue lower and break support. A move above 35 would negate this theory and be bullish.

By Arthur B. Hill - Mon 19-Sep-05 at 06:47AM in Stocks
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RSAS Making Noise

RSA Security is in the business of network security. The company fell on hard times earlier this year with an earnings miss, but has clawed its way back. The stock surged in July, consolidated in August and broke resistance in September. Given the correction in the Nasdaq in August, I think the stock held up quite well and the breakout argues for higher prices. Volume picked up on Friday and it would take a move below 12.4 to negate the breakout and turn bearish.

By Arthur B. Hill - Mon 19-Sep-05 at 06:46AM in Stocks
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Pulte Filling the Gap

A up gap is bullish as long as it holds and a down gap is bearish as long as it holds. Once these gaps are filled, the gap is negated and a move in the opposite direction (of the gap) may take hold. PHM gapped up on Friday 9-Sep and declined sharply on Friday 16-Sep. The decline occurred on high volume and the stock finished in the middle of the gap. This gap is getting a quick challenge and further weakness below 43.5 would fill the gap. This would make it an exhaustion gap and PHM could then test support around 40 again. Turning bearish now would still be a top picking exercise, but the recent surge in downside volume shows an uptick in selling pressure and this group may remain under pressure.

By Arthur B. Hill - Mon 19-Sep-05 at 06:46AM in Stocks
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Thursday - September 15, 2005

Wachovia Breaks Support on Big Volume

I first highlighted Wachovia (WB) on 31-August with the triangle. The stock bounced in early September, but quickly fell back and broke support with high volume. This support break looks like it is here to stay and WB appears headed lower. Only a move above the September high at 51 would reverse this break.

By Arthur B. Hill - Thu 15-Sep-05 at 11:16AM in Stocks
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P&G Harami

Procter & Gamble (+ Gillette) is the biggest stock in the Consumer Staples sector and the Consumer Staples SPDR (XLP) is not going anywhere without agreement by PG. After a triangle breakout in early September, PG formed a harami (red oval) and then gapped lower. The two day decline confirms the harami and negates the trendline break. Should the market turn lower, the Consumer Staples SPDR (XLP) or PG will not offer safe keeping.

By Arthur B. Hill - Thu 15-Sep-05 at 11:16AM in Stocks
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Wednesday - September 14, 2005

Monaco Coach Breaks Trendline

Here is another classic setup. Monaco Coach (MNC) formed a falling wedge in August and broke the upper trendline with good volume yesterday. The decline was a bit deeper than usual for a correction, but the pattern (falling wedge) is valid. I am also impressed with volume flows over the last two weeks as upside volume outpaces downside volume. The Accumulation Distribution Line moved higher from late April until late July and then traded flat as the stock corrected. This shows light selling pressure and even some accumulation during the August decline. A move below 14.5 would negate this breakout.

By Arthur B. Hill - Wed 14-Sep-05 at 06:22AM in Stocks
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JDS Uniphase Surges off Support

JDS Uniphase (JDSU) has shown signs of firmness for the last few months and is getting another bounce off support on good volume. The stock bounced in July with good volume and this move also featured above average volume. The pattern looks like a 3-4 month consolidation and a break above 1.8 would be bullish. Low priced stocks carry above average risk and a move below 1.45 would be bearish.

By Arthur B. Hill - Wed 14-Sep-05 at 06:21AM in Stocks
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Applied Materials Consolidates

For the Semiconductor HOLDRS (SMH) to really get moving, the equipment stocks need to break resistance. Look no further than the leader: Applied Materials (AMAT). The stock advanced from 14.5 to 18.5 and then consolidated with a triangle. There is support around 17.5 from the lower channel trendline and September low. A move above 18.5 would break consolidation resistance and signal a continuation higher. This would be bullish for the stock and the Semiconductor HOLDRS (SMH). Conversely, a move below the early September low would be quite negative.

By Arthur B. Hill - Wed 14-Sep-05 at 06:21AM in Stocks
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Entergis Breaks Resistance

Entergis (ENTG) traced out a nice setup and the upside breakout has a lot of power. The decline to around 10 retraced 50% of the prior advance (May-Jul) and formed a falling wedge. Both the decline and the retracement are typical for corrections. In addition, the decline found support near broken resistance This another good sign as the breakout is holding. The stock gapped up on 6-Sept and again on Friday. Volume surged and this breakout looks like it is here to stay. Watch 10.5 for signs of a failure.

By Arthur B. Hill - Wed 14-Sep-05 at 06:20AM in Stocks
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Electronic Arts Gaps on Big Volume

The pattern is classic and the breakout looks robust. Electronic Arts (ERTS) corrected in August, gapped up and then surged above resistance on high volume. The gap and surge have broken the decline and this signals a resumption of the prior advance. Watch 58 for signs of a failed breakout.

By Arthur B. Hill - Wed 14-Sep-05 at 06:20AM in Stocks
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Tuesday - September 13, 2005

Taiwan Semi

Here’s one to watch for the semiconductor group and techs overall. Taiwan Semi (TSM) formed harami in late August and early September (blue carets). These are bullish candlestick reversals that require confirmation. In addition, the stock formed a falling wedge and broke above the upper trendline last week. Moreover, upside volume is outpacing downside volume over the last two weeks. I am marking key resistance at 8.5 and a break above this level would signal a continuation of the April-June advance.

By Arthur B. Hill - Tue 13-Sep-05 at 06:27AM in Stocks
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Rambus 5 or 90?

Mike Cohen, director of research at Pacific American Securities, says that Rambus is "worth either $5 or $90". He adds that the varied valuations are based on whether or not someone expects Rambus to ultimately win its legal cases. The stock surged on takeover rumors and is testing trendline support. There are a number of court cases in progress and the stock will be prone to the ebb and flow of these cases. There are really no other drivers for the stock. Imagine a tech company driven by lawyers!

By Arthur B. Hill - Tue 13-Sep-05 at 06:27AM in Stocks
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RSAS Breakout

Network security company RSA Security (RSAS) broke to a five month high with a move above resistance on Monday. Volume was a bit light though. The stock has lots of support just above 13 and a move below 13 would negate the breakout. In fact, a failure to hold the breakout and a move below 13 would be outright bearish. Despite the low volume, the breakout is bullish until proven otherwise.

By Arthur B. Hill - Tue 13-Sep-05 at 06:26AM in Stocks
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Monday - September 12, 2005

XOM Revives Energy

Why is the Energy SPDR (XLE) surging again? Thank ExxonMobil (XOM) in large part. XOM is the biggest component of XLE and has been lagging the sector this summer. The stock never broke down, but never broke up. Until now. After a falling flag breakout in June, XOM consolidated the last 2-3 months. The breakout at 61 on good volume is bullish and I would expect new highs over the next few weeks.

By Arthur B. Hill - Mon 12-Sep-05 at 06:52AM in Stocks
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PG Breakout

Procter & Gamble (PG) is the biggest component in the Consumer Staples sector and the recent breakout bodes well for both. Notice that volume expanded as the stock broke triangle resistance and exceeded its late July high.

Procter & Gamble (PG) is the biggest component in the Consumer Staples sector and the recent breakout bodes well for both. Notice that volume expanded as the stock broke triangle resistance and exceeded its late July high.

By Arthur B. Hill - Mon 12-Sep-05 at 06:51AM in Stocks
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JNJ Breakout

Strength in Johnson & Johnson (JNJ) is helping the HealthCare sector. The stock broke above the upper trendline of a long falling price channel and is challenging resistance from the Jul-Aug highs. Upside volume has outpaced downside volume the last two weeks.

By Arthur B. Hill - Mon 12-Sep-05 at 06:51AM in Stocks
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Friday - September 02, 2005

Oracle Breakout

Oracle breaks falling wedge resistance with a big move. Volume was a bit light, but the breakout is clear.

By Arthur B. Hill - Fri 02-Sep-05 at 03:10PM in Stocks
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Wednesday - August 31, 2005

Xilinx Trying to Base

XLNX - Xilinx (XLNX) has an inverse head-and-shoulders working with neckline resistance just above 29. Upside volume was strong in July and expanding volume on a run to neckline resistance would be bullish.

By Arthur B. Hill - Wed 31-Aug-05 at 11:06AM in Stocks
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Micron Tests Support

MU - Micro (MU) may very well hold an important key to the semiconductor groups. There is lots of support around 11 from the 62% retracement, broken resistance and the April trendline. The stock consolidated over the last two weeks - watch 11.6 up and 10.9 down.

By Arthur B. Hill - Wed 31-Aug-05 at 11:06AM in Stocks
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Qlogic Fails at Resistance

QLGC - Qlogic (QLGC) had a sudden change of heart. The stock retraced ~50% of the prior decline with a rising price channel. Both the retracement and the pattern are typical for corrective advances. There was a sudden reversal on high volume over the last two days and this stocks looks headed lower.

By Arthur B. Hill - Wed 31-Aug-05 at 11:05AM in Stocks
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Electronic Arts High Volume Break

ERTS - Electronic Arts (ERTS) broke rising channel support with high volume and this looks like a continuation of the prior decline.

By Arthur B. Hill - Wed 31-Aug-05 at 11:05AM in Stocks
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