Charts I’m Watching

Here are some of the key charts I’m currently watching.

MSFT

Continues to act well, shallow pullback and breakout to a new high. Looks headed for a retest of 2018 high.

CVS

Deeply oversold and a lot of damage has been done. Will probably take some time to form a base, but there is some value there for long-term holders. Implied vol is fairly high so there are nice premiums for option sellers. WBA in a similar situation.

AMZN

Holy Moly, that is some tight action so far in 2019! Pretty sure a breakout is coming soon, but which way??

JD

Continues in a really nice uptrend that began once it retook and held key moving averages.

GDDY

Look much more promising compared to last year. Nice break out above the 200-day moving average and then a shallow pullback and successful retest.

LONG TERM DIVERGENCES

Scary looking and something to keep an eye on.

MARKET BREADTH

Would like to see the number of stocks above their 200-day moving average a lot higher as we attempt to retest all-time highs. If this drops below the 55-50 level, look out.

STOCKS V BONDS

On other concern for me on this latest market rally is this – a rally in equities, suggests a strengthening economy, which would lead to higher interest rates. But, the bond market doesn’t seem to be buying that story as yield stubbornly refuse to rise. Then, of course, there is the almost inverted yield curve.

If you’ve got any other charts of interest, let me know.

Disclaimer: The information above is for educational purposes only and should not be treated as investment advice. The strategy presented would not be suitable for investors who are ...

more
How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.