Daily MACD continuing to strengthen. We're still waiting for a 29.19 test, but the stock is technically healthy....keep reading

It's always a good signal to see transportation stocks ($TRAN) perform well and today the TRAN broke out of a bullish cup with handle pattern. That should bode well for most transportation stocks and Old Dominion Freight Line (ODFL) was no exception today. After reporting EPS ($2.92 vs. $2.68) that easily topped forecasts, ODFL soared more than 10%, leaving a series of price highs in the 320s in its dust:...keep reading

I think we've done a pretty decent job of forecasting solid results and not-so-solid results. Cadence Design Systems (CDNS) was a software company that was featured in our July 20th EB Digest newsletter. I pointed out the relative strength and soaring AD line as it prepared for earnings - and CDNS delivered. CDNS posted excellent results and it now trades very near its 2022 high....keep reading

Manhattan Associates (MANH) blew away its revenue and EPS estimates last week, posting record revenues and profits in the process. It had bottomed relative to its software peers all the way back at the beginning of February, which perhaps was giving us a clue that business conditions were improving. Well, we now know it as fact....keep reading

Many technical analysts have been baffled by the stock market's unrelenting advance in 2023, especially on the NASDAQ. The S&P 500, meanwhile, has pushed higher, but has lagged badly on a relative basis. One reason why is that industrials have struggled on both an absolute and relative basis. It's fairly easy to illustrate the importance of transports (a big part of industrials) by using the correlation coefficient indicator at StockCharts.com. I do want to emphasize that big rallies in the S&P 500 are generally accompanied by rallies in transports, though they do NOT necessarily require relative strength in transports:...keep reading

Braze, Inc. (BRZE) has topped its revenue and EPS estimates in each of the last 4 quarters. Its latest beat came at the end of March, when the stock surged to a 5 1/2-month price high. After reaching the 38.00 level on March 31st, BRZE quickly fell about 18% in just 6 trading days. However, its AD line exploded higher. While BRZE has seen a ton of intraday (mostly morning) selling, we've also witnessed significant afternoon buying. That has carried BRZE's AD line much higher, threatening to break above the high set in August 2022:...keep reading

Recently, Eli Lilly (ELY) was a stock that I discussed in a Daily Market Report (DMR) to members. It's a leading stock in a leading industry group - pharmaceuticals ($DJUSPR) - and it had just reported earnings. LLY beat on its top line (revenues) and bottom line (earnings), but had already advanced into its quarterly earnings report. It was a classic "buy on rumor, sell on news" as LLY fell 20 bucks to test its rising 20-day EMA. Many times, that's a solid entry point into a leading stock. That leads me this morning to Diamondback Energy (FANG), which reports quarterly results after the bell today....keep reading

I wrote an article over the weekend at StockCharts.com, discussing the strengthening specialty finance group ($DJUSSP). In addition to much more recent bullish technical behavior, the group also boasts a seasonal track record from March through May that is as strong as any industry group across all 11 sectors. That makes one of its component stocks very appealing. First, let's check out the technical chart of MSCI, Inc. (MSCI):...keep reading

Trading success is positively correlated to preparation. When a stock is on the threshold of a major breakout, you need to be aware of it before it happens. A case in point is one of our Model Portfolio stocks this quarter - Insulet Corp (PODD). We favor strong stocks in strong industry groups. But the next best thing is a strong stock in an improving industry group. PODD seems to fit the latter:...keep reading

NAPCO Security Technologies (NSSC) is a stock that I'd rarely trade. While it's been a tremendous winner since mid May, NSSC typically sees volume in the 100,000-200,000 share range. That's not much, especially for a stock that trades for under $30 per share. Still, I thought NSSC has a very interesting chart and I wanted to share a couple things:...keep reading

Last week, we saw not-so-great market action as the S&P 500 fell 2.67%. Of the 104 industry groups, automobiles ($DJUSAU) performed 103rd out of 104 last week, falling 6.27%. Granted, much of the auto performance revolves around Tesla (TSLA), which is a huge component stock. However, I'm concerned about another name in the auto space, one that has been a very poor relative performer in the group. I'm talking about Rivian Automotive, Inc. (RIVN), which fell more than 14% last week and isn't far from its low since going public in November 2021. Here's the current chart:...keep reading

Small fractional gain today, adding to the recent strength. Financials are lagging a bit today, contributing to the lackluster performance....keep reading

Defense stocks have been excellent relative performers over the past year and one mid-cap name in the space appears to be regaining its previously-strong form. Axon Enterprise, Inc. (AXON), a $12.76 billion company, and formerly known as TASER International, Inc., has begun to turn higher and its PPO and AD line both support a continuing advance:...keep reading

On Sunday, I wrote an article in my Trading Places blog at StockCharts, "December Historical Tendencies Tell Us This Could Be A Stock Picker's Month". It provided a number of historical, or seasonal, tendencies that we should all at least be aware of, so please check it out, if you haven't already. One piece of the article discussed that value stocks tend to perform better than growth stocks throughout Q4, but especially during the month of December....keep reading

Moving up, but on light volume. I think we may get a chance to enter this one lower in time....keep reading

Battling trendline resistance from recent highs....keep reading

Selling off today on big volume after a big rally. We are going to change strategies here with our first entry at the rising 20 day EMA and 2nd entry at 12.50....keep reading

I'm a big fan of historical trends, but they are secondary to actual price action. In the case of investment services ($DJUSSB), however, it's very difficult to overlook its seasonal history in Q4. If we break down the average gains by quarter over the past two decades, the DJUSSB has produced returns of +0.4%, +0.4%, +1.6%, and +6.3% in quarters 1-4, respectively. That's a tremendous skewing of performance over a lengthy 20-year period. Here's the seasonality chart for DJUSSB, which shows that October produces the best average monthly return among all calendar months:...keep reading

At EarningsBeats.com, we maintain a Short Squeeze ChartList (SSCL), which is updated once or twice per month. We provide, in one ChartList, the most heavily shorted stocks in the market. We monitor this list for potential breakouts as such breakouts could trigger a tsunami of buying. But patience is definitely required with this group as it can take months sometimes for a stock to trigger a "short squeeze", which is the term frequently used when a wave of buying creates panic buying among those shorting a stock. Currently, Bed Bath & Beyond (BBBY) is the most heavily shorted stock at more than 45% of its float. Here's the chart:...keep reading

Technical analysis never provides us a guarantee. Every single signal fails from time to time. That's why I believe it's important to line up as many bullish signals as possible before taking a position. The more bullish characteristics I see on a chart, the more confident I'll feel about the trade. With this in mind, let's consider the case for Celsius Holdings, Inc. (CELH):...keep reading