EB Digest continued

Growth stocks have had a very big run heading into the upcoming earnings season and we've recently seen a bit of consolidation/selling among these stocks - and it might just continue. Semiconductors ($DJUSSW) have held up well and continue to push to the upside, but software ($DJUSSW) and internet ($DJUSNS) have both seen some profit taking recently. ... keep reading

If I could be granted one wish in the stock market, it would be that I could see every key bottom in price, whether it's the S&P 500, an asset class, or simply an individual stock. What a super power that'd be! Well, unfortunately, none of us are blessed with that super power, but we do get some hints about bottoms if we care to pay attention. To give you an example, I believe Enphase Energy, Inc. (ENPH), a renewable energy company ($DWCREE), has bottomed. First, it appears that we've seen not one, but two exhaustive-type candles over the course of the past 7-8 weeks: ... keep reading

I love this time of the calendar quarter. It's the busiest week of earnings season, but it's not just the companies that are reporting this week that I'm interested in. At EarningsBeats.com, we keep a Strong Earnings ChartList (SECL) for a reason. It's a Watch List that organizes companies that report solid earnings throughout the quarter. To earn their way onto our SECL, companies must beat Wall Street consensus estimates as to both revenues and EPS. They must also be liquid (daily share volume > 200,000 shares) and looks solid technically. ... keep reading

Sonos, Inc. (SONO) is a $1.46 billion consumer electronics company, headquartered in Santa Barbara, CA. It's been downtrending this year since peaking in March 2024. Over the past few months, SONO has made a move higher to challenge overhead gap resistance, but it's been unable to break through (red arrow). Its AD line, though, is powering to new highs, despite a lackluster price chart (bottom panel): ... keep reading

Most companies see their stock market valuation go up or down based on what they do or don't do. Sometimes, however, companies will benefit when another company fails to impress. That's exactly what happened last week as Tesla, Inc. (TSLA) held its robotaxi event. Investors treated it as though it was a dud, sending TSLA's shares reeling. The TSLA event and weakness, though, turned out to be reason to party at Uber Technologies (UBER), as you can see below: ... keep reading

Could an answer be "BOTH?" First, the chart I'm referring to belongs to Wabtec, Inc. (WAB). From a bullish perspective, WAB shows excellent volume trends. Also, the AD line is nearing another 2024 high. Relative strength was very strong back in April and May, but it did cool down for several weeks before turning higher again in August and September. Take a look at these bullish technical traits: ... keep reading

I've discussed the fact that financials (XLF) LOVE the balance of the year. In fact, the XLF averages outperforming the S&P 500 by a wide margin from September through December. How much? Well, it depends on the time frame we're looking at. Check this out: ... keep reading

The good news with price support holding four times is that we can say that buyers have consistently jumped in and supported a stock's price at that level. The bad news is that support will eventually give way and, if it does, a selloff could accelerate very quickly. ... keep reading

One consistent theme in the stock market over the past few years is that small caps simply have NOT been the place to invest. Many stocks in this asset class have been hot from time to time, but most seem to come up short when it comes to staying power. EverQuote, Inc. (EVER) is one of those stocks that's been red hot for nearly a year, but has fallen hard since its peak above 25 just 6 weeks ago: ... keep reading

When price action moves higher, but momentum oscillators don't follow suit, it's referred to as a negative divergence. It's a signal that momentum is slowing or stalling and that we should consider a potential top in price. While the textbook definition is very easy to interpret on the surface, we also need to make sure we use a healthy dose of common sense. After all, if a stock breaks out to a new high on massive volume, but a momentum oscillator lags, is it really a sign of slowing momentum? On Tuesday, Apple (AAPL) soared on AI news, closing at an all-time high above 200.00 and producing one of its highest volume days since the 2020 pandemic: ... keep reading