The emerging markets (represented by symbol EEM) has been in an ascending channel since last October. It broke the lower bound of this uptrend this morning for the first time.
Slope of Hope Blog Posts
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This is the last meaningful week for earnings this quarter. Tonight’s biggie is Alphabet (GOOGL), but I always find that chart to be a bore. Tomorrow night is more interesting to me, as Apple, Inc. is coming up upon very important resistance, highlighted below. We’ve also just about at the midline of that long-term channel.
These three health and technology stocks are seeing technical strength ahead of upcoming earnings.
Evolus, Inc. (EOLS) gained 50 cents to $26.44 on 537,100 shares Wednesday. The performance beauty company said it will release earnings after the close on April 30. The stock is right on the verge of taking out the declining tops line of its nearly 3-month consolidation that followed its big surge in January and early February. A move through the March 19 high near $28 could take the stock to next lateral resistance at $30.
Extreme Networks, Inc. (EXTR) rose 29 cents to $8.26 on 2.1 million shares Wednesday, nearly 1 1/2 times its average volume. The software-driven networking company will announce earnings before market open on May 1. The move popped the stock out of a nearly 2-month resistance line and mini base. Watch for a test of next resistance at $8.75 just above the February high.
The ETF for the consumer discretionary sector broke its trendline ages ago, but as of yesterday, it perfectly tagged the underside of the now-broken trendline and should treat it as resistance henceforth.
For over half a year, the emerging markets have been following a relatively steady ascending channel. About a week ago, they got close to the top of the channel, and they’ve started seeing some meaningful weakness.(more…)
I’d say the biggest risk for the two or three bears left on Earth right now is the financials, shown below in the form of XLF. Notice that horizontal I’ve emphasized at the 27.33 price level. We’ve got a clean IHS below it, and should we cross 27.33 to the upside, that sets up the pattern to pierce the descending trendline (yellow tint), at which point it would be like a 42-gallon drum of gasoline on the bullish fire.
To expound upon my “bullet entering the brain” post from last night, let’s just go whole hog. Let us assume:
- The federal government has now perfected utter control of equities;
- They have absolutely no reason to ever let them decrease;
- It will be months, years, or decades, before they lose control.
Having embraced those chilling assumptions, here are the measured moves for the cash indexes shown, represented in both point and percentage terms. These measured moves are based on the inverted head and shoulders pattern, all of which are complete except for the Russell 2000. Please note that the percentage gains are measured from the neckline, not from present price levels.(more…)