#$ry

5 Trade ideas excerpted from the detailed analysis and plan for premium subscribers:

Interactive Brokers, $IBKR, comes into the week at resistance. It has an RSI in the bullish zone with the MACD positive. Look for a push over resistance to participate…

Knight-Swift Transportation, $KNX, comes into the week at an all-time high. It has an RSI in the bullish zone and a MACD positive. Look for continuation to participate…

Monster Beverage, $MNST, comes into the week testing resistance. It has an RSI in the bullish zone with a MACD positive. Look for a push over resistance to participate…

Royal Bank of Canada, $RY, comes into the week at an all-time high. It has an RSI in the bullish zone with the MACD positive. Look for continuation to participate…

Exxon Mobil, $XOM, comes into the week pushing through resistance after a pullback. It has an RSI entering the bullish zone with the MACD negative. Look for continuation to participate…

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After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which with the May options expiration in the rearview mirror and heading into the last week before the long weekend and unofficial start of summer, equities continue to act strong, tacking on more new all-time highs but failing to close out the week at highs. This ends the streak of Friday all-time high closes at four.

Elsewhere, look for Gold to continue walking the fence between a downtrend and digestion in the uptrend while Crude Oil bounces around in broad consolidation over $100/bbl near the top of the range. The US Dollar Index looks to continue to higher in broad consolidation while US Treasuries continue to test support and a possible continuation of their downtrend. The Shanghai Composite looks to continue a short term uptrend new 11 year highs while Emerging Markets digest the new highs in their uptrend.

5 Trade ideas excerpted from the detailed analysis and plan for premium subscribers:

Cognizant Technology Solutions, $CTSH, comes into the week breaking resistance. It has a RSI in the bullish zone with the MACD positive. Look for continuation to participate…

Expedia, $EXPE, comes into the week rounding up from a pullback. It has a RSI in the bullish zone with the MACD positive. Look for continuation to participate…

Intercontinental Exchange, $ICE, comes into the week at resistance. It has a RSI at the midline with the MACD rising. Look for a push over resistance to participate…

Royal Bank of Canada, $RY, comes into the week breaking resistance. It has a RSI in the bullish zone with the MACD positive. Look for continuation to participate…

Thermo Fisher Scientific, $TMO, comes into the week at resistance. It has a RSI in the bullish zone with the MACD positive. Look for a push over resistance to participate…

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After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which with the November options expiration in the rearview mirror, saw equity markets showed continued jitters, with mixed messaging from the Fed and the first Government data, the September jobs report.

Elsewhere, look for Gold to continue the uptrend with some short term consolidation while Crude Oil holds lower in consolidation. The US Dollar Index continues the short term drift to the upside, toward a breakout, while US Treasuries continue in consolidation, sputtering the possible reversal higher. The Shanghai Composite looks to continue the uptrend after some digestion from the 10 year highs while Emerging Markets stall in their uptrend putting it at risk.

5 Trade ideas excerpted from the detailed analysis and plan for premium subscribers:

Alcoa, Ticker: $AA

Alcoa, $AA, comes into the week testing resistance. It has a RSI rising toward the bullish zone with the MACD moving up. Look for a push through resistance to participate…..

Lam Research, Ticker: $LRCX

Lam Research, $LRCX, comes into the week breaking resistance. It has a RSI in the bullish zone and a MACD positive. Look for continuation to participate…..

Moderna, Ticker: $MRNA

Moderna, $MRNA, comes into the week at a 10 week high. It has a RSI in the bullish zone with the MACD positive. Look for continuation to participate…..

Bank OZK, Ticker: $OZK

Bank OZK, $OZK, comes into the week pressing on resistance. It has a RSI edging into the bullish zone with the MACD positive. Look for a push over resistance to participate…..

Royal Bank of Canada, Ticker: $RY

Royal Bank of Canada, $RY, comes into the week approaching resistance. It has a RSI in the bullish zone with the MACD positive. Look for a push over resistance to participate…..

If you like what you see sign up for more ideas and deeper analysis using this Get Premium link.  

After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which with the first week of November in the books, saw equity markets showed how quickly they can lose their luster.

Elsewhere look for Gold to pause its pullback while Crude Oil consolidates. The US Dollar Index looks to consolidate in the uptrend while US Treasuries resume their downtrend. The Shanghai Composite looks to possibly reverse the downtrend while Emerging Markets continue the move lower.

5 Trade ideas excerpted from the detailed analysis and plan for premium subscribers:

Freeport-McMoRan, Ticker: $FCX

Freeport-McMoRan, $FCX, comes into the week at resistance and rising. The RSI is rising and the MACD bullish. Look for a push through resistance to participate…..

Global Payments, Ticker: $GPN

Global Payments, $GPN, comes into the week after breaking resistance. The RSI is rising into the bullish zone with the MACD about to turn positive. Look for continuation to participate…..

Royal Bank of Canada, Ticker: $RY

Royal Bank of Canada, $RY, broke resistance Friday with the RSI rising toward the bullish zone and the MACD about to go positive. Look for continuation to participate…..

Scotts Miracle-Gro, Ticker: $SMG

Scotts Miracle-Gro, $SMG, comes into the week breaking resistance. It has a RSI moving into the bullish zone with the MACD rising and positive. Look for continuation to participate…..

Teck Resources, Ticker: $TECK

Teck Resources, $TECK, comes into the week breaking to a higher high. The RSI is rising to the bullish zone with the MACD positive and climbing. Look for continuation to participate…..

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After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which with only 1 week left in 2021, equity markets showed strength with a rebound from an ugly start.

Elsewhere look for Gold to continue its consolidation while Crude Oil drifts towards the top of a consolidation range. The US Dollar Index continues to consolidate in the uptrend while US Treasuries mark time sideways. The Shanghai Composite looks to continue in consolidation as well while Emerging Markets continue lower.

5 Trade ideas excerpted from the detailed analysis and plan for premium subscribers:

Broadcom, Ticker: $AVGO

Broadcom, $AVGO, rose out of consolidation at the beginning of the year making a high in early March. It pulled back from there in two steps before finding a bottom as it dropped below the Bollinger Bands®. The bounce from there has the price back at the March high coming into the new week. The RSI is in the bullish zone and rising with the MACD moving up and bullish. Look for a new high to participate in the upside.....

Donaldson, Ticker: $DCI

Donaldson, $DCI, has been stair stepping higher for more than a year. It moved above the last stair two weeks ago and stalled, consolidating. Friday it started higher again though. The RSI is bullish and rising with the MACD moving higher. Look for continuation to participate higher.....

FedEx, Ticker: $FDX

FedEx, $FDX, ran higher after the election in November, peaking in early December. It pulled back from there and has traded in a range ever since. The last move off of support stalled at the SMA's and pulled back to a higher low and now that has reversed higher. The RSI is on the edge of a move into the bullish zone and the MACD is rising and about to cross zero. Look for a higher high to participate in the upside.....

Kansas City Southern, Ticker: $KSU

Kansas City Southern, $KSU, pulled back from a high in August finding support in early November. The initial bounce failed and it retested the low in January. Since then it has made a series of higher lows and higher highs. Friday saw the price push over short term resistance and it has support for more upside from a rising and bullish RSI and a MACD turning back higher. Look for continuation to participate higher.....

Royal Bank of Canada, Ticker: $RY

Royal Bank of Canada, $RY, started moving higher out of consolidation in November. It peaked in February 25% higher and started to pull back. That pullback found support last week and consolidated before a strong move higher Friday. The RSI also turned back higher and the MACD curled up. A reversal brewing. Look for continuation Monday to participate higher.....

After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which deep into the earnings season and with the May FOMC meeting and non-farm payrolls in the books, sees equities looking strong again.

Elsewhere look for Gold to continue in its downtrend while Crude Oil also is biased lower, but with caution for a reversal. The US Dollar Index is weak and moving lower while US Treasuries are also biased to the downside. The Shanghai Composite rounds out the markets looking weak as it moves lower while Emerging Markets are biased to continue to the upside.

Volatility looks to remain at abnormally low levels keeping the bias higher for the equity index ETF's SPY, IWM and QQQ. Their charts all look stronger in the short term with the SPY and QQQ leading the way. In the longer timeframe the IWM is at resistance while the SPY and QQQ look set for a series of new highs. Use this information as you prepare for the coming week and trad'em well.

5 Trade ideas excerpted from the detailed analysis and plan for premium subscribers:

AstraZeneca, Ticker: $AZN

AstraZeneca, $AZN, moved lower with pace starting in September. It crossed down through its 200 day SMA in October and continued until finding a bottom in December. Since then it has crept higher in a series of higher highs and higher lows. Friday saw it make another higher high and peek above its 200 day SMA. The RSI is bullish and rising while the MACD is flat. Look for continuation to participate higher.....

International Paper, Ticker: $IP

International Paper, $IP, moved higher out of consolidation in July. That move stalled out in September and it pulled back to the prior consolidation area. It settle for a few days before surging higher, making a higher high in December, before consolidating. A failed break to the upside in January came back to that consolidation and held there since. Last week saw a move to the top of the range with the RSI pushing through the mid line and the MACD crossing up and rising. Look for continuation to participate higher.....

MetLife, Ticker: $MET

MetLife, $MET, started higher in July finding a top 60% higher in December. Since then it has pulled back in a falling channel. Last week saw it touch the 100 day SMA and bounce higher. It ended the week at the top of the channel with the RSI rising and on the edge of a move into the bullish zone while the MACD is turning up. Look for a push above the channel to participate higher.....

Royal Bank of Canada, Ticker: $RY

Royal Bank of Canada, $RY, pulled up from consolidation in November. It has been moving higher ever since. It made a short term top in February and pulled back to support, where it enters the new week. The RSI is turning back higher but the MACD is falling. Look for confirmation higher to participate.....

Williams, Ticker: $WMB

Williams, $WMB, had a strong run higher from a low last April. That met resistance in September and consolidated with a slight upward drift for the next 4 months. In January it gapped lower and held there in consolidation until breaking higher Friday. The RSI is making a new high as it rises as well and the MACD is crossed up and rising. Look for continuation to participate higher.....

After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which heading into the first full week of March sees the equity markets have entered more like a lion than a lamb.

Elsewhere look for Gold to continue the pullback in its uptrend while Crude Oil consolidates with a bias for a break to the downside. The US Dollar Index looks to continue higher short term while US Treasuries continue to consolidate in their downtrend. The Shanghai Composite continues to drift higher while Emerging Markets pullback in their uptrend.

5 Trade ideas excerpted from the detailed analysis and plan for premium subscribers:

BlackRock, Ticker: $BLK

BlackRock, $BLK, had a strong start to 2016, moving higher into resistance in April. It pulled back into June and then made a run to a higher high in September. Another pullback to a higher low was followed by a two step move up to a new high in December. The pullback from the December high touched the 50 day SMA last week and started back higher. The RSI is also turning back higher after holding near the mid line in the pullback. The MACD has stopped falling as well. Look for continuation to participate to the upside.....

Deere, Ticker: $DE

Deere, $DE, went through a long drawn out wide range consolidation from March until November. But then it started higher. It gapped up and met resistance at the end of the month and paused for 3 weeks before another move higher. This too met resistance and consolidated. Friday saw the price back at resistance and the Bollinger Bands® opening up. The RSI is turning back up in the bullish range and the MACD is trying to level. Look for a push over resistance to participate to the upside....

IBM, Ticker: $IBM

IBM, $IBM, started a drift lower in August. It was shallow and by October it had found support about 10% lower. From there it moved back up and met resistance at the same top initially. After a smaller pullback it reversed back higher and to a new high in December. But then it sat in a range until Friday. That is when following its earnings report it broke the range to the upside. The RSI is bullish and moving higher now while the MACD is possibly trying to cross up. Look for continued upside to participate higher.....

Royal Bank of Canada, Ticker: $RY

Royal Bank of Canada, $RY, was in a long slowly rising trend from May through to early November. But then it woke up and started higher at a faster pace. It has made a series of higher highs and higher lows since then. Friday saw a move back higher, confirming another higher low. The RSI is bullish and rising again while the MACD has crossed down. Look for continuation to the upside to participate.....

Vulcan Materials, Ticker: $VMC

Vulcan Materials, $VMC, moved higher from a February low to consolidation in May. With a slight pullback the stock found support at its 200 day SMA and then moved back higher starting in October. It gapped up in November, out of its Bollinger Bands®, and has been pulling back in a bull flag since. Friday saw a break of that flag to the upside. The RSI is bullish and rising and the MACD crossing up, both supporting continued upside. Look for continuation to participate higher.....

After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which with the Inauguration and January Options Expiration in the rearview mirror, sees the equity markets holding up very well and remaining strong on the longer timeframe.

Elsewhere look for Gold to consolidate its uptrend or pullback while Crude Oil moves sideways in a range. The US Dollar Index looks better to the downside in the short run while US Treasuries are resuming their move lower. The Shanghai Composite is stuck at 3100 and does not look to change that soon while Emerging Markets look tied in their move higher and ready for a pullback.

Canadian stocks are testing a potentially significant breakdown.

Believe it or not, the dog days of a Wall Street summer are just around the corner. And it appears as if the dog days of the post-February stock rally have already arrived. The rally has stagnated and stocks appear to be stuck in limbo. On the one hand, you have the former all-time highs and a slight deterioration in breadth conditions while on the other, you have conditions that are not yet ripe for any type of material breakdown in the broad stock market. Therefore, it would not be a surprise to see stocks continue to drift for a time while waiting for either side to build up a more convincing case.

That said, there has been one possible bearish change in character since the calendar turned to June. That is, while the post-February rally had thus far seen prices of most indices able to clear key resistance quite easily, that is no longer the case. We have seen multiple examples recently where various segments of the market have stopped precisely at obvious resistance levels -- like they’re supposed to. The Canadian stock market is one such example.

After topping out in September 2014, Canada’s main stock market index, the S&P TSX Composite (TSX) has made a series of lower highs and lower lows. That said, the rally in the TSX since January has been quite impressive, tacking on about 25% and making a slight higher high on a short-term basis. However, as mentioned the TSX rally stopped earlier this month right near resistance where it was supposed to. And it is fairly formidable looking resistance.

As the chart shows, there are several analyses around the 14,250 level that make the recent peak quite compelling as a potentially more substantial top. First off, we have the all-important 61.8% Fibonacci Retracement level of the decline from the 2014 top to the January low. Secondly, we have the breakdown level from August 2015, from which the decline in the TSX significantly accelerated. In addition, we have the 500-day moving average (not shown), which does a fairly good job of delineating longer-term trends.

Lastly, we arguably have a pattern traced out since the February lows called a rising wedge. A rising wedge consists of higher lows and higher highs, with the highs rising at a shallower trajectory than the lows. And despite the higher lows and highs, the pattern is actually a bearish formation. In our experience, more times than not. the rising wedge culminates with prices breaking down below the lower bound. That is precisely what happened in the TSX about 10 days ago.

This loss of the lower trendline of the wedge is potentially devastating for the TSX, in particular because it occurred just off of multiple, transparent resistance levels. The index is making a run right now, possibly, at testing the breakdown level of the wedge, etc. Should this test fail as soundly as the TSX did upon its initial foray into resistance, it may well be reasonable to begin considering that the early-June high was the top for the post-February rally.

Again, while the formidable resistance is the key takeaway as it pertains to the TSX, the larger message for the broader market is that rallies in various markets are beginning to fail right where they should. This shows a drying up of demand. It is also a far cry from the first several months of the post-February rally wherein markets around the globe were blowing through resistance levels that should have stopped them.

That action was likely the result of the breadth and momentum thrust off of the February lows that carried markets farther than expected. At this point, the benefits of that thrust have likely run their course. Markets are beginning to trade again based on their own, current merits. For the broader market, that may mean that stocks will continue to drift sideways until clearer evidence arises suggesting a big move, up or down.

However, based on its chart, and prices’ reliable adherence to it, the Canadian stock market would probably be lucky, at this point, if it was able to merely drift sideways.

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