This Former Retailing Heavyweight Headed for More Trouble?

Part 3 in the ongoing “Power of Technicals” series  is BBY. Another higher probability set-up with large profit opportunities in compressed time and clear risk control parameters. Fundamentally speaking, is BBY really any different from Circuit City of days past or RIMM…...

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Charting RIMM’s Recent 50% Drop / The Power of Technicals (Part 2)

Starting now, we’re going to begin a series that shows recurring technical set-ups that offer material profit opportunities in compressed periods of time. In other words, great reward/risk trades. We’ll present these opportunities to folks subscribing to the premium / password-protected content…

Is this Major Pharma Company About to Quickly Lose 30% of its Value ?

On June 25 we highlighted RGR and noted that despite a great fundamental backdrop for the company and its industry, the stock had just managed to lose ~40% of its value in a little over a month. The trade set-up…...

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Ratio of Copper vs. Gold Suggesting Anything about Global Risks, Future Path of Equities?

We’ve spent a lot of time recently pointing out how many different price-based indicators are sitting at extremes. The ratio of copper vs. gold, a barometer of sorts for global economic activity/fear levels/risk appetite, is no different. In the chart…...

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Low Beta Leaders @ Resistance; High Beta Laggards @ Support = Potential Inflection Point for Broader Risk Appetite

Below is quarter-to-date (QTD) performance across SPX sector ETFs. Leaders (lower beta and only sectors up QTD): 1) Utilities (+11%) 2) Healthcare (+7%) 3) Staples (+6%) 4) Consumer Disc (+1%) Laggards (higher beta): 1) Energy (-5%) 2) Financials (-4%) 3) Industrials…...

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Why has A Stock with a Great Fundamental Backdrop Fallen 40% in a Month? / The Power of Technicals

The chart below is of RGR (Sturm Ruger), a well known firearms manufacturer. The fundamental backdrop for this stock and its industry is excellent – obviously driven largely by fears of Obama’s perceived anti-gun rights political leanings. So, why then is…...

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Downside Accelerating in the Shanghai Composite; About to Break Down Technically?

In its last two trading sessions the Shanghai Composite has shed 140 and 160 bps, respectively. At the same time the index sits on trend-line (1) support dating back to 2006 within the context of a broader pennant/flag consolidation pattern…...

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Yen Finally a Short Candidate? Nikkei Finally Going to Outperform?

The Yen sits at multi-decade highs against the USD.  The ratio of the DJ Global Index vs. the Nikkei the same (i.e., the former has outperformed the latter for quite some time). Interestingly though, the Yen recently broke below trend-line…...

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Getting Granular – RSI on SPY 60 Min Chart Reaching Extreme Levels Seen Only 4x in Past Year

The RSI on the 60 min SPY chart has only been this elevated, whether it be euphoria or something else, 4x over the past year. Once was in early July 2011 when Greece managed to secure a release of bailout…...

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