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Potential Bear Flag as News Worsens: Market Trends This Week

Potential Bear Flag as News Worsens: Market Trends This Week

Downloads are available here. TradeStation’s ideas on TradingView are available here. Register for Market Trends here. Sizing Up the S&P 500 S&P 500 stalls under 50-day MA, April 12 (weekly) close Potential bearish flag forming January 31...

Stocks Retreat: Dovish Hopes Fade Before Key Fed Meeting

Stocks Retreat: Dovish Hopes Fade Before Key Fed Meeting

Stocks have pulled back as investors brace for more hawkish news from the Federal Reserve today. The S&P 500 declined 4.2 percent in April, breaking a five-month winning streak that began in November. Selling was widespread across the index, with more than...

AI Boom Fades as Fundamentals Weaken: Earnings Recap

AI Boom Fades as Fundamentals Weaken: Earnings Recap

Most of the big earnings reports have now occurred, and so far they've done little to boost the market. Companies like Microsoft (MSFT), Meta Platforms (META), Netflix (NFLX), Caterpillar (CAT) and Intel (INTC) reported profits above Wall Street estimates. However...

Nasdaq Surges as Traders Buy the Dip Before Fed Meeting

Nasdaq Surges as Traders Buy the Dip Before Fed Meeting

Stocks are rebounding as key earnings beat estimates and investors get comfortable with fewer rate cuts. The S&P 500 rose 2.7 percent between Friday, April 19, and Friday, April 26. The Nasdaq-100 jumped 4 percent. Those were the biggest weekly gains for both...

Chart of the Day: Does ARK Innovation Have Downside Risk?

Chart of the Day: Does ARK Innovation Have Downside Risk?

The ARK Innovation ETF has chopped in a range for the last two years, and some traders may expect a push back to longer-term lows. The first pattern on today’s chart is the rounded top in February and March. It was slightly below the peak of ... For more,...

Chip Selloff Hammers Growth Stocks. Is the AI Boom Over?

Chip Selloff Hammers Growth Stocks. Is the AI Boom Over?

Chip stocks like Nvidia led the market to new highs last earnings season. The opposite could be happening this time. The Philadelphia Semiconductor Index fell 9.2 percent between Friday, April 12, and Friday, April 19. It was the index's biggest weekly drop in almost...

Rates, Geopolitics Cast Gloom Before Earnings: Market Trends This Week

Rates, Geopolitics Cast Gloom Before Earnings: Market Trends This Week

Downloads are available here. TradeStation’s ideas on TradingView are available here. Register for Market Trends here. Sizing Up the S&P 500 S&P 500 has retraced about half its move since breaking 2022 high S&P 500 testing bullish gap from...

Energy Stocks Pull Back But Are Still Leading This Year

Energy Stocks Pull Back But Are Still Leading This Year

Energy stocks have led the market this year, and now they've pulled back. The S&P Select Energy SPDR fund (XLE) jumped to $98.97 last Friday -- the highest level in almost a decade. It pulled back this week and touched $93.73 before bouncing. That was just $0.04...

Options Alert: Traders Position for Potential Drop in Uranium Miner

Options Alert: Traders Position for Potential Drop in Uranium Miner

Uranium miner Cameco has been stuck at an old high, and one big options trader is bracing for a potential drop as earnings approach. This large transaction was detected yesterday in CCJ, unfolding in several blocks over the course of the afternoon: Some 30,000 May 45...

Dovish Fed and Strong Earnings Drive Stocks to Another Record

Dovish Fed and Strong Earnings Drive Stocks to Another Record

Stocks just had their best week of the year, thanks to a dovish Federal Reserve and strong earnings. The S&P 500 rose 2.3 percent between Friday, March 15, and Friday, March 22. It was the biggest gain since mid-December and followed two weeks of modest declines....

Is Inflation Making a Comeback as the Fed Looks to Cut Interest Rates?

Is Inflation Making a Comeback as the Fed Looks to Cut Interest Rates?

The stock market has been optimistic about inflation since late 2023, but price pressures may be returning as the Federal Reserve considers interest-rate cuts. The price of energy, shelter and materials have quietly risen in the last month. The increases follow months...

Stocks Hesitate as Inflation Returns Before the Fed

Stocks Hesitate as Inflation Returns Before the Fed

Stocks could be hesitating before a key Federal Reserve announcement on Wednesday. The S&P 500 slid 0.1 percent between Friday, March 8, and Friday, March 15. The index has lost value for two consecutive weeks, which hadn't happened since the current rally began...

Chart of the Day: Nvidia and the Midcap Breakout

Chart of the Day: Nvidia and the Midcap Breakout

Megacap growth stocks like Nvidia have outperformed for years. But traders looking for the trend to change may see more evidence of a shift. Today’s idea considers three charts. The first shows how NVDA rallied 93 percent this year above its previous record high. It...

Chart of the Day: Royal Caribbean May Be Attempting a Breakout

Chart of the Day: Royal Caribbean May Be Attempting a Breakout

Royal Caribbean Cruises has spent more than two months consolidating, but it may be getting ready to move again. The first pattern on today’s chart is the trendline along the closes of December 28 and January 31. RCL ended yesterday above it, which could make some...

Troubled Trio? Why These Megacaps Are Faltering in 2024

Troubled Trio? Why These Megacaps Are Faltering in 2024

The stock market is off to a roaring start in 2024, but three former leaders might be left behind. Apple (AAPL), Tesla (TSLA) and Alphabet (GOOGL) have dropped in recent weeks as the S&P 500 and Nasdaq-100 rallied to new highs. They're now below chart levels that...

New Highs Continue in the Stock Market as AI Boom Widens

New Highs Continue in the Stock Market as AI Boom Widens

Stocks keep rallying as investors look for the AI boom to drive earnings and the broader economy. The S&P 500 rose 0.9 percent between Friday, February 23, and Friday, March 1. The index closed above 5,100 for the first time. Technology led the advance. "We have...

Chart of the Day: Caterpillar Could Be Holding an Uptrend

Chart of the Day: Caterpillar Could Be Holding an Uptrend

Caterpillar broke out to new highs a month ago, and now some traders may think an uptrend is in place. The first pattern on today’s chart is the close on January 25. It was slightly above ... For more, please click here to view the related idea and chart analysis...

Nvidia’s AI Surge Lifts Stocks as Market Breadth Widens

Nvidia’s AI Surge Lifts Stocks as Market Breadth Widens

Nvidia and the AI boom keep driving stocks to new highs. Still, a long-awaited shift toward smaller companies may be starting. The S&P 500 rose 1.7 percent in the holiday-shortened week between Friday, February 16, and Friday, February 23. The index also crossed...

What Is Event Risk? Why Does It Matter? How Can it Be Managed?

What Is Event Risk? Why Does It Matter? How Can it Be Managed?

Investors face several kinds of risk in the stock market. Today we'll consider one of the most common: event risk. While some events are unexpected, many are known. Stocks often move around certain occurrences, like earnings reports, Federal Reserve meetings or...

Options Alert: Calls Surge After Chinese Travel Stock Reverses Off Lows

Options Alert: Calls Surge After Chinese Travel Stock Reverses Off Lows

Chinese stocks have struggled lately as tension grows between Washington and Beijing. However, at least one trader seems bullish on travel stock Trip.com. Heavy volume was detected in the November 38 calls, with more than 24,000 contracts changing hands for $0.15....

Options Alert: Call Spread Targets New Highs in AMD

Options Alert: Call Spread Targets New Highs in AMD

Advanced Micro Devices has climbed in the last two weeks, and options traders are looking for more gains through mid-November. Heavy volume was detected yesterday in two calls expiring next month. The trades occurred in dozens of blocks between about 1pm and 3pm ET....

Options Alert: Bulls Remain Active in Key Uranium Name

Options Alert: Bulls Remain Active in Key Uranium Name

Uranium miner Cameco has rallied along with the price of the radioactive metal, and at least one big options traders is looking for the move to continue. This unusual activity was detected yesterday in the Canadian company: 10,000 October 42 calls were purchased for...

Options Strategies for Earnings Season and Other Events

Options Strategies for Earnings Season and Other Events

Quarterly earnings and other important events have the potential to trigger sudden moves in stock prices. Call and put options can help investors manage the risk of these catalysts by positioning for directional moves or hedging against declines. Key strategies...

Options Alert: Two Giant Trades In Uber Technologies

Options Alert: Two Giant Trades In Uber Technologies

Uber Technologies has been steadily trending higher, and options traders seem to think the move will continue. Two large transactions appeared in the ride-sharing stock yesterday. Both were bullish, although one involved significant risk and the other was...

Options Alert: Large Put Spread Targets Key Level in Apple

Options Alert: Large Put Spread Targets Key Level in Apple

Apple has surged this year as Wall Street anticipates a new iPhone cycle and growth opportunities in India. But yesterday options traders looked for a pause. Check out this large transaction that occurred shortly after Monday's open: 20,000 4-August 180 puts traded...

Options Traders May Think Carnival Will Keep Sailing Higher

Options Traders May Think Carnival Will Keep Sailing Higher

Carnival is the top-performing member of the S&P 500 in June, and one big options trader may think it will keep sailing over the summer. Check out this unusual options activity yesterday in the cruise-ship operator: 20,000 August 16 calls traded for $0.83. 20,000...

Options Alert: Call Volume Grows as Salesforce.com Nears Highs

Options Alert: Call Volume Grows as Salesforce.com Nears Highs

Major technology stocks like Apple and Microsoft jumped on quarterly results. Will peer Saleforce.com make a similar move? Marc Benioff's provider of cloud-based marketing software is up 49 percent this year after a sharp selloff in 2022. It has paused over the last...

Diagnosing the Coronavirus Selloff: Just How Bad Is It?

Diagnosing the Coronavirus Selloff: Just How Bad Is It?

Editor's note: This article was originally published on February 25, 2020. Stocks continued their selloff on Tuesday as coronavirus spreads around the world. Here are some facts on what it means for your money. First, this pullback is now a "big one." The S&P 500...

One Bearish Story After Another Seems to Be Hitting Crude Oil

One Bearish Story After Another Seems to Be Hitting Crude Oil

Editor's note: This article was originally published on January 22, 2020. Energy may be resuming its downtrend as one bearish story after another piles up. Crude oil futures (@CL) are down for the third straight week. That's the longest losing streak since they last...

Is Inflation Peaking? Here Are Some Signs Prices May Be Cooling

Is Inflation Peaking? Here Are Some Signs Prices May Be Cooling

Inflation has plagued the stock market all year, especially with two searing reports last week. But there could be signs of the price spiral coming under control. The first sign of cooling inflation is the drop in gasoline prices. The American Automotive Association...

Chart of the Day: U.S. Dollar Is Breaking Major Levels

Chart of the Day: U.S. Dollar Is Breaking Major Levels

While everyone is focused on the meltdown in technology stocks and bond prices, the U.S. dollar is hitting even more historic levels to the upside. The U.S. Dollar Index started moving in late 2021 as the Federal Reserve got more hawkish. It accelerated after Russia...

What Are Stock Index Futures? This Guide to E-Minis Has Key Facts

What Are Stock Index Futures? This Guide to E-Minis Has Key Facts

Futures were invented to trade agricultural products like wheat, but they're now a key tool for stock investors. This article will cover some important points about the futures market for retail investors. TradeStation gives customers access to key futures products...

New 20-year Treasury Bond Futures Are Launching Today

New 20-year Treasury Bond Futures Are Launching Today

New 20-year Treasury bond futures start trading today, two years after the government launched the underlying securities. The new contracts will control $100,000 of face value, with quarterly expirations. Its symbol root will be TWE. The first contract is dated for...

Stock Market Breadth Was Weakening Even Before Friday’s Sharp Selloff

Stock Market Breadth Was Weakening Even Before Friday’s Sharp Selloff

Renewed coronavirus fears hammered stocks on Friday. But even before the selloff, key market internals were weakening. Technical analysts often study breadth, the aggregate behavior of stocks within key indexes. This can help assess the strength of a broader move. Is...

Megacaps Report This Week, But Small Caps Could Be Nearing a Breakout

Megacaps Report This Week, But Small Caps Could Be Nearing a Breakout

Giant Nasdaq stocks like Apple and Amazon.com report earnings this week, but another corner of the market could deserve some attention. The Russell 2000 ETF (IWM) has made a series of higher lows since mid-August. Some chart watchers may consider that a bullish...

Tesla and the VIX: Two Big Numbers Reached in Today’s Session

Tesla and the VIX: Two Big Numbers Reached in Today’s Session

Tesla and Cboe's volatility index -- the "fear gauge" -- closed at two important levels today. First, Elon Musk's electric-car maker ended the session at $893. That's slightly below the all-time record of $900.40 early this year. However it was the highest closing...

Technical Analysis: Small Caps Hold Their Ground as Other Stocks Crumble

Technical Analysis: Small Caps Hold Their Ground as Other Stocks Crumble

The Russell 2000 had a sharp rally in late 2020 and early 2021. Now it may be setting up for a similar move. Notice the triangle forming on the small cap index recently, which is interesting for two reasons. First, it shows that prices are squeezing into a range....

Is the S&P 500 Rolling Over? Check Out Today’s Technical Analysis

Is the S&P 500 Rolling Over? Check Out Today’s Technical Analysis

The S&P 500 has climbed for seven straight months. But it may face some near-term challenges as September gets underway. The main pattern on today’s chart is the resistance line running along the highs since mid-April. Notice how prices have stalled once again at...

Climbing a Wall of Worry, Stocks Just Did Something Highly Unusual

Climbing a Wall of Worry, Stocks Just Did Something Highly Unusual

The S&P 500 just did something highly unusual: It had two consecutive "outside days." That's when prices make a lower low and a higher high than the previous session. It's often considered a reversal pattern, which makes the activity so interesting. It was only...