- Posted by Greg Harmon on July 27th, 2016 at 7:15 am
For at least two weeks technology and services names have been topping the proprietary bull scan. So it should come as no surprise when you look at the chart of the Semiconductor Index. It is now overcoming the pullback that started in June last year and launching higher. And there are many indications in the chart that it is just getting started.
Lets start with the price action itself. the last bar in the monthly chart below shows the break above the June 2015 high. It also shows (with 3 trading days left) that the month may close at the high in a long body, Marubozu candle. This is a bullish indicator in itself.
Breaking above the June 2015 high triggers the 3 Drives pattern which gives a target to 1000 on the Index. And then there is a Shark harmonic pattern that carries a Potential Reversal Zone (PRZ) at about 1175.
Momentum indicators are also bullish. The RSI pulled back from a slightly overbought condition to hold at the mid line. For the past 5 months it has been moving back higher in the bullish zone. The MACD also had pulled back. But it held above zero and is turned back higher. This month or next it will cross up, a buy signal. Finally the Bollinger Bands® are opening to the upside after a squeeze.
With all these indications lining up the Semiconductor Index has the potential for a lot of movement higher. Technology stocks may dominate the bull scan for some time to come.
Dragonfly Capital is expanding its normal Mid Summer Sale. Instead of the normal 10% off an Annual Subscription, you can now get 20% off of the first year! That is only $499 for the first year! This offer will not be around past the weekend though. Don’t miss out. Sign up here.
Scarry Thoughts and Trade Ideas for Apple Earnings
Posted by Greg Harmon on July 26th, 2016 at 12:01 pm
I don’t know what all the bother is about a new Apple Car. Richard Scarry created this apple car in the 1970’s in Busy Town, […]
Signs of a Gold Bottom
Posted by Greg Harmon on July 26th, 2016 at 7:15 am
Gold has gotten many investors excited this year. And with good reason. Since the beginning of the year it has risen over $300. The first […]
6 Trade Ideas for McDonald’s Earnings to Super Size Your Portfolio
Posted by Greg Harmon on July 25th, 2016 at 1:01 pm
McDonald’s ($MCD) came out of a 7 month long channel in October last year when the company announced it would start serving breakfast all day […]
Top Trade Ideas for the Week July 25, 2016: Bonus Idea
Posted by Greg Harmon on July 25th, 2016 at 7:30 am
Here is your Bonus Idea with links to the full Top Ten: Blackrock, $BLK, stock went through a big ‘W’ from its high in February […]
Top Trade Ideas for the Week of July 25, 2016: The Rest
Posted by Greg Harmon on July 24th, 2016 at 12:09 pm
5 Trade ideas excerpted from the detailed analysis and plan for premium subscribers Here are the Rest of the Top 10: Advance Auto Parts, Ticker: […]
SPY Trends and Influencers July 23, 2016
Posted by Greg Harmon on July 23rd, 2016 at 9:02 am
A weekly excerpt from the Macro Review analysis sent to subscribers on 10 markets and two timeframes. Last week’s review of the macro market indicators […]
How This Week’s Top 10 Performed, July 22, 2016
Posted by Greg Harmon on July 22nd, 2016 at 4:08 pm
Every month following Options Expiration I post performance metrics of the Dragonfly Capital Model Portfolio. This includes all trades that I entered over time. What […]
Mid Summer Sale Gets Bigger!
Posted by Greg Harmon on July 22nd, 2016 at 7:23 am
Lonnie and Jason are getting it started. It is time for you to join in. Cleveland has been hot, hot, hot! From the Cavaliers winning […]
Prepping for GE Earnings for the Holder, Speculator and Opportunist
Posted by Greg Harmon on July 21st, 2016 at 12:30 pm
These types of trades are discussed with premium members and offered as part of the premium product every day. If you want to be a […]
Gregory W. Harmon CMT, CFA, has traded since 1986 and held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
- Flying Semiconductors are About to Soar
- Scarry Thoughts and Trade Ideas for Apple Earnings
- Premium Earnings 7-26-16: Twitter and US Steel
- Signs of a Gold Bottom
- 6 Trade Ideas for McDonald’s Earnings to Super Size Your Portfolio
- Premium Earnings 7-25-16: Freeport McMoRan and Under Armour
- Top Trade Ideas for the Week July 25, 2016: Bonus Idea
- Top Trade Ideas for the Week of July 25, 2016: The Rest
- Top Trade Ideas for the Week of July 25, 2016: The Rest Premium
- Top Trade Ideas for the Week of July 25, 2016: The Best