The Nasdaq is now higher 4 of the last 5 weeks and all four up weeks CLOSED at the top of the weekly range and all four gained more than 1%. It has been supported by some of the big names within such as AAPL and FB which have recently broke above bull flag formations. Keep in mind these two names have a huge impact on the composite as they make up 7.2 and 4.3% respectively. The Nasdaq is now higher 9.4% YTD and although early, is attempting a 7th yearly consecutive gain which has not happened in over 50 years. In observing longer term time frames this week we highlight three "old tech" plays, two longs and one short.
Looking at the Bollinger Bands one sees how strong the move has been as it CLOSED above the upper on Friday. This illustrates how powerful as the upper and lower lines are distanced two standard deviations away from the 20 day SMA. Would not be surprised to see a duplication of the January run, that saw it hug the upper line higher through almost the entire month.
Looking at a seasonality perspective June for the last few years tends to be a soft month as it has risen just 40% of the time, tied for the worst with January and March. Perhaps June will consolidate Fridays Nasdaq breakout as the correction through time continues, albeit abating. The good news is the July and August periods, typically though of as the summer doldrums has been a good performer closing higher than it opened 75% of the time. May, which just finished acted true to form as it finished higher 100% of the time since 2014.
https://stockcharts.com/freecharts/seasonality.php?symbol=%24COMPQ&compare=
"Old tech" play looks technically sound and has Frank Bisignano at the helm, who was Jaime Dimon's right hand man at JPM (and thought of a possible successor). Very taut coiling action suggests this could be ready for a potential big move higher.
The weekly look at FDC is offering great risk/reward as it held an 8 month long weekly double bottom breakout. Digesting 3 week winning streak that rose 28% weeks ending 4/27-5/11 very well, pulling back in light volume.
LOGI is a computer hardware play higher by 24% YTD and 13% over the last one year period and sports a dividend yield of 1.5%. Solid earnings momentum with back to back gains of 8.8 and 10.9% on 5/3 and 1/23.
The weekly look on LOGI demonstrates just how important the round 4o number has been. It reversed hard there the week ending 7/28/17 on the largest weekly volume in 4 1/2 years. It moved back above the week ending 1/26/18 but that was short lived.
The daily look on NCR is very bearish as it has basically sat on the sidelines as tech overall has acted very well. It sits 30% off most recent 52 week highs and is having issues with the round 30 number. Earnings momentum is horrible with FIVE negative reactions falling hard by 10.5, 8.8, 10.8, 8.3 and 8.3% on 5/2, 2/9, 10/20, 7/21 and 4/21/17.
Here is a weekly look at NCR. Volume trends are very bearish with one having to go back to the week ending 10/28/16 to witness an accumulation week. It has registered three double digit weekly losses since February.
If you liked what you read why not visit www.chartsmarter.com.
The Nasdaq is now higher 4 of the last 5 weeks and all four up weeks CLOSED at the top of the weekly range and all four gained more than 1%. It has been supported by some of the big names within such as AAPL and FB which have recently broke above bull flag formations. Keep in mind these two names have a huge impact on the composite as they make up 7.2 and 4.3% respectively. The Nasdaq is now higher 9.4% YTD and although early, is attempting a 7th yearly consecutive gain which has not happened in over 50 years. In observing longer term time frames this week we highlight three "old tech" plays, two longs and one short.
Looking at the Bollinger Bands one sees how strong the move has been as it CLOSED above the upper on Friday. This illustrates how powerful as the upper and lower lines are distanced two standard deviations away from the 20 day SMA. Would not be surprised to see a duplication of the January run, that saw it hug the upper line higher through almost the entire month.
Looking at a seasonality perspective June for the last few years tends to be a soft month as it has risen just 40% of the time, tied for the worst with January and March. Perhaps June will consolidate Fridays Nasdaq breakout as the correction through time continues, albeit abating. The good news is the July and August periods, typically though of as the summer doldrums has been a good performer closing higher than it opened 75% of the time. May, which just finished acted true to form as it finished higher 100% of the time since 2014.
https://stockcharts.com/freecharts/seasonality.php?symbol=%24COMPQ&compare=
"Old tech" play looks technically sound and has Frank Bisignano at the helm, who was Jaime Dimon's right hand man at JPM (and thought of a possible successor). Very taut coiling action suggests this could be ready for a potential big move higher.
The weekly look at FDC is offering great risk/reward as it held an 8 month long weekly double bottom breakout. Digesting 3 week winning streak that rose 28% weeks ending 4/27-5/11 very well, pulling back in light volume.
LOGI is a computer hardware play higher by 24% YTD and 13% over the last one year period and sports a dividend yield of 1.5%. Solid earnings momentum with back to back gains of 8.8 and 10.9% on 5/3 and 1/23.
The weekly look on LOGI demonstrates just how important the round 4o number has been. It reversed hard there the week ending 7/28/17 on the largest weekly volume in 4 1/2 years. It moved back above the week ending 1/26/18 but that was short lived.
The daily look on NCR is very bearish as it has basically sat on the sidelines as tech overall has acted very well. It sits 30% off most recent 52 week highs and is having issues with the round 30 number. Earnings momentum is horrible with FIVE negative reactions falling hard by 10.5, 8.8, 10.8, 8.3 and 8.3% on 5/2, 2/9, 10/20, 7/21 and 4/21/17.
Here is a weekly look at NCR. Volume trends are very bearish with one having to go back to the week ending 10/28/16 to witness an accumulation week. It has registered three double digit weekly losses since February.
If you liked what you read why not visit www.chartsmarter.com.