Bearing Fruit:

  • Certainly, I am not meaning that in a "bearish" way as I was WRONG recently looking at the name and its bearish filled-in candlestick but the damage was minimal with a tight stop just above it on its last earnings day from 5/3 (candle does not look that large and daunting as it did in our tech note that day than it does now on the daily chart below). With the last 2 day's surge (did CLOSE off intraday highs Wednesday), AAPL narrowly missed being the largest company on the planet again. Looking at it from longer time frames suggests this trend is back firmly higher whether this week's action has been accompanied by short covering, organic buying or both. The WEEKLY chart was higher 6 of the last 7 weeks before this week, and admire the break above the double bottom pivot of 195.96 from the week ending 1/26 which was a doji candle. On the MONTHLY chart playing Monday morning quarterback the doji candle in April that ended a 3-month losing streak was the canary in the coal mine. June still has a large way to go, but if the current candle stands could this be the start of a robust move, which last occurred with back-to-back long white hollowed candles in April 2020? Of course, no one knows and I am not saying to buy AAPL here. I am just saying this bodes well for overall markets with one of the largest stocks on Earth acting well.

New Kids on the Block:

  • Markets feel like a "risk on" flavor is back on the table after today's spirited session, and there are different ways to judge that. One could be the IPO ETF. It is a good sign if young companies are thriving, but truth be told the top 10 holdings in the fund are not fresh new issues, but remember these names are "immature" and need time to form viable patterns. Below is the daily chart of IPO and it trades in a very illiquid fashion, but it gives a good overall interpretation of how the names within are faring. These overall names are quite erratic, with a good example RBRK today, which had a nice initial reaction last night after REPORTING after the bell attempting to clear above a double bottom pivot of 37.50 but reversed hard falling 9% Wednesday (this name is not part of the top holdings and is still within a trading range between the round 30-40 numbers). Top component KVUE is weighing on the fund more than 30% off its most recent 52-week highs and today did not act in concert with the strong market today and is now slipping below a triple bottom pivot of 18.50, and the doji candle Monday was cause for optimism but that has to be dampened now. Others like COIN ARM HOOD and ONON are behaving better.

Recent Examples:

  • The social media names are coming to life once again. Peering at the MONTHLY chart of the SOCL it is now nearing its 50-MONTH SMA after a nice run from a triple bottom near 25 that started in late 2022 (notice the brutal 15 of 16 MONTH losing streak between July '21- October 2022). I will not opine on GME, and whether that is even a social media play, but others like PINS that we spoke of this month blasting off is 21-day EMA still look good. Remember to watch SNAP for the 16.75 double bottom pivot. Below is peer RDDT and how it appeared in our 5/31 Technology Note, and this one is volatile but if one can not get shaken out this is proving to be a potential big winner going forward. The stock is up 10.2% this week so far heading into Thursday and if that holds would be its second straight double-digit WEEKLY gain. We know the leaders will offer add-on buy points on the way UP and today it broke above a cup with handle pivot of 63.90. Wednesday also achieved its highest-ever daily CLOSE even though it finished 5% off intraday highs.

Special Situations:

Seagate Technologies:

  • "Old tech" play up 22% YTD and 64% over last one year period. Dividend yield of 2.7%.
  • Name 2% off most recent 52-week highs and looking for first WEEKLY CLOSE above very round par number in 27 months. On MONTHLY chart we see stock approaching cup base pivot of 107.44 in base that started in late 2021. Consistency seen in not recording back-to-back MONTHLY losses since October 2021.
  • Earnings reactions mostly higher up .7, 2 and 7.2% on 4/23, 1/24, and 7/26/23 and fell 1.9% on 10/26/23.
  • Enter on pullback into double bottom with handle breakout.
  • Entry STX 101.  Stop 96.50.

Flex:

  • Electric components play up 44% YTD and 64% over last one year period.
  • Name 7% off most recent 52-week highs and WEEKLY chart shows nice break above bull flag pivot that aligned with round 30 number which carries measured move to 42. Last 2 weeks have fallen but have held the vast majority of the 13.2% advance week ending 5/24.
  • Earnings reactions mixed up 5.5 and 10.9% on 2/1 and 10/26/23 and fell 8.1 and 4.5% on 5/1 and 7/27/23.
  • Enter with buy stop above bull flag.
  • Entry FLEX 33.  Stop 32.

Solaredge:

  • Solar weakling down 50% YTD and 84% over last one year period.
  • Name 84% off most recent 52-week highs and never good when one sees CFO step down. WEEKLY chart shows almost one full year of swimming near oversold 30 RSI number and notice last week recorded bearish engulfing candle after prior 3 weeks all CLOSED very taut and week ending 5/31 was a doji and prior 2 spinning tops.
  • FOUR straight negative earnings reactions off 8.5, 12.2, 4, and 18.4% on 5/9, 2/21, 11/2, and 8/2/23.
  • Enter short into failed retest of bear flag breakdown.
  • Entry SEDG 46.  Buy stop 51.

Good luck.

Entry summaries:

Buy pullback into double bottom with handle breakout STX 101.  Stop 96.50.

Buy stop above bull flag FLEX 33.  Stop 32.

Short into failed retest of bear flag breakdown SEDG 46.  Buy stop 51.

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Bearing Fruit:

  • Certainly, I am not meaning that in a "bearish" way as I was WRONG recently looking at the name and its bearish filled-in candlestick but the damage was minimal with a tight stop just above it on its last earnings day from 5/3 (candle does not look that large and daunting as it did in our tech note that day than it does now on the daily chart below). With the last 2 day's surge (did CLOSE off intraday highs Wednesday), AAPL narrowly missed being the largest company on the planet again. Looking at it from longer time frames suggests this trend is back firmly higher whether this week's action has been accompanied by short covering, organic buying or both. The WEEKLY chart was higher 6 of the last 7 weeks before this week, and admire the break above the double bottom pivot of 195.96 from the week ending 1/26 which was a doji candle. On the MONTHLY chart playing Monday morning quarterback the doji candle in April that ended a 3-month losing streak was the canary in the coal mine. June still has a large way to go, but if the current candle stands could this be the start of a robust move, which last occurred with back-to-back long white hollowed candles in April 2020? Of course, no one knows and I am not saying to buy AAPL here. I am just saying this bodes well for overall markets with one of the largest stocks on Earth acting well.

New Kids on the Block:

  • Markets feel like a "risk on" flavor is back on the table after today's spirited session, and there are different ways to judge that. One could be the IPO ETF. It is a good sign if young companies are thriving, but truth be told the top 10 holdings in the fund are not fresh new issues, but remember these names are "immature" and need time to form viable patterns. Below is the daily chart of IPO and it trades in a very illiquid fashion, but it gives a good overall interpretation of how the names within are faring. These overall names are quite erratic, with a good example RBRK today, which had a nice initial reaction last night after REPORTING after the bell attempting to clear above a double bottom pivot of 37.50 but reversed hard falling 9% Wednesday (this name is not part of the top holdings and is still within a trading range between the round 30-40 numbers). Top component KVUE is weighing on the fund more than 30% off its most recent 52-week highs and today did not act in concert with the strong market today and is now slipping below a triple bottom pivot of 18.50, and the doji candle Monday was cause for optimism but that has to be dampened now. Others like COIN ARM HOOD and ONON are behaving better.

Recent Examples:

  • The social media names are coming to life once again. Peering at the MONTHLY chart of the SOCL it is now nearing its 50-MONTH SMA after a nice run from a triple bottom near 25 that started in late 2022 (notice the brutal 15 of 16 MONTH losing streak between July '21- October 2022). I will not opine on GME, and whether that is even a social media play, but others like PINS that we spoke of this month blasting off is 21-day EMA still look good. Remember to watch SNAP for the 16.75 double bottom pivot. Below is peer RDDT and how it appeared in our 5/31 Technology Note, and this one is volatile but if one can not get shaken out this is proving to be a potential big winner going forward. The stock is up 10.2% this week so far heading into Thursday and if that holds would be its second straight double-digit WEEKLY gain. We know the leaders will offer add-on buy points on the way UP and today it broke above a cup with handle pivot of 63.90. Wednesday also achieved its highest-ever daily CLOSE even though it finished 5% off intraday highs.

Special Situations:

Seagate Technologies:

  • "Old tech" play up 22% YTD and 64% over last one year period. Dividend yield of 2.7%.
  • Name 2% off most recent 52-week highs and looking for first WEEKLY CLOSE above very round par number in 27 months. On MONTHLY chart we see stock approaching cup base pivot of 107.44 in base that started in late 2021. Consistency seen in not recording back-to-back MONTHLY losses since October 2021.
  • Earnings reactions mostly higher up .7, 2 and 7.2% on 4/23, 1/24, and 7/26/23 and fell 1.9% on 10/26/23.
  • Enter on pullback into double bottom with handle breakout.
  • Entry STX 101.  Stop 96.50.

Flex:

  • Electric components play up 44% YTD and 64% over last one year period.
  • Name 7% off most recent 52-week highs and WEEKLY chart shows nice break above bull flag pivot that aligned with round 30 number which carries measured move to 42. Last 2 weeks have fallen but have held the vast majority of the 13.2% advance week ending 5/24.
  • Earnings reactions mixed up 5.5 and 10.9% on 2/1 and 10/26/23 and fell 8.1 and 4.5% on 5/1 and 7/27/23.
  • Enter with buy stop above bull flag.
  • Entry FLEX 33.  Stop 32.

Solaredge:

  • Solar weakling down 50% YTD and 84% over last one year period.
  • Name 84% off most recent 52-week highs and never good when one sees CFO step down. WEEKLY chart shows almost one full year of swimming near oversold 30 RSI number and notice last week recorded bearish engulfing candle after prior 3 weeks all CLOSED very taut and week ending 5/31 was a doji and prior 2 spinning tops.
  • FOUR straight negative earnings reactions off 8.5, 12.2, 4, and 18.4% on 5/9, 2/21, 11/2, and 8/2/23.
  • Enter short into failed retest of bear flag breakdown.
  • Entry SEDG 46.  Buy stop 51.

Good luck.

Entry summaries:

Buy pullback into double bottom with handle breakout STX 101.  Stop 96.50.

Buy stop above bull flag FLEX 33.  Stop 32.

Short into failed retest of bear flag breakdown SEDG 46.  Buy stop 51.