This Healthcare Stock Looks Poised to Play Catch Up with a Big Breakout

Printer Friendly Format (charts print better in landscape)

Printer Friendly Format (charts print better in landscape)

MarketVision 2020 is an online conference featuring John Murphy, Arthur Hill and several other analysts from StockCharts. There are several free webinars leading up to the event. Click here to learn more and pre-register for free.

Chartists looking for winning stocks should start with leading sectors and industry groups. Having a sector or industry tailwind can greatly improve the odds for a winning trade or investment.

Looking at the sector charts and sector performance, the Healthcare SPDR (XLV) stands above the rest. First, the ETF hit a new 52-week high in late November and price is well above the rising 200-day. Second, XLV is by far the biggest gainer here in the fourth quarter with an 10.67% gain. Healthcare is in a strong uptrend and showing relative strength.

With the Healthcare sector providing a nice tailwind, I decided to scroll through the component charts looking for bullish setups and breakouts. It was not long before I came across Eli Lilly (LLY). On the chart below, the stock sports a classic two steps forward, one step backward and breakout sequence. Notice how the stock advanced 75% (two steps forward) and then retraced 50% with a falling wedge (one step backward). LLY broke wedge resistance and the 40-week SMA over the last three weeks.

Note that Eli Lilly (LLY) was featured on November 16th and 23rd in our Weekend Stock Setups, which is a vailable to subscribers.

Grouping and Ranking Core ETFs – Stocks Show Vulnerability as Money Moves into Alternatives

By Arthur Hill, CMT

The market finally showed a vulnerable side this week with a sharp pullback on Monday and Tuesday. A corrective period at this stage would be perfectly normal because stocks were up sharply in October and November. We also saw several flag breakouts fail. These failures are not enough to affect the long-term trends

Grouping and Ranking Core ETFs – Stocks Show Vulnerability as Money Moves into Alternatives Read More »

Three Leading Stocks within the Payments Space – And Three Poised to Hit New Highs

By Arthur Hill, CMT

The Mobile Payments ETF (IPAY) came to life in November with Square leading the chart. SQ, however, is not the chart leader. This post will identify three chart leaders and highlight three that look poised for new highs by yearend.

Three Leading Stocks within the Payments Space – And Three Poised to Hit New Highs Read More »

‘Tis the Season for Mobile Payments

By Arthur Hill, CMT

Black Friday weekend is here and the holiday shopping season is just getting started. While I have no clue which retailers will be the big winners or losers this season, the mobile payments industry is likely to be a big winner.

‘Tis the Season for Mobile Payments Read More »

Weekend Video and ChartBook

By Arthur Hill, CMT

This post features the weekend video that walks you through the the 60 ETFs in the core chart list. I also example on the daily S&P 500 chart and the indicators used to define the short-term uptrend.

Weekend Video and ChartBook Read More »

Market Timing Models – Smalls, Mids and Equals Come to Life as Bull Market Broadens

By Arthur Hill, CMT

Uptrends and new highs are bullish. Sorry, but there is no other interpretation. We can debate the degree of bullishness, we can debate overbought conditions and we can debate non-confirming indicators.

Market Timing Models – Smalls, Mids and Equals Come to Life as Bull Market Broadens Read More »

Grouping and Ranking Core ETFs – SPY, QQQ and Tech ETFs Lead Extension – Flag Breakouts Trigger

By Arthur Hill, CMT

The bull market continues to broaden with 23 of 53 equity-related ETFs hitting new highs (56%) this week. Thus, more than half of the equity ETFs hit new highs and this shows broad strength in the stock market. Note that there are 60 ETFs in the “core” list and just 7 are non-equity

Grouping and Ranking Core ETFs – SPY, QQQ and Tech ETFs Lead Extension – Flag Breakouts Trigger Read More »

Big Banks Hold Big Breakouts and this Laggard May Play Catchup

By Arthur Hill, CMT

Several finance-related ETFs and stocks broke out with big moves from early October to early November. Many of these then stalled over the last two weeks and this rest could be the pause that refreshes. Today we will look at performance for the finance-related ETFs and the bull flags taking shape in three banking stocks

Big Banks Hold Big Breakouts and this Laggard May Play Catchup Read More »

There is (almost) Always Cause for Concern

By Arthur Hill, CMT

The S&P 500 SPDR and Nasdaq 100 ETF recorded new all time highs this past week, while the S&P MidCap 400 SPDR hit a new 52-week high in November. Sounds bullish, but the S&P SmallCap 600 SPDR and Russell 2000 ETF are still well below their 2018 highs, even though they are very close to 52-week highs. Which index ETFs tell the real story here?

There is (almost) Always Cause for Concern Read More »

Video, ChartBook Update and ChartNotes

By Arthur Hill, CMT

This post features chart notes on recent developments in our core ETF list, an update to the ETF ChartBook and a video covering all 60 core ETFs. Today I am singling out four ETFs to watch closely because they look poised to move.

Video, ChartBook Update and ChartNotes Read More »

Weekend Setups and Stocks to Watch – a Big Bank, a High-Tech Industrial, a Miner and More

By Arthur Hill, CMT

Today we have a mixed of old and new. Some setups from prior weeks are still in play and near their breakout zones. Four of these are in the Healthcare sector, which is the hottest sector in the market right now.

Weekend Setups and Stocks to Watch – a Big Bank, a High-Tech Industrial, a Miner and More Read More »

Market Timing Model – Small-caps Soften as Large-caps Hold Strong

By Arthur Hill, CMT

The sky is falling as the S&P 500 fell a whopping .5% the last four days. Small-caps and mid-caps were hammered as the S&P SmallCap 600 SPDR fell 1% so far this week and the S&P MidCap 400 SPDR declined 1.3%. I am sure that there are probably some good reasons for these miniscule moves. Heck, there are always reasons.

Market Timing Model – Small-caps Soften as Large-caps Hold Strong Read More »

Trend, Pattern, Group and Rank for Core ETFs – Breakouts, Mean-reversion Bounces and lots of Flags

By Arthur Hill, CMT

There is broad strength in the equity-related ETFs with leadership coming from large-caps (SPY, QQQ), tech-related ETFs (IGV, SKYY) and even some more defensive names (XLP, USMV). Other defensive names extended their oversold bounces this week with XLU and XLRE moving higher. Stock alternatives

Trend, Pattern, Group and Rank for Core ETFs – Breakouts, Mean-reversion Bounces and lots of Flags Read More »

Sample Weekend Video and Chart Notes

By Arthur Hill, CMT

The left button links to a sample ChartBook with more than 60 annotated charts. This ChartBook is updated very week.

Sample Weekend Video and Chart Notes Read More »

The Offense has Taken the Field:
Here are Three Signs

By Arthur Hill, CMT

The character of the stock market changed over the last six to seven weeks as the market took on a more offensive tone. Stocks were already in bull mode, but we are now seeing stocks outperforming bonds. In addition, momentum and offensive sectors are leading.

The Offense has Taken the Field:
Here are Three Signs Read More »

Video, ChartBook Update and ChartNotes

By Arthur Hill, CMT

This post features chart notes on recent developments in our core ETF list, an update to the ETF ChartBook and a video covering all 60 core ETFs. Today’s video also shows what to watch for the short-term uptrend and covers oil.

Video, ChartBook Update and ChartNotes Read More »

New Highs Expand within Small-caps

By Arthur Hill, CMT

New highs expanded in the small-cap universe over the last few weeks and this indicates that the bull market is broadening. This post will first look at the high-low pairs for the S&P indexes and then apply a 20-day SMA to show the improvement in new highs over the last few weeks.

New Highs Expand within Small-caps Read More »

Market Timing Model Update and A Few Things NOT to Worry About

By Arthur Hill, CMT

The S&P 500 SPDR was never in trouble this year and the Russell 2000 ETF was never up less than 8% year-to-date. Small-caps surged out of the gate with IWM gaining around 17% the first two months of the year. This amalgamation of 2000 stocks then embarked on a long consolidation with a slight downward bias the next six months.

Market Timing Model Update and A Few Things NOT to Worry About Read More »

Ranking and Grouping ETFs – High and Tight Flags – Utes, REITs and Gold Become Oversold

By Arthur Hill, CMT

The bull market continues to broaden as more money moves into offensive ETFs than defensive ETFs. Momentum is outperforming Minimum Volatility ETF over the last six weeks. The S&P 500 SPDR and Nasdaq 100 ETF hit new highs while the Gold SPDR and 20+ Yr Treasury Bond ETF fell further.

Ranking and Grouping ETFs – High and Tight Flags – Utes, REITs and Gold Become Oversold Read More »

Small-Caps Come Alive, but Microcaps Fall Short

By Arthur Hill, CMT

The Russell 2000 ETF is in the nascent stages of an uptrend, but the Russell Microcap ETF is still short of a breakout. The Russell 1000 ETF left both behind over the last few months with a steady uptrend and continued leadership.

Small-Caps Come Alive, but Microcaps Fall Short Read More »

Video, ChartBook Update and ChartNotes

By Arthur Hill, CMT

This post features chart notes on recent developments in our core ETF list, an update to the ETF ChartBook and a video covering all 60 core ETFs. Note that the video also covers some of the key charts from Friday’s commentary.

Video, ChartBook Update and ChartNotes Read More »