Chart Review: Stock Recoveries, Critical Resistance, and Emerging Breakouts

The current extended overbought period has produced many amazing chart patterns. In this chart review, I am highlighting some charts I find particularly interesting and compelling. There are impressive recoveries, stocks dancing with critical resistance, and emerging breakouts. Some charts are quite telling in that they completely contradict the presumed economic disaster from an imminent … Read more

Trading Implications of Intel’s Recent Outperformance

This is an excerpt from an article I originally published on Seeking Alpha on November 27, 2011. Click here to read the entire piece.) So much for putting recession fears in the rearview mirror. On October 28, I pointed to 3-year highs for Intel (INTC) as another bullish indicator among many (see “A Very Bullish … Read more

T2107 Flashes A Major Bearish Warning

On May 15, 2006, I wrote a piece called “Evidence of A Tiring Bull.” I used T2107, the percentage of stocks trading above their 200-day moving averages (DMAs), to make the strong claim that the three-year old bull market was nearing an end. T2107 had been in decline for two years, and I projected the … Read more

Microsoft and Intel Continue to Diverge

I was clearly far too early in restarting a pairs trade short Microsoft (MSFT) and long Intel (INTC). Over the past two months, the performance of MSFT has steadily improved, while Intel’s performance has steadily worsened. The MSFT/INTC ratio is now at 10 month highs. Source: stockcharts.com Typically, I would look at this divergence and … Read more

Intel Maintains Its Trading Advantage Over Microsoft

Intel (INTC) and Microsoft (MSFT) have been tech laggards for some time now. However, over the past week, both stocks finally breached the all-important 200-day moving average (DMA) line of resistance (charts at the end of this piece). While MSFT is struggling to add to its small post-earnings gains, INTC has completely reversed the post-earnings … Read more

Intel Still Cannot Catch A Break

The post-earnings selling in Intel (INTC) has become uncanny in its consistency. Four out of the last six earnings reports have resulted in selling even as INTC’s headline earnings news has generally been OK to good. Three of the four bouts of selling followed immediately after INTC opened its first post-earnings trading day higher. This … Read more

ADBE’s Surge Validates Post-Earnings Call-Buying

Adobe Systems, Inc. (ADBE) surged as high as 17% today after news leaked about a private meeting between ADBE and Microsoft (MSFT) company executives. The most salient rumor surrounding this meeting is that MSFT is considering acquiring ADBE in addition to other strategic options for going after Apple’s (AAPL) dominance in the mobile device market. … Read more

Intel Advantage Over Microsoft in A Pairs Trade

Ever since my friend “Mr. Bull” gave me a ribbing over writing a bearish piece on Intel (INTC) the day before a strong one-day rally, we have used Intel as a metaphor for whether the bulls or the bears are in control of the market. For the five weeks since then, INTC has gone nearly … Read more

Intel Confirms the Market’s Pessimism

We finally got the news on INTC that the market appears to have long anticipated. This morning, Intel (INTC) lowered revenue and margin guidance. Revenue guidance is now “…$11.0 billion, plus or minus $200 million, compared to the previous expectation of between $11.2 and $12.0 billion.” Margin guidance is “…now 66 percent, plus or minus … Read more