Charts of the Week
Charts of the Week, published ahead of each week's open, features technical strategist Mike Paulenoff's video chart analysis of key markets and their ETFs or bellwether stocks to watch.
What Sector Charts Say About Economy
This week we look at the sectors of housing, retail, basic materials, transportation that reflect economic growth or contraction to see what they’re telling us about the economy and if there’s any reason or area in which to get aggressive in this market. Housing Sector Starting with housing, let’s take a look at the chart of the SPDR S&P Homebuilders (XHB). Not a very pretty picture. The 50-day is about to cross the 200-day, which is not a signal to do anything but watch.
Key Charts Ahead of Earnings
Catalysts for the market this week are earnings, which begin to be released Monday evening, and reaction to the weekend's news about the China trade surplus. In addition, there’s a potential vote on financial regulation that could affect bank stocks and a vote on extending unemployment benefits. China over the weekend announced its June trade surplus climbed to the highest level in six months.
Good, Bad & Ugly Charts
Tonight’s Charts of the Week video looks at how the emini S&P chart is set up for overnight trading in reaction to the G20 summit amid concerns that the summit succeeds in creating austerity measures that don’t cripple the economic recovery. It also looks at how key financial stock charts are set up to react to developments in the financial reform bill that could negatively impact these stocks.
How Commodity Charts Are Reacting, or Not, to China Currency News
News that China will re-value its yuan currency is viewed positively, of course, by world markets as it lowers inflation risk and exudes confidence about China’s growth picture. After an initial higher opening on Monday, what can be expected? The daily chart on the Shanghai is hardly a bullish chart, and in fact went down 3% on Friday.
Eye on Best Buy and FedEx, Plus Six Top Charts to Watch
There will be two significant earnings reports out this week. Best Buy Co. Inc. (BBY) will release their earnings before the market opens on Tuesday, and FedEx Corporation (FDX) will do so before the market opens on Wednesday. Beginning with Best Buy, it's not a bad-looking chart. It peaked in April with the market and looks like the S&P 500 and overall stock market.
