Are you Drawing your Lines on these major indices?
Click on the you tube video analysis below.
This video includes a follow up to many of the stocks we have been following.
Click on the You Tube Video Analysis Below
Amazon (AMZN) & Baidu (BIDU) Are you trading these two stocks? You don’t want to miss this analysis.
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Traders we have a real treat for you in this blog. Over here at TheBrownReport.com we are beta testing our new video service so just click on the link or youtube picture below and take a look at the new market analysis videos.
Video 1 analysis of the S&P 500 and the XLF Financials.
Video two: Low Price High Pay out watch list for the week.
Enjoy the new Videos.
Traders this stock is technically sound and ready to go. In this edition of The Brown Report I want to you to understand how different technicals, different charts, and different time frames can help you frame your analysis. Here’s how to use a “a base, volatility squeeze, break out, pull back and flag pattern”
Here we’re looking at Devon Energy “DVN.” First things first, Devon Energy has formed a base (i.e. traded sideways) since mid October (that’s a good 6 months). The stock came into a volatility squeeze and then broke out forming the “Flag Pole” as noted on the chart.
From the break out the stock has pulled back to roughly the middle of the price range from when it initially broke out forming the “Flag” blowing in the wind. This is also known as a retracement. It is not uncommon for stocks to have a 50% retracement (to the middle of the original break out) before resuming its uptrend.
In this second Chart of the same stock I chose to zoom out to a weekly view. With no annotations on the chart, I wanted you to be able to see where the stock came from (roughly the $93 range), so you can have an idea of where it could possibly return to.
here’s some homework, see if you can spot on the weekly chart the flag pole, the flag, and the uptrend resuming.
-Side note when a stock has the same setup on the weekly chart as it does on the daily chart, that is a strong pattern and usually means your right on time to the party-
Can you say “what the Financials.” staying in tune with the market is why you want to have access to The Brown Report and you will see why after this analysis of the Financials.
The Financials really broke out today and if you have been setting alerts like we have been talking about, then your phone and email were ringing off the charts today.
So let’s start with the Direxion Daily Financial Bull (ticker symbol FAS). This will be somewhat of an advance analysis but stick with me here. Below is a snap shot of the “FAS.”
The “FAS”/Direxion Daily Financial Bull is a Fund that targets the Financial Services Index of the Russell 1000 index that measures the performance of the securities classified in the financial services sector of the large cap U.S. equity market. (In lam en’s terms it is an index that measures only the financial stocks out of the 1,000 the are included in the Russell 1000).
So why is this important, well as you can see the “FAS really broke out today on heavy volume. So you can guess what that means, there were probably a lot of financial stocks breaking out today so lets take a look at some charts.
See our previous analysis on “BEN” and you will see why this stock is the gift that keeps on giving.
Goldman since the beginning of the year has been in an uptrend. A little sideways consolidation before the break out is always nice to see. looks like this one has more room to run.
Even JP Morgan Chase came to the party.
Last but not least Bank of America showed up to the party as well.
Notice a theme here? The index that measures the financial stocks broke out and thus we were able to find four of many financial stocks that broke out ranging from $100+ to as low as $8 bucks. Trades can be found no matter how small or large your account is.
This trend line analysis on AVB was so dead on, I felt we should reblog it.
There are a lot of great opportunities in the market. Here’s a few that caught my eye based purely on technical analysis and set-up that are worth watching if nothing else.
First up AvalonBay (AVB) classic technical buy on a bounce of the uptrend line.
3M Company (MMM) in a tight volatility squeeze. Set alerts when you see a squeeze this tight.
Computer Programs & Systems (CPSI) Looking to recover from November’s Gap down, stock coming into a Bollinger Band Pinch.