In this edition of the GoNoGo Charts show, Alex takes a top-down approach to analyzing the markets using GoNoGo Charts unique approach. He shows how the major asset classes are performing, then looks at the macro factors that affect the equity markets. Treasury rates, gold, oil and the dollar all help inform the investor. Diving into the equity markets, Alex uses the GoNoGo Sector RelMap to show how the growth sectors are helping to keep the overall market in its “Go” trend. After looking at the relative GoNoGo Charts of XLK and XLC, Alex walks through several single securities such as META, AAPL, NVDA, and SHOP to look for strong trends and possible opportunities. Finally, he takes a look at the cryptocurrency environment.

This video was originally recorded on May 25, 2023. Click this link to watch on YouTube. You can also view new episodes – and be notified as soon as they’re published – using the StockCharts on demand website, StockChartsTV.com, or its corresponding apps on Roku, Fire TV, Chromecast, iOS, Android, and more!

New episodes of GoNoGo Charts air on Thursdays at 3:30pm ET on StockCharts TV. Learn more about the GoNoGo ACP plug-in with the FREE starter plug-in or the full featured plug-in pack.

On this week’s edition of Stock Talk with Joe Rabil, Joe tries to simplify the ADX indicator by showing how it will help to determine what you should be doing – pullback or breakout. He then explains how to use these tools in multiple timeframes to improve timing and lower risk. Joe presents a sector grid with RS in ACP, which can be very useful. He then covers the stock symbol requests that came through this week, including AMD, KO, and more.

This video was originally broadcast on May 25, 2023. Click this link to watch on YouTube. You can also view new episodes – and be notified as soon as they’re published – using the StockCharts on demand website, StockChartsTV.com, or its corresponding apps on Roku, Fire TV, Chromecast, iOS, Android and more!

New episodes of Stock Talk with Joe Rabil air on Thursdays at 2pm ET on StockCharts TV. Archived episodes of the show are available at this link. Send symbol requests to stocktalk@stockcharts.com; you can also submit a request in the comments section below the video on YouTube. Symbol Requests can be sent in throughout the week prior to the next show. (Please do not leave Symbol Requests on this page.)

Shares of Nvidia (NVDA) soared today after the company reported earnings that were well above estimates. Most impressive however, was the company’s estimates for next quarter’s revenues which was more than 50% above Wall Street estimates. NVDA cited surging demand for its chips that help with artificial intelligence applications and the stock is poised to trade higher. Subscribers to my MEM Edge Report will be familiar with NVDA as we added to our Suggested Holdings List last January where it has remained.

In addition to Nvidia, those wanting to participate in the AI driven growth trend can look to companies that provide products to this clear cut leader.  Taiwan Semiconductor (TSM) is one such company.  As the most advanced chipmaker in the world, they  manufacture the chips used by NVDA and TSM gets a cut of whatever Nvidia makes.

DAILY CHART OF TAIWAN SEMICONDUCTOR (TSM)

Taiwan Semiconductor (TSM) Gapped up 12% on very heavy volume today. The high volume indicates that the stock is being accumulated and it often points to further upside.

Netherlands based Semiconductor Equipment manufacturer ASML (ASML) is the only company in the world that can make its extreme ultraviolet (EUV) lithography machine. This tool is required by companies such as TSM and other chipmakers in the AI space. ASML broke out of a 4-month base on heavy volume today. Base breakouts often precede lengthier uptrends and the longer the base, the longer the advance out of that base.

DAILY CHART OF ASML HOLDING (ASML)

With each of these companies being in the Semiconductor industry, you’ll want to keep an eye on a Semiconductor ETF such as SOXX. In the chart below, you’ll see positive momentum in the group with a positive RSI and MACD as well. Semi stocks are highly cyclical and can pull back amid any hints of an economic slowdown. A break below the 50-day moving average coupled with a negative RSI or MACD would indicate a reversal of the current uptrend.

DAILY CHART OF iSHARES SEMICONDUCTOR ETF

Warmly,

Mary Ellen McGonagle, MEM Investment Research

*This article was published earlier today at SimplerTrading.com

In this edition of the GoNoGo Charts show, Alex takes a top-down approach to analyze the markets using GoNoGo Charts’ unique approach. Alex shows how the major asset classes are performing, then looks at the macro factors that effect the equity markets. Treasury rates, gold, oil and the dollar all help inform the investor. Diving into the equity markets, Alex uses the GoNoGo Sector RelMap to show how the growth sectors are helping to keep the overall market in its “Go” trend. After looking at the relative GoNoGo Charts of XLK and XLC, Alex walks through several single securities, such as META, AAPL, NVDA, and SHOP to look for strong trends and possible opportunities. Finally, he takes a look at the cryptocurrency environment.

This video was originally recorded on May 25, 2023. Click this link to watch on YouTube. You can also view new episodes – and be notified as soon as they’re published – using the StockCharts on demand website, StockChartsTV.com, or its corresponding apps on Roku, Fire TV, Chromecast, iOS, Android, and more!

New episodes of GoNoGo Charts air on Thursdays at 3:30pm ET on StockCharts TV. Learn more about the GoNoGo ACP plug-in with the FREE starter plug-in or the full featured plug-in pack.

SPX Monitoring Purposes: Long SPX on 2/6/23 at 4110.98.

Monitoring Purposes GOLD: Long GDX on 10/9/20 at 40.78.

Long Term SPX Monitor Purposes: Neutral.

Yesterday, we said, “We posted the TRIN and TICK closing readings on the chart that reached panic levels. Most of the panic readings were reached in the 405 to 410 SPY range, which, in turn, suggests support. The more panic in a region, the more fuel the market has for the next rally. Panic is present when the TRIN closes above 1.20 and the TICK closes below -200. We put the Fibonacci levels on the chart up from the March low. So far, the largest retracement has been near the 38.2%, which suggests the current sideways move is at the halfway point of the move up. If you do the math, that gives a target near 445 SPY range, which about 6% higher.”

Added to the above, we had support previously near the 417.50 range, which was the May high. There are more price highs near the 415 range, which is turn suggests stronger support. We noted the “Sign of Strength” through the 415 SPY level, which suggests a confirmed breakout of that level. Today, the SPY tested that level on lighter volume, which suggests support. The uptrend appears intact.

We updated this chart from last Thursday, when we said, “the middle window is the 2-period moving average of the VVIX/VIX ratio. This ratio is also for good for finding negative divergence near highs in the SPX. A negative divergence is present when the VVIX/VIX ratio makes a lower high while SPX makes a higher high. We pointed out the previous divergences on chart above with red arrows. What we like to point out is that SPX has moved sideways since February while the VVIX/VIX ratio has made higher highs, and we regard this as a positive divergence. It appears that the VVIX/VIX ratio leads the way for the SPX, suggesting higher highs will be seen in the SPX.”

Added to the above, the market is heading into Memorial Day weekend, with markets closed this coming Monday. Most likely, volume will drop as Friday approaches and validity becomes less. Not seeing signs of a worthwhile high here.

Tim Ord,

Editor

www.ord-oracle.com. Book release “The Secret Science of Price and Volume” by Timothy Ord, buy at www.Amazon.com.

Signals are provided as general information only and are not investment recommendations. You are responsible for your own investment decisions. Past performance does not guarantee future performance. Opinions are based on historical research and data believed reliable; there is no guarantee results will be profitable. Not responsible for errors or omissions. I may invest in the vehicles mentioned above.

Hershey’s stock has pulled back. If you missed a previous opportunity to own the stock, this may be your second chance. Explore a few simple technical analysis tools that can help determine if the stock presents a buying opportunity.

Are you bummed out that you missed a stock trading opportunity? Upward-trending stocks don’t always go up. They’re known to pull back, and sometimes the price action at the pullback could give you a second chance.

As an example, Hershey Foods Corp. (HSY) rallied from January 2023 to May 2023. The StockCharts Technical Ranking (SCTR) for HSY has, for the most part, been above 70 for a few months. It’s important to note that, since the SCTR crossed above 70 in April, it has managed to stay above the 70 level even after the stock price pulled back. The stock is also performing well relative to the S&P 500 index ($SPX).

CHART 1: DAILY CHART OF HERSHEY STOCK. The stock price is bouncing off its 50-day moving average. If the support level holds, the stock could reach a high of around $276.Chart source: StockCharts.com (click on chart for live version). For illustrative purposes only.

Hershey’s stock has had an interesting ride, reaching a high of $275.81 on May 1. Consumer demand for chocolates and other sweet and salty snacks has increased, as indicated in the company’s recent earnings calls. Plus, the company pays dividends to its shareholders. Check out the Symbol Summary tool in the StockCharts charting platform for dividend info.

Zeroing In: Daily Price Action in HSY Stock

Since reaching its May high, the stock has traded sideways in a narrow range for a couple of weeks until it sold off, bringing its price close to its 50-day moving average (MA).

If the support of this moving average holds, the stock could bounce back and revisit its highs.If the SCTR stays above 70 and the stock’s relative performance against the S&P 500 continues to be strong, there’s a chance HSY could move higher. So, if you missed out on the earlier rally, this could be another opportunity.

The downside: The stock could move lower to its 100-day MA. If the SCTR and relative strength drop, any reversal of the downward trend would be void for a while. Things can always change.

A Weekly Perspective of HSY Stock

The weekly chart of HSY shows that the upward trend is still in play. It helps to look at the last two occasions when the SCTR experienced sharp dips below the 70 level. In both those instances—November 2022 and January 2023—the stock fell to its 50-week MA and rebounded. But the price is quite a ways from the 50-week MA, so, in this case, it would be helpful to add a shorter period MA to the chart. In the chart below, you see a 25-week, which was added because price hugged it pretty closely during the rally from 2020.

CHART 2: WEEKLY CHART OF HERSHEY STOCK. The weekly chart shows the long-term upward trend is still moving higher.Chart source: StockCharts.com (click on chart for live version). For illustrative purposes only.

The SCTR is above the 70 level, which is a positive indication for the stock price to move higher. If price stays at or above the 25-week MA and the SCTR remains above 70, there’s a pretty good chance the stock will continue to rally.The 50-, 100-, and 200-week moving averages are trending lower.The 50-period moving average overlay on the relative performance, with respect to the $SPX, is trending upward, which is another positive indication for an upward trend.

How to Trade HSY Stock

Going back to the daily chart, if the stock stays above its 50-day MA, look for an up day with higher-than-average volume. If there’s a follow-through of at least one more price bar, it could present a buying opportunity.The upside target on the daily chart could be its high of just below $276.As long as the SCTR and relative strength against the S&P 500 index stay where they are or go higher, your long trade can remain in play. Consumer demand for Hershey’s products is critical, so it’s important to follow the company’s earnings calls. In an inflationary environment, consumers may decide not to forgo the chocolates and candy. Any signs of slowdown could result in a selloff in the stock.

If you open a long position in HSY, you may not need to place too tight of a stop loss. There are a few months before Hershey’s next earnings call. It depends on your risk tolerance level. If the stock trends higher, set trailing stops, and if you have a significant position size, take profits incrementally if conditions warrant such a strategy.

Other Stocks From the Scan

Here are some other stocks that showed up on the large-cap SCTR scan.

Las Vegas Sands Corp. (LVS)Noble Corp. (NE)O’Reilly Automotive, Inc. (ORLY)Palo Alto Networks Inc. (PANW)Restaurant Brands International Inc. (QSR)Twilio Inc. (TWLO) VeriSign, Inc. (VRSN)

Looking Back at AMZN

On May 16, Amazon.com, Inc. (AMZN) was the featured SCTR scan candidate. Let’s look at how that stock is performing.

CHART 3: DAILY CHART OF AMZN. If you had opened a long trade when price broke above $113.84, you’re probably still holding your positions. A break below the dashed green horizontal line could alter the picture.Chart source: StockCharts.com (click on chart for live version). For illustrative purposes only.

AMZN broke above the $113.84 level (dashed horizontal green line). Since then, it has pulled back and bounced off the green dashed line. If you had opened a long position slightly above $113.84, you’re probably holding on to that stock. The SCTR is well above the 70 level, and the stock’s performance against the benchmark S&P 500 is rising.

A change in any of the above criteria could be a reason to take at least some positions off the table.

SCTR Crossing Scan

[country is US] and [sma(20,volume) > 100000] and [[SCTR.large x 76] or [SCTR.large x 78] or [SCTR.large x80]] 

Credit goes to Greg Schnell, CMT, MFTA.

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

In this week’s edition of Trading Simplified, Dave shows his methodology in action with a recent crypto and stock trade, where he’s “free rolling,” which he notes is the secret to longer-term trading success. He then resumes his series on the wisdom of Jesse Livermore, discussing how you need to gain confidence in your own methods and avoid extraneous influences such as goads and news. He also talks about why you must remain unbiased (especially after you put on a position), how the real money is in longer-term trends, and the dangers of being “right but early.”

This video was originally broadcast on May 24, 2023. Click anywhere on the Trading Simplified logo above to watch on our dedicated show page, or at this link to watch on YouTube. You can also watch this and past episodes on the StockCharts on-demand video service StockChartsTV.com — registration is free!

New episodes of Trading Simplified air on Wednesdays at 12:00pm ET on StockCharts TV. You can view all recorded episodes of the show at this link. Go to davelandry.com/stockcharts to access the slides for this episode and more. Dave can be contacted at davelandry.com/contact for any comments and questions.

Above is an AI image to illustrate that while, on Monday, Granddad Russell (IWM) was offering a helping hand to his wife Granny Retail (XRT), today they both looked more vulnerable.

Just as the S&P 500 failed to clear its 23-month moving average, we are hoping that IWM not only holds its 80-month MA (green on the monthly chart), but also holds its 50-DMA (blue on the daily chart). 

Real Motion, our proprietary indicator that lets you see hidden strength or weakness during market trends, shows momentum still above its 50 and 200-DMAs. It also remains, despite the price drop, in a bullish diversion, meaning momentum is okay.

Yet, with today’s selloff, and considering we might have hit the top of this year’s trading range in SPY, Granny remains a concern.

Granny XRT fell in price closer to the March low. Momentum though is now going sideways sitting on the Bollinger band, perhaps getting ready for a mean reversion. That would be a better sign for everyone if XRT holds here and turns higher.

These two key Family members in the Economic Modern Family are not only telling a story–they are the story. And that story reflects a thin veil of optimism, but with enough doubt that, unless both move higher from here, the market could return to risk-off. That is, until SPY tests the lower regions of its persistent trading range.

For more detailed trading information about our blended models, tools and trader education courses, contact Rob Quinn, our Chief Strategy Consultant, to learn more.

IT’S NOT TOO LATE! Click here if you’d like a complimentary copy of Mish’s 2023 Market Outlook E-Book in your inbox.

“I grew my money tree and so can you!” – Mish Schneider

Get your copy of Plant Your Money Tree: A Guide to Growing Your Wealth and a special bonus here.

Follow Mish on Twitter @marketminute for stock picks and more. Follow Mish on Instagram (mishschneider) for daily morning videos. To see updated media clips, click here.

Mish in the Media

Mish and Caroline discuss profits and risks in a time where certain sectors are attractive investments on TD Ameritrade.

Powell eyes a pause, Yellen hints at the need for more rate hikes, and debt ceiling talks face challenges… what a way to end the week, as Mish discusses on Real Vision’s Daily Briefing for May 19th.

Mish provides a roundup of the commodities and currency pairs to watch this week on CMC Markets.

Mish explains how the Retail ETF is at a critical level on Business First AM.

In this video, Mish walks you thru the Dollar, Euro, GBP, Gold, Silver and more.

Mish walks you through the fundamentals and technical analysis legitimizing a meme stock on Business First AM.

In this appearance on Fox Business’s Making Money with Charles Payne, Mish and Charles discuss if economy has contracted enough with support in place, and present 3 stock picks.

Mish covers the trading range and a few of her recent stock picks on Business First AM.

In this appearance on Real Vision, Maggie Lake and Mish discuss current state of the market, from small caps to tech to gold.

Coming Up:

May 24th & 25th: Mario Nawfal Twitter Space

May 25th: Wolf Financial Twitter Space

May 31st: Singapore Radio with Kai Ting 6:05pm ET MoneyFM 89.3.

June 2nd: Yahoo Finance

ETF Summary

S&P 500 (SPY): 23-month MA 420; support 415.Russell 2000 (IWM): 170 support, 180 resistance.Dow (DIA): 336 the 23-month MA.Nasdaq (QQQ): 336 cleared or the 23-month MA; now it’s all about staying above.Regional Banks (KRE): 42 now pivotal resistance, 37 support.Semiconductors (SMH): 23-month MA at 124 now more in the rear-view mirror.Transportation (IYT): 202-240 biggest range to watch.Biotechnology (IBB): 121-135 range to watch from monthly charts.Retail (XRT): This could be the new harbinger like KRE was in March. Poor Granny.

Mish Schneider

MarketGauge.com

Director of Trading Research and Education

The Consumer Staples sector closed below its key 50-day moving average yesterday and is on track to be the worst performing area for the week.  This underperformance began last week and it took place along with other defensive areas of the market such as Utilities and Healthcare. At first glance, it appeared as if last week’s 4% gain in Technology was being funded by the sale of these safe haven stocks.

DAILY CHART OF CONSUMER STAPLES SECTOR

This week’s selling tells a different story however, as Tech stocks have pulled back more than the markets while Utilities and Healthcare are faring better – but not Staples.

One differentiator this week is that well-known Retailers are reporting earnings and the outlook is not particularly good. Today, BJ’s Wholesale (BJ -7.3%) reported earnings that were below estimates with management guiding growth lower into the remainder of this year. The big box retailer of staples and other goods stated that the company is dealing with an “increasingly discerning consumer environment”.

In other words, customers are more conscious as they continue to try and stretch their dollar. The CEO of BJ’s stated that “Everyone wants to save money. Everybody feels like it’s a bumpy economy out there.” It was a theme of “trading down” that also dominated big box earnings reports from last week as well.

Before this week’s pullback,, the biggest winners among Staples have been those companies that have been able to raise their prices while brand loyalty among customers has kept sales levels high. This would include Hershey’s (HSY), Pepsi (PEP) and Kimberly-Clark (KMB) to name a few. The buy at all costs mentality that drove these stocks to new heights appears to be shifting however, as a more price conscious consumer is now buying goods.

TWO-WEEK DAILY CHARTS OF KMB,HSY,PEP

At this time, Hersey (HSY), Pepsi (PEP) and Kimberly Clark (KMB) remain above their key 50-day moving averages and the recent pullback may have been enough to bring these stocks into a more favorable price to earnings (P/E) ratio.  Keep your eye on the daily charts for signals –  and any rally on volume that pushes the RSI back into positive territory on their daily charts would be a “buy” signal. A close below their 50-day moving average however, would be a signal to lighten up on any shares.

Warmly,

Mary Ellen McGonagle, MEM Investment Research

*This article was first published in the Five Star Newsletter that’s produced by Simpler Trading.

Those who would like to trial my bi-weekly MEM Edge Report can use this link here! We’re all about capturing sector rotation and getting investors into the best stocks to capitalize on that new move.

In this episode of StockCharts TV’s Sector Spotlight, I look at sector rotation while breaking down the universe into offensive, defensive, and sensitive sectors. I then zoom in on the groups that make up the technology sector and some of the stocks in them, where I find a few names that show promising basing patterns that could help push the S&P 500 in the coming weeks.

This video was originally broadcast on May 23, 2023. Click anywhere on the Sector Spotlight logo above to view on our dedicated Sector Spotlight page, or click this link to watch on YouTube. You can also check out the video on the StockCharts TV on-demand website StockChartsTV.com, or on the associated app on mobile platforms like iOS and Android, or TV platforms like Roku, Apple TV, Amazon Fire TV and Chromecast.

Sector Spotlight airs weekly on Tuesdays at 10:30-11:00am ET. Past episodes can be found here.

#StaySafe, -Julius