To repeat on the importance of the July (and January 6-month calendar ranges) The Six-Month Calendar Ranges Provides directional bias for the next 6 to 12 months. January and July divide the year Simple levels that matter + the right indicators and tactics. Overall, we look at 2 simple things. If an instrument breaks out of the range or breaks below with momentum and price and then has follow through. If an instrument breaks out or down and then reverses back into the calendar range high and low. Looking at IWM or the small caps, any question on whether this is the new kid (in our case ne ..read more

The following research was contributed to by Christine Short, VP of Research at Wall Street Horizon. The global IPO count nearly doubled this past quarter from a year ago For capital markets, the second-quarter earnings season featured a generally optimistic outlook from Wall Street banks We highlight some recent IPO stocks and highlight upcoming possible new issues With mixed Q2 bank earnings under our belt, there’s a better sense of how capital markets may unfold over the second half of the year. Messages were somewhat mixed, but there is an underlying optimism that M&A ..read more

How might a major top for the S&P 500 stock market index play out in July and August? We try to answer this question today. While we can’t predict the future, we can certainly benefit from the fact that major stock market tops have occurred many times in market history, and they often display very similar characteristics. Domino’s Pizza Group (GPZ) could provide a perfect case study of the transition from accumulation to distribution, with distinct signals like an inability to make new highs, price breaking below moving averages, and sudden deterioration in price momentum. By understanding ..read more

Symbotic Inc. (SYM) is an automation technology company that focuses on improving operating efficiencies in modern warehouses.  Here are some key points about Symbotic: Business Focus: Symbotic automates the processing of pallets and cases in large warehouses or distribution centers for retail companies. Their systems enhance operations at the front end of the supply chain. Stock Performance: It has a 52-week range of $29.62 to $64.142. Market Cap: The company’s market capitalization (intraday) is approximately $22.9 billion The company plans to announce its earnings on ..read more

The following research was contributed to by Christine Short, VP of Research at Wall Street Horizon. Q2 S&P 500 EPS growth expected to come in at 9.7%, the highest rate in over two years The LERI is back up for the second quarter in a row after falling to its lowest level in nine years in the first quarter of 2024 Peak weeks for Q2 season run from July 22 – August 16  What Does the Rotation Out of Tech Mean for Tech Earnings? Last week began with investors continuing to rotate out of tech after a massive growth year thus far, and ended with a broader sell-off. With tech earning ..read more

Over the weekend we covered the weekly charts of our favorite stock market ETFs, which we call the “Economic Modern Family”. You can read that here. All the original Modern Family (Russell 2000 IWM, Retail XRT, Transportation IYT, Regional Banks KRE, Biotechnology IBB, and Semiconductors SMH), posted gains today as the stock market rallied with strength. Our newest member, Bitcoin, also posted gains. We also looked at the NASDAQ 100 (QQQ). That ETF also (QQQ) posted gains. In fact, QQQ gained the most percentage-wise. We could say All in the Family has begun this week happy and heal ..read more

The short-term selloff may have run its course as both the Nasdaq 100 and S&P 500 reached important price support targets and may be reversing higher. Will this be the start of a larger move higher or just a dead bounce? That we don’t know just yet. There are buy signals showing up for the Nasdaq 100 that will trigger on a move above 19930 (as indicated on the chart below). This turning point will need to see follow through buying to stick. Not knowing the magnitude of a move up from here, it would be a good idea to think about adding to oversold names in price support areas. Nas ..read more

Investors have been watching the Federal Reserve and interest rates closely for the past several months. Well, actually more like the past several years. But maybe they should be watching copper prices for clues on where interest rates are headed. “The facts, Ma’am. Just the facts.” – Joe Friday Today we look at a long-term “monthly” chart of Copper versus the 10-year treasury bond yield (interest rates). As you can see, in 2006 good ole Doc Copper created the largest monthly reversal pattern in history at the same time that treasury bond yields (interest rates) were peaking. And this was righ ..read more

First some facts about the July stock market calendar range. The July PatternThe Six-Month Calendar Ranges Provides directional bias for the next 6 to 12 months.  January and July divide the year Simple levels that matter + the right indicators and tactics. Overall, we look at 2 simple things. If an instrument breaks out of the range or breaks below with momentum and price and then has follow through. If an instrument breaks out or down and then reverses back into the calendar range high and low. In the case of Russell 2000 ETF (IWM) and Retail Sector (XRT), both instruments closed ab ..read more

Very Simply, small caps are on fire! Note the small green horizontal line. That is the new July 6-month calendar range high. IWM handled it like a champ! Plus, look at the leadership chart. IWM outperforms the benchmark. Finally, look at the momentum chart or Real Motion. Momentum is flying alongside price. What does this all mean? Back in January 2022, IWM traded at 227 while the all-time high was made in June 2021 at 233,64. That makes 227 an interesting point to watch. Furthermore, should IWM get any correction, the July range high gives you a support level at 218-219. Finally, with all cy ..read more