Stocks began July on a positive note yesterday, led by technology. Several big names are also showing some patterns that could be interesting — especially if investors are seeking opportunities at the start of a new quarter.
As usual, we started by firing up RadarScreen® with a few handy indicators. We clicked on the Data menu to import all the S&P 500’s members and here’s what we found:
Some big technology names are holding their 50-day moving averages. That’s a classic intermediate-term indicator. In particular, Apple (AAPL), Microsoft (MSFT) and Adobe Systems (ADBE). All three made new all-time highs last month, so they’ve been in an uptrend — even with the broader market range-bound.
Two major chip stocks made outside days (lower lows and higher highs versus than Friday): Micron Technology (MU) and Intel (INTC). That’s often viewed as a reversal pattern — especially after the sharp selloffs both experienced in the last few weeks.
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One of the great things about RadarScreen is you can have all kinds of lists. Aside from my S&P 500 tab, I also monitor some indexes and ETFs that track broader sectors. A few of those also lit up my 50-day moving average test:
- SPDR Technology ETF (XLK): This has been holding its 50-day moving average since June 25.
- iShares North American Software (IGV): Not very liquid but a decent benchmark for tracking the entire software industry. It’s outperformed XLK by a wide margin all year. (Don’t forget about the revolution in cloud-computing.)
- DJ U.S. Railroads ($DJUSRR): This one can’t be traded, but Union Pacific (UNP) and CSX (CSX) are pretty liquid names that also held their 50-day moving averages. Both are also near all-time highs. (Click here for our special report on railroads, and update on traffic.)
In conclusion, this isn’t a recommendation and everyone needs to do their own homework. But the economy continues to perform well and some upward trending stocks have patterns that might interest some traders.