There is a simple pattern for a reversal of a downward trend. Break of the trend line, form a rising bottom, break from a rising bottom. This week, I did Market Scans in search of stocks showing this pattern on the 3 year weekly charts. Here are three that have decent patterns for long term downward trend line reversals.

1. FCX
FCX is a commodity name that has suffered over the past few years but is finely showing signs of reversing the downward trend. In the past few weeks, it has been able to break higher from a rising bottom and get through the downward trend line. Support at $8.75.

2. T.BNE
T.BNE is a standout among the Canadian Energy stocks with a good reversal pattern that showed a strong break from a mini cup and handle pattern on the weekly after breaking the downward trend line in February. Support at $20.75.

3. T.TCK.B
T.TCK.B broke its downward trend line late in February and then trended sideways until last week when it was able to break higher from that sideways pattern. Support at $10.25.

Read Tyler’s full Weekly Commentary titled: Stop the FOMO

References 

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  Disclaimer
  This is not an investment advisory, and should not be used to make investment decisions. Information in Stockscores Perspectives is often opinionated and should be considered for information purposes only. No stock exchange anywhere has approved or disapproved of the information contained herein. There is no express or implied solicitation to buy or sell securities. The writers and editors of Perspectives may have positions in the stocks discussed above and may trade in the stocks mentioned. Don’t consider buying or selling any stock without conducting your own due diligence.

It’s official: as of today the bull market that has been mocked as fake, doomed and history’s most-hated just earned a new title: the second-longest ever. And it only took $14 trillion in central bank liquidity, a global, coordinated central bank “put”, central banks purchases of Treasuries, MBS, ETFs and corporate bonds,  and nearly 700 rate cuts in the past 7 years to achieve it.

The stock market advance that started seven weeks after Barack Obama’s first inauguration, and specifically with Obama’s historic March 3, 2009 remark in which he said that “what you’re now seeing is, profit and earning ratios are starting to get to the point where buying stocks is a potentially good deal if you’ve got a long term perspective on it,” has now lasted 2,607 days.  

Since then it has dodged and waved through three 10% drops in the last 19 months while avoiding the 20% decline that denotes a bear market. That matches a rally from 1949 to 1956 which straddled the presidencies of Harry Truman and Dwight D. Eisenhower. Only the dot-com bubble of the 1990s lasted longer at 3,452 days.

….read more HERE

related:

A Major Warning About VIX Futures ETF

The $60 billion implied valuation of the Chinese financial technology group Ant Financial sounds like a case of disruption on steroids.

That price tag, implied by a funding round the company disclosed Tuesday, easily tops the $48 billion market capitalization of the United States payments giant PayPal. But look under a metaphorical microscope, and it’s clear that these are different species. The pumped-up Ant Financial rests on uniquely Chinese characteristics… CLICK HERE for the complete article

According to Tom McClellan, the number of shares outstanding in the iPath S&P 500 VIX Short Term Futures TM ETN VXX 0.31% has been an excellent leading indicator for the S&P 500 lately, and the most recent numbers are extremely bearish.

“VIX futures ETF extremely popular right now. Can this possibly end well?” McClellan tweeted on Tuesday along with a chart showing the inverse correlation between the S&P 500 and the number of outstanding VXX shares in recent years… CLICK HERE to see the chart

One week ago we were surprised to learn that no matter what the market was doing, whether it was going up, down or sideways, Bank of America’s “smart money” (institutional, private and hedge funds) clients, simply refused to buy anything, and in fact had continued to sell stocks for a near-record 12 consecutive weeks.  In fact, the selling continued despite what we said, namely that “at this point it was about time for the selling to stock, if purely statistically, otherwise said “smart money” would be sending the clearest signal yet that the market rally from the February lows is nothing but a huge gift to sell into.”

One week later we were absolutely convinced that finally the selling would end. It has not.

….read more HERE

related:

How Long Before the Financial System Fails?