Strong earnings reports lifted chip stocks

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Derek  25 Jan 2019

Good Morning,

Strong earnings reports from chip stocks lifted the NASDAQ +0.68%. The East is following this trend and technology shares made the HangSeng gain +1.4% at the time of writing.

Notice that the NASDAQ never closed below the EMA8 line when it corrected from the overbought situation. The trend remains positive until this line gets broken.

You might recall that we had more than 40 shares in the high trend category when the S&P500 was it's last high. Currently we are left with 8 of which 3 are technology shares. I show the table on the graph of Advance Micro Devices that gained +5.3%. Notice that 2 of the high category shares are making new highs.

Many shares are still correcting out of the overbought territory, but do manage to stay above the EMA8 line. Notice how E*TRADE Financial Corp is caught between the trend line and the EMA8 line. A break of either line will confirm the next direction.

JSE Technical:
Tencent Holdings, that has a big influence on Naspers, is following the technology shares higher this morning. Notice that Tencent went into a new stronger trend and hopefully can break the 200 day moving average (pink) soon. Technically it is still in a bear trend while below this average.

It was mainly gold and banking shares that was positive yesterday.
RMB Holdings is struggling between strong resistance above and my trend line below. A break up or down will give new direction.

Earnings reports in the US will create a lot of volatility the coming week.

You must have a great weekend.
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