Some like it Hot!

The cyber security space has been heating up over the last couple of months, with many showing price breakouts to new highs, as well  as relative price breakouts when compared to the S&P 500.

Here is a name that recently completed both. the company is AVG Technologies NV $AVG

AVG Technologies 2 19 15-1

The price action here is positive, as it completed a bullish Head & Shoulder pattern on Friday last week!

Recent hacks, like the Russian “Oceans Eleven” on banks, makes cyber security a sector to watch.

Enjoy the rest of your weekend,

Captain John

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I’m not high! I’m at a new high!

On Thursday the 12th, the Nasdaq Composite blew through horizontal resistance. The animal spirits on Friday the 13th came out to confirm the breakout to new highs.

Nasdaq $compq Kimmy 2 13 15c
The Point and Figure bullish vertical count for the NASDAQ Composite shows a price objective of $5950. On the bar chart we see a symmetrical triangle breakout targeting a price objective 700 points above $4750. Supporting this idea of great potential for $NASDAQ goes back to our article on December 2014, “Come Out, Come Out, Where ever you are.”


Have a great night!

Captain John

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Come To My $TOL Home, Now!

Take a look at Toll Brothers $TOL Long Term Weekly Chart!
$TOL has an intense Breakout, erupting up and out of the Weekly Triangle.

Toll Brothers 2 6 15_f

The perceptive will notice that the $TOL weekly pattern is a confirmation of the Daily chart (below) that has an eye-catching Head and Shoulders (H&S) Pattern. This is why it is important to study price action in different timeframes. The weekly chart confirms, in this case, the bullish trend change on the daily. The Head and Shoulder Pattern suggests a price target of $41.

Toll Brothers Daily 2615

As always, we uncover and analyze patterns that perform.
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Captain John

OMG, It’s been Building for a while!

PulteGoup Inc. $PHM is working its way out of some monthly long term resistance here. While we need to see the months end close before getting to excited, it looks like it wants to release out of this triangle!

Pulte 2 6 15

The weekly inset chart still has more work and while it could be hard, a breakout of resistance offers reasonable risk / rewards for those with some patience.

Thank you for you visit and dont forget to sign up for our email blog alerts!

Captain John

Is Cognizant (CTSH) Seeing Double?

Cognizant ($CTSH: NASDAQ) has a Head and Shoulder breakout in Relative, (To The S&P 500) as well as Absolute terms!



 Take a closer look at the Point and Figure Chart showing a Bullish price Objective of $77.
CTSH Point and Figure

Thank you for stopping by.

Captain John

Time to Horse Around?

The iShares U S Energy ETF seeks to track the results of an index composed of equities in the energy sector.

Longer term monthly chart is showing some confluence of support!

Dow Jone US Energy Sector 2 2 15-1


The daily chart looks to be breaking out of a bullish wedge!

Looks worth a look here, with first target in the low 30’s.

Appreciate your visit,

Captain John



Delusional A/D Line?

Plenty of closed end bond funds trade on the New York Stock Exchange and with so many advancing and making new highs, it makes  wonder how valid the advance / decline line is at this time.

NYAD 1 29 15


A rising A/D  Line usually indicates a healthy market!

Captain John



Is Thailand’s Dragon Rising?

Wat Phra Kaeoby Eric Rousset

The $THD, iShares Thailand ETF, is showing us a double bottom with the characteristic Big W shape. The Double bottom suggests a run to last falls highs. Take a look at the Higher Lows creating a Bullish Momentum Divergence. The pattern of this bottom suggests a possible price target of $86.

THD, Thailand ETF

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Enjoy the rest of your weekend,
Captain John

Photo: Wat Phra Kaeo,Bangkok (Thailand) by Eric Rousset