Boston Body Parts!

We started watching this Medical Device maker, Boston Scientific ($BSX) a couple of years ago. Back then, it looked to be gaining momentum on its price chart when trading in the 7 dollar range. It broke out a beautiful bullish symmetrical triangle!

Here’s that chart:

bsx 3 30 II

Fast forward, it more than achieved its price objective and appears to be ready to move again. The bullish flag is suggesting a measured move to the 23 area, when looking at this monthly chart.

Boston Scientific 3 22 15 $BSX

While it appears to have to overcome some Fibonacci resistance along the way, this monthly view shows an even more bullish view!

bsx month res 3 22 15

We think this view support the idea that the Point & Figure vertical price objective has a great chance of eventually being met.

BSX 3 22 15 PnF

Im sure I might need some of these body parts, for now I’ll stick with the stocks in this group!

Have a great night,

Captain John

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LIKE this Chart?

We have been keeping our eye on Facebook as it has been consolidating over the past several weeks. This week we noticed that we finally got a bullish upside price breakout in both a price chart of $FB, as well as a relative breakout on a chart of $FB divided by the S&P 500.

Facebook $FB 3 19 15

The Point & Figure chart reveals a potential vertical price objective of 96 over the longer term!

Enjoy your weekend,

Captain John

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My Toaster says Hi to your Toaster

Evolution is here and by now you have heard of the “Internet of Things.” IoT. This is as big as the computer itself and it isn’t so much about the Internet as it is about all those “THINGS” that will communicate. Imagine that the Toaster can communicate with the Vacuum. The inanimate objects will now become animate.

No-one makes their own products and now they have to make toasters that think, (and they don’t make toasters in the first place!) and then they must monitor them somehow. Now things will work like software and companies that don’t do software will need to grow rapidly once consumers demand the newer smart appliance. In the IoT market, a collection of vendors, service providers and system integrator’s must co-exist and integrate products and solutions to realize success. According to Mark Swartz of Neural Corp., “The EMS sector will be required to evolve and deliver IoT solutions, or use Platforms which can differentiate them. What happens when a Tier 2 adopts a disruptive platform alternative?”

While billions of connected things will drive trillions in revenue; understanding where the revenue opportunities lie across different technology layers will be key.
In a new study, “Worldwide Internet of Things 2014-2020 Forcast Update and Revenue by Technology Split, it was projected the technology and services revenue from IoT would expand from $4.8 Trillion in 2012 to $7.3 Trillion by 2017.

Companies that can navigate the maze of existing systems and leverage standards based interfaces to abstract that complexity will be selling picks and shovels to those trying to mine the gold. It will be important to create a differentiating, “hard-to-copy” product, whether it is sensor, platform, or service.

Enter the EMS market. The Electronics Manufacturing Market is projected for growth by 2018 of nearly $700 Billion. We have been watching the EMS market closely and in particular Jabil, Flex and Sanmina.

$JBL 3 19 15fe

$JBL PNF 3 19 15

Looking at Jabil, there is a Weekly Price and Relative Strength breakout that is occurring simultaneously as we see a massive base in another EMS Company,  Sanmina, $SANM (whom is one of America’s largest corporation’s). The massive base on Sanmina’s Monthly Chart suggests much higher prices. The low in the bottom of 2009 on the monthly was around a dollar and the high at the top of the base is around $20; so with that said, there is a possible target of the $39 to $40 range.

$FLEX 3 19 15 b      $SANM 3 19 15 SanminaB

The internet of things is real so one of the sectors to keep your eye on would be the Electronic and Electrical Equipment sector along with the sub-sector of Electrical Components and Equipment; just like all 3 ideas mentioned here.

In case you are needing a little primer on “Internet of Things” also refered to as IoT take a look at this excellent video by IoTWorks.

Have a great day,

Captain John & FortunaEquitis

Hog Roast?

Harley-Davidson Inc.(NYSE) $HOG is an American motorcycle manufacturer. Founded in Milwaukee, Wisconsin during the first decade of the 20th century, it was one of two major American motorcycle manufacturers to survive the Great Depression.

Harley has had it tough of late, lets take a look at the charts!

Harley-Davidson Inc. $HOG 3 13 15

It looks like the Daily chart decided it wanted to rally back up one more time, to make the right shoulder of a HEAD & SHOULDER TOP! The breakdown of the neckline suggests a minimum price objective of 46, if this pattern plays out.

The Weekly chart shown in the inset, shows a chart of the relative strength of Harley to the S&P 500 ($SPX) Notice the persistent underperformance of the stock of late and a breakdown of support.

The Head & Shoulder top pattern has been a very reliable pattern of the the years, so may make sense to keep this on your short ideas list or consider harvesting gains if you are long.

Captain John

Relative Strength still Building in the Builders!

The Philadelphia Housing Index ($HGX) continues to show great relative strength vs. the S&P 500 ($SPX)!

The recent pullback has brought the price chart back to a zone of trend-line support.

$HGX Homebuilders 3 11 15

Great upside potential using a vertical count on a Point & Figure chart.

Have your builder make a pic-nick table with the leftover wood!

Captain John


I Feel The Test of the Seal

OMG! Look at that 10 Year Base!

There is a Relative ($SPX) and Absolute (price) breakout in sealed air with a return to test the breakout. It is testing the breakout point on a relative and absolute basis.

SEE 3915

In the grand scheme of things, sealed air on the longer term continues to breakout of a massive 16 yr. base, hence our post discussing $SEE on 11/6/14. $SEE continues to work and breakout of a massive 16 year base.

Take a look at our Revised Point and Figure target posted February 20th on $SEE (Sealed Air) here on Stock Twits.

The 16 year base indicates lift off to space.
Long live and prosper.


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Out of the Weekly Base, launched into Space!

$EBAY broke out of a monster 10 year base!

We love big consolidations because usually the longer they persist, the longer the investment tends to move up and out.

Here is the weekly chart of $EBAY, it is breaking out to new all-time highs, as well as breaking out when compared to the S&P 500!

EBAY 3 8 15

The vertical Point & Figure target is 75, offering decent risk/ reward in our opinion.

Thank you for stopping by, don’t forget to sign up for our email blog alerts!

Captain John


Let’s Spy on the $SPY, $NASDAQ, and $COMPQ

CryptoCIA_13337rLet’s Spy on the $SPY, $NYA A/D Line, Nasdaq and the $COMPQ.

This week, the advance decline line of the NYSE Composite ( $NYA and $NYC)  made new highs! This shows you the number of stocks going up vs. number going down on a cumulative basis. When more stocks are going up consistently, the broad market is participating in the up move and this is usually bullish! The NYSE continues climbing out of the bullish Head and Shoulder pattern.  This is a longer term indicator, and it’s Bullish.

$NYA $NYC advance decline line 3315

Shorter term, taking a look at the widely followed S&P 500 ETF, $SPY, we noticed the last three times it made higher highs, but momentum indicators such as MACD and RSI did not. With that said,  every-time it made a new high, it did it with less momentum, and there was a pullback in the market. Now we are in the 4th higher high and the MACD and RSI indicators did not confirm this higher high. It is reasonable to think based on what we see and the evidence of higher highs and higher lower highs, that there is a possibility we may have a pull back again. This does not destroy the idea that the A/D line leads the market.

Divergences tell you it may be time for rest and that it is a little tired, but that does not mean the overall Bull is unhealthy; however, if see the A/D Line roll over and Bearish divergences, then that would merit caution, but for now, the AD line is a healthy one.

SPy 3 4 15 diverganceTake a look closer at the $SPY (S&P500) Chart from March 4th. We see the $SPY making Higher Highs yet Lower highs on the MACD and RSI Momentum Indicators. Momo is a no go.

*If the A/D line starts to roll over and major indices like $SPX and  $DJIA continue to make new highs, it may signal that investors are fleeing higher risk equity allocations in favor of safer blue chip names. Not what bull markets are made of, rather how they end! The money goes to where it’s feels love.

NASDAQ/$COMPQ posted on StockTwits last week.

Have a great weekend!
Captain John

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This chart doesn’t seem to be bluffing.

Below is the Market Vectors Gaming ETF $BJK


The weekly chart has made 4 tests of the symmetrical triangle. Two tests were resistance, and 2 others acted as support. Consider adding some chips on the potential breakout of the downtrend line.

Here are the top holdings in the $BJK Gaming ETF.


Yesterday we posted one of our favorite individual ideas on Stock Twits regarding $IGT (International Game Technology). Take a look.

Appreciate your continued support. Have a great evening!

Captain John

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 Image Source Credit: JamesMI6@deviantart