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In this exclusive StockCharts video, Julius takes a look at what he recently called “The Best Five Sectors” on a relative rotation graph side-by-side with their price charts. He then takes an in-depth at Consumer Discretionary, and shares some interesting stocks within, including AMZN, ULTA, and more.

This video was originally published on January 8, 2025. Click on the icon above to view on our dedicated page for Julius.

Past videos from Julius can be found here.

#StayAlert, -Julius

An airstrike by Myanmar’s army on a village under the control of an armed ethnic minority group killed about 40 people and injured at least 20 others, officials of the group and a local charity said Thursday. They said hundreds of houses burned in a fire triggered by the bombing.

The attack occurred Wednesday in Kyauk Ni Maw village on Ramree island, an area controlled by the ethnic Arakan Army in western Rakhine state, they said. The military has not announced any attack in the area.

The situation in the village could not be independently confirmed, with access to the internet and cellphone service in the area mostly cut off.

Myanmar is wracked by violence that began when the army ousted the elected government of Aung San Suu Kyi in February 2021. After the army used lethal force to suppress peaceful demonstrations, many opponents of military rule took up arms and large parts of the country are now embroiled in conflict.

Khaing Thukha, a spokesperson for the Arakan Army, told The Associated Press that a jet fighter bombed the village on Wednesday afternoon, killing 40 civilians and injuring more than 20 others.

“All the dead were civilians. Among the dead and injured are women and children,” Khaing Thukha said. A fire started by the airstrike spread through the village, destroying more than 500 houses, Khaing Thukha added.

It was unclear why the village was targeted. The leader of a local charity group and independent media also reported the airstrike and casualties.

The military government has stepped up airstrikes over the past three years on armed pro-democracy groups collectively known as the People’s Defense Force and on armed ethnic minority groups that have been fighting for decades for greater autonomy. The two groups sometimes carry out joint operations against the army.

Ramree – 340 kilometers (210 miles) northwest of Yangon, the country’s largest city – was captured by the Arakan Army in March last year.

The Arakan Army is the well-trained and well-armed military wing of the Rakhine ethnic minority movement which seeks autonomy from Myanmar’s central government. It is also a member of an alliance of armed ethnic groups that recently gained strategic territory in the country’s northeast on the border with China.

It began its offensive in Rakhine in November 2023 and has now gained control of a strategically important regional army headquarters and 14 of Rakhine’s 17 townships, leaving only the state’s capital, Sittwe, and two important townships near Ramree still in military government hands.

A leader of the charity group, which has been assisting residents of the village, told AP on Thursday that at least 41 people were killed and 50 others were injured in the airstrike, which targeted the village’s market.

The leader, who was away from the town at the time of the airstrike, spoke on condition of anonymity because of security concerns. He said he received the information from members of his group who were in the village and were facing a shortage of medicine to treat the injured people.

Rakhine-based news outlets including Arakan Princess Media also reported the attack and posted photos online showing people putting out fires at their homes.

Rakhine, formerly known as Arakan, was the site of a brutal army counterinsurgency operation in 2017 that drove about 740,000 minority Rohingya Muslims to seek safety across the border in Bangladesh.

This post appeared first on cnn.com

D-Wave Quantum CEO Alan Baratz said Nvidia’s Jensen Huang is “dead wrong” about quantum computing after comments from the head of the chip giant spooked Wall Street on Wednesday.

Huang was asked on Tuesday about Nvidia’s strategy for quantum computing. He said Nvidia could make conventional chips that are needed alongside quantum computing chips, but that those computers would need 1 million times the number of quantum processing units, called qubits, than they currently have.

Getting “very useful quantum computers” to market could take 15 to 30 years, Huang told analysts.

Huang’s remarks sent stocks in the nascent industry slumping, with D-Wave plunging 36% on Wednesday.

“The reason he’s wrong is that we at D-Wave are commercial today,” Baratz told CNBC’s Deidre Bosa on “The Exchange.” Baratz said companies including Mastercard and Japan’s NTT Docomo “are using our quantum computers today in production to benefit their business operations.”

“Not 30 years from now, not 20 years from now, not 15 years from now,” Baratz said. “But right now today.”

D-Wave’s revenue is still minimal. Sales in the latest quarter fell 27% to $1.9 million from $2.6 million a year earlier.

Quantum computing promises to solve problems that are difficult for current processors, such as decoding encryption, generating random numbers and large-scale simulations. Technologists have been working on it for decades, and companies including Nvidia, Microsoft and IBM are pursuing it today, alongside researchers at startups and universities.

D-Wave was among a number of companies that enjoyed a revival of interest from investors in December, when Google announced a breakthrough in its own research. Google said that it had completed a 100 qubit chip, the second of six steps in its strategy to build a quantum system with 1 million qubits.

D-Wave shares soared 178% in December after popping 185% the month prior. Quantum company Rigetti Computing, which plummeted 45% on Wednesday, quintupled in value last month. IonQ dropped 39% on Wednesday. The stock rose 14% in December following a 143% rally in November.

Baratz acknowledged that one approach to quantum computing, called gate-based, may be decades away. But he said D-Wave uses an annealing approach, which can be deployed now.

While Huang’s “comments may not be totally off-base for gate model quantum computers, well, they are 100% off base for annealing quantum computers,” Baratz said.

Nvidia declined to comment.

Even after Wednesday’s slide, D-Wave shares are up about 600% in the last year, giving the company a market cap of $1.6 billion.

Quantum computing has also been boosted by investor interest in artificial intelligence, the technology that’s led to surging demand for Nvidia’s graphics processing units, which use conventional transistors instead of Qubits. Nvidia’s market cap has increased by 168% in the past year to $3.4 trillion.

Baratz said D-Wave systems can solve problems beyond the capabilities of the fastest Nvidia-equipped systems.

“l’ll be happy to meet with Jensen any time, any place, to help fill in these gaps for him,” Baratz said.

This post appeared first on NBC NEWS

What a difference a day makes! December ISM Services data suggests the service sector remains strong. The JOLTS report showed there were 8.09 million job openings in November — that’s well above the 7.7 million that was expected. US economic growth is strong, as is the labor market. Stocks sold off on the news and for the rest of the trading day. Tuesday’s economic data brought back thoughts of the possibility of the Fed dialing back on its rate cuts in 2025.

The Federal Open Market Committee (FOMC) releases its minutes on Wednesday at 2:00 PM. Investors will be listening for any hawkish signals from the Fed. Expect some market action on Wednesday afternoon. The stock market is closed on Thursday in honor of former President Jimmy Carter. On Friday, we have the December Non-Farm Payrolls, so don’t be surprised if volatility climbs higher this week.

The Return of the Inflation Narrative

While stocks sold off on inflation and labor concerns, the bond market saw a lot of excitement. Treasury yields rose on the news with the 10-year yields closing at 4.68%. It’s within spitting distance of its 52-week high of 4.737. If it gets there, things could get worse for stocks.

They were bad enough on Tuesday. All broader indexes closed lower with the Nasdaq Composite ($COMPQ) closing 1.89% lower. The daily chart of the Nasdaq (see below) doesn’t paint a pretty picture.

FIGURE 1. DAILY CHART OF NASDAQ COMPOSITE. The series of lower highs should be an alert that the index is pulling back.Chart source: StockCharts.com. For educational purposes.

The Nasdaq Composite is getting close to its 50-day simple moving average (SMA), and a break below it would be cause for concern. It would be even more concerning if the break coincides with a declining Nasdaq Advance-Decline Issues (lower panel).

The Nasdaq has crossed below its 50-day SMA in the past and recovered. The recoveries presented opportunities to accumulate long positions in Nasdaq stocks. A similar scenario could play out this time, but Mark Twain’s quote, “History doesn’t repeat itself, but it often rhymes” keeps popping up. What will the rhyme be this time?

Energy and Health Care

Overall, it was a pretty grim day for stocks. Nine of the 11 S&P sectors closed lower; Energy and Health Care were the only two that closed higher. However, the charts of the exchange-traded funds (ETFs) that represent these sectors — Energy Select Sector SPDR (XLE) and Health Care Select Sector SPDR (XLV) — don’t display a bullish trend. The Bullish Percent Index (BPI) for these sectors is below 50, with the S&P Healthcare Sector BPI being the more favorable of the two at 39.39 (see chart below).

FIGURE 2. ENERGY AND HEALTH CARE SECTORS. Even though Energy and Health Care were the best performing sectors on Tuesday, their charts aren’t exhibiting bullish characteristics.Chart source: StockChartsACP. For educational purposes.

The best-performing S&P 500 stock on Tuesday was Moderna, Inc. (MRNA) with an 11.65% rise. Moderna is developing a vaccine for bird flu, which helped propel the stock price. The Market Movers panel on Your Dashboard shows a handful of health care and energy stocks in the S&P 500, %Up category.

Even though the Energy or Health Care sector charts are far from bullish, it’s worth keeping an eye on them. If a bullish trend takes shape while other sectors, such as Technology and Consumer Discretionary, turn bearish, it may be worth allocating a portion of your portfolio to the bullish-performing sectors.


Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

Rescue crews found the body of a British hiker buried in the snow of the Italian Alps and were continuing to search for his friend, who had also been missing since January 1, Italy’s rescue services said Wednesday.

Italy’s Alpine rescue service said it only received an alert about the men on January 6, five days after the men set out in the Adamello range near Trento, after they failed to make a scheduled flight home and relatives contacted authorities.

After the first two days of searches were hampered by snowfall, fog and avalanche warnings, rescue crews managed to get a helicopter in the air Wednesday and ground crews reached the pair’s last recorded location.

Guided by the hikers’ phone recordings, crews found the men’s backpacks and equipment, as well as the body of one of the hikers buried in the snow, the rescuers said in a statement.

British media quoted relatives and partners of the two men, Aziz Ziriat, 36, and Sam Harris, 35, as saying they were experienced hikers who had planned a New Year’s Day excursion, hiking from mountain hut to mountain hut.

“It wasn’t surprising that they had no signal as they like going off the grid,” said a university friend of Ziriat, Joe Stone.

A helicopter attempted a flyover on Tuesday, but fog and poor visibility forced it to return before reaching the affected valley and the search was suspended, the rescue crews said.

Additionally, ground crews of the fire rescue service were unable to work due to high risks of avalanches.

The Adamello range straddles Italy’s Lombardy and Trentino-Alto Adige regions and includes the highest peak, Mt. Adamello, at 3,539 meters (11,611 feet.)

This post appeared first on cnn.com

Panera Bread’s parent company announced Tuesday that CEO Jose Dueñas is stepping down, effective immediately.

The change in leadership is the latest challenge to the company’s plans to go public eventually, following several years of hurdles.

Panera Brands CFO Paul Carbone will step in as interim chief executive while the board searches for a permanent replacement to lead the company, which includes Panera Bread, Einstein Bros. and Caribou Coffee.

Dueñas plans to stick around through the end of March as a special advisor, the company said. He took over as CEO of Panera Brands in July 2023 after four years leading bagel chain Einstein Bros.

JAB Holding, the investment arm of the Reimann family, bought Panera Bread in 2017 for $7.5 billion, taking it private and then forming Panera Brands with some of its other acquisitions.

JAB has been trying to take Panera public again for years. In 2022, Panera scrapped a deal with Danny Meyer’s special purpose acquisition company, citing market conditions.

In the same 2023 announcement tapping Dueñas as its latest CEO, Panera said the leadership transition is to prepare for an eventual initial public offering. Months later, in December 2023, the company confidentially filed for an IPO.

It has yet to go public, following lawsuits tied to its heavily caffeinated Charged Lemonade, a rocky year for the restaurant industry and a sluggish market for IPOs in 2024.

This post appeared first on NBC NEWS

In this video, Dave shares a long-term analysis of the Ten-Year Treasury Yield, breaks down how the shape of the yield curve has been a great leading indicator of recessionary periods and weaker stock prices, and outlines the chart he’s watching to determine if early 2025 will look a great deal like early 2022.

This video originally premiered on January 6, 2025. Watch on StockCharts’ dedicated David Keller page!

Previously recorded videos from Dave are available at this link.

African governments have criticized a speech by French President Emmanuel Macron in which he said that some leaders showed “ingratitude” for the deployment of his nation’s troops in the Sahel region in battling Islamist extremism.

Macron told French ambassadors at a conference in Paris on Monday that Sahel nations – beset by civil conflicts and violent extremism – only remained sovereign because of the deployment of French forces.

Macron also dismissed the notion that French troops had been expelled from the Sahel, an area that sits just below the Sahara Desert, as Paris’ influence on its former colonies wanes.

“We had a security relationship. It was in two folds: One was our commitment against terrorism since 2013. I think someone forgot to say thank you. It does not matter, it will come with time,” Macron said at the conference.

“Ingratitude, I am well placed to know, is a disease not transmissible to man.”

Macron’s comments were denounced by Chad’s foreign affairs minister, Abderaman Koulamallah, who accused the French leader of showing “a contemptuous attitude towards Africa and Africans.”

The French leader blamed the exit of his country’s forces from the region on successive coups.

“We left because there were coups d’état. We were there at the request of sovereign states that had asked France to come. From the moment there were coups d’état, and when people said ‘our priority is no longer the fight against terrorism’… France no longer had a place there because we are not the auxiliaries of putschists. So, we left.”

In recent years, French troops have withdrawn from Burkina Faso, Niger and Mali following coups in the West African nations where anti-French sentiment has become rife. They are also preparing their exit from Chad, Ivory Coast and Senegal. French forces similarly left the Central African Republic in 2022 after deploying there in 2013 following a coup that sparked a civil war.

“None of them would be a sovereign country today if the French army had not deployed in the region,” Macron said, adding: “My heart goes out to all our soldiers who sometimes gave their lives and fought for years. We did well.”

Koulamallah said in a statement that, “France has never endowed the Chadian army in a significant way nor contributed to its structural development.” The Chadian minister added: “In 60 years of existence, marked by civil wars, rebellions and prolonged political instability, French contribution has often been limited to its own strategic interests, with no real lasting impact on the development of the Chadian people.”

Chad announced in November it was ending its defense cooperation with France to reassert its sovereignty.

Macron insisted in his address on Monday that France’s influence was not in decline in Africa but that the nation was only “reorganizing itself” on the continent.

His stance was rejected by Senegalese Prime Minister Ousmane Sonko who explained in a statement Monday that Senegal’s decision to close all foreign military bases, including those of the French, “stems from its sole will, as a free, independent and sovereign country,” adding there were “no discussions or negotiations” with the French.

“Let us note that France has neither the capacity nor the legitimacy to ensure Africa’s security and sovereignty,” Sonko stated.

Activists in Africa were also outraged over Macron’s comments.

“Macron’s statement that African leaders should be grateful for France’s military interventions, claiming that West Africa’s sovereignty owes its existence to the French army, reeks of revisionism and intellectual dishonesty and moral bankruptcy,” Togolese writer and social activist Farida Bemba Nabourema wrote in a lengthy post on X.

“This paternalistic rhetoric, which infantilizes African nations as incapable of self-governance, is deeply rooted in the racism that justified colonization in the first place and continues to nourish neo-colonialism today,” Nabourema added.

Sahel aligns with Russia

Russian military support has become an increasingly sought-after alternative by some Sahel nations who have moved on from their former Western partners.

Junta-led Mali, Niger and Burkina Faso have since signed military partnerships with Moscow, receiving contingents of Russian military instructors from the shadowy mercenary group, Wagner.

Wagner forces have also reportedly arrived in Equatorial Guinea where they are tasked with protecting its authoritarian leader President Teodoro Obiang, mirroring the activities of the Russian mercenaries in the neighboring Central African Republic where they have evolved into the dominant foreign force.

This post appeared first on cnn.com

U.S. Steel and the Japanese firm that had sought to acquire it are suing the Biden administration after the president announced he was blocking a proposed deal for the iconic American manufacturer.

U.S. Steel and Japan’s Nippon Steel said in a release Monday that President Joe Biden ‘ignored the rule of law’ to gain favor with United Steelworkers, the union representing many of U.S. Steel’s employees, when he announced Friday he would not allow the acquisition to go through.

Separately, U.S. Steel and Nippon said they were also suing the president of the union, David McCall, as well as the head of an Ohio-based rival mining firm, Cleveland-Cliffs, accusing them of illegally coordinating to undermine the transaction.

Nippon Steel had proposed a $14 billion deal to buy U.S. Steel, but the agreement, which U.S. Steel executives favored, became mired in a national security review by a Treasury Department committee that assesses foreign ownership proposals.

Ultimately, the committee failed to agree on whether Nippon ownership posed a security risk, and it asked Biden for a final decision. In announcing his veto of the deal, Biden said shifting the firm out of American hands would undermine critical supply chains and put jobs at risk.

The Treasury committee, Treasury Secretary Janet Yellen and Attorney General Merrick Garland are also named in the suit.  

“A committee of national security and trade experts determined this acquisition would create risk for American national security,’ a Biden administration spokesperson said in an emailed statement. ‘President Biden will never hesitate to protect the security of this nation, its infrastructure, and the resilience of its supply chains.’

McCall, the steelworkers union boss, said in a statement that he was reviewing the suit.

‘By blocking Nippon Steel’s attempt to acquire U.S. Steel, the Biden administration protected vital U.S. interests, safeguarded our national security and helped preserve a domestic steel industry that underpins our country’s critical supply chains,’ he said.

Lourenco Goncalves, the president, chairman and CEO of Cleveland-Cliffs, accused U.S. Steel and Nippon Steel of trying to ‘play the blame game.’

‘Today’s lawsuits against the U.S. Government, the USW, and Cleveland-Cliffs represent a shameless effort to scapegoat others for U.S. Steel’s and Nippon Steel’s self-inflicted disaster,’ Goncalves said in a statement.

‘Cleveland-Cliffs and the USW were not the only ones who recognized the adverse national security implications of this acquisition. This deal drew instant bi-partisan opposition, including from President Trump, who has vowed multiple times that he would block the deal,’ Goncalves added.

After the suits were announced Monday, President-elect Donald Trump, who had expressed opposition to the deal while he was campaigning last year, posted on his Truth Social platform: “Why would they want to sell U.S. Steel now when Tariffs will make it a much more profitable and valuable company. Wouldn’t it be nice to have U.S. Steel, once the greatest company in the World, lead the charge toward greatness again? It can all happen very quickly!”

This post appeared first on NBC NEWS

The Russell 2000 ETF managed a double-digit gain in 2024, but did it the hard way with several deep pullbacks. Pullbacks within uptrends are opportunities and we can find such opportunities using %B.

The chart below shows the Russell 2000 ETF (IWM) with the Zigzag(8) indicator. This indicator changes direction when there is a move greater than 8%, which means it ignores price moves that are less than 8%. I am showing this indicator to highlight five pullbacks of 8% or more in 2024. That’s a lot. In contrast, the S&P 500 SPDR (SPY) only experienced one 8+ percent pullback in early August.

Overall, IWM advanced 10% in 2024. That seems like a good year, but it was a “hard” 10% when we include the five 8+ percent pullbacks. This is simply the nature of small-cap stocks. They are less “trendy” than large-caps and have higher betas, making them more susceptible to wider fluctuations. Traders need to consider this when trading small-caps. As noted in Chart Trader this week, we see similar price action in the S&P 500 EW ETF (RSP) and S&P MidCap 400 SPDR (MDY).

Click here to take Chart Trader trial and get immediate access.

Buying upside breakouts is probably not the best strategy for trading IWM. Instead, traders should consider pullbacks and mean-reversion opportunities. We can identify such opportunities using Bollinger Bands (20,2) and %B (20,2). The middle line on the Bollinger Bands is the 20-day SMA and the bands are two standard deviations above and below. A close below the lower band means price fell two standard deviations and this creates an oversold condition.

Chartists can quantify oversold conditions using %B, which falls below 0 when the close is below the lower Bollinger Band. The blue lines on the chart above show %B dipping below 0 four times in 2024. Note that I would also only look for oversold conditions when price is above the 200-day SMA (long-term uptrend). When the bigger trend is up, a close below the lower Bollinger Band signals an oversold condition that can lead to a bounce.

December was a rough month for many stocks and ETFs. Even so, the weight of the evidence remains bullish for stocks and these pullbacks look like corrections within bigger uptrends. This week’s reports and videos focused on long-term breadth indicators, short-term oversold breadth, leading ETFs and a dozen ETFs with tradable pullbacks.

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