Atlanta Pipeline Partners

I know, it's already some time we showed a chart that's interesting us. But what about this one?

We’re looking to Atlas Pipeline Partners (ticker: APL). The normal chart shows two averages crossing each other. Nice.

The renkochart is already showing the breakout.

Unfortunately, people and friends, this PC is not allowing me to paste the charts.... :-(

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South Africa

No renko charts today. The reason? I don’t trust this rally. Too classic. In an expiration week and then on Tuesday and Wednesday. An evil set-up.
We're not going there.
So we show something else.
The correlation between a currency and its stock index.
South-Africa to be precise.
First a weekly chart of the iShares South Africa and the ZAR:

And this is a daily picture of this situation.

What is the trend of the ZAR? Renko style :-)

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US govvies

US government bonds are not popular these days. Their price is sliding since the start of this year and although last weeks a reversal could be observed, we can see on the charts that another wave of selling is underway.
The P&F chart of the iShares Treasury Bond 20 years and + ETF (ticker: TLT) shows that prices are slipping lower.

And the 60 minutes renko chart is confirming this negative development

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PowerShares Wilderhill Clean Energy ETF

Another failed breakout. That’s what the PowerShares Wilderhill Clean Energy ETF (ticker: PBW) is showing. In the point and figure chart we recognize a quadruple top now, which failed.

The daily renko chart is confirming this failure. Where are the Obama-bucks?

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The financial sector

If you look to this chart of the banking stocks, you would thing everything is ok.

However it isn’t.
The bullish percent indices make clear that everything is not quite well.

Let’s have a peek to another ETF breaking down. July 8th the P&F chart of the Financial iShares (ticker IYF) broke through a triple bottom.

Looking to the renko charts we got confirmation:

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Euro-zone exports and Hewlett Packard

The Euro-zone has been hit hard by the collapse in global trade, with exports declining by almost 30% from their peak last year signs are that exports may be picking up again, especially to China and India.

We thank Goldman Sachs for this news.
They also report that:

New jobless claims dropped to 565,000 in the week ending July 3, after 22 weeks above the 600,000 mark. Along with some stabilization in the total number of jobless claimants in recent weeks and a sharp decline in layoff announcements over the past few months, this news offers hope that the worst period of job loss is finally coming to an end.

Now, I disagree.
The new jobless claims are dropping because less people are entitled to receive money from the government. So don’t get fooled…

And this one came from Sillvio Berlusconi himself:
"Everyone was of the opinion that the G-8 isn’t any longer the most ideal structure for dealing with the governance of the world economy,"

Now something else.
Last week I made a mistake. I mentioned Hewlett Packard, but put on the wrong graph. I apologize for this and take another look to this stock.
The point-and-figure chart of HP (ticker: HPQ) was showing a break out. However, one week later the price is going down. One other bad day and this break out will fail.

Our renko chart nails the real nature of the activity of this stock. And the technical story is negative. As we can see here.

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S&P500

While people marking ‘yes, we camp’ on the hills, the G-8 summit started in L’Aquila, Italy. Young Berlusconi choose the ruins of an earthquake as a glossy scenery, as this was Hollywood while people are camping since April in tents and other temporary shelters and the Italian population is getting mad because nothing is done so far. No insurance payments, no reconstruction, etc.
Discussing climate change seems a little obscene these days…

Our quadruple point-and-figure bottom candidate is no one else than the S&P500 SPDR (ticker: SPY) himself

The 60-minute renko chart is already down some sessions, however the daily chart is on the verge of breaking down too.

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US Steel

Time for another quadruple bottom stock. This time it is USX-US Steel Group breaking through its bottom on the point-and-figure chart.

Of course we look for confirmation on the renko charts. While the 60-minutes chart broke down already some days ago, we observe that the daily renko chart can follow suit. The Commodity Channel Index turned already and the stop-and-reverse indicator can flip sides any moment.

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Retail is breaking down

What is breaking today?

The consumer is.

We take the Retail Holders ETF (ticker: RTH). On the point and figure chart this ETF breaks through a quadruple bottom.

And also on the renko's the break is clear.

The chart of the 60-minutes renko is showing the way and broke already down

But also the daily chart is now following.

Yes, the consumer is giving up. Green shoots become yellow weed if not watered.

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I am a train...

Exploring the universe of point-and-figure charts linked to renko pictures, we halt today at Burlington Northern Santa Fe Corp (ticker: BNI), a railway stock acting as an icon for everything that is around moving in the American economy. After the rally from March, it looks as if clouds are packing together at the horizon.
The daily renko chart is still upbeat: the daily trend is positive though a little overextended as the CCI-indicator is showing us.

On a 60-minutes base, however, things are looking different. It seems a short term correction is under way.

This thought is confirmed by the P&F chart where a triple bottom seems to be taken out soon.

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Another day, another stock: Hewlett P.

Yesterday we showed a point-and-figure chart with a triple bottom and a renko illustration confirming this bearish signal. However, this isn’t always the case. Look to the quadruple top with Hewlett Packard in the P&F chart. The daily renko-chart however is not confirming this bullish signal. On the contrary: the CCI is overbought and the trend is not positive – for the moment.
So based on the diverging information of P&F and renko, I wouldn’t touch this one.

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Will this stock go down soon?

Though we’re not obsessed with finding the Holy Grail in investing, sometimes we’re happy to come close to interesting observations.
Take this point and figure chart of Sherwin Williams Co (ticker: SHW). It’s breaking down through a triple bottom.
We’re looking for some confirmation in our renko-charts and – yes – indeed, the daily chart shows the same phenomenon. Of course there is some logic as both techniques are based on the same technique. But with the CCI breaking down and the SAR almost flipping to the upper side we obtain some more accurate information to call it the day for Sherwin.

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A technical trade set-up

As some know, I like charting. There are a lot of reasons, but at least it gives an edge about where the price of security is. Trending, non-trending, etc.
And you are able to scroll through many names in a short period of time.
An example.
This is the daily renko chart of Carnival Corp (ticker: CCL).
Mention how the trend is becoming negative.

Now if you go to the traditional point and figure charting, the same phenomenon can observed.

So if one want to set up a scan for buy or sell candidates than this can be a good starting point, because there are a lot of automated programs scanning for this kind of P&F set-ups.

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Time to be bearish on gold?

Also this time the gold price will not go through the magical barrier of 1000 USD/oz. Almost a classical retreat to the low 900’s is coming . Our renko-charts are not positive. Neither the metal nor the mining stocks are performing well from a short term perspective.

Seasonality is pointing to a subdued market action the coming weeks. It ‘s only later in the year that the gold price normally receives a boost.
In my archive I found this chart which is averaging the price of the gold spot future over 30 years (from 1974 to 2003 to be precise) from Moore Research.

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Snippets

Some quickies.
The Financial sector seems to crack. The 60-minutes renko chart is not eying very well.

Although the daily uptrend is still intact.

Palm (ticker: PALM) is not looking well neither. The rally of last week came to a standstill en the short term trend is down

We close with the bullish percent index of one index and some sectors. Slowly some sectors are turning south.

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Sunoco

This stock was touted on the stockcharts.com site. A harami was formed. And indeed: our renko chart shows a positive development.

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Anglogold Ashanti

Yesterday this South-African goldminer lost more than 5%. Although we're up a little today, the trend as measured by our 60-minute renko charts, became negative. Is this the start of a decline or is gold and this group of stocks able to reverse course again?

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Bearish?

Are you bearish on financial stocks? And want to enter a new position on the Direxion Daily Financial Bear 3x Shares or FAZ?

Just wait, we're not there yet. Looking to our renko chart, we advise some more patience. Although the situation is oversold for some time now, the SAR has to flip under the price action before we would take a position:

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Natural Gas

Natural gas was going down for months and months in the US. But now it’s back. And the price is going higher. Since May started, NG is rising and not looking back.
Is this normal?
No it isn’t.
What more can we say.
We’re looking to the US Natural Gas Fund (ticker: UNG) renko chart . This is way overbought, but look to the volume: it comes in bundles of positive price action.

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It's not over, until it's over

The number of shares above their 50 day moving average remains high. Above 90% of all securities quoted on the NYSE are in a bullish mood. But sentiment is top heavy.

Too early to fall as a group, but we mention that some bellwethers are consolidating. As an example we take Apple (ticker: AAPL).

Be aware that Apple is overbought, but not ready to fall. For a clearer view on the trend, we look to the renko chart.

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