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Point & Figure Pulse
Breadth indicators have drastically improved over the last month. Earlier this week, the Bullish Percent for the S&P 500 ([^BPSPX]) crossed above 70% and now sits at a level of 74%. Readings above 70% are often associated with a frothy market in the short-term but it is generally a good sign on longer time frames.
Wednesday Feature: A Relative Strength Wrap-Up
A Key RS Relationship Between Growth and Value
Market Distribution Table
The curve has an average reading of 18.49%.
Daily Equity Roster
Today's featured stock is CRH plc (Ireland) ADR (CRH).
Analyst Observations
Comments include: AEP, AU, DUK, EGO, LLY, MRK, & SO.
Daily Option Ideas
Call: Cintas Corporation (CTAS); Put: Zimmer Biomet Holdings (ZBH); Covered Write: Twilio (TWLO).
Weekly Video
Weekly Rundown Video - May 7, 2025
Weekly rundown with NDW analyst team covering all major asset classes.
Weekly rundown with NDW analyst team covering all major asset classes.
Breadth indicators have drastically improved over the last month. Earlier this week, the Bullish Percent for the S&P 500 (^BPSPX) crossed above 70% and now sits at a level of 74%. Readings above 70% are often associated with a frothy market in the short-term but it is generally a good sign on longer time frames. Nonetheless, over the last few years readings above 70% have tended to be short-lived, usually lasting no more than a month. This does suggest that the recent pace of the rally in equities is due to slow at least. To be more succinct, elevated breadth readings tend to lead to more muted returns over the next couple of months, but long-term it is a positive. The last time ^BPSPX moved above 70% was in September 2024.
One of the more unique circumstances surrounding this trip above 70% is that ^BPSPX dropped below 20%. This is the twelfth time since 1998 that ^BPSPX has made a roundtrip from below 20% to above 70%. This was the second-fastest roundtrip in history as it took 35 days from when ^BPSPX dropped below 20% to get back above 70%. The only period it took less time to make a roundtrip was in March 2020 when it only took 21 days. Forward returns for the S&P 500 following the ^BPSPX crossing above 70% after dropping below 20% are on average positive more than one month out, but they aren’t robust. Returns one year out are more positive than any other time frame. This goes along with what was mentioned earlier, high levels of breadth may signal a cooling off period for the market over the next few months, but it is a positive on longer time frames.
It feels somewhat ironic that through 5/13, Large-Cap Growth representative VUG is up just .01% in 2025. Peak to trough, VUG lost nearly 23% in 2025, clawing its way back to positive for the year as it broke back into a positive trend and returned to a buy signal on its default chart for the first time since late 2024. In the near-term, $425 looks to be quite a stiff point of resistance, having reached that level five times over the last year or so. VTV also presents quite an interesting technical picture. While VTV specifically holds a score below NDW’s 3.0 threshold, the average US Large Cap Value fund is still technically acceptable with a 3.35 fund score on the Asset Class Group Scores Page. VTV posted its first buy signal of the year with the recent rally, returning into a positive trend in the process. All of that said, today’s feature will build off of several interesting developments worth watching favoring risk-on changes as we rocket towards the back half of May.
We will start our conversation with a notable development by looking at a 3.25% RS chart between VUG & VTV. As of action on 5/13/25, this moved back into X’s signaling a near-term preference for growth focused names on the most recent rally. Sitting on a pair of consecutive buy signals, chart action of the 3.25% scale has been largely consistent over the last 30 years- a net positive for trend followers. While further leadership for growth would see VUG challenge all-time highs of “relative price” against VTV, the reversal is certainly a talking point as you enter conversations with clients. Building on that, growth was able to hold its long-term signal against value, another feather in the cap of a fund which has held above NDW’s 3.0 fund score threshold since February of 2023. A hypothetical portfolio which owns whichever fund is on a buy signal vastly outperforms a simple buy & hold strategy of either representative since 1998.
Practical allocations for RS charts don’t stop on a simple asset to asset level (think the previously mentioned switching strategy between VUG & VTV, for example.) The analyst team will quite often use these relationships to gauge what kind of assets are in control. Take for instance the chart below detailing a 6.5% RS chart between Bitcoin ($BTC) & Gold (GLD). While the latter certainly isn’t acting like a particularly defensive asset (at least in 2025) the relationship may help us gauge whether risk on (Bitcoin) or risk off (Gold) options are leading the way. While the RS switching strategy on this scale isn’t as profitable as simply owning Bitcoin throughout the time period (to no surprise…) the overall idea can be used in tandem with other commentary to build out a weight of the evidence across your portfolio.
There have also been a handful of interesting changes on an individual sector perspective worth watching. Starting broadly with Relative Strength changes against NDW’s cash proxy MNYMKT, both communication services representative XLC and financials representative XLF moved back into X’s on their 3.25% relative strength charts. Healthcare (XLV), Utilities (XLU), Staples (XLP) & Energy (XLE) remain in O’s against MNYMKT at the time of this writing. Looking at the core of the market (SPX) vs. individual sectors, SPX moved back into X’s against staples representative XLP on a 3.25% scale, another building block supporting the idea of a more risk-on focused advance as we look to attack all time highs above.
Absolute price movement is certainly important. All that said, using relative strength charts can help remove some of the “fog of war” associated with only looking at said absolute price in a vacuum. Using alerts to keep up with a list of relative strength charts can help automate the process, making best use of your time on the platform.
Each week the analysts at NDW review and comment on all major asset classes in the global markets. Shown below is the summary or snapshot of the primary technical indicators we follow for multiple areas. Should there be changes mid-week we will certainly bring these to your attention via the report.
| Universe | BP Col & Level (actual) | BP Rev Level | PT Col & Level (actual) | PT Rev Level | HiLo Col & Level (actual) | HiLo Rev Level | 10 Week Col & Level (actual) | 10 Week Rev Level | 30 Week Col & Level (actual) | 30 Week Rev Level |
|---|---|---|---|---|---|---|---|---|---|---|
| ALL |
|
36% |
|
26% |
|
50% |
|
54% |
|
32% |
| NYSE |
|
50% |
|
36% |
|
56% |
|
64% |
|
36% |
| OTC |
|
32% |
|
22% |
|
50% |
|
52% |
|
30% |
| World |
|
38% |
|
28% |
|
|
|
54% |
|
36% |
U.S. Sector Updates
The past week saw no significant technical developments in the Industrials Sector. Those that saw noteworthy movement are included below, in order of their relative strength ranking in the DALI domestic equity sector rankings, as of 5/14/2025. Sector designations are based on DALI sector rankings and are as follows: 1 - 3 overweight, 4 - 7 equal weight, and 8 - 11 underweight.
Communication Services – Overweight
Weekly Communications Video (3:03)
Communication Services remains a strong option from a pure sector perspective. The group continues to flex its muscles atop the sector DALI rankings, ranking first out of the 11 broad sectors as of 5/14. Broad representative XLC has improved nicely off of 2025 lows, returning to a PnF buy signal on its default chart and moving back to a column of X's on a 3.25% Relative Strength chart. Despite its strength, there are a handful of landmines in the sector to be aware of when picking up exposure. Google (GOOG & GOOGL) remains a poor attribute name. Comcast (CMCSA) is a poor attribute name that moved higher, take that as a chance to trim. Walt Disney broke back into a positive trend, but buyer beware, the stock is not the "fairest of them all."
Financials – Overweight
Weekly Financials Video (3:19)
Financials has been a top-three ranked DALI sector for almost a year, highlighting the area's consistent relative strength picture. The Financial Select SPDR Fund (XLF) possesses a strong fund score above 4.0 and trades right below resistance of all-time highs. Bank representative, SPDR S&P Bank ETF (KBE), returned to a positive trend on May 12th but still has a poor fund score below 3.0.
Utilities – Overweight
Though broader Utilities pulled back during the past one-week roll (5/6 – 5/13), both XLU and RSPU continue to maintain current chart positions near their breakout levels from early last week. The 10-week indicator for the broader sector (^TWECUTILITY) reversed into Os, suggesting stocks within the sector have moved below their 50-day moving average, but intermediate and long-term indicators such as the bullish percent (^BPECUTILITY) and positive trend (^PTECUTILITY) still maintain high readings and a column of Xs. Within industries like Gas Utilities though, indicators like the bullish percent (^BPGUTI) and positive trend (^PTGUTI) have reversed into Os during this week’s trading. Suggesting stocks within the small group are beginning to give sell signals and shift their trends back to negative. Additionally, the RS in Xs indicator (^RSXGUTI), which measures the percentage of stocks maintaining positive near-term market RS against the S&P 500 Equal Weight Index (SPXEWI), shifted back into a column of Os following Tuesday’s (5/13) action. While most Gas Utilities stocks maintain positive technical pictures, some have begun to see breakdowns as suggested by the indicators. On the earnings front, NRG Energy (NRG) reported a beat along with announcing an acquisition during Monday’s (5/12) trading. The stock rallied to a new all-time chart high at $158 and now trades in extremely overbought territory.
Technology – Equal Weight
Weekly Technology Video (3:31)
Technology gained further relative strength on Monday to move up into the fifth position in the DALI sector rankings, placing it back inside the top half of the sectors for the first time since April 3. XLK was the second best performing broad sector fund on Monday and is the best performing over the trailing month. The Ten Week for Technology (^TWECTECH) advanced up to 72% for the first time since late 2023, highlighting a sharp rise in near-term participation. Semiconductors have been a catalyst for recent improvement as the space bounces back from the significant declines posted in the beginning of the year. Software names have been more resilient and shown more consistent improvement.
Discretionary – Equal Weight
Weekly Discretionary Video (3:36)
Discretionary stocks have been positive during this one-week roll (5/6 – 5/13) with the Discretionary Select Sector SPDR Fund (XLY) rallying just shy of 9% to move above $215 on the ETF’s point and figure chart. Monday’s action brought notable increases to indicators for the broader sector with the 10-week (^TWECCONCYC) and bullish percent (^BPECCONCYC) increasing to 64% and 40%, noting stocks moving above their 50-day moving average and returning to a buy signal. The longer-term positive trend (^PTECCONCYC) indicator reversed back into Xs following last Wednesday’s (5/7) and the RS in Xs indicator (^RSXECCONCYC), which measures the percentage of stocks maintaining positive near-term market RS against the S&P 500 Equal Weight Index (SPXEWI), shifted back into a column of Xs following Friday’s (5/9) action. All told, there has been a notable shift in stocks showing positive technical improvement within the broader sector. Among those is Carvana (CVNA), which beat on earnings last week and rallied to a multi-year high during intraday action Wednesday (5/14). Planet Fitness (PLNT) and Expedia (EXPE) reported mixed earnings results last week but continue to maintain positive overall technical pictures. Walmart’s (WMT) earnings on Thursday (5/15) before the opening will highlight the week.
Staples – Underweight
Consumer Staples had a down week, seeing Select Sector SPDR Fund XLP fall 1.7% to lag the S&P 500 by 6.7%. The sector’s underperformance resulted in several notable relative strength changes. XLP reversed into a column of Os versus the S&P 500 Equal Weight (SPXEWI), bringing its fund score down to an unacceptable 1.95. Staples now holds an average score of 2.32 in Asset Class Group Scores—a full point lower than the week prior. The sector maintained its 7th spot in DALI, but it also lost 16 signals over the last week, placing it within 5 signals of falling further in rank. Broadly speaking, Staples are trending in the wrong direction and are holding onto their equal weight status by a thread.
Materials – Underweight
The Materials Select Sector SPDR Fund (XLB) was up just under 3% over the last week. Precious metals remain one of the strongest areas within materials but weighed on performance in the short-term as the VanEck Gold Miner’s ETF (GDX) fell more than 8% over the last week. GDX fell to a sell signal on its default chart when it broke a double bottom at $46.50. While precious metals have underperformed in the short-term the GDX has a favorable fund score north of 4.5, while the outlook for the broader sector remains weak as materials rank eighth in the DALI sector rankings and XLB has a fund score below 1.0.
Real Estate – Underweight
Weekly Real Estate Video (2:45)
Despite a strong performance from the market, the Real Estate sector was unable to do much this past week, as the Select Sector SPDR Fund (XLRE) fell 1.2%. However, we did see a reversal in the sector’s PT indicator (^PTECREALEST), which is a positive sign for its long-term participation. Outside of that, the sector held its 9th rank in DALI and while falling further in Asset Class Group Scores, with the group now holding an average score of 2.46. Given its lack of long-term strength, in addition to its poor near-term performance, the sector remains one to underweight for the time being.
Healthcare – Underweight
Weekly Healthcare Video (3:17)
The Healthcare sector Experienced some technical deterioration over the past week. The Health Care Select Sector SPDR Fund (XLV) has a fund score of 1.32 (as of 5/13) and moved to a sell signal after it broke a double bottom on Wednesday at $130. In DALI, the healthcare sector lost a few signals and is still an unfavored sector. UnitedHealth Group Incorporated (UNH) is a 0 for 5’er, but the Weekly OBOS indicates that the stock is in oversold territory and is likely to normalize in the near term. HCA Healthcare Inc. (HCA) is a 5 for 5’er and continues to improve. HCA’s next level of resistance is located at its previous all-time high of $416.
Energy – Underweight
The Energy Select Sector SPDR Fund (XLE) was up 6.5% over the last week, outpacing the S&P 500 (SPX). The rally comes as crude oil gained 7.75% over the last seven days. XLE gave a second consecutive buy signal on its default chart with a spread triple top break at $84 and now sits one box below its bearish resistance line. While XLE has shown modest improvement recently, it has an unfavorable fund score and energy remains at the bottom of the DALI sector rankings. Meanwhile, crude oil sits on a sell signal and in a negative trend near multi-year lows.
Remember, these are technical comments only. Just as you must be aware of fundamental data for the stocks we recommend based on technical criteria in the report, so too must you be aware of important data regarding delivery, market moving government releases, and other factors that may influence commodity pricing. We try to limit our technical comments to the most actively traded contracts in advance of delivery, but some contracts trade actively right up to delivery while others taper off well in advance. Be sure you check your dates before trading these contracts. For questions regarding this section or additional coverage of commodities email james.west@nasdaq.com.
Data represented in the table below is through 5/13/2025:
Broad Market Commodities Report
Portfolio View - Commodity Indices
| Symbol | Name | Price | PnF Trend | RS Signal | RS Col. | 200 Day MA | Weekly Mom |
|---|---|---|---|---|---|---|---|
| CL/ | Crude Oil Continuous | 63.67 | Negative | Sell | O | 69.94 | + 1W |
| DBLCIX | Deutsche Bank Liquid Commodities Index | 456.51 | Negative | Sell | O | 459.59 | + 2W |
| DWACOMMOD | NDW Continuous Commodity Index | 976.18 | Positive | Buy | O | 909.00 | + 2W |
| GC/ | Gold Continuous | 3240.30 | Positive | Buy | X | 2777.34 | - 1W |
| HG/ | Copper Continuous | 4.68 | Negative | Buy | X | 4.38 | + 1W |
| ZG/ | Corn (Electronic Day Session) Continuous | 442.50 | Negative | Sell | X | 439.25 | - 2W |
Cryptocurrency Update
Average Level
18.49
| < - -100 | -100 - -80 | -80 - -60 | -60 - -40 | -40 - -20 | -20 - 0 | 0 - 20 | 20 - 40 | 40 - 60 | 60 - 80 | 80 - 100 | 100 - > |
|---|---|---|---|---|---|---|---|---|---|---|---|
| < - -100 | -100 - -80 | -80 - -60 | -60 - -40 | -40 - -20 | -20 - 0 | 0 - 20 | 20 - 40 | 40 - 60 | 60 - 80 | 80 - 100 | 100 - > |
| AGG | iShares US Core Bond ETF |
| USO | United States Oil Fund |
| DIA | SPDR Dow Jones Industrial Average ETF |
| DVY | iShares Dow Jones Select Dividend Index ETF |
| DX/Y | NYCE U.S.Dollar Index Spot |
| EFA | iShares MSCI EAFE ETF |
| FXE | Invesco CurrencyShares Euro Trust |
| GLD | SPDR Gold Trust |
| GSG | iShares S&P GSCI Commodity-Indexed Trust |
| HYG | iShares iBoxx $ High Yield Corporate Bond ETF |
| ICF | iShares Cohen & Steers Realty ETF |
| IEF | iShares Barclays 7-10 Yr. Tres. Bond ETF |
| LQD | iShares iBoxx $ Investment Grade Corp. Bond ETF |
| IJH | iShares S&P 400 MidCap Index Fund |
| ONEQ | Fidelity Nasdaq Composite Index Track |
| QQQ | Invesco QQQ Trust |
| RSP | Invesco S&P 500 Equal Weight ETF |
| IWM | iShares Russell 2000 Index ETF |
| SHY | iShares Barclays 1-3 Year Tres. Bond ETF |
| IJR | iShares S&P 600 SmallCap Index Fund |
| SPY | SPDR S&P 500 Index ETF Trust |
| TLT | iShares Barclays 20+ Year Treasury Bond ETF |
| GCC | WisdomTree Continuous Commodity Index Fund |
| VOOG | Vanguard S&P 500 Growth ETF |
| VOOV | Vanguard S&P 500 Value ETF |
| EEM | iShares MSCI Emerging Markets ETF |
| XLG | Invesco S&P 500 Top 50 ETF |
Long Ideas
| Symbol | Company | Sector | Current Price | Action Price | Target | Stop | Notes |
|---|---|---|---|---|---|---|---|
| BRK.B | Berkshire Hathaway Inc | Wall Street | $511.88 | 480s - low 500s | 556 | 432 | 5 for 5'er, top 20% of WALL sector matrix, LT pos mkt RS, multiple buy signals, buy on pullback |
| WRB | W. R. Berkley Corporation | Insurance | $71.68 | mid 60s - lo 70s | 115 | 55 | 4 TA rating, top 25% of INSU sector matrix, LT RS buy, LT pos trend, R-R > 2 |
| ADC | Agree Realty Corporation | Real Estate | $72.92 | mid-to-upper 70s | 100 | 67 | 4 for 5'er, top 10% of REAL sector matrix. spread quad top, R-R>2.0, 3.9% yield |
| ROL | Rollins, Inc. | Business Products | $54.85 | 52 - hi 50s | 77 | 45 | 5 TA rating, top 25% of BUSI sector matrix, LT pos trend, RS buy, pos wkly mom |
| AVGO | Broadcom Ltd | Semiconductors | $232.42 | 180s - 190s | 254 | 160 | 4 for 5'er, top 20% of SEMI sector matrix, LT pos mkt RS, pos trend flip, spread triple top, R-R>2.0, Earn. 6/5 |
| BYD | Boyd Gaming Corp | Gaming | $75.36 | hi 60s - low 70s | 90 | 58 | 4 for 5'er, top 20% of GAME sector matrix, triple top, pos trend flip, 1.1% yield |
| AMP | Ameriprise Financial | Wall Street | $519.69 | 448-490s | 568 | 396 | 5 TA rating, top 33% of WALL sector matrix, LT pos mkt RS, recent pos trend, pos wkly mom |
| UNM | Unum Group | Insurance | $80.92 | 74 - 80 | 89 | 64 | 5 for 5'er, top 10% of INSU sector matrix, LT pos peer & mkt RS, buy on pullback, 2.1% yield |
| ADSK | Autodesk, Inc. | Software | $297.01 | 270s - 290s | 340 | 232 | 5 for 5'er, top half of favored SOFT sector matrix, LT pos peer RS, triple top, pos trend flip, Earn. 5/22 |
| ALL | The Allstate Corporation | Insurance | $202.56 | 190s - low 200s | 230 | 176 | 4 for 5'er, top third of favored INSU sector matrix, pos trend flip, 2% yield |
| VIRT | Virtu Financial | Wall Street | $42.36 | 38-mid 40s | 60 | 31 | 4 TA rating, pos trend, recent RS buy, top 10% of WALL sector matrix, consec. buy signals |
| AZZ | Aztec Manufacturing Co. | Electronics | $94.15 | mid 80s - low 90s | 108 | 73 | 5 for 5'er, #6 of 52 in ELEC sector matrix, spread quad top |
| ETN | Eaton Corporation | Electronics | $330.75 | 290s - 300s | 356 | 260 | 4 for 5'er, top half of ELEC sector matrix, LT pos mkt RS, pos trend flip, spread triple top |
| FFIV | F5 Inc. | Internet | $283.23 | 260s - 280s | 312 | 244 | 5 for 5'er. top half of favored INET sector matrix, LT pos peer RS, triple top breakout |
| UAL | United Airlines Holdings Inc. | Aerospace Airline | $82.60 | 79 - hi 80s | 105 | 65 | 4 TA rating, top 50% of AERO sector matrix, RS buy, 5 consec buy signals, recent pos trend |
| CRH | CRH plc (Ireland) ADR | Building | $98.16 | 90s - low 100s | 134 | 81 | 5 for 5'er, top 20% of BUIL sector matrix, LT pos mkt RS, spread triple top, R-R~2.0, 1.5% yield |
Short Ideas
| Symbol | Company | Sector | Current Price | Action Price | Target | Stop | Notes |
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Follow-Up Comments
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NDW Spotlight Stock
CRH CRH plc (Ireland) ADR R ($97.57) - Building - CRH is a 5 for 5'er that ranks in the top quintile of the building sector matrix and has been on a market RS buy signal since 2020. On its default chart, the stock gave a second consecutive buy signal this week when it broke a spread triple top at $100, taking out resistance that had been in place since March. Long exposure may be added in the $90s to low $100s and we will set our initial stop at $81, a potential spread triple bottom break on CRH's default chart. We will use the bullish price objective, $134, as our target price, giving us a reward-to-risk ratio of about 2.0. CRH also carries a 1.5% yield.
| 25 | |||||||||||||||||||||||||||||
| 110.00 | X | 110.00 | |||||||||||||||||||||||||||
| 108.00 | X | O | 108.00 | ||||||||||||||||||||||||||
| 106.00 | X | O | 106.00 | ||||||||||||||||||||||||||
| 104.00 | X | X | O | X | 104.00 | ||||||||||||||||||||||||
| 102.00 | X | O | X | X | O | X | O | X | 102.00 | ||||||||||||||||||||
| 100.00 | O | X | O | X | O | X | O | X | O | X | O | • | X | 100.00 | |||||||||||||||
| 99.00 | O | X | C | X | O | X | O | 3 | X | O | X | • | • | X | X | 99.00 | |||||||||||||
| 98.00 | O | O | X | O | X | O | X | O | X | X | O | X | • | X | O | X | 98.00 | ||||||||||||
| 97.00 | O | X | 2 | O | X | O | X | O | X | O | X | O | • | X | O | X | 97.00 | ||||||||||||
| 96.00 | O | X | O | X | O | X | O | X | O | X | O | • | 5 | O | X | 96.00 | |||||||||||||
| 95.00 | O | X | O | X | O | X | O | O | X | O | • | X | O | X | 95.00 | ||||||||||||||
| 94.00 | O | X | O | X | O | X | O | X | O | • | X | O | X | 94.00 | |||||||||||||||
| 93.00 | O | X | O | O | X | O | O | • | X | O | X | 93.00 | |||||||||||||||||
| 92.00 | O | X | O | O | • | X | O | Mid | 92.00 | ||||||||||||||||||||
| 91.00 | 1 | O | X | X | 91.00 | ||||||||||||||||||||||||
| 90.00 | • | O | X | O | X | 90.00 | |||||||||||||||||||||||
| 89.00 | • | O | X | O | X | X | 89.00 | ||||||||||||||||||||||
| 88.00 | • | O | 4 | O | X | O | X | 88.00 | |||||||||||||||||||||
| 87.00 | • | O | X | O | X | O | X | X | 87.00 | ||||||||||||||||||||
| 86.00 | • | O | X | O | X | O | X | O | X | 86.00 | |||||||||||||||||||
| 85.00 | • | O | O | X | O | X | O | X | 85.00 | ||||||||||||||||||||
| 84.00 | • | O | X | O | X | O | X | 84.00 | |||||||||||||||||||||
| 83.00 | • | O | X | O | X | O | X | • | 83.00 | ||||||||||||||||||||
| 82.00 | • | O | X | O | O | • | 82.00 | ||||||||||||||||||||||
| 81.00 | • | O | X | • | 81.00 | ||||||||||||||||||||||||
| 80.00 | • | O | X | • | 80.00 | ||||||||||||||||||||||||
| 79.00 | • | O | X | • | 79.00 | ||||||||||||||||||||||||
| 78.00 | • | O | X | • | 78.00 | ||||||||||||||||||||||||
| 77.00 | • | O | • | 77.00 | |||||||||||||||||||||||||
| 25 |
| AEP American Electric Power Company, Inc. ($98.72) - Utilities/Electricity - AEP broke a double bottom at $98 to complete a bearish catapult. The move also violates the bullish support line, which had been in place since February 2024 and will drop the stock down to a 2 for 5'er trading in a negative trend. From here, support lies at current chart levels, while additional may be found at $90. |
| AU AngloGold Ashanti Limited (South Africa) ADR ($39.79) - Precious Metals - AU gave an initial sell signal Wednesday when it broke a double bottom at $39. The weight of the evidence remains positive as AU is a 4 for 5'er that ranks in the top quintile of the precious metals sector matrix. From here, the next level of support on AU's chart can be found at $32, where its bullish support line also currently sits. |
| DUK Duke Energy Corporation ($112.54) - Utilities/Electricity - DUK broke a double bottom at $112 to initiate a shakeout pattern. DUK has maintained a positive trend since November 2023 and shown superior near-term relative strength against the market and its peer group since the latter half of 2024, making the stock a 3 technical attribute. From here, the action point for the shakeout pattern would be upon a reversal back into a column of Xs, currrently at $118. The pattern would be complete upon the triple top break at $126, which would also mark a new all-time chart high. Support on the chart lies in the mid $100 range with the bullish support line residing at $104. |
| EGO Eldorado Gold Corporation ($17.36) - Precious Metals - EGO fell to a sell signal Wednesday when it broke a double bottom at $17.50. The technical picture for EGO remains marginally positive as the stock is a 3 for 5'er. From here, the next level of support in EGO's trend line, which currently sits at $16. |
| LLY Eli Lilly and Company ($721.72) - Drugs - LLY shares moved lower today to break a double bottom at $720 to mark its second consecutive sell signal. This 3 for 5'er has been in a negative trend since May but on an RS buy signal versus the market since August 2021. LLY shares are trading below the middle of their trading band with a weekly overbought/oversold reading of -38%. From here, support is offered at $712. |
| MRK Merck & Co., Inc. ($73.83) - Drugs - MRK shares moved lower today to break a double bottom at $75 to mark its second consecutive sell signal. This 1 for 5'er has been in a negative trend since July 2024 and on an RS sell signal versus the market since April 2021. MRK shares are trading near heavily oversold territory with a weekly overbought/oversold reading of -67%. From here, support is offered at $73, last seen in 2022. |
| SO The Southern Company ($84.97) - Utilities/Electricity - SO broke a double bottom at $84 for a second sell signal. This follows the stocks rallying and failing to penetrate resistance at $93 on three prior occassions. The move also violates the bullish support line, which violates a trend that had been in place for more than 12 months and will drop the stock down to a 3 for 5'er. From here, support lies at $83 and $81, the January 2025 chart low. |
Daily Option Ideas for May 14, 2025
Calls
New Recommendations
| Name | Option Symbol | Action | Stop Loss |
|---|---|---|---|
| Cintas Corporation - $214.20 | O: 25H210.00D15 | Buy the August 210.00 calls at 14.70 | 196.00 |
Follow Ups
| Name | Option | Action |
|---|---|---|
| Sea Ltd. (Singapore) Sponsored ADR Class A ( SE) | Jul. 115.00 Calls | Raise the option stop loss to 45.70 (CP: 47.70) |
| The TJX Companies, Inc. ( TJX) | Jul. 125.00 Calls | Raise the option stop loss to 7.30 (CP: 9.30) |
| J.P. Morgan Chase & Co. ( JPM) | Aug. 245.00 Calls | Raise the option stop loss to 24.50 (CP: 27.50) |
| The Charles Schwab Corporation ( SCHW) | Jul. 80.00 Calls | Raise the option stop loss to 7.15 (CP: 9.15) |
Puts
New Recommendations
| Name | Option Symbol | Action | Stop Loss |
|---|---|---|---|
| Zimmer Biomet Holdings - $95.41 | O: 25U100.00D19 | Buy the September 100.00 puts at 8.10 | 104.00 |
Follow Up
| Name | Option | Action |
|---|---|---|
| General Mills, Inc. ( GIS) | May. 60.00 Puts | Raise the option stop loss to 4.40 (CP: 6.40) |
| Johnson & Johnson ( JNJ) | Jul. 150.00 Puts | Initiate an option stop loss of 5.00 (CP: 7.00) |
| Novo Nordisk A/S (Denmark) ADR ( NVO) | Aug. 70.00 Puts | Initiate an option stop loss of 7.15 (CP: 9.15) |
Covered Writes
New Recommendations
| Name | Option Sym. | Call to Sell | Call Price | Investment for 500 Shares | Annual Called Rtn. | Annual Static Rtn. | Downside Protection |
|---|---|---|---|---|---|---|---|
| Twilio Inc $ 114.54 | O: 25G115.00D18 | Jul. 115.00 | 7.40 | $ 53,932.25 | 31.21% | 32.20% | 5.42% |
Still Recommended
| Name | Action |
|---|---|
| Ollies Bargain Outlet Holding Inc. ( OLLI) - 113.94 | Sell the June 110.00 Calls. |
| Shopify Inc ( SHOP) - 107.68 | Sell the September 100.00 Calls. |
| The Blackstone Group Inc ( BX) - 148.60 | Sell the July 150.00 Calls. |
The Following Covered Write are no longer recommended
| Name | Covered Write |
|---|---|
| Kinross Gold Corporation ( KGC - 13.76 ) | August 15.00 covered write. |
