Key Chart: SPDR NYSE Technology ETF – XNTK
The SPDR NYSE Technology ETF (XNTK) has a Bullish Chaikin Power Gauge ETF Rating and is outperforming the SPY (has gone down less). The fund is oversold based on the OB / OS Indicator and Chaikin Money Flow is only slightly bearish. The fund is below the long-term trend line which has shifted from rising to flat. On Friday, XNTK staged an afternoon rally from the top of the range that was formed from April – October of last year. XNTK has a bullish Power Bar Ratio at 4 to 2.
Stock of the Day: Alibaba Group Holding (BABA) – Bullish Rating
Alibaba Group Holding (BABA) has a Bullish Chaikin Power Gauge stock rating and has been leading the SPY since October. The stock is oversold based on our indicator and Chaikin Money Flow is bullish. BABA closed above the long-term trend line on Friday and held support at the January low near $200. Above $190, the stock is likely to continue to outperform the broader market.
The Chaikin Power Gauge stock rating for BABA is Bullish due to very strong earnings performance and strong price/volume activity. The stock also has poor financial metrics and negative expert activity. BABA’s earnings performance is very strong as a result of high earnings growth over the past 3-5 years and better than expected earnings in recent quarters.