On the surface, it has been a better week for equity markets, particularly in the US and Europe, which finished January and started February off with strong rebound rallies. It remains unclear at this point, whether this upswing is the start of a significant turnaround for stocks or if it is a relief rally within an emerging downtrend. In this issue of Equity Leaders Weekly, we look at the implications across asset classes of a rising US Dollar, and at recent activity in energy markets.
Boosted by a stronger than expected earnings report and news of a 20-for-1 stock split coming, Alphabet (GOOG) shares soared 7.5% yesterday. However, when looking at a point and figure chart even though the recent bounce up off of $2,500 has been encouraging it has done nothing to change the sideways trend which has emerged since a high pole stalled out in September and a November breakout failed in a bull trap reversal. Currently the shares are still on a bearish Double Bottom pattern on a 2% chart although they are on a bullish Low Pole Warning on a 1% chart.