The biotech sector has been trending lower for the last five months, but has seen a bit of a rally over the last few weeks as investors appear to be making a shift from growth stocks to value stocks.Because of this rotation, many stocks in the sector are in overbought territory, at least on the daily charts.

Pharmaceutical manufacturer Astrazeneca (NYSE: AZN) has been trending higher over the last three and a half months and a trend channel has formed that defines the various cycles within the overall trend.Similar developments in July and May were really good buy signals for the stock. In addition to the oversold readings from the 10-day RSI and the stochastic readings, the stock dropped below its lower Bollinger Band on September 10.

The company has performed extremely well in recent years, both fundamentally and in its price performance. Zoetis just saw a bullish signal generated by the Tickeron Trend Prediction Engine on September 15.Past predictions for Zoetis have been successful 76% of the time. Looking at the daily chart for the stock we see that the stock has been trending higher since December and a trend channel has formed to define the various cycles within the overall upward trend.

The electronic bill payment provider has seen earnings and sales grow at a consistent pace while its management efficiency measurements are really strong. The company has seen its earnings grow by 17% per year over the last three years while sales grew by 3%.Analysts expect earnings to increase by 24% for 2019 as a whole while sales are expected to increase by 160%. Fiserv boasts a return on equity of 50.7% which is well above average and the profit margin is at 27.6%, also well above average. Collectively these indicators help Fiserv get a 28 rating from the Tickeron SMR rating.

Adobe reported quarterly earnings and revenue that exceeded analysts’ estimates. The software company’s  adjusted earnings per share for the third quarter came in at $2.25, beating analysts’ expectations of $1.97.The earnings-per share was +18% higher compared to the prior year quarter. Revenue increased +23% year-over-year to $2.83 billion, higher than analysts’ expectation of $2.815 billion.

Chewy reported a wider-than-expected fiscal-second-quarter loss, thereby sending its shares lower on Wednesday. For the three months ended Aug. 4, the online retailer of pet food & products reported a loss of - 21 cents a share, worse than analysts’ estimate of -11 cents (based on FactSet).Analysts were expecting revenue of $1.13 billion, according to FactSet. For the fiscal third-quarter, Chewy expects sales to come in between $1.19 billion and $1.21 billion, a year-over-year increase of 36% to 38%. Analysts’ had predicted sales of $1.16 billion.  

FedEx reported its fiscal first quarter results, disappointing earnings and revenue estimates as well lowering its guidance. For the three months ending August, the courier delivery services company reported adjusted earnings of $3.05, below  analysts’ expected $3.17.  The earnings were around -11.85% lower than the year-ago period. Revenue of $17.05 billion also came in lower than analysts’ estimate of $17.14 billion .Sales remained flattish from the same quarter in the prior year. Looking ahead, FedEx cut its fiscal full year 2020 guidance to $11 to $13, citing major global headwinds in the form of trade tensions, global economic slowdowns, increase in FedEx Ground costs and losing a “large customer” (read: Amazon) in August. Analysts expected $14.69.

Corning shares declined in premarket Tuesday, after it slashed third quarter guidance for its display and optical communications segments.But some of the downside in the shares was potentially arrested by Apple's announcement of granting $250 million to the maker of specialty glass and advanced optics. Corning is now expecting a reduction of between -3% and -5% of revenue in its optical communications segment, compared with its previous forecast of a low-to-mid-single digit percentage increase. Analysts polled by FactSet were forecasting a +4.3% increase. According to Corning's latest prediction,  its third-quarter display technologies prices would be flat sequentially, and  its full-year glass prices would decline by a low-to-mid-single-digit percentage.

Jefferies Financial Group is planning to spin off a 15.4% stake in Spectrum Brands Holdings. As part of the plan,the investment bank would issue a dividend to its shareholders of 7.5 million Spectrum Brands shares.The dividend is payable Oct. 11 to Jefferies holders of record Sept. 30. Spectrum Brands is the owner of several consumer goods brands, such as Black Flag pesticides, Pfister kitchen and bathroom appliances, Kwikset and Weiser locks and security equipment, and, in Europe, Iams and Eukanuba pet-care products.

E-commerce giant Amazon.com  reportedly made some tweaks to its product search algorithm in an attempt to give greater prominence to products that are more profitable for the company, according to a Wall Street Journal report. Citing people who worked on the project, The Journal indicated that Amazon optimized its algorithm in a way that boosts listings of items that are profitable for the company – not just those that are most relevant or bestsellers corresponding to customers’ searches. The report also mentioned that the algo adjustment was made late last year, and followed a conflict between executives who run the company’s retail division in Seattle and a search team in California called A9, which was opposed to the change. Amazon, however, denied the allegations.Its spokeswoman Angie Newman has indicated to the Journal that the company designs its search results to reflect  customers preferences, irrespective of whether they are the company’s  own brands or

On Tuesday, Apple challenged a controversial EU tax ruling in the region’s  second-highest court. In front of the EU General Court in Luxembourg, the iPhone maker opened arguments on Tuesday, against the 2016 EU ruling that deemed Ireland's low-tax rate on the company as an unfair form of state aid.The decision will likely be appealed to the EU’s highest court, the Court of Justice. The European Commission argued that Apple’s effective corporate tax rate on its European profits in 2014 was just 0.005%.

The attacks on critical oil production facilities in Saudi Arabia over the weekend will effectively wipe out the world’s spare oil capacity, an expert from S&P Global Platts said on Monday. An oil processing facility at Abqaiq and the nearby Khurais oil field were attacked on Saturday, knocking out 5.7 million barrels of daily crude production — or 50% of the kingdom’s oil output.That’s more than 5% of global daily oil production. The country’s national oil company, Saudi Aramco, has 35 to 40 days of supply to meet contractual obligations, according to a source close to the matter. Read More...

Basic materials stocks have performed relatively well in the last few weeks the sector has been in the upper half in terms of its performance versus the other 10 main sectors.One such company is Alcoa (NYSE: AA) and it has moved up over 35% in the last three and a half weeks. The rally has caused the stock the move in to overbought territory based on the 10-day RSI and the daily stochastic readings.

) Last week, Aurora Cannabis reported quarterly revenue that increased +52% to C$98.9 million ($75 million), but fell short of Wall Street consensus of $78 million.Cannabis sales volumes over the April to June period, nearly doubled from the prior quarter to 17,793 kilograms, but average selling prices dropped -16.8% from the third quarter to C$5.32 per gram on increased supply of lower-yielding recreational marijuana in the domestic market.

Nvidia were indicated lower on Friday after shares got downgraded by DZ Bank, while the latter also lowered price target. DZ Bank analysts lowered their rating on the chipmaker  to sell from hold.They also cut the 12-month price target (for the second time in less than six months) $158 a share from $170. Nevertheless, Nvidia has been going strong on sales of its chips, particularly in the artificial intelligence field. It also beat quarterly earnings estimates last month.

Lumber Liquidators shares declined Friday, after news of its founder pulling back from plans to buyout the home-improvement company. In an interview with Bloomberg, Tom Sullivan indicated that he had been working on a transaction, but had to re-think the plan after  perceiving that the company's stock price had gotten too high and the company had declined to engage in discussions. Last month, Lumber Liquidators reported second-quarter results that fell short of analysts' expectations, amidst the 25% tariff on imports from China that posed headwinds to the company's margins.It now expects same-store sales to be flat for the year, and forecasts low-single digits growth in revenue. According to a SEC filing on Friday, during the time span of about a month, Sullivan, bought stock for an average price of $7.88 a share, and then sold 1.25 million shares this week at an average of $11.68.

Online dating site operator Match Group (Nasdaq: MTCH) has been on an incredible run over the last four years.Match Group is the parent company of websites such as Tinder.com, Match.com, and OKCupid.com. As late as April 2016, the stock was trading under $10 a share before rallying as high as $95 last month.

Broadcom reported quarterly earnings that surpassed analyst estimates, but with revenues slightly below expectations. For its fiscal third quarter, the semiconductor company’s adjusted earnings came in at $5.16 a share, beating Wall Street estimates of $5.13.GAAP earnings of $1.71 also were higher than forecasts of $1.21. Revenue in the quarter increased +9% year-over-year to $5.515 billion, just missed analysts expectations of $5.516 billion. Looking ahead, Broadcom expects  full fiscal year 2019 revenue of $22.5 billion, maintaining its prior forecast.

Tonight, the Energy Select Sector SPDR (NYSE: XLE) caught my attention, or at least the chart did. The XLE was on a bearish scan that I run each night and as I scrolled through the charts, I couldn’t help but notice how the highs from April, July, and the last two days all connected very nicely with a downward sloped trend line.I also took it upon myself to draw a parallel line to see if the lows connected to form a trend channel.

Additionally, the company  announced that its co-CEO Mark Hurd is taking a medical leave of absence. The news led to a sudden, sharp -5.29% decline in Oracle  shares in after-hours trading Wednesday. The cloud tech/software company’s adjusted earnings for the latest reported quarter came in at 81 cents a share, in line with estimates compiled by FactSet.The earnings per share are higher than the year-ago quarter’s 71 cents a share. Revenue of $9.2 billion, however, was a bit lower than analysts’ expectation of $9.3 billion.