SystemTrader .... An RSI Mean-Reversion System .... Setting Market Conditions .... System Rules .... Why 5-day RSI and 30/70? .... The Four Backtests .... Key Performance Metrics .... Test Tables: Buy Cross Above/Below 30 and Sell Cross Above/Below 70.... Conclusions - IJR is King .... Further Study .... //// ........ Testing and Tweaking RSI(5) with SPY, QQQ... READ MORE
Equal-weights are Leading Large-caps .... IJR is Greater than IWM .... Supply of Stocks Continues to Shrink .... QQQ Surges within Uptrend .... Trailing the Bull Flag Breakout in IWM .... Charting the Fab Five (FB, AAPL, AMZN, GOOGL, MSFT) .... Leadership from Consumer Discretionary is Very Positive .... Four Homebuilder Stocks to Watch (DHI, KBH, LEN,... READ MORE
Apple (AAPL) reversed its long-term downtrend with a series of breakouts this summer and the stock is currently trading over 20% above its May low. Notice how the stock broke the early June high, the red trend line and the 40-week EMA with a surge in July-August. The 10-week EMA... READ MORE
----- Webinar Video ----- Art's Charts ChartList ----- Slow Down Time for XLF, XLI, and KRE? .... XME Target Based on Rising Channel .... Broken Resistance Turns First Support for XES .... EuroTop Index Stalls Near Resistance .... Webinar Preview.... //// .... Slow Down Time for XLF, XLI, and KRE? The Finance SPDR (XLF)... READ MORE
The chart below shows year-to-date price action for the Milan Index ($MIB) and German DAX Index ($DAX). Note that the MIB is down around 22% year-to-date and the DAX is down around 2% since January. In contrast, the S&P 500 is up around 6% so far this year.... READ MORE
An RSI(5) Setup for QQQ .... IWM Corrects with Bull Flag .... Three Sector SPDRs with Short-term Bullish Setups .... Biotechs Hold the Key to Healthcare .... ChartList Update .... QCOM, SYMC, ACN, ATI, AVGO, CHKP, CTRL, AMGN, BMY, MRK, PFE, TASR and XOM .... //// .... An RSI(5) Setup for QQQ QQQ plunged on Wednesday-Thursday... READ MORE
The whole is only as strong as the sum of its parts. Applying this logic to the stock market, the S&P 500 represents the whole and the nine sector SPDRs represent the sum of the parts. Let's see just how strong the parts of the S&... READ MORE
Charting 52-week Highs on SPY .... QQQ Lags, but Chart Remains Bullish .... Downloading Data and Creating User-Defined Indexes .... Small-caps Ripe for Rest, but Still Bullish .... Top Ten Large-caps are Greater than All Small-caps .... The Case for a Grind Higher .... Scanning for Percent Above/Below EMA .... //// .... Charting 52-week Highs on SPY The... READ MORE
SPY is the Last One Standing .... XLF Defies Overbought Readings .... Materials Follows thru on Pennant Breakout .... Bigger Uptrend Overpowers Short-term Dip in XLE .... Adjusting RSI for Trend Identification .... Healthcare Remains Under Pressure .... //// .... SPY is the Last One Standing Modest selling pressure over the last three days triggered Chandelier Exits in... READ MORE
Celgene (CELG) showed bullish price action throughout 2016 and recently formed a bullish pennant that could set up an even more bullish 2017. Let's work from left to right on this chart starting with the big base that looks like a double bottom. CELG broke the "thick&... READ MORE
----- Webinar Video ----- Art's Charts ChartList ----- Staples and Utilities Bounce During Pullback .... Marking First Support for SPY and IWM .... QQQ Nears September-October Highs .... Charting the Fab Five: AAPL, GOOGL, MSFT, FB and AMZN .... Oil Turns Volatile ahead of OPEC Meeting (USO, XLE, XES) .... //// .... Staples and Utilities... READ MORE
Even though its bell-weather status diminished over the years, IBM is still a big blue chip stock and remains a titan in the technology sector. Thus, a 52-week high in IBM bodes well for the market overall and the tech sector. The chart below shows IBM surging with the market... READ MORE
Small-caps, Finance and Industrials Lead (sector PerfChart) .... The Overbought Progression (IWM, SPY, QQQ) .... Biotechs Recover to Keep Pullback Patterns in Play (XBI, IBB, XLV) .... Six of Nine Sectors with Active Golden Crosses .... New High Parade Shows Broad Strength (sector and industry group ETFs) .... ChartList Update (CHKP, INVN, RHT, SQ, AMGN,... READ MORE
The Energy SPDR (XLE) hit a new 52-week high this week, but its largest component, Exxon Mobil (XOM) remains well below its summer high and is not participating. The second biggest component, Chevron (CVX), is leading the charge with a 6+ percent advance in November and a 52-week high. Note... READ MORE
-----Webinar Video ----- Art's Charts ChartList ----- New Highs for Key Breadth Indicators .... Trailing with the Chandelier Exit .... QQQ Joins the Overbought Ranks .... Finance, Industrials and Energy .... Lead New High List .... XLK Becomes Overbought .... XLB Breaks out of Pennant .... XLV Corrects after Island Reversal .... REM Breaks Continuation Pattern... READ MORE
Despite relative weakness the last few weeks, XLK remains in a clear uptrend and shows no signs of weakness on the price chart. First, note that XLK recorded 52-week highs throughout 2016 and is currently less than 2% from a new high. Second, XLK held the September low when the... READ MORE
Near-by Futures, Continuous Futures and ETFs .... December Crude Shows Signs of a Reversal .... Brent Crude is Holding up Better .... Upside Targets for Light Crude and Bren .... Energy Breadth Still Bullish Overall .... XLE Extends Choppy Uptrend .... XES Surges toward Range Resistance .... Symbols for Futures Contracts .... //// .... Today's commentary will dissect... READ MORE
The market began its move to riskier assets in July and this move simply accelerated over the last two weeks. The chart below shows stocks (risk assets) bottoming in late June and Treasury bonds (safe-haven assets) peaking in early July. The S&P 500 SPDR (SPY) hit a new... READ MORE
Offensive Sectors Lead Defensive Sectors ..... Consumer Discretionary ETFs Hit New Highs .... Risk Ratios Hit New Highs .... This Week's Articles and ChartList .... Another Bullish Breadth Surge .... Marking Pullback Support for SPY .... Biotech ETFs Hold Gaps .... Medical Devices ETF Bounces off Retracement .... //// .... Offensive Sectors Lead Defensive Sectors .... The market began... READ MORE
Vanguard Financials ETF Hits Channel Trend Line .... Spotting Pullbacks within an Uptrend .... Trading with MACD-Histogram and RSI .... Scan Code for Pullbacks .... Microsoft and Apple Trigger Signals.... //// .... Vanguard Financials ETF Hits Channel Trend Line Many stocks and ETFs surged over the last two weeks and became short-term overbought. Keep in mind... READ MORE
Home Depot is the perfect cyclical stock because it sits at the crossroads of retail, housing and the consumer. The stock was a poster child of the bull market with a 200+ percent gain from 2013 to 2015. It did not stop there and even managed to hit new highs... READ MORE
--- Webinar Video --- Art's Charts Chartlist --- Stock Market Shows Broad Strength .... Record Highs in Mid-cap and Small-cap Indexes .... Don't Blame the Entire Tech Sector .... SPY Holds Breakout .... XLY Surges to Resistance Zone .... Consumer Discretionary Breadth Remains Bullish .... Scan Correction .... //// .... Even though some stocks and... READ MORE
The Russian Trading System Index has yet to break down, but it is positively correlated to Brent Crude and the recent breakdown in Brent could foreshadow a breakdown in the Russian Index. The chart shows the index stalling just above its rising 40-week EMA over the last few months. Meanwhile,... READ MORE
Three Ratios Showing Risk-On .... Small-caps Lead New High Expansion .... Finding and Scanning for New Highs .... How to Use a New High List .... Notes from the MTA Meeting ... A Relative Breakdown for EEM .... //// .... Three Ratios Showing Risk-On While there is no guarantee that the wicked rotations of the last two days... READ MORE
Mean-Reversion Strategy Hits Key Level .... SPY Breaks Out of Corrective Channel .... Finance, Industrials and Materials Dominate New High List .... Ranking Sectors by %Above 200-day EMA .... Industrials, Materials and Mining Surge Together .... Oil Greets Moment-of-truth with Feeble Bounce .... //// .... Mean-Reversion Strategy Hits Key Level Developing a trading system is sometimes easier than... READ MORE
The Steel ETF (SLX) is leading the stock market on Monday with a 10% gain in early trading. Notice that this gain is simply extending an existing trend. In other words, chartists would have done just find by looking at the chart and ignoring the news. Notice that SLX surged... READ MORE
Key Levels and Indicators to Watch for SPY .... Indicators are Not Bearish until they Trigger .... Treasury Yields Surge .... Will Correlations with the 10-yr Yield Hold Up? .... Biotech ETFs Try for Higher Lows.... //// .... Key Levels and Indicators to Watch for SPY The S&P 500 SPDR (SPY) fell 2.54%... READ MORE
Finance, Tech and Industrials Show Chart Leadership .... Copper and Aluminum Go for Big Breakouts .... Using RSI Ranges to Define the Trend .... Gold Indicators are Bullish, but Price Breakdown Looms .... Rising 10-yr Yield is Negative to Gold .... Intermediate Trend Dominates 7-10 YR T-Bond ETF .... No Webinar this Week .... //// .... Finance, Tech and... READ MORE
The Finance SPDR (XLF) is leading the sector SPDRs with a new 52-week high on the price chart and with the price relative. On the price chart, XLF triggered its first breakout in early August with a move above the red resistance zone. Even though the ETF did not seem... READ MORE
The S&P 500 fell softly (~3%) over the last nine trading days and the S&P 500 Volatility Index ($VIX) surged over 70%. This surge puts $VIX at its highest level in over three months - but this is not necessarily bearish. $VIX is a coincident indicator... READ MORE
The S&P 500 SPDR (SPY) and the Russell 2000 iShares (IWM) both broke below their September lows with IWM leading the way lower. QQQ is still holding up the best because it hit a 52-week high the week before and remains above the September low. Looking at SPY... READ MORE
SystemTrader .... Why Focus on the S&P 500? .... Moving Averages Love Whipsaws .... Adding a Smooth Operator .... Backtesting Moving Average Performance .... Scaling into Positions with Moving Averages .... Backing testing an Array of EMAs .... Conclusions.... //// .... Why Focus on the S&P 500? The S&P 500 is the most... READ MORE
Another Seven Day Decline .... Channel Defines Correction in SPY .... Revisiting the Mean-Reversion Strategy .... Is Mean-Reversion Broken? .... Strike Two for the S&P 500 .... Benchmark Lows to Find Chart Leaders and Laggards .... Revisiting the ETF Scan .... //// .... The S&P 500 closed down seven days in a row and this... READ MORE
It's been a rough five weeks for the broader market, but a few stocks and groups are still shining. The S&P 500 SPDR (SPY) is down around 2.5% and eight of nine sectors are down since the end of September. The Finance SPDR (XLF) is... READ MORE
Webinar Video -- Art's Charts ChartList Performance for the First Ten Months .... Two Steps Forward and One Step Backward .... SPY Holds with a Spinning Top .... QQQ Continues to Lead .... RSI Does the Double Dip for IWM .... Webinar Preview .... //// .... Performance for the First Ten Months Even though we have... READ MORE
Light Crude fell sharply on the last trading day of October and ended the month down. Crude even poked its head above $52 twice during the month, but fell sharply the last two weeks of October and ended below $47. This reversal of fortune is especially interesting when we look... READ MORE
Major Index ETFs are Not that Far from Recent Highs .... Sticking with the Strategy .... Breadth Indicators Soften During Correction .... Small and Mid Caps Lead Breadth Pullback .... Breadth Summary and Conclusions .... //// .... Stocks weakened over the last two months with small and mid caps leading the way lower the last six weeks.... READ MORE
Lots of Low Liquidity .... Getting the ETF Master ChartPack .... Filtering for an Uptrend .... Ranking by StockCharts Technical Rank .... Ranking By Rate-of-Change .... Narrowing and Exporting Scan Results .... Analyzing with CandleGlance and RSI .... Conclusions .... //// .... Introduction Momentum and relative performance are related concepts that chartists can use to filter the ETF universe. Momentum... READ MORE
Performance Discrepancies Abound in Key Industry Groups .... The Problem with Support Breaks in an Uptrend (SPY, QQQ) .... Pattern Trading versus Mean-Reversion Systems (IWM) .... Day of Divergence (Breadth) .... Industrials Versus Consumer Discretionary .... Bonds, Yields, Utilities and Gold .... //// .... Performance Discrepancies Abound in Key Industry Groups The stock market remains in a real... READ MORE
Chubb trended lower from July to October, but a gap-laden reversal off a big support zone suggests that this decline may be reversing. More importantly, this decline looks like a correction with a bigger uptrend. Let's look at the evidence for a long-term uptrend. First, Chubb (CB) hit... READ MORE