A Stealth Correction ... Stocks to Watch on the Art's Charts ChartList ... An Impressive Parade of New Highs ... XBI Successfully Tests Breakout ... XOP is Outperforming XES ... Volatility Calendar ... //// ... A Stealth Correction A stock or ETF can correct with a pullback, a trading range or a combination of the two.... READ MORE
The year started weak for small-caps, but their fortunes quickly turned around in February and this group is now leading the market. The chart below shows the Russell 2000 relative to the Russell 1000 using the price relative ($RUT:$RUI ratio). The Russell 2000 represents the 2000 smallest stocks in... READ MORE
Click here for Webinar recording .... Linear Regression Defines the Trend .... Small, Mid and Micro Lead the Charge .... IWM Works its Way Higher .... The Volatility Calendar .... Is it Possible to Profit from Volatility? .... Webinar Preview .... //// ... Linear Regression Defines the Trend The S&P 500 SPDR (SPY) remains with a slow... READ MORE
Semiconductors are leading the charge in tech stocks as the Semiconductor SPDR (XSD) extends its gains and notches another 52-week high this week. Note that the ETF is up around 15% the last three months and it is one of the top performing industry group ETFs. The Semiconductor iShares (SOXX)... READ MORE
Taking the Emotion out of Jobless Claims and Non-Farm Payrolls .... No Issues with Weekly SPY Chart .... Backtest Review for Key EMA Crossover .... ChartCon Strategy Preview .... QQQ Stalls with Very Tight Range .... Small-caps and Large-caps Continue to Outperform .... AD Percent Stalls along with Indexes .... New Highs Wane, but New Lows Remain... READ MORE
REITs and Banks go their Separate Ways // Financial Services Starts to Outperform // Real Estate Starts to Underperform // Notes on XLRE and XLFS // REITs are Negatively Correlated to Treasury Yields // Banks are Positively Correlated to Yields //// ..... REITs and Banks go their Separate Ways Standard and Poor's is removing REITs... READ MORE
It has been a rough summer for Whole Foods Market (WFM) as the stock plunged in June and late July. Both declines were sharp and featured big gaps. The stock did bounce between the two declines, but formed a lower high in late July. Most recently, WFM has been consolidating... READ MORE
Webinar Recording ---- Webinar ChartList SPY and MDY are Barely Positive this Month // RSI(5) and the Dreaded Double Dip // The Noose Continues to Tighten for Treasuries // How Yields Effect Gold, Utilities and Finance // US 10-yr Yields Sticks Out // XLF and KRE Maintain Breakouts // XLU and IYR Forge Bullish Setups... READ MORE
Stocks in the finance sector have been strong the last four days with the Insurance SPDR (KIE) showing chart leadership. Note that the Finance SPDR (XLF), Broker-Dealer iShares (IAI) and Regional Bank SPDR (KRE) are all up over the past week, but KIE is the only one trading at a... READ MORE
SPY and MDY are Barely Positive this Month // RSI(5) and the Dreaded Double Dip // The Noose Continues to Tighten for Treasuries // How Yields Effect Gold, Utilities and Finance // US 10-yr Yields Sticks Out // XLF and KRE Maintain Breakouts // XLU and IYR Forge Bullish Setups // Gold Breaks, but Becomes Oversold... READ MORE
The Oil & Gas Equip & Services SPDR (XES) looks vulnerable because the bigger trend is down and the ETF just broke a wedge trend line. The chart shows the 50-day EMA (green) below the 200-day EMA (red) and this suggests that a long-term downtrend remains underway. The ETF got... READ MORE
Click here for the webinar video recording The Song Remains the Same for SPY // Upward Price Action > Waning Momentum // IWM Continues to Lead // Bollinger Band Squeezes for KRE and XLF // Beware of the Head Fake // Adding a Trend Condition // Scanning for Bollinger Band Squeezes // Webinar Preview //// ..... The Song Remains... READ MORE
Mattel (MAT) led the market from early October to early February with a 65 percent advance and then moved into a large consolidation the last six months. More recently, the stock surged off support in late June and then formed a smaller consolidation near resistance. Notice that the stock advanced... READ MORE
The Gold SPDR (GLD) and the 20+ YR T-Bond ETF (TLT) are two of the best performing asset class ETFs this year and both remain in clear uptrends. GLD is up over 26% year-to-date and TLT is up around 16%. One would not expect bonds and gold to be leading... READ MORE
All Time Highs Set the Tone // Four Indecisive Weeks for the S&P 500 EW Index // Bandwidth Hits Lowest Level in over 10 Years // S&P 500 Clears Upper Band // Russell 2000 Remains on Bull Signal //// ..... All Time Highs Set the Tone The major stock indexes have traded... READ MORE
Broad Market Strength affirms Bull Market // Short-term Yields Edge Higher - Will Long-term Yields Follow? // Extrapolating from the June Swoon in Treasury Yields // Finance Sector Remains Strong // Regional Bank SPDR Holds Breakout - JPM, C, BAC, USB // Setting first Supports for the Fab Five - FB, GOOGL, AMZN, AAPL, MSFT... READ MORE
Baidu ($BIDU) has basically gone nowhere since 2014, but the stock is showing signs of buying pressure recently with a wedge breakout. First, the weekly chart shows the stock surging some 200% and moving above 170 for the first time in late 2013. The stock peaked in late 2014 and... READ MORE
Click here for the Webinar video - Click here for the Webinar ChartList Twenty Days Since SPY Became "Overbought" // RSI for IWM finally Hits 70 // Small-caps and Large-techs Continue to Lead // Tech, Consumer Discretionary and Healthcare Lead // Utilities and Staples are Lagging // Setting First Support for the Offensive... READ MORE
DR Horton (DHI) is part of the housing group and the stock is in a long-term uptrend. I based this trend assessment on three things. First, the 50-day EMA is above the 200-day. Second, the 200-day EMA is rising. Third, the stock hit a 52-week high in July. DHI pulled... READ MORE
SystemTrader // Introduction // Setting Ground Rules // Picking the Securities // Buy-and-Hold Performance // Reducing Drawdowns with Simple Timing // Increasing Returns with Pure Momentum // Combining Trend-Following and Momentum // Conclusions - Past Performance.... // Asset Group ETFs // Further Study //// ........ Introduction Today we will dive into the world of asset class rotation by testing some tradi... READ MORE
Bulls Maintain Short-term Edge // Nasdaq and Russell 2000 Outperforming // Energy Complex Weakens Across the Board // Energy-related ETFs Could be Vulnerable // Bullish Setups in HealthCare Providers and Telecoms // Regional Bank SPDR and Finance SPDR Stutter after Breakouts ///// ..... Bulls Maintain Short-term Edge Long-term, the stock market is in bull mode, which means... READ MORE
The Solar Energy ETF (TAN) got a nice bounce along with the stock market from late June to early August, but this bounce has now reversed and it looks like the bigger downtrend is resuming. The chart shows the highs from late May and early June marking resistance in the... READ MORE
Click here for Webinar Video Large-techs and Small-caps Outperforming // SPY and the Stealth Correction // Golden Crosses remain for All Nine Sector SPDRs // XLI, XLF and XLY Trigger Bullish Short-term Signals // Utilities and Staples Continue to Lag // PPO Strategy versus RSI-StochRSI and Moving Averages // Webinar Preview ///// ..... Large-techs and Small-caps Outperforming Once... READ MORE
Schlumberger (SLB) broke above resistance today and this breakout confirms a bullish ascending triangle. First, note that the bigger trend is up because the 50-day EMA is above the 200-day EMA. Chartists can also plot this difference using the Percentage Price Oscillator (50,200,1), which is shown in the... READ MORE
SystemTrader // Adding Trend to Broad Market Assessment // Three Trend Following Indicators // Using Donchian Channels // Hard to Beat the Humble MA Crossover // Testing Crosses of the 40 Week EMA // Optimizing and Choosing a Focus Index // Setting up the Trend Troika // ..... Adding Trend to Broad Market Assessment This is the fourth, and... READ MORE
Before looking at some patterns and breakouts, let's first review the basic of the flag pattern. Flags are continuation patterns that depend on the prior move for a directional bias. Flags are bullish continuation patterns when the prior move was up and bearish continuation patterns when the prior... READ MORE
Trend > Seasonality // QQQ and IWM Hold Support // EW Finance ETF Nears 52-week High // Measuring Correlations with the 10-yr Yield ///// ..... Trend > Seasonality .... I pointed out the negative seasonal pattern for August over the last 20 years, but this does not guarantee a correction or pullback in the stock market.... READ MORE
One would not think it from the price charts, but the Finance SPDR (XLF) and several banking stocks are outperforming the S&P 500 SPDR (SPY) since late June. XLF, KRE and many banking stocks are trading below their spring highs and SPY is trading near a 52-week high.... READ MORE
Tuesday's webinar for Art's Charts was cancelled due to technical difficulties. Most of the webinar is based on the charts from Tuesday's commentary, which are posted again below. In addition to these charts, I am also covering the nine sector SPDRs, T-Bond ETFs, Gold,... READ MORE
Breadth Indicator Review // New Highs Soften in late July // %Above 200-day Remains Strong // Marking First Support for S&P 500 // Dealing with the Spike in QQQ // SPY Extends Trading Range //// ..... The stock market environment remains bullish, but the major index ETFs are extended after big gains the last five... READ MORE
Chartists can plot 52-week highs right on the price chart by using the Price Channels overlay. The upper line of a 52-week Price Channel marks the high of the last 52-weeks, the lower line marks the low and the middle line is the average of the two. By plotting this... READ MORE
Waning Momentum is Not Always Negative // Selling Pressure Remains Muted // IWM Breaks Out of Flag // Here Comes August // Positive Correlation between Bonds and Gold // Adding Parabolic SAR to IEF Signal // Gold Follows Through on Bullish Signal // Scanning the S&P 1500 for RSI-StochRSI Signals // Scan Code //// ..... Waning Momentum is... READ MORE
There were dozens of gaps today with most coming to the upside. Down gaps in Akamai (AKAM) and Lumber Liquidators (LL) were countered with up gaps in Apple (AAPL) and Buffalo Wild Wings (BWLD). At midday on Wednesday, the Predefined Scan results showed 22 up gaps on the NYSE-Nasdaq, and... READ MORE
SPY Stalls and Gains Hold // Marking First Support for QQQ // IWM Forms High and Tight Flag // Energy Sector Nears Make-or-break Level // XES Breaks Channel Trend Line // Oil Resumes Long-term Downtrend // Webinar Preview //// ..... Click here for Webinar Video SPY Stalls and Gains Hold There is no real change in SPY, QQQ... READ MORE
SystemTrader // Introduction - Measuring Trend Participation // 200-day EMA versus 200-day SMA // Backtesting the Moving Averages // Percent above 200-day Breadth Indicator // Smoothing and Reducing Whipsaws // Capturing Broad Market Participation // Conclusions on Trend Participation // Stocks Above EMA Symbols at StockCharts //// . . . . . Introduction - Measuring Trend Participation The humble moving average remains on... READ MORE
Tesla (TSLA) caught my eye on Monday because its StockCharts Technical Rank (SCTR) surged over 20 points. The image below shows the SCTR tables for large-cap stocks and ETFs. Notice that I clicked the Top Up tabs to view those with the biggest SCTR gains. Micron (MU) is the top... READ MORE
SystemTrader // System Rules and Conditions // Why 5-day RSI? // Testing with S&P 500 Trend Condition // Surviving Some Bad Signals // Sensitivity Testing // Reducing the MDD with Another Trend Condition // Testing Each SPDR Individually // The Power of the Portfolio // Further Study //// ........ Today's Trading Strategy article will test different trading... READ MORE
Nothing to Do but Trail a Stop // Reviving the Raff Regression Channel for QQQ // Chandelier Exit for IWM // Retail Continues to Impress // Applying the 5-day RSI-StochRSI Strategy to IEF and TLT // USO, BNO and XES Stutter after Bullish Signals // Scan Code for RSI-StochRSI Strategy // Emerging and Latin American Markets Turn... READ MORE
The surge in stocks entered its fourth week with QQQ extending its channel breakout. The chart below shows the ETF surging earlier this year and then embarking on a correction with a falling channel into June. This correction clearly ended with the breakout near 110 and this zone now becomes... READ MORE
Webinar Video SPY Continues to Lead the Big Three // RSI Nears 70 for IWM // Sector SPDRs Reflect Broad Market Strength // Webinar Preview - Using Breadth Indicators // Submit a Webinar Question //// ..... SPY Continues to Lead the Big Three Stocks are up sharply over the last three weeks with small-caps leading the... READ MORE