Maybe I just love a contrarian view. My Dollar theory differs from so many analysts. First, I know that the traditional relationship between the Dollar, commodities and the stock market holds for a while, then completely shifts according to each economic cycle. I have experienced it during my trading career... READ MORE
To follow up on the daily article featuring the weekly channel in Biotechnology (IBB): Since this is a weekly chart, what matters most is the weekly close. That means that, intra-week, we can consider price movements, but cannot consider a legitimate channel break up or down until the closing price... READ MORE
If there is one area to watch should the market have another run up, it is Biotechnology (IBB). The channel lines that are perfectly parallel, going back to 2015. Since this is a weekly chart, what matters most is the weekly close. That means that, intraweek, we can consider price... READ MORE
In the transportation sector, which is weakening partly because of Buffett's weekend comments, there is one area that is doing a lot better. Want to fly coast to coast? Not so much. Want to go to outer space? Sign me up! Virgin Galactic (SPCE) reports May 5th. The... READ MORE
In my April 31st presentation on StockCharts (which aired earlier today on StockCharts TV), I begin by walking you through the Economic Modern Family (Russell 2000, Retail, Biotechnology, Regional Banks, Transportation, Semiconductors) using nothing but pure price. I used trendlines and channels I learned from my days trading on the... READ MORE
Sugar futures, or the sugar continuous contract (you can also check out the July contract SBN20), rallied 4.5% today, leaving a potential bottoming pattern. Again. This is important for 2 reasons. First, sugar is tied to ethanol, so that could signal that the worst of the oil debacle is... READ MORE
On March 31st, I tweeted about the gold ETF (GLD). Let me just say, it is a good thing I do not rate my trading advice on the number of likes I get. So, with the tweet spot on, the very next day, me and my MMM Advantage members entered... READ MORE
Back in the days, on the Commodities Exchanges, we had no social media and little in the way of technical indicators. But what we had was PURE price action. In that spirit, today, we have everything a trader could hope for, and probably too much of it. That does not... READ MORE
Before I comment on the charts, a note about the US Oil Fund ETF (USO). News is news, and clearly, it's not been good. But charts are better. With two huge volume days in a row and prices that tanked, a blowoff bottom is not an impossibility. In... READ MORE
Last Friday, I made a video for my show on StockCharts TV (watch here) that began with a comparison of oil in the early-to-late 1970's period against what we're seeing now. With oil crashing to pre-WWII levels, the analogy is that super cheap oil has preceded... READ MORE
Many are calling the recent market activity similar to the Great Depression of the 1930s. And clearly, there are some comparisons. But what did not exist in the 1930's was this level of QE. During 1932, with congressional support, the Fed purchased approximately $1 billion in Treasury securities.... READ MORE
We have been here before. Sister Semiconductors (SMH) rocks the house, while her siblings and grandparents lag. Today, the disparity was palpable. SMH closed up 2.71%. The Russell 2000 IWM closed down .86%. Regional Banks KRE closed down 3.68%. Granny Retail fell by .51%. In the last several... READ MORE
Market reaction to the onset of COVID-19 has been volatile and uncertain. Entire economies have closed, over 1 million individuals have been infected, 17 million people have filed for unemployment in the US and GDP is set to contract at the highest rate since the Great Depression. Yet, the market... READ MORE
The charts of Regional Banks (KRE), also known as the Prodigal Son of the Economic Modern Family, has told us - and will continue to tell us) - a lot! On the daily chart, back in mid-January, KRE was one of the first sectors to go into a warning phase... READ MORE
The Fed injected another $2.3 trillion into buying bonds, including junk. They have bypassed the Federal Reserve act, which means they can buy whatever they want. Equity ETFs may be next. The idea is to aid small and mid-sized business as well as state and local governments, according to... READ MORE
In the spirit of objectivity, we looked at the weekly chart of IWM as either a bear flag forming or, alternatively, consolidation before another rally. Then, we examined two potential cases: * Case 1: A bear flag forming where IWM breaks down under the bear flag pennant or around 105. * Case... READ MORE
The Russell 2000 (IWM) weekly chart has helped us navigate the bull and bear runs for years. While you hear so much about a V-Bottom, I see no evidence of it in this index. Significant? Also, considering it came in having to clear the outside week trading range or move... READ MORE
Who is surprised that the two sectors of the Economic Modern Family that broke over the inside week trading ranges are Semiconductors (SMH) and Biotechnology (IBB)? Also, who is surprised that the sectors that did not break over their outside week's trading ranges are everybody else? Like a... READ MORE
As we are a couple of months into the Year of the Metal Rat, much of what I posted back on January 19th has come true. Raymond Lo, famous Chinese astrologer, predicted back in November 2019 that, in the Year of the Metal Rat with a water element, "There... READ MORE
Due to scheduling conflicts, tonight you are getting the levels without commentary. Only one important note - five of the six economic modern family members are having an inside week. That means they are trading inside the range of last week. The Russell 2000 IWM, Transportation IYT, Retail XRT, Semiconductors... READ MORE
The market has fallen over 30% from the highs. Maybe you've already called your fund or 401(k) manager and asked to liquidate your losers or the entire account. Here is what you probably heard. "I don't recommend it." That is typically followed by,... READ MORE
A rift is a crack, split, or break in something. Hence the obvious title question - what is the Fed doing to engender a market multiverse rift? The Fed can only buy securities that the federal government guarantees. What the Fed has done on this round of QE is buy... READ MORE