The selloff has been sharp, it's been fast, and it's been severe. And it may not be over. Huge spikes in the Volatility Index ($VIX) establish major market bottoms and Thursday's VIX close at 39 certainly qualifies as that. The following chart shows you... READ MORE
One week ago, the U.S. stock market was euphoric and it had a right to be. Companies that have been able to grow earnings rapidly in a historically low interest rate environment, with rates likely to move even lower, were seeing those earnings valued at a record level. GDP... READ MORE
I heard one unmistakeable sound on Thursday and Friday. It was the sound of market makers driving away in Brinks trucks, you know, the kind that transports boatloads of money. Before I delve into the thievery that took place on Wall Street last week, let me first remind you of... READ MORE
I write about this a lot. Putting a group of stocks together that have (a) beaten Wall Street revenue and EPS estimates in its latest quarter, (b) belong to one of the "favored" industry groups on Wall Street, and (c) show strong technicals, including bullish volume trends leads... READ MORE
I've never really thought about it before, but putting together a portfolio is very similar to drafting NFL or NBA players. The idea in professional sports is to select someone who you believe will provide a major positive impact on your organization and to establish a winning tradition,... READ MORE
Embrace this rally. As far as bull markets go, this is truly the Perfect Storm. Never in my lifetime have I seen a stock market environment where we're experiencing modest growth, strong jobs, lower-than-target inflation, historically-low treasury yields and a Fed that honestly should cut rates again. If... READ MORE
Below is today's Daily Market Report that I send out to EarningsBeats.com members every day, usually between noon and 1pm EST. Enjoy! Executive Market Summary * Wall Street opened lower, but key indices are now flirting with positive territory * January CPI indicated inflation remains modest * The 10 year... READ MORE
I've written about this industry group on many, many occasions, but up until today, we've simply seen a bunch of false hopes. Today is THE BREAKOUT. We gapped above resistance and, thus far, are adding to early gains. A strong afternoon would seal the deal -... READ MORE
I see so many comparisons to what was happening in 2007, as if the current market environment somehow should be compared to 2007. It shouldn't. 2007 was part of a 12-13 year secular bear market. 2020 is part of a lengthy secular bull market. The bullish boundaries of... READ MORE
I know. I know. It's been the worst sector and the second worst sector isn't even close. Look at this sector leaderboard for the past six months: The XLE is the ONLY sector in negative territory. Its SCTR score is 2.3. What the heck could... READ MORE
The selling was coming, we just weren't quite sure when. Well, it's here now, so how long might it last and how much pain might we endure? Both questions are difficult to answer, but I do know the 3-4 month channel has been broken. That tells... READ MORE
The selling that we saw last week was long overdue. Many are panicking over the coronavirus, which is easy to do when it's the only thing that the media is covering. After all, there has to be some fundamental reason that will lead to the next market collapse,... READ MORE
Relative strength. It seems easy enough. Wall Street meets with management teams continuously throughout the year (except during quiet periods). Analysts evaluate not only business strategy, but also business integrity. It's an opportunity for executives to lay out their business plans and strategies to the people that matter... READ MORE
At the start of the week, I held a members-only webinar at EarningsBeats.com to provide my "predictions" of upcoming earnings reports based off of the charts. I've turned it into a formal study where I've been summarizing results all week. The best charts... READ MORE
If a company is likely to report strong results, Wall Street knows it. Analysts have met with management and discussed targets, competition, product strategies, margins, etc. If they like what they hear, they return to their offices and buy for themselves and clients. That's how it works. Astute... READ MORE
Special Event Below is a sample of the Daily Market Report that I sent to EarningsBeats.com members this afternoon. Also, I'd like to extend an invite to everyone to join me at 4:30pm EST today as I will host our "Sneak Preview - Q4 Earnings&... READ MORE
I believe all 5 FAANG stocks - Facebook (FB), Apple (AAPL), Amazon (AMZN), Netflix (NFLX) and Alphabet (GOOGL) - will end 2020 higher than they started. The question is, how much higher? Which one is THE stock to own? If you asked me which company I believe is simply the... READ MORE
Calling tops in a secular bull market advance is not typically a wise thing to do, because it rarely works. But it's very difficult to ignore sentiment readings that border on the absurd. Three months ago, the S&P 500 broke out of a bullish ascending triangle... READ MORE
In my last article, I discussed the possibility that we could see a short-term top form and many of those warning signs continue to persist. Of course, in a secular bull market advance, trying to predict short-term tops can be a constant disappointment as prices seemingly rise every single day.... READ MORE
Hey, I'm bullish longer-term so I'm not talking about a major bear market ahead, nothing like that. But as a short-term trader, I need to heed the signs of a potential top and I'm beginning to see them. There are a number of these... READ MORE
A common question I hear now that we've seen a significant advance in U.S. equities is, "when should I get in"? Well, we're in a secular bull market. It started in 2013 and won't end, in my opinion, until the end... READ MORE
Let's first look at our sector SPDR funds, in SCTR order: It's important to note that SCTR scores are calculated as of today. Performance ranks will change based on whether we look at one day performance, one week performance, six months performance, etc. SCTRs remain the... READ MORE
December nonfarm payrolls were just released and they were solid, though slightly below expectations. They suggest moderate economic improvement and the very slight increase in average hourly earnings confirms that the labor market, while tight, is not too tight. That combination, moderate growth and tame inflation, along with the reduced... READ MORE
Happy New Year and welcome to a brand new decade! A century later, I believe the stock market is about to repeat itself as I'm expecting another roaring 20's! And yes, that could lead to another rough 30's decade, but let's worry... READ MORE
U.S. indices have gone nearly straight up since early October, are extremely overbought near-term, and have needed reason for a pause. They may have received their reason overnight with U.S. airstrikes in Iraq. I refrain from political discussions because it honestly is not necessary nor productive. As technicians,... READ MORE
Executive Market Summary * Futures were relatively flat today, but we have seen some slight selling to close out a very solid 2019 * Small and mid caps are leading on a relative basis and clinging to fractional gains * All sectors are fairly flat to close out the year * Gold ($GOLD) and... READ MORE
Executive Market Summary * Futures were slightly higher this morning * Sellers have dominated the action since the opening bell, although small caps are bucking the trend and slightly higher * Financials (XLF) are unchanged and the relative leader today * Energy (XLE) and healthcare (XLV) are the hardest hit sectors * Semiconductors ($DJUSSC) and... READ MORE
Whether a group looks strong or weak can easily be debated and it's what makes the stock market go round and round. Nondurable household products is one example. Is it breaking out or breaking down? This could be an interesting debate and it really gets to the heart... READ MORE
Executive Market Summary * Pre-market action is pointing to another strong open as the year end rally continues * Dow Jones futures are pointing an 80 point gain at the open and NASDAQ futures are showing relative strength once again * A couple smaller biotechs - Flexion Therapeutics (FLXN) and Immunomedics, Inc. (IMMU)... READ MORE
Executive Market Summary * We're up again today with leadership from the NASDAQ; small caps lag * Most sectors are higher with technology (XLK) showing a slight lead * Apple's (AAPL) leadership is helping the NASDAQ and computer hardware ($DJUSCR) * Banks ($DJUSBK) are strong with the 10 year treasury... READ MORE
Executive Market Summary * Today is an abbreviated session with the equity market closing at 1pm EST; many global equity markets are closed today * Wall Street opened slightly higher, but has been trading near the flat line * There are no economic reports of significance due out today as the 10 year... READ MORE
Note During the holidays, I'll be publishing my EarningsBeats.com Daily Market Report here in my Trading Places blog. I hope you enjoy it. Happy holidays! Executive Market Summary * We're seeing another solid day as seasonal strength really begins to kick in * The Dow Jones is... READ MORE
I established an Aggressive portfolio of 10 equal-weighted stocks in 10 different industry groups on May 19th. Every 3 months thereafter, on August 19th and then again on November 19th, I repositioned the portfolio with new relative leaders. That's the concept behind the portfolio. Stick with leaders in... READ MORE
I was looking at the performance of NASDAQ 100 stocks after the close on Friday and realized that Tesla (TSLA) closed above 400 for the first time in its history. Volume was unusually high all week long as TSLA gained 13% to clear resistance in the upper 300s. TSLA had... READ MORE
Records continue to fall every day. The S&P 500 has now gained 350 points off its October 3rd low. I don't know if it's going to stop any time soon, so I'd want to remain fully invested, especially given the tremendous bullish... READ MORE
If you're trying to think of the best performing semiconductor stock ($DJUSSC), you're heading in the right direction. The DJUSSC has been outstanding throughout much of 2019, gaining nearly 50%, rising from 2888 to 4234 at yesterday's close. Semiconductor stocks actually take up the... READ MORE
One week ago, I indicated that I'd have 5 trading candidates for anyone who signed up for a $7 30-day trial. It was similar to the Monday Setups that I had previously provided on MarketWatchers LIVE, the flagship StockCharts TV show that I had hosted for two years.... READ MORE
I am extremely bullish as we head into 2020. Everything is lining up, but there are two factors that I believe will help us help our members - both professionals and individual traders. First, the Fed has finally moved into the dovish position it should have been in one year... READ MORE
It made sense to underweight healthcare (XLV) throughout much of 2019, but that's no longer the case. In fact, my proprietary momentum ranking system ranks healthcare behind only technology (XLK) and financials (XLF) in terms of sector momentum. The StockCharts Technical Rank (SCTR) has the same ranking as... READ MORE
It wasn't too long ago that no one wanted to own a drug retailer ($DJUSRD), but after the group pushed to 9 month absolute and relative highs, a few stocks in the group suddenly became fashionable once again. Perhaps the biggest turnaround came in the form of PetMed... READ MORE