Market Recap for Monday, March 13, 2017 There really was very little movement in our major indices or in our sectors on Monday - which for Monday isn't really a bad day. But my guess is that traders are a bit cautious ahead of what many perceive will be... READ MORE
Market Recap for Friday, March 10, 2017 U.S. equities posted mostly strong results on Friday with a bit of relative strength from the more aggressive NASDAQ and Russell 2000. The NASDAQ 100 ($NDX) posted the best percentage gain of all, but keep in mind that the NDX does not... READ MORE
The Dow Jones U.S. Heavy Construction Index ($DJUSHV) is currently testing its rising 20 week EMA and is near key support in its four month sideways consolidation range from 440-480. Friday's close was 447 and the weekly RSI is now at 43, typically a solid level... READ MORE
Market Recap for Thursday, March 9, 2017 The March 6th to 9th period once again produced not-so-good S&P 500 results. The S&P 500 did break its recent string of losses, gaining two points on Thursday. Technically, it bounced exactly where we would expect - off... READ MORE
Market Recap for Wednesday, March 8, 2017 The S&P 500 fell for a third consecutive day and it could have been five days in a row if not for a very small gain last Friday. The culprit yesterday was quite clearly the oil patch. The U.S. crude... READ MORE
Market Recap for Tuesday, March 7, 2017 Next Tuesday, another FOMC meeting begins with their policy decision announced next Wednesday. Expectations are that we'll see another quarter point rate hike. It's not a slam dunk and there are some who believe we should wait to see... READ MORE
I just wanted to send out a quick reminder about a webinar that I'll be conducting with EarningsBeats.com President and CEO John Hopkins. It starts in roughly an hour with the webinar doors opening as the stock market closes. I will be discussing trading strategies during earnings... READ MORE
Market Recap for Monday, March 6, 2017 U.S. equities experienced a little profit taking on Monday, nothing technically damaging, but all our major indices did finish lower. The only sector to escape damage was energy (XLE, +0.22%), while all the others declined. On a relative basis, the XLE... READ MORE
Market Recap for Friday, March 3, 2017 We saw bifurcated action on Friday with the Dow Jones, S&P 500 and NASDAQ all posting minor gains while the Russell 2000 fell slightly. Sector action behaved similarly as about half the sectors climbed fractionally while the rest finished in negative... READ MORE
The FOMC will be meeting to discuss a potential rate hike in less than two weeks. A hike would continue the hawkish tone that began when the FOMC increased interest rates in December 2015 for the first time in nine years. It was about six months later that the 10... READ MORE
I'm providing this special Saturday edition of Trading Places as a result of a very significant breakout in the home construction index ($DJUSHB). One way to participate in this breakout is to buy an ETF that tracks home construction stocks. One example is the ITB. The latest disclosure... READ MORE
Market Recap for Thursday, March 2, 2017 Thursday was a day of profit taking as all of our major indices retreated with the small cap Russell 2000 taking the biggest hit, falling 1.27%. Every sector finished lower with the exception of the defensive utilities sector (XLU), which actually gained... READ MORE
The London Financial Times Index ($FTSE) had sideways consolidated for 17 years after topping back in 2000. That consolidation period has ended in a big way in 2017 and this index appears poised for a very significant rise. Despite how you might feel about Brexit, the market has casted its... READ MORE
Market Recap for Wednesday, March 1, 2017 U.S. equities surged on Wednesday, with the Dow Jones and S&P 500 gaining 1.46% and 1.37%, respectively. The small cap Russell 2000 rebounded big time after its Tuesday drubbing, spiking 27 points, or 1.94%, to 1413 - an... READ MORE
Market Recap for Tuesday, February 28, 2017 It was a day of profit taking on Tuesday. All of our major indices declined, although the selling was certainly contained. The S&P 500, for instance, dropped just 0.26% and remains near its all-time high. Weakness in consumer discretionary... READ MORE
Market Recap for Monday, February 27, 2017 Energy (XLE, +0.86%) led the market advance on Monday and that hasn't happened much over the past few months. But as I have shown below in the Sector/Industry Watch section, I believe there are several technical signs that we... READ MORE
Market Recap for Friday, February 24, 2017 The 10 year treasury yield ($TNX) tumbled 7 basis points on Friday and that continued the recent string of solid days for utilities (XLU, +1.52%). Healthcare (XLV, +0.48%) is also benefiting from the rotation to defensive areas of the market as... READ MORE
Oclaro Inc (OCLR) is printing several warning signals as it appears to be topping after a stellar advance. OCLR has nearly quadrupled since the beginning of 2016, but it's difficult to ignore the heavy volume reversal last week - especially when you consider that a negative divergence has been... READ MORE
Market Recap for Thursday, February 23, 2017 The action on Thursday was not bullish at all. Yes, the Dow Jones and S&P 500 rose again with the Dow setting another all-time high. Great action, right? Wrong. The more aggressive NASDAQ and Russell 2000 both fell again by... READ MORE
Eli Lilly (LLY) printed an exhaustion gap in November on massive volume, marking a significant bottom and over recent trading days broke a downtrend line that spanned 18 months of action. Based on this combination and improving momentum, it certainly appears that LLY has seen its worst and has begun... READ MORE
Market Recap for Wednesday, February 22, 2017 Utilities (XLU, +0.42%) showed relative strength again on Wednesday, leading the charge on an otherwise bifurcated kinda day. The Dow Jones was able to finish the session with a gain, but the benchmark S&P 500, NASDAQ and Russell 2000 were... READ MORE
Market Recap for Tuesday, February 21, 2017 Our major indices saw another solid day of gains with the Dow Jones, S&P 500, NASDAQ, NASDAQ 100 and Russell 2000 all breaking out to all-time highs once again. All nine sectors advanced and small caps led on a relative... READ MORE
Market Recap for Friday, February 17, 2017 Consumer staples (XLP, +0.50%) led the market action on Friday as personal products ($DJUSCM) jumped 3.39%. Brewers ($DJUSDB) continued their recent surge and now appear to have clearly broken their downtrend that began in October. Take a look: The trendline break... READ MORE
Mondelez International (MDLZ) had a rough week, tumbling over 5.5% after Kraft Heinz (KHC) made a bid for Unilever (UL). That suggested to many investors that the likelihood of a MDLZ acquisition was significantly reduced and the stock was priced lower accordingly. The technical pattern on MDLZ remains quite... READ MORE
About a month ago, I wrote a ChartWatchers article detailing the bullish historical tendencies of retailers during the months of February, March and April. In particular, apparel retailers ($DJUSRA) have shown tremendous bullishness during the months of February, March and April. In addition, the DJUSRA was approaching a key price... READ MORE
Market Recap for Thursday, February 16, 2017 U.S. indices finished in bifurcated fashion on Thursday as the Dow Jones logged gains, the S&P 500 finished flat and the NASDAQ and Russell 2000 both finished with minor losses. We could see some additional weakness in coming days based... READ MORE
Stericycle (SRCL) has been under rather intense selling pressure over the past 16 months, losing half its market cap. The waste management company disappointed Wall Street on several occasions and we've seen major gap downs on heavy volume three times over those 16 months. The stock seems to... READ MORE
Market Recap for Wednesday, February 15, 2017 Healthcare (XLV, +1.08%) resumed its leadership role but relative performance in this sector has been quite weak since the summer. Below is a chart that shows a ratio of the XLV to the S&P 500. If you've been... READ MORE
I'll return tomorrow morning with my regular Trading Places article with all the normal features. Today I simply want to point out two component stocks in the NASDAQ 100 ($NDX) that look very bullish to me. The first is Costco (COST). Basing patterns that finally breakout can lead... READ MORE
Market Recap for Monday, February 13, 2017 Recent leadership from financials (XLF, +1.14%) and industrials (XLI, +1.00%) appears to be resuming as these two groups led the benchmark S&P 500 to fresh all-time highs on Monday. The last week has been very strong for U.... READ MORE
Market Recap for Friday, February 10, 2017 Materials (XLB, +0.91%) and industrials (XLI, +0.79%) led yet another rally in U.S. equities on Friday as the Dow Jones, S&P 500, NASDAQ, NASDAQ 100 and the Russell 2000 all established new all-time closing highs. The small... READ MORE
After long basing periods, breakouts can be very significant technical events that lead to powerful gains. Those invested in or trading Costco (COST) are hoping last week's breakout signals a nice advance in the months ahead. Three months ago, COST bulls successfully defended key price support and the... READ MORE
Special Note Greg Schnell (author of The Canadian Technician blog) and I will be co-hosting a special webinar tomorrow at 11am EST. I'll discuss trading strategies with respect to gaps created by earnings reports while Greg's discussion will focus on his outlook for biotech stocks.... READ MORE
Mohawk Industries (MHK), a flooring designer and manufacturer, just reported quarterly earnings that exceeded Wall Street consensus estimates. The initial reaction in after hours is very bullish as MHK has been consolidating in sideways fashion for the better part of a year and the after hours price would constitute a... READ MORE
Market Recap for Wednesday, February 8, 2017 The 10 year treasury yield ($TNX) has dropped back toward the lower end of its 2-3 month trading range from 2.30% to 2.60%, closing on Wednesday at 2.35%. That apparently has been enough to spark utilities (XLU, +0.98%... READ MORE
Market Recap for Tuesday, February 7, 2017 The Dow Jones moved into blue sky, all-time high territory intraday on Tuesday as it touched 20155. If there was any bad news, it's that the move didn't hold into the close as the Dow came up 10... READ MORE
Market Recap for Monday, February 6, 2017 Please be sure to subscribe to my blog at the bottom of this article and all of my articles will be sent to your e-mail address as soon as they're published. Thanks! :-) It's noteworthy to point out that... READ MORE
Market Recap for Friday, February 3, 2017 Financials (XLF, +2.02%) had another huge day with consumer finance, investment services and banks leading the charge. The former had been struggling with a negative divergence over the past couple months while remaining in an uptrend. But just after testing its 50... READ MORE
Exercising patience and discipline to enter trades at appropriate reward vs. risk levels is obviously very important to any trader's success, but planning trades before they set up is just as important. Let me give you a few examples. First, let's take a look at Cullen... READ MORE
Market Recap for Thursday, February 2, 2017 Defensive stocks were once again at the forefront of U.S. stock market action on Thursday with utilities (XLU, +1.06%) and consumer staples (XLP, +0.92%) easily the best two sectors on the session. Over the past week, healthcare (XLV, +2.79%... READ MORE