For the past year, the bulls have been able to hang onto one argument - that the large cap growth stocks continued to outperform their large cap value counterparts, which, in turn, held up our major indices. That may not be the case any longer. The cracks in the large... READ MORE
I'm not a huge conspiracy theorist, but when it comes to Wall Street and all the TRILLIONS of dollars at stake, I believe anything goes! I especially love studying volatile periods. Are there signals out there to help us identify the REAL moves higher from the FAKE moves?... READ MORE
I receive dozens of earnings-related questions every quarter from EarningsBeats.com members and non-members alike. They usually revolve around whether "I should hold a stock into earnings?" Let me be clear that, as a short-term trader, I'd be very careful holding any stock into earnings. There... READ MORE
As a short-term trader, I've always studied the short-term intraday charts, looking for any possible advantage I can gain. One strategy the market makers employ during uptrends and downtrends is they show traders a morning mirage, which is then followed by afternoon reality. Not every day is alike,... READ MORE
There are never any guarantees in the stock market. As much knowledge as I've gained over the years, and as much respect I have for my fellow technicians here at StockCharts.com, there's simply no way to ever be sure that your forecast is the right... READ MORE
Call it a reprieve. Amazon.com (AMZN) reported excellent results last night, at least much better than what was expected. Revenues came in a bit light, according to Zacks.com, at $137.41 billion. Estimates were pegged at $137.88 billion. But bottom line EPS soared to $27.75 (actual)... READ MORE
I was bearish heading into 2022 - before the selling began - and I haven't changed my mind one bit, despite the recent rally. Counter trend rallies are normal and, quite honestly, I think the current one may have just run its course. First, the rally has reached... READ MORE
Yes, I believe we're in a cyclical bear market. I began discussing bearish signals back in November and those only intensified as we neared year end. You don't need to see a twister in your dining room to realize a storm is approaching. In my last... READ MORE
Normally, the stock market is humming along and we have indicators all supporting the sustainability of that move higher. But things aren't normal right now. It started with the rotation into defensive sectors to lead the S&P 500 higher on that last final leg in December.... READ MORE
As our name would imply at EarningsBeats.com, we focus a lot on quarterly earnings reports. We've studied them every which way possible. As a former practicing CPA, it's in my blood. Yes, I'm a technician that understands the importance of technical analysis. But... READ MORE
Renewable energy ($DWCREE) and software ($DJUSSW) have been absolutely smoked since November. In the case of software, the selling has accelerated in January with its PPO falling off a cliff: This group had declined more than 17% off its recent high - before the rally from Monday's low.... READ MORE
I know I'm beating a dead horse, but rotation has been brutal, so timing key reversals in that rotation will be one key to trading success in 2022. Historically, when we compare NASDAQ performance vs. S&P 500 performance, there is a key threshold where we typically... READ MORE
Investing in ETFs (exchange-traded funds) is no different than trading stocks in many respects. We still need to plan the trade. The biggest difference, obviously, is that ETFs hold a basket of stocks so purchasing an ETF requires that you understand what the ETF holds. Or maybe you don'... READ MORE
I've been discussing warning signs for the past several weeks, even talking about that nasty (gulp!) cyclical bear market possibility. These are what I refer to as "storm clouds on the horizon." Well, it's starting to rain pretty hard, so make sure you have... READ MORE
We're about to find out. I liken the current stock market environment to stepping into The Twilight Zone or the Great Unknown. This post-pandemic market has been brutal in terms of rotation. Most growth stocks have tumbled amid the inflation and interest rate uncertainty; unfortunately, the inflation news... READ MORE
Today is just the latest example of the massive divide taking place in U.S. equities right now. There was major rotation throughout 2021 and we're seeing more of the same here in early 2022. Unfortunately, the rotation is not favoring the growth stocks that have powered the... READ MORE
When it comes to stock market performance, it's not always about reality. Many times, perceived problems can be a bigger problem than actual problems. As we wrap up 2021 and head into 2022, there's really no denying that inflation is a problem at both the consumer... READ MORE
It might take more than Old Saint Nick to sustain this current stock market rally. I'm not a believer this year. It reminds me of that catchy holiday tune: "StockCharts is making a chart and I've checked it twice, gonna find out that Wall Street&... READ MORE
It's been quite a volatile ride today, but one pharmaceutical stock has made 5 years' worth of returns in a couple hours. It's what happens when there's a huge imbalance in demand vs. supply on a stock and it breaks out to new... READ MORE
The Tuesday before the third Friday of each month gets the blood pumping at EarningsBeats.com. As momentum traders, it's EXTREMELY important to be aware as monthly options expiration approaches. We have seen time and time again how crazy the short-term market action can be when market makers... READ MORE
Most of you know I'm not a fan of the media. It has zero to do with who they are as people and everything to do with how they make their money. They need visitors at their websites in order to sell ads. The best way to attract... READ MORE
As technicians, what do we care about? The charts, right? Well, when I look at the charts of Bitcoin ($BTCUSD) and Ethereum ($ETHUSD), the choice between the two is relatively simple. The charts tells us everything, and this one simple price-relative chart says to go with Ethereum until further notice:... READ MORE
As the Volatility Index ($VIX) rises, it becomes fairly obvious that market makers are "on vacation." The primary role of the market maker is to provide liquidity when there's an imbalance between buyers and sellers. Rarely do we see panicked buying when buyers completely swamp sellers.... READ MORE
I practiced in public accounting for 20 years and was involved in a number of company valuations. I worked very little with public companies, but did have to value private companies on occasion. Most of the valuation metrics that I used in the 1980s and 1990s remain absolutely the same... READ MORE
News that a new COVID-19 variant has surfaced in South Africa spooked global equity markets on Friday. Was it an overreaction and an opportunity to buy some of your favorite stocks cheaper? Or is the start of a much deeper, panic-driven selloff. Unless you're a scientist with inside... READ MORE
Thanksgiving is celebrated here in the US on the 4th Thursday of November and is a day to give thanks. Let me say that I'm very thankful for God and family. I was blessed with my first grandchild a little over a year ago and she's... READ MORE
I have a favorite day each quarter. It's the day that I set aside hours to reassess the overall market to determine what I believe will take place over the next three months, focus on the best areas of the market, and ultimately select 10 equal-weighted stocks to... READ MORE
Before I begin this article, let me be clear that I remain extremely bullish for the long-term. We're nowhere close to where we're going, which is much, much higher. But in the very near-term, I'm growing increasingly bearish. There are a few reasons, which... READ MORE
Sometimes, when I look at a chart, I see conflicting signals. That is definitely the case for 10x Genomics Inc. (TXG), an $18.1 billion medical equipment company. Medical equipment stocks ($DJUSAM) have been consolidating for the past 2-3 months, which has led to relative underperformance by the group as... READ MORE
I'm partial to the formation of long bases, followed by breakouts, and breakouts of bullish continuation patterns. Well, I have two of these to share with you. Let me first start with CNH Industrial (CNHI), a $25.3 billion commercial vehicles & trucks company ($DJUSHR). They absolutely crushed... READ MORE
I spend hundreds of hours during each quarterly earnings season researching earnings reports, deciphering which beat revenue and EPS estimates and then annotating every one of those charts. It's what makes up our Strong Earnings ChartList (SECL), a ChartList that we update every 1-2 weeks for our EarningsBeats.... READ MORE
For me, the breakout in a particular area triggers a series of questions in order to find the best trading opportunities. Last week, small caps finally joined the U.S. equities party in all-time high territory. The chart breakout is simply the first step in my research: This provides us... READ MORE
Like most technicians, I take a "top down" approach when it comes to my trading strategy. I start with the overall market, which, I believe, continues to be insanely bullish. My two biggest worries in the market have been alleviated as both small-cap stocks ($SML) and transportation stocks... READ MORE
If you're not already familiar with relative strength, then I have to ask why not? Yes, absolute price action is extremely important, but so is relative strength. I'm going to give you a perfect example of why you need to be aware of relative strength. Texas... READ MORE
My favorite breakout is one that occurs after a lengthy basing period. Stocks that go through these frustrating periods can be quite rewarding when they finally make the breakout. And when those breakouts occur in an industry group that Wall Street loves, well, even better! Currently, there aren't... READ MORE
Have you ever heard a meteorologist describe the odds of a tornado touching down? They usually start by outlining the "conditions necessary" for a tornado. Early in the day, or possibly even the prior day, the meteorologist will say something like "this area has a 30% chance... READ MORE
I occasionally refer to myself as a Technifundahistorian, because I believe in technicals, fundamentals, and history. I practiced in public accounting in 20 years, so I cannot ignore those basics. Earnings matter. And beating earnings estimates and raising future guidance REALLY matters. That's why we regularly update our... READ MORE
Where should you invest your hard-earned money? That's a question that we ask ourselves quite frequently. And I don't know that there's an easy answer to this question. I like to see where Wall Street is investing its money and then make a decision... READ MORE
As we wrap up another October, it's time to start looking ahead at the seasonally bullish November period. U.S. equities have LOVED November for many years, as the S&P 500 has risen during November in each of the last 10 years. But which stocks ride... READ MORE
Earnings season presents so many opportunities, especially during a secular bull market advance. We appear to have another one of those advances underway and the daily opportunities are increasing. The difference between a breakout and a failed breakout, however, many times comes down to one simple number - the closing... READ MORE