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
When I began looking at my key index charts this morning, along with sector and industry charts, one thing became apparent very, very quickly. In the near-term, we appear to be running out of bullish momentum. 60-minute divergences are negative across many key indices, sectors, and industries, not to mention... READ MORE
I guess the first question I'd ask is, "Are we talking about the short-term or the long-term?" Because I'd say there's very little chance that we've just reached a long-term top. But could this be a short-term top? Absolutely. Let... READ MORE
On September 28th, I wrote a "Trading Places" blog article titled "Rising Yields Have A History of Favoring These Stocks; One Such Stock is Being Heavily Accumulated". The stock I wrote about was Opendoor Technologies (OPEN), which, after pulling back temporarily, has exploded higher recently. A... READ MORE
When I look at longer-term trading opportunities, I typically step back and view the weekly charts, which differs from my typical review of daily charts. There are times, however, that the bigger picture shows opportunities that you cannot see on the daily chart. Let me show you two charts of... READ MORE
I follow the money. Not the hype. Not the talk. Just show me the money! I remember growing up and learning to play basketball. Defensively, my first coach told me to "follow their hips". They can fake you with their eyes, they can fake you with their legs,... READ MORE
I've seen it over and over and over again. Very short-term, almost inexplicable moves, seem to occur around the 3rd Friday of each month, which just so happens to represent monthly options expiration. When stock market traders, particularly options traders, all line up on one side of the... READ MORE
There's an assumption that ETFs are well-diversified and that buying leading ETFs will be profitable. That may turn out to be true, but it may not. ETFs are no better than the stocks they own and they could be extremely risky depending on the weighting of their top... READ MORE
I have two reasons for writing this article. First, I'm hosting a FREE webinar relating to ETF selection on Saturday morning that I'll discuss later. Second, I was having a market-related discussion with a good friend a few nights ago and he was explaining his investment... READ MORE
That's never an easy question to answer while you're in the midst of a downtrend. It's a whole lot easier to be a Monday Morning Quarterback and say it's over when you've returned to a new all-time high. That'... READ MORE
Rising treasury yields can have a tremendous impact on which groups outperform and underperform. Many of us here at StockCharts.com write about the positive impact that rising yields can have on financials (XLF), especially banks ($DJUSBK) and life insurance companies ($DJUSIL). Because rising yields normally reflect Wall Street'... READ MORE
As you probably know, my background is in public accounting. I practiced as a CPA for two decades prior to turning my full attention to technical analysis. My analysis of the stock market always includes both fundamental and technical analysis, with a historical component sprinkled in. (I never met a... READ MORE
The Fed began its latest 2-day meeting this morning and it'll release its latest FOMC policy decision on Wednesday at 2pm ET. From past experience, I know there's been significant volatility after Fed announcements, so I thought I'd summarize the S&P 500... READ MORE
It's an interesting question. After all, during periods of economic expansion, transportation stocks ($TRAN) should ship more goods, report higher profits, and be rewarded with higher stock prices. If you're not already aware, the TRAN and the S&P 500 have a very tight long-term... READ MORE
One of my favorite times to trade is leading up to options expiration, because it's one time where I feel fairly comfortable which side of the trade that market makers are on. It's options expiration week and a time where we do a lot of research... READ MORE
Following rotation in 2021 has been difficult because few industry groups have maintained leadership roles for any length of time. There have been a few. Specialty finance ($DJUSSP), internet ($DJUSNS), and software ($DJUSSW) come quickly to mind among our 5 aggressive sectors. Outside of the aggressive sectors, I could certainly... READ MORE
Congratulations! We've made it through the first 10 days of September mostly unscathed. At the time of this writing, the S&P 500 is down slightly more than 0.50% month-to-date. Momentum remains fairly strong and the trend is up, so why should we worry? Well, let&... READ MORE
There's no doubt that U.S. equities have been carried higher by a handful of mega-cap superstars. The S&P 500 is a market cap weighted index and its top holdings include: * Apple (AAPL): 5.90% * Microsoft (MSFT): 5.60% * Amazon.com (AMZN): 4.05% * Alphabet (GOOGL)... READ MORE
It wasn't too long ago that a $5 billion market cap company was considered a "mid-cap". But in today's mega-cap world of Apple (AAPL) and Microsoft (MSFT) sporting $2.46 trillion and $2.25 trillion market caps, respectively, $5 billion to them is spare... READ MORE
Trading stocks with a lot of short interest is a risky proposition. Many are being shorted for a reason and they drift lower and lower over time. However, not all short sellers are correct, and when a stock begins to break out and forces short sellers to cover (buy), that&... READ MORE
One of the biggest developments in recent weeks has been the breakout in the U.S. Dollar Index ($USD). I've been expecting it and it happened last week: The black arrows are marking all of the RSI tops at 65 and above and all the bottoms at 35... READ MORE
One key element of our service at EarningsBeats.com is to address monthly max pain, which I define as the point at which in-the-money call premium completely offsets in-the-money put premium. As of Tuesday's close, there was a TON of net in-the-money call premium. On the SPY alone,... READ MORE
I've studied the major indices from a historical perspective for decades. I believe there are reasons why bullish and bearish tendencies develop over time and why such seasonality repeats itself. For instance, I've published articles here in this blog and in ChartWatchers discussing significant tendencies before,... READ MORE
It's not at all unusual for a company to see a huge uptrend followed by a lengthy consolidation period. Many traders with short-term time frames will grow increasingly impatient and sell long before they should. But properly-employed capital is vital to a trader, so it makes sense to... READ MORE
Rotation is nothing new during secular bull markets; it's actually what drives bull markets. Rather than money leaving the stock market for another asset class when leading sectors sell off, it simply moves from one sector to another sector. Financials (XLF) recently caught fire as treasury yields rebounded.... READ MORE
I can't help it. I love analyzing quarterly earnings reactions and how the entire stock market is being impacted. So, as of Friday, August 6th, we have an Excel spreadsheet at EarningsBeats.com that incorporates nearly 1700 lines of earnings data that includes: * Quarterly earnings, both actual and... READ MORE