Chartists can compare performance by using the 50-day SMA as a benchmark level. Names that exceed their 50-day SMAs show more strength than those that do not exceed their 50-day SMAs. By this yardstick, QQQ is underperforming SPY and weighing on the broader market. Oh, and mind the gap as... READ MORE
The Russell 2000 (IWM) and Nasdaq 100 (QQQ) have yet to surpass their 50-day moving average, which has created a pivotal and psychological resistance level that bulls are looking to clear. Additionally, other key sectors and indices have been holding their breath in anticipation of a break over these specific... READ MORE
On this edition of StockCharts TV's Sector Spotlight, I start with the usual overview of last week's rotations in asset classes and sectors, blending those observations in with a look at the weekly Relative Rotation Graphs to identify meaningful relative trends. On the Asset Class side,... READ MORE
Listen, anything can happen in the stock market, but AMC Entertainment Holdings (AMC) has a short-term issue to worry about. Options expire on Friday and there are a TON of options bets placed on AMC for May. At the moment, millions of dollars of net in-the-money call interest exists, and... READ MORE
Gold has rallied nicely in the last few weeks, so the question naturally arises as to whether it's ready to resume its secular bull market. I'll get to that later, but first, a little perspective. Longer-Term Perspective Chart 1 plots the real price as adjusted by... READ MORE
Rotation is always a part of a secular bull market. It's honestly the glue that holds everything together. During bear markets, when money rotates away from an area of the market, it usually just moves to the sidelines. Bull markets are different, however, as money typically finds its... READ MORE
In this episode of DecisionPoint, Erin reviews the major market and indicators, then discusses "Climax Analysis". Last week, the market saw FOUR climax days; using climax analysis, DecisionPoint was able to prepare each day last week with market direction confidence levels. Climaxes last week worked beautifully. Erin conducts... READ MORE
Last Friday, the market closed on a high note, with a rally off the lows of 05/12. This was a bullish sign, yet the rally also pushed prices into a resistance area. The mixed sentiment from traders can be seen in today's major indices, with an inside... READ MORE
GOLD AND ITS MINERS MAY BE TURNING UP... Precious metals have sat out the rally in most commodity markets. But money is starting to flow into the group and its miners. The daily bars in Chart 1 show the VanEck Gold Miners ETF (GDX) rising above its early 2021 peak... READ MORE
The Nasdaq 100 Silver Cross Index (SCI) shows the percentage of NDX stocks with the 20EMA above the 50EMA (an IT Trend Model BUY signal). The current reading is 56%, which is pretty weak, so we must wonder if it will go lower, or if it is about to improve.... READ MORE
The truncated trading week stayed disappointing in more ways than one. Just when it appeared that the NIFTY had rectified its violation of the immediate and important trend line support, it has since violated it again while taking support on the short-term 20-week MA. The trading range remained a bit... READ MORE
When a market makes a quick move lower from an established peak, then quickly rebounds back to the upside, you will hear the dreaded phrase "dead cat bounce" emerge on trading floors. What is this pattern, and what can it tell us about next steps for the S&... READ MORE
In this episode of StockCharts TV'sThe MEM Edge, Mary Ellen reveals a sector benefiting from increased prices while sharing stocks poised to trade higher. She also reviews names that withstood the downward pressure this week, with an eye toward continued outperformance. This video was originally recorded on May... READ MORE
The volatility we've seen in the market of late can be linked to some recent reports showing that inflationary concerns are becoming problematic. More specifically, the Labor Department reported that CPI rose by 0.8%, while the rate of inflation over the past year climbed 4.2% in... READ MORE
This past week, dip buyers saved the market from breaking lower. The Retail (XRT) and Regional Banking (KRE) sectors have cleared back over resistance from their 50-day moving averages, followed by the Biotech (IBB) clearing back over its 200-DMA. However, the small-cap Russell 2000 (IWM) and Semiconductors (SMH) are still... READ MORE
The Cybersecurity ETF (CIBR) was hit with the rest of the tech sector over the last few weeks, but it held the March lows and is on my radar as a possible triangle forms over the last few months. In particular, I am watching the downswing within this triangle for... READ MORE
In this restored archive edition of Chartwise Women, Mary Ellen and Erin review ways to tell if it's time to sell your stock or if it's time to buy the dip. (The charts are old, but can still illustrate valuable trading lessons.) This video was originally... READ MORE
Last month, Grayson and I had the pleasure of Zooming online to a combined audience of both the Los Angeles and San Diego chapters of the AAII. Our investment talk to this significant group of investors was presented in three distinct pods of investment strategy and money management topics. It... READ MORE
THE NASDAQ REMAINS IN SHORT-TERM DOWNTREND... The tech-dominated Nasdaq market continues to show relative weakness. Chart 1 shows the Nasdaq Composite trading well below its 50-day average and in a short-term downtrend. Prices are attempting a rebound today from yesterday's heavy selling. If that low doesn't... READ MORE
In this episode of DecisionPoint, Carl and Erin cover a variety of topics. Carl opens the show with his "grab bag" of news items and follows up with his unique view of the markets in general. Both discuss Gold Miners (GDX) and Natural Gas (UNG). Erin finishes up... READ MORE
In this edition of Trading Simplified, Dave discusses market timing, staying on the right side of the trend, setups, and volatility using his Trading Simplified Plugin. This video was originally broadcast on May 12th, 2021. Click anywhere on the Trading Simplified logo above to watch on our dedicated show page,... READ MORE
On Wednesday, the market continued the prior days' sell-off. This has placed the overall market trend in a pivotal area as more sectors begin to look weak. This can be seen in Mish's Economic Modern Family, which consists of one index and 5 important sectors. Currently, the... READ MORE
INFLATION SPIKE BOOSTS BOND YIELDS... A spike in April CPI and its inflationary implications is boosting bond yields and hurting stock prices. Chart 1 shows the 10-Year Treasury yield jumping nearly 6 basis points today to 1.68% and close to exceeding its late April peak. That's having... READ MORE
On Tuesday, the Nasdaq 100 (QQQ), Russell 2000 (IWM) and S&P 500 (SPY) gapped lower, followed by a rally. One of the most important indices to gap lower was the teach-heavy index QQQ. This is important because big tech companies were the first to lead the rally created... READ MORE
Many internal short-term indicators are overextended and starting to look vulnerable, but need some kind of a push to tip the near-term technical balance to the bearish side. That push may have been delivered with Monday's action, as several indexes gave the appearance of some selected short-term buyer... READ MORE
DOW NEARS SHORT-TERM SUPPORT... The Dow gapped sharply lower today and inflicted some short-term chart damage. Chart 1 shows its 14-day RSI backing off from overbought territory near 70; the red arrow shows its daily MACD lines forming a lower high than in April which shows some loss of upside... READ MORE
On this edition of StockCharts TV's Sector Spotlight, I kicksoff the show with an overview of last week's rotation in asset classes, immediately blending them with a longer term picture using the weekly RRGs and price charts. After that, the focus is on stock sectors, starting... READ MORE
The S&P 500 SPDR hit a new high last week, but it was alone at the top because several other major index ETFs did not confirm. In fact, these non-confirmations have been building since March as fewer groups participated. Of note, several tech-related ETFs peaked in mid February,... READ MORE
The Russell 2000 (IWM) and the Nasdaq 100 (QQQ) both broke their 50-day moving averages. Meanwhile, Transportation (IYT) printed another new all-time high. This shows the market's current indecision and choppy nature. The market's uncertainty may be related to inflation, which is set to increase beyond... READ MORE
The Regional Bank ETF pattern over the last few months is similar to that of the S&P SmallCap 600 SPDR and Russell 2000 ETF. This is not surprising because the financial services sector accounts for 17.8% of IJR and 16.34% of IWM, and is the second... READ MORE
In a week that remained technically important, the markets pulled up from the lows that were marked in two previous weeks. The NIFTY saw a narrower trading range than the week prior. The index oscillated in a 446-point range over the past five sessions and remained largely trending on the... READ MORE
So let me set the stage. At EarningsBeats.com, we're tracking every earnings reaction for companies with $1 billion or more in market capitalization. Through yesterday's close (May 7th), we've now reviewed about 1600 earnings reactions. We've studied them by sector and... READ MORE
The S&P 500 is reporting the highest year-over-year earnings growth since the markets were emerging from the '08-'09 recession. In fact, over 85% of corporations are reporting first quarter results that are well above their estimates. The chart below shows the percent of companies reporting... READ MORE
I could provide a solid list of earnings season failure nominees like semiconductors ($DJUSSC), software ($DJUSSW) and medical equipment ($DJUSAM). However, I'm going to give the award to gambling ($DJUSCA). Since the big banks kicked off earnings season on April 14th, we've seen 8 gambling stocks... READ MORE
A couple of weeks ago, I posted an articlequestioning whether the tech-dominated NASDAQ still had the mojo to lead the market higher. At the time, many sub-surface indicators, such as breadth, volume and relative action, looked weak. Several charts indicated that many of them had experienced multiple negative divergences, but... READ MORE
In this episode of StockCharts TV'sThe MEM Edge, Mary Ellen reviews top areas that are poised to outperform the markets into the remainder of this year. She also shares ways to uncover stocks in these new groups. The impact of earnings upgrades are also discussed, as well as... READ MORE
One of the main characteristics of a Relative Rotation Graph is the "tail," which shows us the sector's trajectory through recent history. Tails illustrate how the security ended up in the position where it currently is, helping us to view current rotations and create a big... READ MORE
On Friday, non-farm payrolls were announced, with a disappointing 266,000 jobs created compared to the roughly 1 million that economists had predicted. However, the gap in expectations did not result in a market selloff. This could be showing that investors are giving more weight to the Fed's... READ MORE
TECHNOLOGY HAS BEEN A MARKET LAGGARD... With the economy showing signs of strength, money has been rotating into more economically-sensitive sectors at the expense of technology stocks. The table in Chart 1 shows materials, energy, and financials being the three strongest sectors over the last month, while technology has been... READ MORE
In this week's edition of Chartwise Women, Erin and Mary Ellen discuss stocks and their "personalities." Stock personalities come in the form of seasonality, sector, industry group, support and relative strength. Watch as Mary Ellen and Erin help you find dreamy "dates" for your... READ MORE