California Water futures have been added to the list of tradable commodities. Historically, commodity futures contracts were first created as a way for farmers to hedge against fluctuating crop prices. If someone thought a drought might devastate their corn season, buying a corn futures contract would mitigate the loss. Conversely,... READ MORE
Two Stock Market Relationships That Have Just Turned Positive A few weeks ago, I wrote about some intermarket relationships pointing in the direction of higher stock prices. Picking through my StockCharts chart lists earlier in the week, I noticed a couple more that have only just moved into the bullish... READ MORE
In this edition of StockCharts TV's Sector Spotlight, I spend a big part of the show going over the (completed) monthly (bar-) charts for November, in order to get a handle on the long-term trends that are in play for both asset classes and sectors. In particular, the... READ MORE
GOLD SPDR TRIES TO HOLD 200-DAY LINE...Gold has been in a downside correction since the start of August. And it's now undergoing an important test. Chart 1 shows the Gold Shares SPDR (GLD) trading back above their 200-day moving average after slipping below it near the end... READ MORE
Sentiment measures are environmental to the stock market. They speak to the general state of speculation in stocks, but are difficult to use for precise timing. Sentiment is considered in a contrary way for speculative markets. In the example of the Equity Put to Call ratio (plotted below), when an... READ MORE
In this episode of DecisionPoint, Carl opens the show by analyzing SPY market action, but also schools us on how to determine when the market is "overvalued" or "undervalued." (Currently, it is highly overvalued.) Carl also displays many DP indicators that are extremely overbought and accompanied... READ MORE
The current market situation shows a quick attempt to push a smaller stimulus bill by the end of December before eviction protection and unemployment benefits end. If failed, it could potentially leave as many as 19 million people at risk of becoming evicted. This potential strain on the market could... READ MORE
As much as people speak of gold's value as a safe haven, its performance in 2020 has done much to dispel that investment thesis. Recent months have seen gold and gold stocks underperforming the S&P 500. Is the pattern of new highs for stocks and new... READ MORE
In this special episode of Real Trading with Larry Williams, Larry explores the famous "Santa Claus Rally" and how it applies in 2020. The rally is coming earlier than you might expect in the season for toy, candy, jewelry, and other related stocks. So when does/did the... READ MORE
I developed my Pandemic Index several months ago to track the progress of the 10 worst performing industry groups during the onset of COVID-19. It's an equal-weighted index of those 10 industries and I track it using StockCharts.com's User-Defined Index tool. Here's how... READ MORE
There was a serious shift over the last five weeks as commodities surged, bonds fell and the Dollar recorded new lows. There were also some noticeable divergences as the Inflation-Indexed Bond ETF (TIP) edged higher and the 20+ Yr Treasury Bond ETF (TLT) moved lower. This divergence is only five... READ MORE
We prepared a list of the 20 best stocks to own in December and sent it to our EarningsBeats.com members one week ago. The TOP-RATED stock on our list was Western Digital (WDC), which has advanced in 70% of Decembers this century and has produced an average return of... READ MORE
CANADIAN DOLLAR HITS TWO-YEAR HIGH...With the U.S. dollar falling to the lowest level in more than two years, foreign currencies are rising. One of them is the Canadian Dollar. The weekly bars in Chart 1 show the $CDW rising to the highest level in two years. Since Canada... READ MORE
In the week that went by, we saw the markets adding more strength and piling up some more incremental gains. The NIFTY has not only stayed above the crucial 2-year long pattern resistance trend line, but also added some directional bias to it by moving higher. The markets were much... READ MORE
I always credit John Murphy for all of my work regarding intermarket relationships. He's inspired me in a number of ways and I continue to look for relationships that can better increase my odds of calling the stock market correctly. The great thing about these relationships is that... READ MORE
Since its intraday high (set in August), the price of the SPDR Gold Trust, the GLD, has fallen close to 15%. That's not enough to qualify for a bear market under the media's arbitrary and totally useless 20% standard. However, it is enough for bulls like... READ MORE
For many investors, uncovering that best-of-breed stock that goes on to far outpace its peers can be elusive. With the tools I'm going to share with you today, you can get started setting up a system that's designed to locate and help you trade that next... READ MORE
In the past couple of weeks, we've talked about the rise of oil and gas exploration (XOP). On Friday, XOP closed with just under an 8% gain for the day. Its recent break over the 200-day moving average gave a good area to risk from. Even with its... READ MORE
In this episode of StockCharts TV'sThe MEM Edge, Mary Ellen reviews where the momentum is in the markets and how you can capitalize with specific stocks, as well as screening techniques to uncover top candidates. She also shares names that gapped up on earnings this week and how... READ MORE
As much as people speak of gold's value as a safe haven, its performance in 2020 has done much to dispel that investment thesis. Recent months have seen gold and gold stocks underperforming the S&P 500. Is the pattern of new highs for stocks and new... READ MORE
Bitcoin and, more broadly, cryptocurrencies, are back to the forefront of financial markets. A lot of new participants are entering the crypto-space and they are all looking to get a piece of the bitcoin-pie. So what can we learn from the Bitcoin chart when we want to get an idea... READ MORE
FALLING DOLLAR BOOSTS COMMODITY PRICES...One of the side-effects of a falling dollar is usually rising commodity prices. That's partly because global commodities are priced in dollars. And our first chart reflects their inverse relationship. Chart 1 shows the Invesco DB Commodity Index (DBC) in a rising trend... READ MORE
TEN-YEAR TREASURY YIELD NEARS 1%... Treasury bond yields continue to climb and are hitting new recovery highs. Chart 1 shows the 10-Year Treasury Yield trading rising 5 basis points today to .96%. It also touched the highest level since March. That's obviously bad for Treasury bond prices which... READ MORE
In this week's edition of Chartwise Women, Erin and Mary Ellen are in the holiday spirit today as they talk about whether Santa Claus is fact or fiction. Oops, that should be Santa Claus RALLY! They look at seasonality to show you when is the best time to... READ MORE
This has been the quarter for short squeezes. It's been crazy. The beauty from the long side is that once these stocks make breakouts, the pressure builds on short sellers to cover their positions. Unfortunately, many have the same emotional connection to their bearish bets that many long... READ MORE
Since its intraday high (set in August), the price of the SPDR Gold Trust, the GLD, has fallen close to 15%. That's not enough to qualify for a bear market under the media's arbitrary and totally useless 20% standard. However, it is enough for bulls like... READ MORE
AIRLINE ETF CLEARS JUNE HIGH... Airline stocks continue to gain more altitude and show stronger chart patterns. Chart 1 shows the US Global Jets ETF (JETS) surging to the highest level since the spring. The upper box shows its relative strength ratio rising to the highest level since June. A... READ MORE
The Relative Rotation Graph for Commodities shows the tail for precious metals deep inside the lagging quadrant and recently bending towards the left again after a few weeks of picking up relative momentum. This makes precious metals the weakest group in the universe. Watching such a rotation on the tail... READ MORE
In Santa Fe, New Mexico, we awoke with freezing temperatures and fresh snow. This week, the state lifted the current lockdown, with restaurants now being able to serve at 25% occupancy outdoors. I can hardly wait to sit outside on a windy winter day! The blatant disconnect between state orders... READ MORE
In this edition of Trading Simplified, Dave shows viewers how following a simple trend following methodology can pay off nicely. He also presents Mystery Charts examines the "what, when, where, how and what" of trading. This video was originally broadcast on December 2nd, 2020. Click anywhere on the... READ MORE
In this edition of Sector Spotlight, I kick off by walking viewers through last week's performances and rotations on the Relative Rotation Graphs for Asset Classes and US sectors. After the break, I put these rotations in a bigger perspective and bring in seasonality for the month of... READ MORE
Those of you who are new to the Daily have probably noticed the references to the Economic Modern Family. Mish developed one index and five sectors as the nucleus of the Family to help you and herself see the real economy, as portrayed through a combination of cyclicals and non... READ MORE
NASDAQ 100 HITS NEW RECORD...With the Dow and S&P 500 reaching new records, the tech-dominated Nasdaq market has been lagging behind. Not anymore. Chart 1 shows the Invesco QQQ Trust trading in record territory today. It's also the strongest of the major U.S. stock... READ MORE
The chart above shows the seasonality for all US sectors relative to the S&P 500 index. The numbers in the table are the percentages of time in history (20 years when available) where a sector outperformed the S&P. For the coming month of December, two sectors... READ MORE
With today being the final day of the month, DecisionPoint "books" the current signals from the monthly charts. In this episode, Carl discusses the importance of monthly PMO direction changes, as many times the crossover signals arrive late. Today, there were TWO monthly PMO direction changes of special... READ MORE
Today, Bitcoin (BTC) passed its record high as certain members of the Economic Moderns Family digest their recent gains. Cryptocurrency as an alternative currency has pushed for widespread acceptance since the launch of the first Bitcoin in 2009. Even more so, it has become a movement for investors who see... READ MORE
I wanted to make sure all of our subscribers to the DecisionPoint Blog on StockCharts know about our Cyber Monday Special and I want to share the "Diamond of the Week" as soon as possible. I presented it on today's DecisionPoint Show that will air later... READ MORE
The Consumer Discretionary SPDR (XLY) is leading the charge with the most stocks trading above their 200-day EMAs. The table below shows the percentage of stocks above their 200-day EMAs for three indexes and the eleven sectors. This indicator is above 98% for XLY and above 90% for four other... READ MORE
The equity markets are presently dealing with one of their most important pattern resistances over the previous days. In the previous note, we had mentioned the importance of this pattern resistance line; it was also mentioned that, unless the zone of 12960-13000 is taken out comprehensively, we may not see... READ MORE
Global markets are rallying as more and more analysts look beyond the devastation caused by the 100-year pandemic and see a very bright economic outlook. Pent up demand, combined with historically-low interest rates will likely prove to be very bullish in the end. I continue to believe that we'... READ MORE