"Great chart, but it seems super short-term. When would you get out of this?" That was the reaction I received on social media when I posted this chart showing the relative strength of semiconductors to the S&P 500. In terms of my process, I focus my... READ MORE
S&P 500 GROWTH ISHARES HOLD 50-DAY LINE... A lot has been written about the relationship between growth and value shares. During last week's pullback in technology shares, cheaper value stocks held up better which raised questions about whether a rotation was starting from growth into value... READ MORE
Last week, the rotations for the Communication Services and Technology sectors continued on their trajectory deeper into the weakening quadrant, heading towards lagging. As always with relative strength, one sector's loss is another sector's gain - or, in this case three sectors' losses are the... READ MORE
It's max pain time. Every month as we approach monthly options expiration, I go through an exercise to evaluate the open interest of puts and calls to help determine the likely short-term direction of equities. It provides me no guarantee. Rather, it serves as another tool in my... READ MORE
In this episode of DecisionPoint, Carl and Erin debate whether it's time to jump back in to Natural Gas (UNG). Erin zeroes in on the Nasdaq and Technology Sector (XLK) to determine if today's bounce is a beginning of finer things to come; she takes a... READ MORE
This is an excerpt from today's DecisionPoint Alert on DecisionPoint.com: It may only be a one-day bounce, but the questions are already appearing..."Is the correction over in Technology? Is this a BUY point?" Below I have the chart of the Nasdaq, followed by the... READ MORE
On Friday the 11th, the QQQs (Nasdaq) and IWM (Russell 2000) both closed under the 50-DMA. They were not followed by their friends the DIA (DowJones) and the SPY (S&P 500). The temporary divergence they were in has quickly been resolved because all four are now back over... READ MORE
At EarningsBeats.com, we provide market guidance and analysis of the major indices, sectors, industry groups, and individual stocks. Our research provides our members with various ChartLists to organize strong trading candidates by categories such as Strong Earnings, Strong AD, Short Squeeze, etc. Over the years, I've never... READ MORE
I follow a very simple ratio every day, which is the iShares Russell 1000 Growth ETF vs. the iShares Russell 1000 Value ETF (IWF:IWD). This ratio tells us whether traders have the necessary risk appetite that typically drives equity prices higher, especially the NASDAQ, which is littered with high-growth... READ MORE
The Indian equities ended the week with modest gains, as they struggled to keep afloat when the global markets showed sharp corrective moves that led to the revision of means. In a trading range that stayed narrower compared to the week prior, the headline index ended with gains, while the... READ MORE
Fast moving Growth stocks have been taking it on the chin with the Tech-heavy Nasdaq now down over 10% from its recent peak in price. The drop puts this Index into a correction which has investors on the lookout for more potential downside. DAILY CHART OF NASDAQ COMPOSITE Those who... READ MORE
Some Indicators Have Moved to Levels Consistent with a Low Most corrections in a bull market fall in the 5-10% range. On Thursday, the NASDAQ is down 10% intraday and the S&P Composite 7%, so it's not unrealistic to conclude that the correction might be over.... READ MORE
In this episode of StockCharts TV'sThe MEM Edge, Mary Ellen reviews the status of the markets and what to be on the lookout for going forward. In addition, she shares attractive high-yield stocks to help buffer against the drop in growth names, as well as growth stocks holding... READ MORE
Partly inspired by our recent trip throughout the West, and also partly inspired by our long position in Teck Resources Limit (TECK), which gained over 11% on Friday while the SPY closed basically flat, coal is the topic for the weekend. Coal is the major supplier to steel and utilities.... READ MORE
With markets flying everywhere from day to day, I want to take a step back in this article and look at the bigger economic cycle picture, in order to see if we can fit things into the "Sector Rotation Model" as it can bee seen under the PerfCharts.... READ MORE
"Great chart, but it seems super short-term. When would you get out of this?" That was the reaction I received on social media when I posted this chart showing the relative strength of semiconductors to the S&P 500. In terms of my process, I focus my... READ MORE
Despite remaining very bullish, I've written several short-term bearish articles lately, mostly dealing with extreme sentiment issues. Those sentiment extremes have been rectified and are no longer a problem, but they've now changed the mentality in the market from "buy on the dip" to... READ MORE
TECHNICAL DIVERGENCES WARN OF MORE VOLATILITY... We're all focused on the meaning and severity of the recent selloff in stocks and trying to determine if this is a short-term pullback or something more serious. A number of technical divergences that have appeared on price charts suggest that the... READ MORE
There are fewer silver crosses in the major stock indexes and this shows less participation during the last leg higher, a situation that could foreshadow a correction. A silver cross occurs when the 20-day EMA crosses above the 50-day EMA. DecisionPoint took this concept on step further and developed breadth... READ MORE
In this week's edition of Chartwise Women, Mary Ellen and Erin review how to handle your stocks depending on your investment horizon. They also share ways to stay on top of sector rotation as well as the broader markets. This video was originally recorded on September 10th, 2020.... READ MORE
WIth the SPY, QQQ, DIA, and IWM closing down on the day, now it's a good time to check the health of the Modern Family to give us a bigger picture of the market. Above, you can see the weekly charts for Modern Family (IWM, IYT, XRT, KRE,... READ MORE
* Some Indicators Have Moved to Levels Consistent with a Low * Others Suggest the Likelihood of More Corrective Activity * Indicators that Should Be Monitored for a Possible Upside Reversal Some Indicators Have Moved to Levels Consistent with a Low Most corrections in a bull market fall in the 5-10% range. So... READ MORE
Last week's selloff primarily hit some mega-cap names in Technology, Communication Services and Discretionary stocks. For sure, it shook up markets pretty well and, as usual, the selling of risk assets led to an inflow into risk-off assets like bonds and more defensive sectors. Another ways of breaking... READ MORE
When you own a stock in a short squeeze, your investing world looks a lot brighter. There are many traders that live and die with short positions, which I'll never understand. But hey whatever works, right? I'm not an advocate of blindly buying heavily shorted stocks... READ MORE
HOURLY CHART SHOWS OVERHEAD RESISTANCE... The hourly price bars in Chart 1 show the Invesco QQQ Trust which measures the Nasdaq 100 Index trying to build on yesterday's bounce off its 50-day moving average. The big question is whether a bottom has been seen, or whether more testing... READ MORE
The 50-DMA did its job! After a perfect touchdown in the NASDAQ QQQs to the 50-DMA at 270, today the NASDAQ gained 2.92%. All the issues for the tech drop -- Softbank, overbought conditions, lack of a stimulus deal, China tensions, vaccine delays, etc. -- got the bears suited... READ MORE
In this edition of Trading Simplified, Dave presents the pattern that he sees as the key one to know for success. He also analyzes the Mystery Charts he has presented in the past and their phenomenal performance since he covered them, then caps things off with a discussion of volatility.... READ MORE
On August 31, AAPL stock split 4 for 1 and TSLA split 5 for 1. On several occasions prior to that date I tried to make DecisionPoint ALERT readers and DecisionPoint Show viewers aware that stock splits often occur in the vicinity of price tops. It doesn't happen... READ MORE
Last Friday, we noted how major symbols (QQQ, IWM, JNK, SMH) bounced off the 50-DMA. Now, with the market still undecided, we can build a plan on what to look for if we break under the 50-DMA. Let's take a look at the QQQs and the SPYs on... READ MORE
NASDAQ COMPOSITE IS TESTING ITS 50-DAY AVERAGE.. The tech-driven Nasdaq market continues to lead the market lower. Chart 1 shows the Nasdaq Composite Index in the process of testing its 50-day average. That's an important test for it and the rest of the market. Chart 2 shows the... READ MORE
In this edition of Sector Spotlight, I break down the events of last week's volatile price action and how that translates into the tails on the Relative Rotation Graphs; I then put these price moves into a slightly longer-term perspective. Julius also dives into the Long/Short baskets,... READ MORE
This weeks Power Charting episode sparked interest as it covered current market conditions and also the long term stock market cycle. Roman Bogomazov and I also discussed these topics in our weekly ‘Wyckoff Market Discussion' episode, which can now be viewed on-demand. Roman and I invite you to join... READ MORE
The S&P 500 SPDR (SPY) fell over 2% this week for the biggest weekly decline since June. The long-term trend is still up because SPY remains well above the rising 40-week SMA. However, a big Spinning Top candlestick formed last week and a volatility indicator ticked higher. Spinning... READ MORE
In a wide-ranging trading week, the Indian equity markets halted their four-month winning streak. The NIFTY met its important pattern resistance, from which it reacted. Over the past five trading sessions, the NIFTY saw a trading range of close to 500 points. Amid volatile moves, it was a time for... READ MORE
This morning's strong jobs report saw a bigger than expected jump in nonfarm payrolls during August and a bigger than expected drop in the unemployment report to 8.4%. That strong combination helped contribute to today's rebound in bond yields. Chart 1 shows the 10-Year Treasury... READ MORE
In this episode of StockCharts TV'sThe MEM Edge, Mary Ellen reviews last week's sharp selloff and provides a game plan going forward. She also shares bullish charts of companies poised to trade higher after withstanding the market's downward pressure, as well as how to... READ MORE
Anyone who has followed the market like I have through every possible scenario, from the dot-com bubble to 9/11 to the Great Recession to what we've seen the past few days, should have recognized that the market was getting VERY extended. When you start seeing Stochastics near... READ MORE
After 2 major sell-off days, the market bounced late Friday off the 50-day moving average. Coincidence? First, why do we care about the 50-day moving average? The most common inputs for the Moving Average used by traders and market analysts are the 50-, 100- and the 200-DMAs. Knowing a large... READ MORE
It may seem strange to write a negative review of an ETF after it just made a 4%+ move today, but I wrote to my subscribers earlier this week about the bearish warning signs on Natural Gas (UNG). While admittedly I'm not quite as bearish, given the price... READ MORE
The Bollinger Band squeeze signals a volatility contraction that can lead to a volatility expansion. But which way? For directional clues, we need to analyze price action and other indicators. Henry Schein caught my eye because the stock has a Bollinger Band squeeze, a bullish chart pattern, an uptrend and... READ MORE