No, this is not a political blog. This is three decades of blood-and-sweat soaked lessons gleaned from investing and following the media. Like condensed milk, it's all boiled down to the five essential "must knows" for you. These are the five Frankensteins that will kill your... READ MORE
STRONG JOBS REPORT BOOSTS BOND YIELDS...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.... READ MORE
I don't think there is a connection between 1929 and 2020, but the headline seemed too good to pass up. Late last week, I mentioned that September is the weakest month of the year for stocks while October is prone to crashes. "Welcome to the bearish season,... READ MORE
In this week's edition of Chartwise Women, Erin and Mary Ellen cover what to look for to determine if the markets - or your stocks - have really hit a top. In order to time your exits, you need to know about stops, and the pair share their... READ MORE
NASDAQ 100 LEADS MARKET LOWER... The tech-dominated Nasdaq is leading the market lower today for the worst drop since June 11. Today's negative combination of falling prices and rising volume suggests that there's more selling to come. The Candlevolume bars in Chart 1 show the Invesco... READ MORE
Last Tuesday in Sector Spotlight, as well as in my last article of the RRG blog, I discussed seasonality for US sectors. While going over the table showing the average returns per sector per month, my eye fell on another number... the minus-one percent (-1%) for the Technology sector. This... READ MORE
NASDAQ PULLS BACK FROM OVERBOUGHT TERRITORY... It shouldn't come as surprise to read that the Nasdaq has been in overbought territory. So is the technology sector. And both are leading the market lower today. The top box in Chart 1 shows the 14-day RSI line for the Technology... READ MORE
Let me start with the fact that I'm as bullish as they come in the long-term, so everything written here is for short-term traders only. Many times the market ignores short-term sentiment warning signals, so please don't misconstrue anything I'm about to write as... READ MORE
Right now, we are in a trend and this is a golden opportunity. In this edition of Trading Simplified, Dave discusses methodology in action and includes some additional insight into Darvas. He also explores IPOs, StockChartsACP and cryptocurrencies. There is also follow-up on Mystery Charts and stocks discussed in The... READ MORE
As mentioned yesterday, the Big Banks ETF (XLF) and Regional Banks ETF (KRE) are two of the weaker sectors. However, today we saw some money rotate into those sectors, with XLF rising over 1% and KRE rising marginally at .4%. Goldman Sachs (GS) cleared a key moving average. Now some... READ MORE
TWITTER CLEARS RESISTANCE... My August 26 message showed our first chart today with the caption that Twitter might be breaking out. Today's action suggests that upside breakout may finally be taking place. Chart 1 shows Twitter (TWTR) climbing more than 2% and trading at the highest level in... READ MORE
In this edition of Sector Spotlight, I look at last week's rotations using daily Relative Rotation Graphs and go over the completed monthly charts for August to catch up on the long-term trends. After the break, I analyze the seasonality for US sectors and look for alignment of... READ MORE
First off, a huge thank you to Geoff Bysshe for covering for me so I could have a vacation for 3 weeks! Before I left, I wrote about 3 major themes to watch continue to emerge - or completely reverse. The first was the focus on the junk bonds and... READ MORE
This article was originally written on August 31st, 2020. Today, the SPY ended its best August performance since 1986 with a market message that is well worth paying attention as soon as tomorrow and well into September. Fortunately for me (and you), a lot of pieces of today's... READ MORE
MATERIALS LEAD MARKET HIGHER... On a strong market day, six sectors are in the black with materials in the lead. Chart 1 shows the Materials Sector SPDR (XLB) gaining 2% today to hit a new record. Its relative strength line in the upper box is bouncing as well after declining... READ MORE
COMMODITY RALLY CONTINUES... Previous messages have pointed out that a two-year low in the U.S. Dollar Index was helping to lift commodity prices. And that's still the case. Chart 1 shows the Invesco Commodity Index (DBC) moving further above its 200-day moving average. Most of those messages,... READ MORE
The graph above shows the percentage of months in which sectors have outperformed the S&P 500 in the past. For most sectors, the data go back 20 years, with the exceptions of XLC and XLRE, as these sectors were only introduced more recently and the historical data does... READ MORE
It's always important to be prepared when a stock has challenged a key price resistance level multiple times and it's testing it again. First of all, if a stock does make a breakout technically, it's normally followed later by the fundamental news that triggered... READ MORE
What's up with the VIX and breadth? And what are they telling us about the market this week? A big news item for this edition of DecisionPoint is a New Long-Term PMO BUY signal for the SPX, but the Apple (AAPL) and Tesla (TSLA) splits, along with the... READ MORE
It's always a true pleasure to kick off the week by hosting a new episode of "Your Daily Five". I've said it before and I'll say it again – this is without a doubt oneof my favorite shows of the many we'... READ MORE
The weekend is the time to step back and look at the Modern Family's weekly trends and inflection points. This week, there are several interesting multi-timeframe patterns developing on the daily and weekly charts; some bullish, others bearish. Before jumping into the charts, let me remind you about... READ MORE
A secular bull market runs on all cylinders. I'm a believer that we remain in the early stages of a bull market that will likely last another decade or longer. How else can you explain the S&P 500's move to an all-time high in... READ MORE
Verizon (VZ) participated in the market surge from late March to mid April, but then stumbled with a decline into mid June. This stumble, however, looks like a classic correction and the stock broke out with a strong move over the last six weeks. In addition, the TIP Trend Composite,... READ MORE
The Indian equity markets continued their unabated liquidity-driven up move and ended with yet another week with gains. The past five days remained less volatile than expected as the NIFTY remained in a defined range of 275-odd points. The directional move, however, remained unidirectional as the Index continued to move... READ MORE
Shares of Abbott Laboratories (ABT) jumped 8% Thursday on news that the FDA granted emergency use authorization for their COVID-19 testing kit. Abbott's test is a game-changer as it is rapid, reliable and affordable and can detect active coronavirus at massive scale. At a cost of $5 and... READ MORE
Strong Bull Market Indications We are all aware of the Shakespearian saying "Beware of the Ides of March," which didn't go so well for Julius Caesar. In market folklore, October is the season for crashes and September is the worst-performing month. Welcome to the bearish season!... READ MORE
In this episode of StockCharts TV'sThe MEM Edge, Mary Ellen reviews the large gaps up in select Tech stocks and how to trade them going forward. She also uncovers the best ways to play the renewed "recovery rally" as well as top Chinese ADR stocks poised... READ MORE
If you've followed my work, you know three things. First, I'm one of the few analysts that kept my long-term secular bull market call intact despite the pandemic-induced selloff back in March. Second, while my big picture view is firmly bullish, my primary focus is on... READ MORE
Last week, I wrote an article titled "What Can We Learn From Equal Weight vs. Cap Weighted Rotations on RRG". In that article, I touched upon distortions between EW and CW sector ETFs because of the large and increasing weight of a few Mega-Cap stocks. In this week&... READ MORE
GOLD SPDR HOLDS SUPPORT... My Wednesday message showed precious metals and their miners pulling back to underlying support levels within major uptrends. That's still the case. My message from yesterday described profit-taking in those same precious metals following an upside spike in bond yields after the head of... READ MORE
Today, while the SPY and QQQ were pushing to new highs, the VXX was telling a dramatically different story, which is a warning sign for a potential imminent correction. The VIXX (Volatility Index ETF) is commonly referred to as a fear gauge, so it naturally tends to go up when... READ MORE
Consumer Spending is taking two paths, both of which are seeing high growth. In this week's edition of Chartwise Women, Mary Ellen and Erin share stocks that are being driven higher by consumer-driven growth during this historical period. In "Yeah... That Happened!", they also discuss the... READ MORE
* Strong Bull Market Indications * Short-Term Vulnerability? Strong Bull Market Indications We are all aware of the Shakespearian saying "Beware of the Ides of March," which didn't go so well for Julius Caesar. In market folklore, October is the season for crashes and September is the worst-performing... READ MORE
On the weekly Relative Rotation Graph for the DJ Industrials universe, NKE is inside the weakening quadrant following a completed rotation on the right side of the graph (Leading-Weakening-Leading). And over the last few weeks, the tail on NKE has again started to curl back up. These sort of rotations... READ MORE
The NAAIM Exposure Index hit 106.56 this week, which is the second highest reading in the history of this indocator (the highest being in December 2017, a few weeks before the January 2018 market top). NAAIM (National Association of Active Investment Managers)member firms who are active money managers... READ MORE
TEN-YEAR TREASURY YIELD REACHES TWO-MONTH HIGH...Bond yields are climbing today. That may be a reaction to Mr. Powell's speech suggesting that the Fed was relaxing its attitude toward the possibility of rising inflation. Treasury bonds are being sold as a result which is boosting bond yields. The... READ MORE
During the midst of the financial blow in March due to the pandemic, I realized that not all stock selloffs were created equal. While most stocks moved lower at the open, many were being bought, or accumulated, throughout the trading day. It was at that point that I ditched the... READ MORE
If you were to look at the Modern Family you'd see a quiet August trading day waiting to hear Fed Chair Powell's speech tomorrow. Grandpa Russell (IWM) fell asleep and closed down for the day firmly stuck in a two-week bullish flag. Meanwhile, SMH edged higher... READ MORE
In this edition of Trading Simplified, Dave continues his discussion of Darvas Boxes to help you build upon your toolbox. He walks through Mystery Charts and presents examples of Darvas Methodology in action. This video was originally broadcast on August 26th, 2020. Click anywhere on the Trading Simplified logo above... READ MORE
GOLD ETF AND ITS MINERS TEST UNDERLYING SUPPORT... Precious metals have spend most of August pulling back from their recent strong advances which has enabled them to work off some short-term overbought conditions. And they're testing underlying support levels. Chart 1 shows the Gold SPDR (GLD) testing a... READ MORE