The S&P 500 closed at an all-time high on February 19, 2020 when it reached 3386.15. At its Friday close of 2929.80, the benchmark index remained 456.35 points, or 13.48%, shy of that high. February 19th was also the date that I announced our... READ MORE
It's been quite a week for the markets, as a gradual reopening from a global lockdown has investors hopeful that economic damage from the pandemic might be stemmed. And while the S&P 500 posted a healthy gain for the week, it's the Tech-heavy Nasdaq... READ MORE
Most of my guests in recent weeks on The Final Barhave embraced the "we're due for a pullback" thesis. From the very bullish (S&P 3600) to the quite bearish (S&P 2000) and everyone in between, it seems most people feel that the... READ MORE
In this episode of StockCharts TV'sThe MEM Edge, Mary Ellen reviews outperforming growth areas of the market. She also shares ways to easily spot money flows into newer areas and the characteristics that point to further upside. This video was originally recorded on May 7th, 2020. Click on... READ MORE
Sixty-Five Year Record of Success One of my favorite long-term indicators involves the 12-month ROC of the S&P Composite falling below the -5% level and subsequently rallying back above zero. This approach is shown in Chart 1, which illustrates the period from 1995 through April 30 of this... READ MORE
Maybe I just love a contrarian view. My Dollar theory differs from so many analysts. First, I know that the traditional relationship between the Dollar, commodities and the stock market holds for a while, then completely shifts according to each economic cycle. I have experienced it during my trading career... READ MORE
Sometimes it is unclear how daily and weekly RRGs align with each other. Just to be clear, this is not the same as the difference between daily and weekly RRGs. With regard to that difference, there is a ChartSchool article that explains it in detail. What we are talking about... READ MORE
CONSUMER DISCRETIONARY SPDR NEARS 200-DAY LINE... Yesterday's message showed the Communication Services SPDR (XLC) trying to clear its 200-day moving average which it has done. The next in line may be consumer cyclicals. Chart 1 shows the Consumer Discretionary SPDR (XLY) nearing a test of its red line.... READ MORE
Sixty-Five Year Record of Success One of my favorite long-term indicators involves the 12-month ROC of the S&P Composite falling below the -5% level and subsequently rallying back above zero. This approach is shown in Chart 1, which illustrates the period from 1995 through April 30 of this... READ MORE
XLC CONTINUES TO TEST 200-DAY LINE... Tuesday's message showed the Communication Services SPDR (XLC) challenging its 200-day moving average. Chart 1 shows that test still in progress. Its relative strength line in the lower box has also been rising. Internet stocks are the main driver behind recent XLC... READ MORE
The above chart shows the daily and weekly tails for PFE overlaid on the same Relative Rotation Graph. And before you ask... NO, you cannot do this on the site. I did need to be a little bit creative with cutting-copying-pasting-etc. But I thought it was worth it. A bit... READ MORE
In this episode of DecisionPoint, Carl and Erin's topic of the day was bankruptcy and the S&P 500. They discuss the difference between Chapter 11 and Chapter 7 bankruptcies and how that could affect the make up of the S&P 500. They discussed the... READ MORE
Trading success, to some degree, is simply understanding the laws of supply and demand. There is a finite supply of shares available to buy of every stock traded on the various public exchanges. When the demand to buy those shares exceeds the supply available, price rises. Many of those involved... READ MORE
Below, I explore some of my more recent discoveries into trading psychology, with a focus on the importance of resisting short-term temptations - the micro is so much more important than the macro. I explain how this applies to you (and me!). And, most importantly, I discuss what we can... READ MORE
To follow up on the daily article featuring the weekly channel in Biotechnology (IBB): Since this is a weekly chart, what matters most is the weekly close. That means that, intra-week, we can consider price movements, but cannot consider a legitimate channel break up or down until the closing price... READ MORE
In this edition of Trading Simplified, Dave gives a bear market update including tools you can use for this time, and the next. He then continues on with his Trading Rules and coverage of the "Battle Within," trading psychology and how it all relates to you as a... READ MORE
If there is one area to watch should the market have another run up, it is Biotechnology (IBB). The channel lines that are perfectly parallel, going back to 2015. Since this is a weekly chart, what matters most is the weekly close. That means that, intraweek, we can consider price... READ MORE
On this episode of Sector Spotlight, I walk through asset classes and US sectors using RRG in combination with monthly charts. Afterwards, I answer a question from the mailbag regarding the alignment of weekly and daily RRGs. In the seasonality segment, I highlight two sectors that are showing a strong... READ MORE
I was indoctrinated into using exponential moving averages (EMAs) out of necessity, back when I was generating data for the old DecisionPoint.com website. I was generating and maintaining data on Excel spreadsheets, and, if I wanted a 200-day simple moving average (SMA), I would need to keep 200 days... READ MORE
Happy Cinco de Mayo to all! Below is my Daily Market Report that is sent out every day to EarningsBeats.com members. If you'd like to subscribe, I'd love to have you join our growing community! Here's a link: Fully refundable $7 30-day trial... READ MORE
STOCKS OPEN ON A STRONG NOTE... Stock prices opened much higher this morning. And all three major stock indexes are bouncing off some moving average lines. Chart 1 shows the Dow Industrials bouncing off their 20- and 50-day moving averages which is usually their first line of support. Chart 2... READ MORE
At the end of the month, or the beginning of a new month, I like to look at the expected strength for sectors based on seasonality. The chart above visualizes the seasonal strength for US sectors in one 3D image. The numbers in the table represent the % of occurrences for... READ MORE
In the transportation sector, which is weakening partly because of Buffett's weekend comments, there is one area that is doing a lot better. Want to fly coast to coast? Not so much. Want to go to outer space? Sign me up! Virgin Galactic (SPCE) reports May 5th. The... READ MORE
When the CEO of a major corporation states: "You may want to take a seat" during their quarterly earnings report, you can bet that some serious news is about to be shared. And indeed, Jeff Bezos of Amazon (AMZN) dropped a bomb when he stated that the company... READ MORE
STOCK RALLY MAY HAVE PEAKED... A number of short-term technical indicators suggest that the spring rebound in stocks may have peaked this past week. The daily bars in Chart 1 show the S&P 500 selling off on Thursday and Friday after touching its 62% Fibonnaci retracement line (purple... READ MORE
The previous week saw the markets trading on a much better-than-expected note as the headline index continued to surge higher, ending with strong gains. The markets had seen a loss of momentum in the week before this one; however, the truncated week saw the resumption of the technical rebound, which... READ MORE
Stocks in general are undergoing some profit-taking today. And consumer cyclicals are one of the day's weakest groups. A big reason for that is today's big drop in Amazon.com (AMZN). Chart 1 shows that influential stock dropping -7% today on last evening's reported... READ MORE
In this episode of StockCharts TV'sThe MEM Edge, Mary Ellen reviews the impact of a late-week selloff on the broader markets. She also discusses the move within various sectors, with a spotlight on Gold stocks. This video was originally recorded on May 1st, 2020. Click on the above... READ MORE
Last Wednesday, the NASDAQ got within just a few very strong sessions of reaching its all-time high. Let me repeat; it's All-Time High! Notwithstanding the much-needed pullback on Friday, how is this even possible, with millions of people out of work, most of America shut down and most... READ MORE
Yet again, the Swenlin Trading Oscillators gave our readers early warning for today's decline. I have written about their previous successes in ChartWatchers, but I wanted to report back to you that they are continuing to be leading indicators. Below is an excerpt from yesterday's DecisionPoint... READ MORE
In my April 31st presentation on StockCharts (which aired earlier today on StockCharts TV), I begin by walking you through the Economic Modern Family (Russell 2000, Retail, Biotechnology, Regional Banks, Transportation, Semiconductors) using nothing but pure price. I used trendlines and channels I learned from my days trading on the... READ MORE
In a recent survey of serious investors, it was uncovered that a majority are earnest sports fans. Count me guilty. As I write this, we just completed the National Football League's (NFL) draft. But the focus here is not on simply one sport. All the major pro sports... READ MORE
Despite a massive advance the last six weeks, the bulk of the evidence indicates that we are still in a bear market environment. The advance off the March low, while impressive on its own, still pales in comparison to the prior decline. The S&P 500 SPDR retraced around... READ MORE
AMAZON SELLOFF HURTS CONSUMER CYCLICALS... Stocks in general are undergoing some profit-taking today. And consumer cyclicals are one of the day's weakest groups. A big reason for that is today's big drop in Amazon.com (AMZN). Chart 1 shows that influential stock dropping -7% today on... READ MORE
The S&P 500 has rallied more off the March 23rd bottom than just about anyone could have predicted and it's done it in record time. I've remained bullish from a longer-term perspective, relying on the secular bull market advance that began in 2013 when... READ MORE
Commodities have been badly beaten up in the last few months, but no market goes down for ever, so it's natural to ask the question of whether it's time for an upside reversal. The evidence for that is not conclusive yet, but there are some very... READ MORE
The Energy sector keeps coming back on my radar as a sector that's potentially turning around. The sector has been in a relative downtrend for ages already and, from a long-term perspective, things still do not look very good. However, things never look good just before or in... READ MORE
I haven't abandoned my philosophy of trading stocks of companies whose recent quarterly revenues and EPS beat Wall Street consensus estimates. Such companies are included on my Strong Earnings ChartList (SECL), which up until recently, I traded from exclusively. I still believe it's incredibly important for... READ MORE
In this episode of DecisionPoint, Carl and Erin reviewed everything from the Case-Schiller Home Price Index to SPX Earnings Estimates and Gilead Sciences (GILD). Erin covered brand new scan results that uncovered a few names you might want to consider. Big-name companies reported earnings today, so they revealed the charts... READ MORE
In this edition of Trading Simplified, Dave begins with a bear market update, then continues his discussion of the 12+1 trading rules he follows and the trading psychology behind them. For this episode, Dave focuses on the final rule, namely "The Battle is Within". This video was... READ MORE