In this episode of StockCharts TV'sThe MEM Edge, Mary Ellen reviews the market's dynamics and shares how you can uncover areas that are poised to benefit from the recent breakout. She also highlights defensive groups with high growth prospects. This video was originally broadcast on July... READ MORE
The S&P 500 index has remained in consolidation mode, spending the shortened holiday week in a rally back to the upper end of the recent trading range. Last week on The Final Bar,I announced "The Mindful Six", a group of six stocks that I feel... READ MORE
One of the ratios that a lot of market watchers and commentators look at is the relationship between Consumer Staples and Consumer Discretionary stocks. The assumption or rationale behind watching this pair is that Consumer Discretionary stocks usually do well in a rising market (SPY), while Consumer Staples stocks tend... READ MORE
What an incredible - and shorter - week in the world of high finance. Doomsday news appeared EVERYWHERE, yet did not impact the market per se. Gold however, like our recycled, solid gold art installation, held its ground. Only the metal looks like it is about to go into orbit.... READ MORE
We may have gotten an encouraging preview to earnings season for select areas of the economy this week after global air-freight carrier FedEx Corp. (FDX) posted earnings that were well ahead of analyst's estimates. The positive earnings surprise not only helped the stock gap up to its biggest... READ MORE
DOW AND SPX REMAIN IN TRADING RANGES...Despite gaining ground this past week, little has changed for the market's major stock indexes. Continued buying of technology growth stocks pushed the Nasdaq Composite to a new record (Chart 1). The rest of the market, however, continued to lag behind.... READ MORE
Fear is an almost uncontrollable emotion. And when you combine that with financial anxiety, it typically results in predictable fashion - a "throw the baby out with the bath water" selling event. But the good news is that, once the masses grow fearful enough, stock markets rally. After... READ MORE
* Shanghai Composite Ruptures Mega Trendline * Chinese ETFs Breaking as Well * Interesting Chinese Sector ETFs Back in March, I wrote about the Chinese stock market, as it had started to improve in terms of relative action against the S&P. Since then, Chinese equities have moved higher with no net... READ MORE
At EarningsBeats, we've been trying to tell anyone willing to listen why the stock market is going higher. I was definitely among the tiny minority back in March and April when I suggested that this downturn was a cyclical bear market within a secular bull market. I think... READ MORE
On the weekly chart of Twitter (TWTR), a clear downward trend is visible. The last three peaks are lining up nicely and connecting a downward-sloping resistance line. Parallel to that downward sloping resistance line, there is an also downward-sloping support line that connects the last three lower lows. This channel... READ MORE
In this episode of DecisionPoint, Carl reviews the DecisionPoint charts that track "fair value" based on earnings and earnings estimates. We now have actual 1st quarter earnings added to the charts! It's already eye-opening, but what to expect for the 2nd quarter? Erin focuses in on... READ MORE
US DOLLAR HAD WEAK SECOND QUARTER... After surging during March (as stock prices plunged), the U.S. Dollar peaked in late March and moved lower during the second quarter. Rising stock prices during that quarter reduced the appeal of the dollar as a haven currency. Rising foreign currencies also reflected... READ MORE
I'm in the midst of a major life change. After 25 years in downtown Seattle, I've decided to move my office. Doing this during the fog of a pandemic seemed irrational at first blush. In truth, recalibrating the space in my brain at the same time... READ MORE
DOW TRANSPORTS NEAR TEST OF 200-DAY AVERAGE...Transportation stocks are off to a strong start this morning. Chart 1 shows the Dow Transports rising to a two-week high after bouncing off their 50-day moving average last week. They may be headed for a test of their 200-day moving average. Tranportation... READ MORE
On this episode of Sector Spotlight, I check the seasonality for the month of July, but no clear over- or underperforming sectors are visible. The rotation of international stock markets is sending a clearer message; the US is losing momentum vs the rest of the world, especially Japan. Following some... READ MORE
Tesla has been a leading auto stock ($DJUSAU) since it bottomed at 176.99 on June 3, 2019, but few traders expected the stock to clear the $1,000 barrier in just over a year. It's been a crazy run, but Wall Street continues to support the stock... READ MORE
Over the weekend, I covered the financial sector in depth. Last week, the Volcker rule was rolled back, while the Federal Reserve decreased dividends paid to shareholders and ruled against corporate buybacks. One would guess that the rollback of the Volcker Rule should have more impact, as this could be... READ MORE
DOW AND SPX HOLD CHART SUPPORT... Stocks are off to a strong start for the week. And are holding some important support levels. Chart 1 shows the Dow Industrials bouncing off potential chart support at its 50-day average (blue line) and its early June intra-day low at 24,800. It&... READ MORE
Last week's sector rotation has pushed the Health Care sector into the improving quadrant at a positive RRG-Heading. This makes the sector stand out in a positive way on the DAILY Relative Rotation Graph for US sectors. The only two other sectors that are rotating from left to... READ MORE
In a relatively less volatile week, the Indian equities continued to surge higher amid liquidity-driven rally. After gaining 2.72% in the week before this one, the NIFTY extended its up move this week as well. The index saw range-bound movement of just 359 points over the past five session,... READ MORE
MAJOR STOCK INDEXES WEAKEN... Major stock indexes lost ground this week on a disturbing rise in coronavirus cases which could undermine the U.S. economy. Chart 1 shows the Nasdaq Composite pulling back from a record high set on Tuesday. Its 14-day RSI line in the upper box shows a... READ MORE
On Friday, April 3, I submitted my article for the ChartWatchers newsletter with the following headline: "Get Ready to be Shocked - To the Upside". As someone who has been involved in the market for many years and who has made his fair share of bad calls, this... READ MORE
This past week, the financial sector saw some fireworks. The Volcker rule was rolled back, while the Federal Reserve decreased dividends and ruled against corporate buybacks. Where does the name Volcker Rule come from? Volcker was the Fed Chairman in the 1970s-1980s. When inflation began to go out of control... READ MORE
In this episode of StockCharts TV's The MEM Edge, Mary Ellen takes a close look at the current status of the broader markets after this week's selloff. She also shares lockdown stocks that are poised for more upside, as well as breakout stocks with increased Wall... READ MORE
I decided to take a look at the FAANG stocks to see which ones are experiencing damage (duds) and which ones are continuing to show internal strength despite the S&P 500 stalling before reaching all-time highs. There are definitely some winners and losers. I must say that, overall,... READ MORE
Long-Term Gold Charts Give Perspective Gold broke out to a new recovery high on Tuesday and looks set to gain more ground, all with a favorable background from the long-term trend. Chart 1 compares the quarterly gold price to a Coppock indicator and its 9-quarter moving average. This is not... READ MORE
The 200-day SMA is a long-term trend indicator that chartists can use across the equal-weight sectors to measure the balance of power in the broader market. The more sectors trading above their 200-day SMAs, the more bullish the market. The more sectors trading below their 200-day SMAs, the more bearish... READ MORE
June has been fairly kind to the NASDAQ 100 index ($NDX), technology (XLK), software ($DJUSSW), and internet ($DJUSNS) and these have all been leaders, but the combination of overbought, negative divergences and a weak seasonal period has sent all four down to areas not seen recently. Let's start... READ MORE
Looking at historical precedence with stocks is the best way to create a foundation from which to build your trading plan going forward. My 15 years working with IBD founder Bill O'Neil solidified this fact for me, as his proven strategy to uncover big, winning stocks was centered... READ MORE
One of the scans that I run on a daily basis is my scan for "Turtle Soup" Buy signals. Actually, I have two versions of that scan - one that runs at last day's close and one that runs on last intraday update. For the scan... READ MORE
In this episode of DecisionPoint, Erin reviews the Nasdaq 100's PMO BUY Signal and its whipsaw back into a SELL signal on Wednesday. Carl showed us his new "market bias" view of the Swenlin Trading Oscillators (STOs) and IT Breadth/Volume (ITBM/ITVM). The shift is... READ MORE
Yesterday, we heard a discordant orchestra. Today, the crescendo that had built up in NASDAQ turned into decrescendo. And while NASDAQ sold off hard, the rat-a-tat of the Russell 2000, Retail, Regional Banks and Granny Retail sectors from yesterday, sounded more like cymbal crashing today. However, this level of volatility... READ MORE
In this edition of Trading Simplified, Dave concludes his series "What's Standing Between You and Your Longer-Term SUCCESS!" and reveals a few plugins that are coming soon to the StockChartsACP platform. This video was originally broadcast on June 24th, 2020. Click anywhere on the Trading Simplified... READ MORE
On this episode of Sector Spotlight, I perform a quick overview of asset class and sector rotation, then focus in on plotting breadth data on Relative Rotation Graphs. After the break, I answer two questions from the RRG mailbag. This video was originally broadcast on June 23rd, 2020. Click anywhere... READ MORE
Years ago it occurred to me that we should consider market "bias" when interpreting the condition (overbought/oversold) of market indicators. Here is how bias works: BIAS = BULLISH: Overbought conditions may not impede upward price progress. Conditions become oversold well above the bottom of the normal range. Bullish... READ MORE
I hear a symphony.. Only there are some discordant notes. On the one side of the orchestra, we have NASDAQ FAANG and Tech building to a crescendo. On the other side, we have the Russell 2000, Retail Regional Banks and Granny Retail sounding more like a rat-a-tat-tat, then quiet. Therefore,... READ MORE
* Long-Term Gold Charts Give Perspective * Gold vs. the Dollar * Gold vs. Gold Shares * Short-Term Gold Position * Conclusion Long-Term Gold Charts Give Perspective Gold broke out to a new recovery high on Tuesday and looks set to gain more ground, all with a favorable background from the long-term trend. Chart 1... READ MORE
This question was forwarded to me by Dave Keller after he received it in the mailbag for his show The Final Bar. "The RRGs attached all make sense except for XLE. It was down nearly 9% the last two days, but the RRG has it moving up from weakening.... READ MORE
When I'm prioritizing information to help me understand the broad market environment, I tend to consider this as the order of importance: 1. Price 2. Breadth 3. Sentiment I've found sentiment readings such as the American Association of Individual Investors (AAII) and Investors Intelligence (II) surveys... READ MORE
The market will not go down unless... * The death rate from COVID-19 spikes - not simply the number of cases. * The dollar keeps failing while the yuan grows in demand. * The civil unrest surges to the point of riots, hence unavoidable disruption. * War breaks out in North Korea or Middle... READ MORE