The volatility has been extreme and the back and forth action has been dizzying at times. But there have been a couple common denominators throughout this 7-8 week up-and-down roller coaster ride that allow us to improve our odds of trading success. And all the tools you need are right... READ MORE
We have been here before. Sister Semiconductors (SMH) rocks the house, while her siblings and grandparents lag. Today, the disparity was palpable. SMH closed up 2.71%. The Russell 2000 IWM closed down .86%. Regional Banks KRE closed down 3.68%. Granny Retail fell by .51%. In the last several... READ MORE
History tells us that, at major turning points for commodities, there is a strong, albeit imprecise, tendency for the gold price to have preceded that reversal. Gold generally leads because a rising price anticipates inflation, while a falling one anticipates deflation. This idea is represented by the rightward sloping solid... READ MORE
No matter what sort of general market regime we are in, there are always a few that go the other direction. From 2017 to 2019, when the S&P surged, GE went completely the other way and more than halved. At the moment, we have a market that is... READ MORE
Relative Rotation Graphs can show many different relationships. They do not necessarily have to come from regular price data-series like stocks or indexes. In my weekly show on Stockcharts TV, Sector Spotlight, which airs every Tuesday from 10.30-11.00 am ET I spent time on pair trades on a... READ MORE
At DecisionPoint.com I maintain daily charts of the eleven S&P 500 sectors for our subscribers, and I can't help noticing two of the charts have bearish rising wedge formations, which developed after the market's March low. Rising wedges are bearish because they resolve... READ MORE
Long story endless - last week, I was talking to a colleague, during our conversation, she Googled me. Since her results represented her browsing history, I decided to do the same in an "incognito" window (Who am I kidding? Now you know how I spend my Saturday nights!... READ MORE
In this edition of Trading Simplified, Dave gives a rundown of current market conditions. Afterwards, he gets back into talking about the psychology of trading and the rules he follows. This video was originally broadcast on April 15th, 2020. Please note the video cannot be enlarged on this page; click... READ MORE
WEAK ECONOMIC DATA CAUSES PROFIT-TAKING IN STOCKS... A lot of weak economic reports today are causing profit-taking in stock prices. Weak bank earnings are making that group one of the day's weakest. A 10 basis point drop by the 10-year Treasury yield to 0.64% may also be... READ MORE
Market reaction to the onset of COVID-19 has been volatile and uncertain. Entire economies have closed, over 1 million individuals have been infected, 17 million people have filed for unemployment in the US and GDP is set to contract at the highest rate since the Great Depression. Yet, the market... READ MORE
On this episode of Sector Spotlight, I demonstrate how you can create UDIs to plot pairs, as well as how to use breadth data for sectors on RRG. In addition, I also showcase a new idea for a pair trade. This video was originally broadcast on April 14th, 2020. Please... READ MORE
I'm not that surprised at the continuing rally. Yes, prior extreme selloffs like 1987 and 2008 resulted only in 38.2% and/or 50.0% Fibonacci retracement rebounds and, when we look at the S&P 500 currently, we're right at that major resistance area:... READ MORE
GOLD REACHES SEVEN-YEAR HIGH... Gold seems to have everything moving in its favor. Low global interest rates, a softer dollar, and fears of global economic recession. And most of all, a bullish chart pattern both for the yellow metal and its miners. A lot of bullish articles on gold have... READ MORE
In this episode of DecisionPoint, Carl and Erin talk about some of the short-term technicals that are beginning to suggest weakness under the surface. Carl explains reverse divergences for On-Balance Volume (OBV) and price both with respect to Technology (XLK) and in general. Erin reveals what our dynamite Swenlin Trading... READ MORE
As a technical analyst who started my career just after the market top in March 2000, I've had the pleasure (I guess?) of living through a number of previous bear market cycles. I first learned about and started to apply technical analysis during the 2001-2002 bear market, so... READ MORE
The charts of Regional Banks (KRE), also known as the Prodigal Son of the Economic Modern Family, has told us - and will continue to tell us) - a lot! On the daily chart, back in mid-January, KRE was one of the first sectors to go into a warning phase... READ MORE
On this special episode of Real Trading with Larry Williams, Larry addresses the impact the virus has had on the economy and the markets. Where does he see things going from here? Are we looking at a continued bear market or a bull move to the upside? Watch to find... READ MORE
Chart 1 shows that last week, based on daily data, the gold price quietly broke out from a reverse head-and-shoulders pattern. It's certainly a little overstretched on a short-term basis and may need to pause for a couple of sessions or so, but the longer-term indicators are pointing... READ MORE
After several negative weekly closes, the Indian equity markets finally ended their losing streak this truncated week as they finally finished with gains. In our previous weekly note, we had categorically mentioned the possibilities of a sharp technical pullback despite ongoing uncertainties because of the outbreak of COVID-19. While trading... READ MORE
Let me give you an update as to how the SPY (ETF that tracks the S&P 500) and QQQ (ETF that tracks the NASDAQ 100) have performed since the top on February 19th, broken down by opening gaps (net) and intraday price action: SPY: * Closing price, 2/19/... READ MORE
The COVID-19 pandemic has hurt the auto industry tremendously as consumer demand for vehicles has collapsed in the face of enforced lockdowns in China, Europe and now the United States. The industry is fighting back with efforts to jump-start production and sales globally, as countries such as China have begun... READ MORE
Stock prices are trading higher again today following a Fed injection of $2.3 trillion dollars into the economy. The question is how far can the rally carry, and are there still risks on the downside. For that, we're going to look at weekly and monthly charts to... READ MORE
In this episode of StockCharts TV'sThe MEM Edge, Mary Ellen reviews relative market outperformers with growth prospects that are setting up to perform well. She also discusses stocks that are due to report earnings next week while sharing insights into the broader market's potential. This video... READ MORE
As a technical analyst who started my career just after the market top in March 2000, I've had the pleasure (I guess?) of living through a number of previous bear market cycles. I first learned about and started to apply technical analysis during the 2001-2002 bear market, so... READ MORE
The Fed injected another $2.3 trillion into buying bonds, including junk. They have bypassed the Federal Reserve act, which means they can buy whatever they want. Equity ETFs may be next. The idea is to aid small and mid-sized business as well as state and local governments, according to... READ MORE
This week was a first for us, but it marks the start of something big – a unique integration between the content you follow from our team of market experts and the charts that you use in your own StockCharts account. Allow me to explain. Late last month, we released a... READ MORE
Last week on Wednesday (4/8) I wrote an article in the RRG blog on how you can use ChartLists, in combination with Relative Rotation Graphs to monitor your mutual fund portfolio. The article was inspired by a question which I received in the mailbag of my weekly show Sector... READ MORE
Wall Street is betting on certain industry groups to weather this COVID-19 storm much better than others. Knowing which groups are favored is very important, especially if we suffer another bout of impulsive selling. Gold mining ($DJUSPM) and mining ($DJUSMG) are the two best performers, gaining 19.51% and 18.... READ MORE
POTENTIAL OVERHEAD RESISTANCE ON WEEKLY CHART... Stock prices are trading higher again today following a Fed injection of $2.3 trillion dollars into the economy. The question is how far can the rally carry, and are there still risks on the downside. For that, we're going to look... READ MORE
$248.94... That was the high for GS, set on Jan 17/2020. Two months later, on Mar 19/2020, a low was reached at $130.85. The stock is almost halved... so now what? On the (weekly) RRG for US sectors, Financials is traveling well inside the lagging quadrant... READ MORE
In the spirit of objectivity, we looked at the weekly chart of IWM as either a bear flag forming or, alternatively, consolidation before another rally. Then, we examined two potential cases: * Case 1: A bear flag forming where IWM breaks down under the bear flag pennant or around 105. * Case... READ MORE
The S&P 500 final earnings for 2019 Q4 are out, and based upon GAAP (Generally Accepted Accounting Principals) earnings, the S&P 500 is finally back into the normal value range, but is still overvalued. The following chart shows us the normal value range of the S&... READ MORE
Whenever a specific technical event is repeated widely in many different stocks, it gets my attention, as it often signals a reversal in the prevailing trend. We call it the principle of commonality. Alternatively, you could think of it as the principle of strength in numbers. Tuesday's Action... READ MORE
STOCKS REGAIN UPSIDE MOMENTUM... Stocks are gaining ground today following yesterday's late selloff. Chart 1 shows the Dow Industrials gaining 3% today. Today's price gain has kept the Dow above its lower 38% Fibonnaci retracement line; and may be signalling a test of its 50% retracement... READ MORE
In this edition of Trading Simplified, Dave continues his discussion on how to survive and prosper in a bear market, with a focus on whether we've seen the bottom. He also shows some discretionary techniques you can use to improve your performance. This video was originally broadcast on... READ MORE
Editor's Note: This article was originally written on Tuesday, April 7th, 2020. Bill Dunn, or possibly Stanley Kroll before him (see below), equated trend following to riding a bucking bronco. I think they left out the fact that trend following on the short side is like riding a... READ MORE
Recently I received a message asking if Relative Rotation Graphs would be useful for tracking Mutual Funds. My answer: Of course they are! Pricing of Mutual Funds In essence, the prices of mutual funds are also the result of people buying and selling on financial (stock) markets. The difference between... READ MORE
NASDAQ 100 QQQ CLOSES BELOW 200-DAY LINE...Today's two earlier messages focused on three technology-dominated ETFs that were trying to clear their 200-day averages. All three failed that initial test by closing lower today. Chart 1 shows the Invesco QQQ Trust giving up its earlier gains and ending... READ MORE
The Russell 2000 (IWM) weekly chart has helped us navigate the bull and bear runs for years. While you hear so much about a V-Bottom, I see no evidence of it in this index. Significant? Also, considering it came in having to clear the outside week trading range or move... READ MORE
On this episode of Sector Spotlight, I take a look at sector rotation on monthly charts (since it is the first Tuesday of the month). In addition, I answer a question whether RRG can be used to monitor mutual funds. This video was originally recorded on April 7th, 2020. Please... READ MORE