In this edition of StockCharts TV'sSector Spotlight, I cover a few questions that came in via the mailbag and used one of the questions to (re-)structure my asset allocation approach and visualize the investment pyramid. This video was originally recorded on February 18th, 2020. Click anywhere on... READ MORE
I've never really thought about it before, but putting together a portfolio is very similar to drafting NFL or NBA players. The idea in professional sports is to select someone who you believe will provide a major positive impact on your organization and to establish a winning tradition,... READ MORE
RELATIONSHIP BETWEEN GOLD AND THE DOLLAR... Last weekend's message explained that one of the side-effects of a rising U.S dollar is weaker commodity prices. And that's been the case so far this year as a four-month high in the U.S. Dollar Index has pushed... READ MORE
Dow Theory applies the principle of confirmation to confirm primary trends. Charles Dow used the Dow Industrials and Dow Transports to confirm the primary trend for the broader market. The primary trend is up, and confirmed, when the Industrials and Transports both exceed their prior highs and record higher highs.... READ MORE
The previous week saw the markets consolidating in a 256-point move, as the headline index NIFTY50 ended flat with a negligible gain. After bouncing off from the 50-week MA in the earlier week, the NIFTY continued to trade near its critical zone of 12100-12225 throughout the week while making no... READ MORE
This week's federal court decision to allow the T-Mobile (TMUS)/Sprint (S) merger to go through has reignited select areas of the market that will be positively impacted by the boost in 5G adoption in the U.S. This is because the judge who presided over the decision... READ MORE
"How come small-caps aren't doing better when the market's making new highs?" I've heard some version of this question many times over the last couple years, starting with the emergence of the FAANG trade. Once that subsided and the market resumed its... READ MORE
Embrace this rally. As far as bull markets go, this is truly the Perfect Storm. Never in my lifetime have I seen a stock market environment where we're experiencing modest growth, strong jobs, lower-than-target inflation, historically-low treasury yields and a Fed that honestly should cut rates again. If... READ MORE
Back in December, I wrote an articlepointing out that the business cycle was nothing more than a set series of chronological sequences. The importance of this observation, for investors, is that the primary trend peaks and troughs of bonds, stocks and commodities fit nicely into that chronology, as shown in... READ MORE
As we were walking out of a meeting the other day, my good friend Dave Keller (our Chief Market Strategist here at StockCharts) said something that momentarily floored me. It made me stop what I was doing, zoom out mentally and really reflect on the past few months. Funniest part... READ MORE
10-YEAR TREASURY YIELD CONTINUES TO WEAKEN... Treasury yields are down again today, and are losing some of the gains made over the last two weeks. The daily bars in Chart 1 show the 10-Year Treasury Yield losing 3 basis points today to 1.58%. The pennant-like shape of its sideways... READ MORE
Two weeks ago, I wrote a ChartWatchers article titled "RRG Suggests Aggressive Trade Setup for XLY vs. XLV." In this article, I want to show you how you can take that idea one step further and, at the same time, answer a question on how you can easily... READ MORE
* Where Are We in the Cycle? * The Economy is Currently on the Side of the Bulls * The Technical Position of the DB Commodity ETF is Precarious Where Are We in the Cycle? Back in December, I wrote an articlepointing out that the business cycle was nothing more than a set... READ MORE
The title of this article might make you believe that we are bearish on the market. If you have read some of the last 200+ articles in this blog, you know that we do not make forecasts or guess about the direction of the market; we follow our rules-based trend... READ MORE
Below is today's Daily Market Report that I send out to EarningsBeats.com members every day, usually between noon and 1pm EST. Enjoy! Executive Market Summary * Wall Street opened lower, but key indices are now flirting with positive territory * January CPI indicated inflation remains modest * The 10 year... READ MORE
CSCO peaked in the first half of 2019. The first time at $ 56.30 in April and then again in July at $ 57.40. A typical failure to convincingly break above a previous high. From July onward CSCO moved lower to a low around $ 43 at the start of December.... READ MORE
In this edition of StockCharts TV'sSector Spotlight, I discuss the current rotations for US sectors, then explain how to add a second(ary) benchmark to the RRG chart as a way of getting a more detailed analysis. This video was originally recorded on February 11th, 2020. Click anywhere... READ MORE
In this edition of Trading Simplified, Dave performs an in-depth follow-up on the Mystery Chart. Afterwards, he gives a short talk about IPOs. This video was originally recorded on February 12th, 2020. Click anywhere on the Trading Simplified logo above or at this linkto see a larger version on YouTube.... READ MORE
I just can't do it. I just can't bring myself to short stuff – the market, an individual stock, even something as seemingly harmless as an inverse ETF. I don't do it. I can't do it. I won't do it! Yep,... READ MORE
It's a Puzzle Regular readers of the RRG blog and my contributions to DITC and the ChartWatchers newsletter, as well as watchers of Sector Spotlight, will probably be aware of my recent research exercises to combine RRG with seasonality. The reason for doing that lies in my belief... READ MORE
MARKETS LOOKING BEYOND CORONAVIRUS THREAT... Price action of the global financial markets over the past week strongly suggest that fears of the coronavirus are fading.Major U.S. stock indexes are trading at new records. Foreign stocks are being led higher by Asian emerging markets, with help from China. Crude... READ MORE
An indicator that has become a favorite of mine is the Percentage of Stocks Above the 20EMA, because it is very straight forward and easily understood. Then a stock's price is above its 20EMA, it is a sign of strength, and, conversely, it is a sign of weakness... READ MORE
In this episode of DecisionPoint, Carl and Erin address a common question from many subscribers: "What will make you bullish?!". A viewer coins the expression "PermAware" for the Swenlin philosophy. In the vein, Carl gives his thoughts on divergences that have popped up, along with a... READ MORE
During the 4th quarter of 2019 Tesla came to life and leaped out of a multi-year trading range. Tesla's recent appreciation is likely indicating a period of robust business expansion for the electric automobile manufacturer (and battery producer). By some estimates there will be 15 new Electric Vehicles... READ MORE
I've written about this industry group on many, many occasions, but up until today, we've simply seen a bunch of false hopes. Today is THE BREAKOUT. We gapped above resistance and, thus far, are adding to early gains. A strong afternoon would seal the deal -... READ MORE
Bill.com (BILL) has been one of the better-performing IPOs to debut recently. The leading provider of cloud-based software that automates complex back-office financial operations popped more than 60% on its first day of trading two months ago. Why all the hoopla? The company partners with 70 of the top... READ MORE
VIPIND.IN - VIP Industries Limited VIPIND.IN marked a peak near 641 in August 2018, formed a lower top 562 and saw a range-bound corrective move that took the stock to 342. The stock has attempted to form a base around that level - given the multiple pieces of... READ MORE
I see so many comparisons to what was happening in 2007, as if the current market environment somehow should be compared to 2007. It shouldn't. 2007 was part of a 12-13 year secular bear market. 2020 is part of a lengthy secular bull market. The bullish boundaries of... READ MORE
Amazon is by far the biggest component in the Consumer Discretionary SPDR and its recent breakout bodes well for the ETF. The new highs in XLY and AMZN this month, however, did not carry over to the Equal-weight Consumer Discretionary ETF (RCD). RCD removes the Amazon effect by treating all... READ MORE
US DOLLAR INDEX TURNS UP... My Thursday message showed the Invesco US Dollar Index ETF (UUP) hitting a four month high and challenging its previous peak formed during October. It cleared that barrier on Friday. Chart 1, however, plots the US Dollar Index ($USD) which I prefer using to track... READ MORE
The previous week remained a six-day trading week for the markets. Saturday, February 01, 2020, was a full-trading day because of the Union Budget that was presented. The day turned out to be a wide-ranging day for the markets on expected lines as Union Budget is one of the most... READ MORE
The market has shown incredible resiliency lately, shaking off the coronavirus epidemic, any negative economic reports, an impeachment trial and other developments that one would think could derail stocks. Yet here we are, with the market near record highs with traders seeming to "care less" about anything but... READ MORE
It's been some time since I revisited my sentiment charts. I used to do a weekly sentiment update on MarketWatchers, but since then I haven't written or talked about sentiment much, so it is long overdue. Sentiment is a measure of how bullish and bearish participants... READ MORE
On this episode of StockCharts TV'sThe MEM Edge, Mary Ellen shares how to quickly find the best picks in the fallout of the coronavirus pullback, as well as how to find and best play current pockets of strength. She also discusses what chart to use to trade Tesla... READ MORE
My Tuesday message showed a number of travel and tourism stock groups with heavy exposure to China finding support near moving average lines; or regaining them. Today's message shows those same groups under pressure again today. Let's start with airlines. Chart 1 shows the Dow Jones... READ MORE
"This new Symbol Summary is a game changer!" ----- "Holy smokes! The new Symbol Summary page is amazing. Like WOW. StockCharts is now truly my one-stop shop for everything stock related." ----- "I just wanted to tell you how much I am enjoying the new... READ MORE
There are three ETFs covering the defense and aerospace group and all three recorded new highs. Even though these ETFs cover the same industry group and have similar price charts, they are quite different when we look under the hood and one is seriously underperforming the other two. The Aerospace... READ MORE
Does your investing ecosystem look like meteorological chaos? Remember the three R's — Randomness Ruins Riches. You may recall Warren Buffett saying that he doesn't invest in anything he can't explain to a 10 year old. So here's my Buffett 3-R Challenge to... READ MORE
TRAVEL STOCKS UNDER PRESSURE... My Tuesday message showed a number of travel and tourism stock groups with heavy exposure to China finding support near moving average lines; or regaining them. Today's message shows those same groups under pressure again today. Let's start with airlines. Chart 1... READ MORE
While browsing through some RRGs, my eye fell on a rare rotation in the Financial sector. AIG, on the daily RRG, was coming from leading through weakening and just hit the lagging quadrant a few days ago. Then, just yesterday, the stock "hooked" back aggressively, taking it from... READ MORE