Software stocks got hit yesterday, with the group down over 3% and many individual stocks seeing losses as high as 10% for the day. While the decline was due to lowered guidance from one of the faster movers in the group, realistically, many of these stocks were due a pullback... READ MORE
DOLLAR INDEX NEARS TEST OF EARLY OCTOBER HIGH...While recent volatility in stocks, commodities, and bonds has received a lot of attention, currency trading has been relatively quiet. But that may be changing. Chart 1 shows the Invesco US Dollar Index (UUP) climbing this week to the highest level in... READ MORE
In this edition of StockCharts TV'sSector Spotlight, I cover Asset Classes and Sectors using monthly charts, as usual given the start of the new month. After the break, I answer a question on the difference between a simple price ratio and the RRG-Lines. This video was originally recorded... READ MORE
In this edition of Trading Simplified, Dave finishes his 20 trading resolutions for 2020, then discusses some mystery charts. He also presents a new "Best and Worst Trades of the Week" and talks OGRE and trend trades. This video was originally recorded on February 5th, 2020. Click anywhere... READ MORE
TSLA short-sellers no doubt feel that they have stuck their fingers into a light socket, or perhaps I should say they have been hot-wired to a charging station. Since last June's low, the value of TSLA stock has increased about four-and-a-half times. This week it advanced almost +50%... READ MORE
Earlier today, I was preparing for my weekly Sector Spotlight show on StockCharts TV (airing every Tuesday at 10:30am ET), and, as today is the first Tuesday of the month, that meant looking at monthly charts for Asset Classes and US sectors. This routine gives me a good (forced)... READ MORE
* Why the Correction Will Likely be Contained * More Corrective Action Likely * One Indicator Flashes a Buy Signal * Conclusion Why the Correction Will Likely be Contained A couple of weeks ago, I wrote that a correction was inevitable, and presented a couple of indicators to suggest that it might be close.... READ MORE
EMERGING ASIA LEADS GLOBAL STOCKS HIGHER...A strong rebound in Asia today is giving a big boost to global stocks. Emerging markets in Asia led the rest of the world lower over the last two weeks. And are leading it higher today. Chart 1 shows the MSCI Asia ex Japan... READ MORE
In this episode of DecisionPoint, Carl and Erin analyze the news regarding the coronavirus and its effects in China, including the side effect of depressed oil prices. Carl covers Oil, the Dollar and Bonds, while Erin zeroes in on the materials sector. Carl caps off the show with a discussion... READ MORE
With stock markets in rapid decline this week, mindful investors should be looking around for opportunities. What asset classes are thriving while others are struggling? A quick survey of the asset allocation will indicate that, while oil has been in freefall and stocks are now testing and failing at support,... READ MORE
I know. I know. It's been the worst sector and the second worst sector isn't even close. Look at this sector leaderboard for the past six months: The XLE is the ONLY sector in negative territory. Its SCTR score is 2.3. What the heck could... READ MORE
Selling pressure was extremely broad in Friday with all sectors declining and more than ninety percent of stocks in the S&P 500, S&P MidCap 400 and S&P SmallCap 600 declining. While this kind of broad selling pressure creates a short-term oversold condition, it also... READ MORE
GLOBAL STOCKS WERE ALREADY STRETCHED TOO FAR...The coronavirus outbreak in China has rattled global markets all over the world, and rightly so. Fears of an economic slowdown in the world's second biggest economy is something to be concerned about. And market reactions certainly suggest that investors are... READ MORE
The selling was coming, we just weren't quite sure when. Well, it's here now, so how long might it last and how much pain might we endure? Both questions are difficult to answer, but I do know the 3-4 month channel has been broken. That tells... READ MORE
The selling that we saw last week was long overdue. Many are panicking over the coronavirus, which is easy to do when it's the only thing that the media is covering. After all, there has to be some fundamental reason that will lead to the next market collapse,... READ MORE
Relative strength. It seems easy enough. Wall Street meets with management teams continuously throughout the year (except during quiet periods). Analysts evaluate not only business strategy, but also business integrity. It's an opportunity for executives to lay out their business plans and strategies to the people that matter... READ MORE
The broader markets took it on the chin today as news of a sharp increase in the number of coronavirus cases brought fear-induced selling across most areas. Hardest hit were businesses that rely on healthy economic growth in China to buoy their bottom lines, while defensive areas held in well.... READ MORE
With stock markets in rapid decline this week, mindful investors should be looking around for opportunities. What asset classes are thriving while others are struggling? A quick survey of the asset allocation will indicate that, while oil has been in freefall and stocks are now testing and failing at support,... READ MORE
On this episode of StockCharts TV'sThe MEM Edge, Mary Ellen shares select areas of the market that perform well during China-related market drops. She also reviews those areas in the direct line of fire and which could go much lower. This video was originally recorded on January 31st,... READ MORE
The stock market was roughed up by the coronavirus earlier in the week, but, under the surface, another battle has been going on -- the one between inflation and deflation, that is, as both yields and commodity prices have run up against key support levels. That's a dispute... READ MORE
AMZN reported earnings yesterday. Wondering how I know that? You probably think it's because my Twitter feed was blowing up or some notification came across my screen after the close. But here's the real answer... I know that AMZN reported earnings yesterday because I saw it... READ MORE
The Relative Rotation Graph above shows the weekly rotation for US sectors against SPY (S&P 500). While the S&P 500 chart is deteriorating and seems to be going into a correction, there are two tails on the RRG that suggest an interesting trade setup. (I already... READ MORE
DOW THREATENS 50-DAY MOVING AVERAGE...Global stocks remain under pressure. My last message on Wednesday suggested that the continuing drop in bond yields and economically-sensitive commodities put the mid-week stock rebound in doubt. That still remains the case, not just here in the states; but even more so in foreign... READ MORE
At the start of the week, I held a members-only webinar at EarningsBeats.com to provide my "predictions" of upcoming earnings reports based off of the charts. I've turned it into a formal study where I've been summarizing results all week. The best charts... READ MORE
On the Relative Rotation Graph for US sectors (XLY), the Consumer Discretionary sector started to curl up and move higher while inside the lagging quadrant. After a weak performance against SPY for months, XLY started to improve on the JdK RS-Momentum scale a few weeks ago and, very recently, also... READ MORE
In this edition of Trading Simplified, Dave presents some examples of the best opening gap reversals (OGRes). He also covers intraday trading, this week's mystery chart and his eleventh 2020 resolution: "I will seek excitement and entertainment outside of the market." This video was originally recorded... READ MORE
BOND YIELDS AND COMMODITIES CONTINUE TO WEAKEN...One of the recent warnings that I wrote about was the drop in bond yields that has taken place since the start of January. Most of that drop in yields took place last week when a flight to the safety of government bonds... READ MORE
* Bond Yields are Just Above Support * Commodities are at Support The stock market was roughed up by the coronavirus earlier in the week, but, under the surface, another battle has been going on -- the one between inflation and deflation, that is, as both yields and commodity prices have run... READ MORE
Living in California, we pay a premium on just about everything, especially utilities in the summer. The monthly electric bill approaches $600, and water $300, but we do get relief with natural gas, which comes in at around $10. But don't say anything or our politicians will work... READ MORE
In this edition of StockCharts TV'sSector Spotlight, I updated my spreadsheet for calculating the BETAs for all of the SPDR sectors. During the episode, I show users how to use this metric in combination with RRGs. This episode was originally recorded on January 28th, 2020. Sector Spotlight airs... READ MORE
In this episode of DecisionPoint, Carl reviewed some of his notes from last Friday's DecisionPoint Weekly Wrap (available at DecisionPoint.com), while Erin presents an update on the latest short-term SELL signals triggered with today's market action. Carl and Erin also discuss cap-weighting pitfalls and positives... READ MORE
STOCK INDEXES CONTINUE SELLING THAT STARTED LAST WEEK...The selling of stocks that started late last week intensified today. That shouldn't be too much of a surprise considering all the warnings given by the various markets as described in these messages. They include the plunge in Treasury yields... READ MORE
Signs of a correction were building for some time and it now appears that the long awaited corrective period is here. The S&P 500, in particular, is following the script from January 2018 quite closely. After a steady advance from October to December, signs of excess started appearing... READ MORE
After starting the week on a corrective note, the market recouped some of its losses on the last two trading days of the week. The last few days have remained volatile for the markets as the headline index NIFTY traded in a wider-than-usual range. The index oscillated in an over-340-point... READ MORE
Gold Miners have been on fire this week! Each Friday, I get a Weekly ChartList Report on the ETF Tracker ChartList that Carl and I have developed. If you would like it, you'll find it in the DP Trend and Condition ChartPack (free to Extra members and above!... READ MORE
On this episode of StockCharts TV'sThe MEM Edge, Mary Ellen discusses several ways to determine the market's health while reviewing a significant rotation that's taking place. She also analyzes the possible impact of the coronavirus and the importance of stocks that have reported strong... READ MORE
Yesterday's message showed bond yields falling (and bond prices rising) in a flight to the safety of government bonds. And further suggested that fears of the Chinese virus spreading was most likely behind that more defensive tone. Bond yields are falling even further today as that defensive mood... READ MORE
I keep reminding viewers of my daily show, The Final Bar(new episodes every weekday at 4pm ET!), that extended bull markets can actually be a little frustrating. While a consistent uptrend in prices tends to be a good thing for long-term investors, two things present quite a challenge. The... READ MORE
It's no secret that the market has reached frothy levels with virtually no relief since the beginning of October 2019. Thus, it makes sense that the VIX spiked on Friday, as it moved above all key technical intraday levels and many traders moved to the sidelines. While the... READ MORE
The Russell 2000 ETF (IWM) broke out of a pennant formation last week and then fell sharply this week. This puts price back in the pennant and near its make or break level. Flags and pennants are short-term continuation patterns that form after a sharp move. Bullish versions represent the... READ MORE