With just two trading days left in the year, this week will usher us into 2020. The markets are set to end near their highs this year, but they are also leaving us at a critical juncture if we look at the market technical from the long-term point of view.... READ MORE
Happy New Year! In my world, this means looking backwards over the year just past and looking forwards to set goals for the year to come. A recent article in the Wall Street Journal about GRACE provided the catalyst for my thinking herein about my own expectations in the coming... READ MORE
Carl and I have put together our Sector SPDR ChartList that includes all of our major indicators on each chart. I've been watching the sectors closely; most of the sectors Year-To-Date have been performing well, although none have really outpaced Technology when you look at the Sector Summary:... READ MORE
On Thursday the gold 20EMA crossed up through the 50EMA, generating an IT Trend Model BUY signal. Notice also, that we had other indications alerting us that gold's price action was about to turn positive. There was a double bottom, followed immediately by the PMO crossing up through... READ MORE
Yesterday's message suggested that commodity prices may be bottoming; which could lead to a better 2020 for the first time in years. Part of that analysis, however, was based on expectations for a lower dollar. That's because a falling dollar is usually necessary for commodity markets... READ MORE
On September 23, our Chief Market Strategist Tom Bowley, who had just returned to EarningsBeats.comafter 4.5 years as Senior Technical Analyst at StockCharts, made a bold call. Right as the market was in danger of rolling over, Tom saw something that caught his attention, which he shared with... READ MORE
WHY A LOWER DOLLAR...Yesterday's message suggested that commodity prices may be bottoming; which could lead to a better 2020 for the first time in years. Part of that analysis, however, was based on expectations for a lower dollar. That's because a falling dollar is usually... READ MORE
2019 was a year with lots of distractions, and yet the S&P 500 recorded 52-week highs in six of the last nine months. The index surged 17.7% the first four months and recorded its first 52-week high in late April. It then finished strong with a new... READ MORE
Executive Market Summary * Pre-market action is pointing to another strong open as the year end rally continues * Dow Jones futures are pointing an 80 point gain at the open and NASDAQ futures are showing relative strength once again * A couple smaller biotechs - Flexion Therapeutics (FLXN) and Immunomedics, Inc. (IMMU)... READ MORE
The RRG showing the Relative Rotation for US sectors has the energy sector inside the improving quadrant. Make no mistake, based on the JdK RS-Ratio reading, this is still the weakest sector in the S&P 500 - but things seem to be changing. XLE crossed from weakening into... READ MORE
A WEAKER DOLLAR COULD GIVE COMMODITIES A BETTER 2020... Commodities have become the forgotten asset class over the past several years. And for good reason. They've been the weakest part of the financial universe for nearly a decade. But that doesn't mean that they should continue... READ MORE
Executive Market Summary * We're up again today with leadership from the NASDAQ; small caps lag * Most sectors are higher with technology (XLK) showing a slight lead * Apple's (AAPL) leadership is helping the NASDAQ and computer hardware ($DJUSCR) * Banks ($DJUSBK) are strong with the 10 year treasury... READ MORE
On the above Relative Rotation Graph, the Energy sector (XLE) hooked back towards a positive RRG-Heading while inside the improving quadrant. In terms of the JdK RS-Ratio, it is still the weakest sector, but things seem to be starting to improve. Although the sector as a whole may not be... READ MORE
Well, it's that time of year. A time to look back at last year and, more importantly, to look ahead to a new year. Are you going to be the great trader in 2020 that you are meant to be? Or are you going to fall into your... READ MORE
Executive Market Summary * Today is an abbreviated session with the equity market closing at 1pm EST; many global equity markets are closed today * Wall Street opened slightly higher, but has been trading near the flat line * There are no economic reports of significance due out today as the 10 year... READ MORE
Good friend Tom Bowley invited me to conduct a Wyckoff Accumulation Workshop this past Friday. On January 4th Tom, with John Hopkins of earningsbeats.com, will be hosting the epic event Market Vision 2020. This day long event will include nine top market strategists. Each will summon their immense analytical... READ MORE
GOLD IS TURNING HIGHER... Money appears to be flowing back into precious metals. Chart 1 shows the GOLD SPDR (GLD) rising above a falling trendline extending back to early September which suggests that the four-month downside correction may have run its course. It's also trading at the highest... READ MORE
Note During the holidays, I'll be publishing my EarningsBeats.com Daily Market Report here in my Trading Places blog. I hope you enjoy it. Happy holidays! Executive Market Summary * We're seeing another solid day as seasonal strength really begins to kick in * The Dow Jones is... READ MORE
I established an Aggressive portfolio of 10 equal-weighted stocks in 10 different industry groups on May 19th. Every 3 months thereafter, on August 19th and then again on November 19th, I repositioned the portfolio with new relative leaders. That's the concept behind the portfolio. Stick with leaders in... READ MORE
A theme is a fundamental trend that could influence a stock's price in the coming months, or even years. As powerful as themes seem, they are still secondary to price action. There are many forces driving price movements and we cannot be expected to know them all. In... READ MORE
The risk-on global setup, which had begun a week before, continued throughout the past week as well. The resultant buoyant setup fueled the Indian markets higher as well, which ended at their high lifetime levels. Though the momentum continued to falter, the markets did not show any sign of retracement... READ MORE
It's been a tough year for many new IPO's as most of the 170 companies that came public this year are now trading below their initial price offerings. That said, there have been a couple of high-flying new offerings that have spurred moves in their peers.... READ MORE
I was looking at the performance of NASDAQ 100 stocks after the close on Friday and realized that Tesla (TSLA) closed above 400 for the first time in its history. Volume was unusually high all week long as TSLA gained 13% to clear resistance in the upper 300s. TSLA had... READ MORE
You pour yourself a cup and coffee, fire up the computer and begin your daily investment process. What do you look at first? What's the last thing you review before moving on to other things? Most importantly, is your daily process consistent from one day to the next?... READ MORE
I have been noticing on the business channels that analysts have become quite complacent regarding their market outlook. They remind me of the line from an old favorite song, "Nothing but blue skies do I see." Yesterday I posted the latest *NAAIM Exposure Index number and snapped to... READ MORE
On this episode of StockCharts TV'sThe MEM Edge, Mary Ellen shares how you can tell when upward momentum in your stock has shifted. She also discusses trading on news versus trading on a rumor, before presenting detailed insights into where the strength in the markets is now. This... READ MORE
Right now, stocks are very overextended and likely due for a correction. In Chart 1, for instance, you can see that my Global Diffusion indicator has just triggered a sell signal from an extreme level. The solid red arrows show that the MSCI World Stock ETF (ACWI) has usually responded... READ MORE
This article will wrap up the presentation of various performance metrics for two of our trend following strategies. The last few charts will focus on risk-adjusted returns, which attempt to measure how much risk a strategy takes in order to generate the returns. Looking at risk-adjusted returns is a very... READ MORE
I previously highlighted the chart below in this past Thursday's DITC article (12/19). But what does it mean? What is it Showing? This chart visualizes the collective seasonality of all 11 sectors in the S&P 500. To get there, I collected the numbers from the... READ MORE
ADD FOOTWEAR TO LIST OF XLY LEADERS... This week's messages have been focusing on the recent upside breakout in the Consumer Discretionary SPDR (XLY) and groups that are leading it higher. The last two messages showed gambling and hotel stocks taking the lead with some of them hitting... READ MORE
Records continue to fall every day. The S&P 500 has now gained 350 points off its October 3rd low. I don't know if it's going to stop any time soon, so I'd want to remain fully invested, especially given the tremendous bullish... READ MORE
Today is "Reader Request Thursday"! My readers provided me with well over 30 symbols to review to see if I agree with them that they are diamonds in the rough. It was an interesting group of choices. Some of my readers picked stocks in areas of the market... READ MORE
* Confidence is Breaking Out All Over * Alternative Risk Relationships are Starting to Get Riskier Right now, stocks are very overextended and likely due for a correction. In Chart 1, for instance, you can see that my Global Diffusion indicator has just triggered a sell signal from an extreme level. The... READ MORE
On the 12th and final regular episode of Real Trading with Larry Williams, Larry takes a look at Great Unknown Growth Stocks with a seasonal trade, including Diageo (DEO), Constellation (STZ) and Brown-Forman (BF/A). He also discusses the US Stock Market, Gold and Bonds, as well as his upcoming... READ MORE
DOW JONES HOTELS INDEX HITS NEW RECORD... Yesterday's message showed gambling stocks helping lead the Consumer Discretionary SPDR (XLY) into record territory this week. It also mentioned leadership from autos, footwear, and hotels. We're going to focus on hotels today. Chart 1 shows the Dow Jones... READ MORE
But What is it Showing? The chart above shows the collective seasonality of all 11 sectors in the S&P 500. To get there, I collected the numbers from the seasonality chart (which is available on the site) for every sector and the S&P 500 over the... READ MORE
A reader wrote to me and asked if I could evaluate the Sector ETFs and/or include a Sector ETF in my Diamonds report for those who mainly trade these vehicles. I took a look at the CandleGlance for all of the sectors and narrowed it down to two diamond... READ MORE
For consistency, I have adopted Carl's Weekly Wrap ChartStyles for the Mid-Week Alert. I hope you find them as helpful as I do! We had a new Short-Term Price Momentum Oscillator (PMO) BUY signal arrive for the Dow Industrials today; it was only delayed by a few days... READ MORE
Don't confuse the issue with facts; be a trend-following moron. In this edition of Trading Simplified, Dave reveals the mystery charts from last week before unveiling a new segment, "The Missed, The Best or the Worst Trade of the Week." Dave discusses seeking (and accepting) the... READ MORE
Above is the daily Relative Rotation Graph for US sectors, highlighting the rotation for the financials sector. On the weekly RRG, this sector is solidly inside the leading quadrant and continues to move further west into positive territory. With the current rotation on the daily RRG moving from weakening back... READ MORE