On the weekly Relative Rotation Graph holding the Dow 30 stocks, we can see Verizon (VZ) shooting from the improving quadrant towards leading. The RRG below shows VZ in isolation. It is hard to see as the move went very fast, but, since mid-July, VZ has completed a rotation from... READ MORE
The bullish results for my scans are thinning quite a bit. Today, the Diamond Scan produced 10 results while the Diamond Dog Scan produced 135. The market is weak and, consequently, the pockets of strength tend to be in the defensive sectors. For today's piece, I have three... READ MORE
Technology has continued to underperform the SPX, so it shouldn't surprise anyone that a Price Momentum Oscillator (PMO) SELL signal triggered on the NDX. The chart is below the Scoreboards. Gold topped today, with it now looking like a possible head-and-shoulders reversal pattern. Meanwhile, the Dollar meanders in... READ MORE
DOW AND SPX HOLD SUPPORT...NASDAQ REGAINS BLUE LINE...Stocks regained most of the previous day's losses. Chart 1 shows the Dow Industrials bouncing off their 20-day average. Chart 2 shows the S&P 500 holding support at its 50-day line. The Nasdaq turned in an even... READ MORE
Semiconductors ($DJUSSC, -1.78%) had a rough session on Tuesday, but they had been on a roll since early-August, rising from 3350 to 3850, and there have been plenty of leaders to choose from. KLA Corp (KLAC), Lam Research (LRCX), Applied Materials (AMAT), and Micron Technology (MU) are certainly among... READ MORE
My headlines are often inspired by tunes, and this one is a classic going back to 1936 and Fred Astaire. No, I am not old enough to have seen it live on TV, but I've heard plenty of remakes. Even though there may be trouble ahead, I am... READ MORE
When going through my Diamond scans, I realized that the bearish scan was searching on a larger domain than the bullish scan, so I adjusted it. But the bearish scan is still showing many more results. Diamond PMO Scan (bullish) versus the Diamond Dogs PMO Scan (bearish) showed an increase... READ MORE
STOCK INDEXES LOSE MORE GROUND...Majorstock indexes moved further away from their July peak today and some short-term chart damage was done, especially in the Nasdaq market. Chart 1 shows the Dow Jones Industrial Average losing -142 points (-0.53%) and ending right on its 20-day average (green line); its... READ MORE
The S&P 500 is slightly more than 1% away from setting a new all-time high close and there are several areas of the market I'm watching closely to evaluate leadership in the next leg of this bull market. I'm going to ignore renewable energy... READ MORE
From time to time, you come across new or different ways to look at things or describe them. Since the public launch of Relative Rotation Graphs in 2011 on Bloomberg terminals, we have been using the tag-line "RRG provides you with the BIG picture in ONE picture" as... READ MORE
Today, I ran my Diamond PMO Scan (bullish) as well as my Diamond Dogs PMO Scan (bearish) and found they are the inverse of each other. Essentially, they shave the strong momentum performers off the top and scrape the bottom for the dogs. Today, we saw 23 bullish stocks versus... READ MORE
As I have stated a number of times, I have used a rules-based trend following model to manage money since 1996. I have found this to be the best approach to investing long-term, as it has the ability to provide above-average compounded returns over time with far less volatility and... READ MORE
Well, I have to admit, I'm always watching this first chart. It's how consumer stocks are performing vs. one another. When consumer discretionary stocks (XLY) are outperforming consumer staples stocks (XLP) over time, I'm generally very bullish U.S. equities. Consumer spending comprises roughly... READ MORE
The plot of the B-Movie ‘The Meg' is the discovery of a living prehistoric shark the Megalodon. This movie shark was so big (the actual prehistoric Meg could reach 59 feet in length) that it could swallow ‘Jaws' whole. Megalodon is similar in size to the current crude... READ MORE
STOCK INDEXES STALL NEAR JULY HIGH...Stocks ended the week with minor losses after meeting some resistance along their July high. Chart 1 shows the Dow Industrials consolidating just below their summer high, but remaining well above chart support and moving average lines. Chart 2 shows the S&P... READ MORE
I've seen it so, so many times. The stock market is strong, trending higher and the bottom drops out. Ever heard of "buy on rumor, sell on news"? That was partly responsible for the end of week selling. The Fed's policy statement on Wednesday... READ MORE
In a week that turned dramatic on the last day, the markets that were over 3% down through the week pulled into positive territory in one single session. On Friday, the headline index saw its highest-ever single-day gain, ending 5.32% higher. The pronounced shift in the trend came in... READ MORE
Normally I ignore resistance levels in uptrends and support levels in downtrends. Resistance levels are not that important because higher highs are expected in an uptrend. The assumption is that a trend in motion stays in motion so a break above the prior peak is considered normal. Support levels, on... READ MORE
Technically, it makes sense to lessen stock exposure any time a major price resistance level is challenged. The all-time high close on the S&P 500 is 3025.86, set on July 26, 2019. On Thursday, the S&P 500 hit 3021.99, less than 4 points from... READ MORE
Like yesterday, I ran my bullish PMO scan followed by the "inverse" Scan for Dogs. Yesterday, the results were 19 and 70, respectively. Today, I had only 11 bullish candidates and 111 bearish candidates. It seemed that it would be better to look at shorting opportunities. Yesterday, I... READ MORE
I've been using technical analysis professionally for almost twenty years now. Though I have learned a great deal from putting the technical toolkit into action, some of my favorite learning experiences have come from attending industry conferences. Not only do you get to hear presentations from knowledgeable experts,... READ MORE
While SPY made another all-time intraday high on Thursday, the number of S&P 500 component New Highs continued to contract from the level they had reached earlier this month. This kind of activity should be taken as a warning flag, increasing our expectation of a price top. Also... READ MORE
Editor's Note: This article was originally published in Martin Pring's Market Roundup on Monday, September 16th at 6:04pm ET. First of all, Chart 4 features the NASDAQ bullish percentage. You can see how it has been gradually working its way lower since early 2018, having... READ MORE
Here's an important lesson I've learned. I'll call it the "crisis of complexity". There is something about most investors that makes them have an insatiable appetite for complexity. In reality, complexity is not the hoped-for portfolio accelerator — it is instead the detonator.... READ MORE
After challenging the all-time highs, the market has continued to chop along. In spite of a lackluster few weeks, the weekly Price Momentum Oscillator (PMO) managed to cross above its signal line on both the SPX and OEX, while the Dow is just about there. The surprise to me was... READ MORE
Mean-reversion signals provide a great way to trade in the direction of the bigger uptrend after a pullback. The trick is to identify the bigger uptrend and then capture mean-reversion setups. Mean-reversion setups materialize after a pullback within the uptrend. The strategy is based on the assumption that prices will... READ MORE
The aerospace industry ($DJUSAS) has recently caught fire once again and it's worth noting - not only from an absolute perspective, but also from a relative strength standpoint. Each pullback over the past 5-6 weeks has been met with buying at the 20 day EMA, a bullish development.... READ MORE
The resurgence of small-caps has been greatly exaggerated. Consider this. The S&P 500 SPDR (_SPY) bottomed on August 5th and broke above its August highs on September 5th. The Russell 2000 iShares (_IWM) bottomed on August 27th and broke above its August highs on September 10th. SPY bottomed... READ MORE
By all accounts, it was an incredible first half of the year for many growth areas of the market, before modest gains in July gave way to a dicey August. While September is up a healthy 2.75%, one formerly leading area of the markets has been left behind, leaving... READ MORE
I discovered an interesting phenomenon today. When I ran my general Price Momentum Oscillator (PMO) scan, I got 19 results. That's more than we've seen the last few days, but then I decided I'd also run my Scan for Dogs, which is basically the... READ MORE
After studying the charts in my core ETF list, I came up with eight groupings. The top three groups represent ETFs that are still in uptrends, while the bottom three groups represent ETFs that are in downtrends and lagging overall. The middle groups are in flux. Group 4 represents ETFs... READ MORE
MAJOR STOCK INDEXES NEAR SUMMER HIGHS...Major U.S. stock indexes are trading higher today and approaching a test of their summer highs. Chart 1 shows the Dow Industrials continuing its bounce from yesterday afternoon and maintaining its bullish bias. Chart 2 shows the S&P 500 doing the... READ MORE
I think most technicians would agree that stock market action into the close is generally much more important than stock market action just after the open. That is magnified even further when we have a major event take place intraday. Yesterday, we had a widely anticipated Fed meeting with growing... READ MORE
Today, I posted a Relative Rotation Graph for US sectors on my Twitter and Instagram feeds highlighting the clear split between some sectors now visible on the daily timeframe. One of these sectors is Industrials, which is traveling deeper into the leading quadrant at a stable, almost horizontal, relative momentum.... READ MORE
The General Price Momentum Oscillator (PMO) scan threw 12 stocks at me today. We're still not seeing huge numbers coming in on these scans, which tells me to proceed with caution. Additionally, it's been interesting to see so many Industrials and REITs in the results. Today,... READ MORE
The DecisionPoint indicators help give us some insight into the condition of the market. The present short-term indicator deterioration is bearish, and the very overbought readings on our ITBM and ITVM suggest lower prices ahead. Currently, the trend of the markets is bullish, with all three of our trend models... READ MORE
STOCKS RECOVER EARLY LOSSES...Stocks recovered from initial selling after today's quarter point rate cut. Chart 1 shows the Dow Industrials ending 36 points (+0.13%) higher today to reverse earlier losses. The S&P 500 also closed modestly higher; while the Nasdaq ended modestly lower. Sector... READ MORE
I'm nervous. I believe the market has shown how nervous it's been as money quickly rotated from growth to value stocks ahead of today's Fed announcement. Here's a 10 year weekly look at the IWF:IWD ratio (Russell 1000 growth vs. value)... READ MORE
My Price Momentum Oscillator (PMO) scan is still not providing too many choices; the ones that are appearing are in defensive categories. This always makes me suspicious of market conditions. Despite the SPX rising to new all-time highs, I'm only seeing around 8-11 results. I did get two... READ MORE
The S&P SmallCap iShares (IJR) and Russell 2000 iShares (IWM) are leading the market in September with 8.22% and 7.66% gains, respectively. As the PerfChart below shows, these gains are more than double the gains in the S&P 500 SPDR (SPY), Nasdaq 100 ETF... READ MORE