The OEX hopped on board the SELL signal train as its Price Momentum Oscillator (PMO) crossed below its signal line, which triggered its own Short-Term PMO SELL Signal. A rising wedge was nearly executed today to the downside. The PMO was yanked below its signal line, which generated the SELL... READ MORE
* Two Key Commodity Benchmarks Violated Trend Lines * Commodity Sector ETFs Breaking as Well * Longer-Term Picture May be Reversing In early April, I tacked on a couple of commodity charts at the end of an article that commented on global equities breaking out. There, I noticed that some commodity indexes were... READ MORE
COMMODITIES HAVE BEEN FALLING FOR A DECADE ... Yesterday's message suggested that weaker commodity prices should provide some comfort to the Fed since subdued inflation would allow the Fed to keep rates on hold and prolong the decade-long economic recovery. It turns out the Fed is more worried than... READ MORE
Here is the link to this month's Market Roundup video. There are a significant number of long-term charts that are starting to turn higher suggesting, that the brief economic slowdown in late 2018 is behind us and we are starting the next major leg higher. Market Roundup with... READ MORE
Market Recap for Wednesday, May 1, 2019 Fed Chair Jerome Powell ruined the bull market party on Wednesday afternoon, effectively suggesting that the Fed would not be lowering rates in response to low inflation data of late. The bond market has been screaming for a rate cut, not a hike,... READ MORE
The Healthcare sector is not in its best shape. On the Relative Rotation Graph for US sectors, XLV is deep down inside the lagging quadrant against SPY, without any signs of improvement at the moment. However, if you feel that this situation will not last forever and are gutsy enough... READ MORE
The Dow flipped to a new PMO SELL signal on Monday; today, we saw the SPX and NDX join in. These are just more signs that the market is angling for a pullback or correction. We saw climactic readings on the VIX and breadth; additionally, the discounts on Sprott Physical... READ MORE
COMMODITY PRICES WEAKEN ... One of the factors the Fed is now considering to help formulate its monetary policy for the rest of the year is the question of inflation. Rising inflation puts pressure on the Fed to raise rates. Flat or falling inflation allows the Fed to stick with its... READ MORE
Market Recap for Tuesday, April 30, 2019 Alphabet (GOOGL, -7.50%) set the stage for a rough day on the NASDAQ (-0.81%) as the internet giant posted quarterly results that didn't impress Wall Street. The small cap Russell 2000 lost 0.45%, losing ground vs. the benchmark... READ MORE
I don’t think I have offended anyone in quite a while and feel I’m not doing my job if I don't try to periodically; so here goes! Often a simple mathematical series of numbers can sometimes get misinterpreted (promoted) to be something magical. My personal favorite... READ MORE
Docusign (DOCU), a company that provides e-signature solutions, started trading on August 27th and surged over 30% on its IPO. The stock advanced another 65% after this initial gain and then fell back to the IPO price in October. Notice that the six month lockup period ended on October 24th... READ MORE
Since about the beginning of March, the SPX has been outperforming the Dow on an absolute basis. Looking at the December 26, 2018-April 30, 2019 PerfChart below,, the Dow is up just above 16%, which is certainly a win. However, the SPX, our benchmark, is up almost 20% from December... READ MORE
The Relative Rotation Graph shows the five technology stocks inside the DJ Industrials index, all of which are at the right-hand side of the RRG. This is not surprising, considering the strong rotation of the sector as a whole against the S&P 500 index. Despite the strength of... READ MORE
Market Recap for Monday, April 29, 2019 A bull market is comprised of a number of things, but two are wide participation and rotation of strength. We've been seeing both. Yesterday, it was financials (XLF, +1.01%) and communication services (XLC, +0.91%) that led the S&... READ MORE
Palo Alto Networks (PANW) is a leading cyber-security stock that fits into the technology sector. Needless to say, the Technology SPDR (XLK) and the EW Technology ETF (RYT) are the leading sectors here in 2019. PANW took a break with a consolidation over the last eight weeks, and this could... READ MORE
Market Recap for Friday, April 26, 2019 When was the last time I suggested Ford Motor Co (F, +10.74%) was a catalyst for any bull market advance? Ummm, probably never. But F was exactly that on Friday as much better than expected earnings lifted the stock and the automobile... READ MORE
We head in to a month that is set to be among the most volatile and eventful as the market faces one of the most important domestic events – General Election Results. The equity markets are currently hovering around their lifetime highs. On the one hand, they grapple with a not-so-favorable... READ MORE
The past week remained as flat as it can get. In our previous weekly note, we had expected the week to remain volatile and the level of 11760 continuing to pose stiff resistance to any up-moves. Hewing very close to expected lines, the Indian equity markets remained volatile, headed nowhere,... READ MORE
Okay, let's start with the short-term reason. Throughout much of this bull market, the month of May has been kind to semiconductors ($DJUSSC). In fact, the DJUSSC has advanced in each of the last 7 years during May. Check out this seasonal pattern: Not only have semiconductors moved... READ MORE
In my ChartWatchers article from two weeks ago, I provided insights into signals that your stock may be poised to report earnings above Wall Street estimates. Given that the markets are currently rewarding positively reporting companies with an average 2.1%+ boost in price* (and in many cases, much more)... READ MORE
Since the market gapped up on the first of April, it has been quietly moving higher, making marginal new, all-time highs. Volume has been a bit thin, particularly for SPY. I think that thin volume is a reflection of the low volatility, and of investors happy to sit quietly, not... READ MORE
My process is built around simplicity. I am of the firm belief that investors, as well as the financial industry as a whole, tend to unnecessarily complicate things. As a result, we are led to believe that we need to track an endless number of data points to have a... READ MORE
APRIL REBOUND IN FINANCIALS IS GIVING A BIG BOOST TO SMALL CAPS... I've been writing about the recent upturn in financial stocks and, to a lesser extent, small cap stocks. I also suggested that a stronger dollar might be helping smaller stocks. That's because a rising... READ MORE
Editor's Note: This article was originally published in Martin Pring's Market Roundup on Wednesday, April 24th at 7:03pm ET. Yesterday’s all-time new high in the S&P was well documented by the media, but what did not receive any attention was the fact... READ MORE
A lot of eyeballs are watching the USD these days. Not surprisingly, as a lot (or most) people pay attention to the chart of the USD index ($USD), which compares the USD to a basket of other currencies. That chart now seems to be breaking out - to the UPside,... READ MORE
* S&P 500 Reaches 2018 Highs. * Watch the Immediate Uptrend. * IWM Holds Flag Breakout. * Small-caps Breadth Indicators Net Bearish. * %Above 200-day EMA Hits Milestone for XLF. * Utilities Correct within Bigger Uptrend. * Stock Performance During Earnings Season. * ChartList Updates. * About the Art's Charts ChartList. ... S&P 500... READ MORE
Market Recap for Thursday, April 25, 2019 Strong earnings from Microsoft (MSFT, +3.31%) and Facebook (FB, +5.85%) lifted the NASDAQ to gains on Thursday, while broader market bearishness carried the other major indices to losses. 3M Co (MMM, -12.95%) was a disaster on the Dow Jones, which... READ MORE
INDUSTRIAL SPDR GAPS LOWER ... In a mixed market day, industrials are the weakest sector. Chart 1 shows the Industrial Sector SPDR (XLI) gapping lower today. That hasn't caused any serious chart damage with the XLI still trading well above its blue 50-day average. It is worth noting, however,... READ MORE
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Technology is doing very well on the Relative Rotation Graph for US sectors, with a rotation that is well inside the leading quadrant and pushing further into it. If we shift gears and look specifically at the RRG for the technology sector (against XLK), we can see there is one... READ MORE
* The SPY/EFA Ratio Completes an Inverse Head-and-Shoulders * SPY/EFA Breakout also Bullish for the Dollar * The Euro, Swiss Franc and Yen * China Bucks the Flow The SPY/EFA Ratio Completes an Inverse Head-and-Shoulders Yesterday’s all-time new high in the S&P was well documented by the media,... READ MORE
Naturally, right after I wrote a very bullish article, the market decided to humble me somewhat with a reversal today. Yesterday, I mentioned that all-time high price resistance is generally very difficult to break above decisively (3+%). After publishing, though, Carl pointed out to me that volume on yesterday'... READ MORE
* Cup-with-handle Taking Shape in IWM. * Bond ETFs Reach Potential Reversal Zone. * Art's Charts ChartList Update (SMTC added). Art's Charts featured IWM on Monday with a bullish chart and a lagging price. Even though IWM remains well below its September highs, the ETF broke out of a... READ MORE
Market Recap for Tuesday, April 23, 2019 The small cap Russell 2000 led our major indices higher, gaining 1.61%, but the day clearly belonged to the NASDAQ, which not only climbed 1.32%, but broke to new all-time intraday and closing highs. The NASDAQ pierced the 8109.69 level... READ MORE
Coupa Software is one of the best performing stocks in 2019 with a 50% advance year-to-date. In addition, the stock is up over 80% from its late December low. Too far too fast you might say? Perhaps, but the stock digested its gains with a consolidation the last two months... READ MORE
I had a feeling we would see a whipsaw right after I switched the SPX Scoreboard to a Price Momentum Oscillator (PMO) SELL Signal. The margin was incredibly thin between the PMO and its signal line. With today's rally and the market making its way to a new... READ MORE
RUSSELL 2000 TRADES ABOVE ITS 200-DAY AVERAGE... In the midst of a strong market day, small caps are showing a bigger percentage gain than large caps. Chart 1 shows the Russell 2000 Small Cap Index ($RUT) trading above its (red) 200-day moving average today. The RUT still needs to clear... READ MORE
Market Recap for Monday, April 22, 2019 I'm sure you've noticed it at the pump lately. Gas prices are rising. Yesterday, crude oil prices ($WTIC, +2.31%) jumped to their highest level of 2019 and closed above $65 per barrel for the first time since breaking... READ MORE
Last Thursday, 18 April, was the third Thursday of the month, my regularly scheduled guest appearance on MarketWatchers LIVE. As Tom Bowley was enjoying a well-deserved day off, it was just me and Erin on duty. It wasn't my first time co-hosting, but every time I fill in... READ MORE
I've written before about the cost of volatility, both financially and emotionally, and in light of the volatility we saw in 2018, now is a good time to revisit that issue (while it is not an issue). In 2018, after many sizable down moves, then prices bounced up... READ MORE