Market Recap for Thursday, February 21, 2019 U.S. stocks stalled on Thursday, but a minimum of sideways consolidation this week was to be expected given 60 minute negative divergences that I discussed earlier in the week. Before we talk about yesterday's action, check out how the negative... READ MORE
MAJOR STOCK INDEXES TEST OVERHEAD RESISTANCE ... All three major U.S stocks are testing overhead resistance barriers. Chart 1 shows the Dow Industrials right up against their early December peak at 26000. That's the Dow's first test of a previous peak formed during the fourth quarter... READ MORE
Market Recap for Tuesday, February 19, 2019 We saw a bit of intraday back and forth action on Wednesday with the same result - another Wall Street gain. I'm really surprised we haven't seen more selling this week. We're at major price resistance levels... READ MORE
My last article in the RRG blog looks at sector rotation for US sectors and how there are some disconnects between groups of sectors on both the daily and the weekly time frames. My conclusion from that article was that the current rotational patterns are sending mixed signals which makes... READ MORE
Today, we had two important signal changes. First, on the Dow Industrials, a LT Trend Model BUY signal triggered as the 50-EMA crossed above the 200-EMA. Second, USO generated an IT Trend Model BUY signal. I imagine the first question that will be asked about this new LT BUY signal... READ MORE
TEN-YEAR TREASURY YIELD REMAINS WEAK ... Despite renewed optimism in the stock market which has had a spectacular start to the new year, Treasury yields remain surprisingly low. Chart 1 shows the 10-Year Treasury Yield ($TNX) still trading close to its lowest level in a year. The TNX also remains below... READ MORE
Market Recap for Tuesday, February 19, 2019 Materials (XLB, +0.62%) and utilities (XLU, +0.59%) led another Wall Street rally on Tuesday, although our major indices did see a bit of selling into the close. The XLB and XLU benefited from a falling dollar ($USD, -0.40%) and 10... READ MORE
When sitting down to a chart, or even standing, establishing the direction of the bigger trend is the first task. The direction of this trend establishes my trading bias and tells me where to focus. My trading bias is bullish when the trend is up and this means I focus... READ MORE
* Six of Nine Breadth Indicators Bullish. * November 2015 All Over Again? * JP Morgan, Bank of America and Citigroup Break Out. * A Successful Test for Disney. * ChartList Addition and Deletion. * On Trend on YouTube. Breadth Indicators Flip Back to Bullish The S&P 500 turned net bullish on February 5th... READ MORE
* Superior Breadth Over Price Does Not Always Have a Positive Outcome * Weighted versus Equal Weight Chart 1 shows that the NYSE A/D Line touched a new high last week and seems to be leading the S&P higher. The textbooks tell us that a broad advance, such as... READ MORE
The Relative Rotation Graphs, both daily and weekly, for US sectors are showing big disconnects between sectors. The image above holds the US sectors and shows daily rotations. It is immediately obvious that there is a big gap/disconnect between the right (=positive) side and the left (=negative)side of... READ MORE
Market Recap for Friday, February 15, 2019 Friday produced very solid gains as the U.S. government averted a second shutdown as a funding resolution was passed. Also, there was word that US-China trade talks were progressing and any positive developments there are typically well-received by global markets. In an... READ MORE
The is the third article on Pair Analysis. Here I will show the results for several different pair combinations with reduced commentary. If you have not read the previous two articles on Pair Analysis, I strongly suggest you do so before continuing with this one. Recall, the pair analysis is... READ MORE
With the session that ended on Tuesday, February 19, 2019, the Indian headline index NIFTY50 closed in the red for the eighth consecutive day. Amid such a weak environment, there are certain stocks which are showing great relative strength and are strongly outperforming the broader markets. Once such stock that... READ MORE
Chartists can compare two price plots to find early signs of relative strength. This can be done by comparing the corresponding peaks or troughs for two names, such as the Russell 2000 iShares (IWM) and the S&P 500 SPDR (SPY). It is a sign of relative strength when... READ MORE
Well, it's really not a secret, but it's our secret at EarningsBeats.com. Our mantra is "Better Timing. Better Trades." and, for us, that means finding the best stocks, identifying key price and moving average support and then adding.....an extra helping of patience.... READ MORE
The past week remained quite dismal for the market, which ended in the negative on all five days. After a failed breakout on the daily charts, the NIFTY returned inside the broad trading range and subsequently drifted even lower. The index has been defending the 50-Week Moving Average for over... READ MORE
Understanding relative strength is extremely important in outperforming the benchmark S&P 500. As a sector begins to outperform, it tells us that money is rotating towards that particular sector. One way to visualize this is to look at an RRG chart. It will only take one glance to... READ MORE
With more and more eyeballs looking at the Indian stock market and data for individual stocks and sectors becoming available on Stockcharts.com I started to keep an eye on developments in that market via Relative Rotation Graphs. To make it easier (for you but also myself), the NIFTY 50... READ MORE
The Relative Strength Index (RSI) is a momentum indicator that chartists can use to measure the strength behind a price move. Moreover, chartists can also use RSI values to rank momentum and find the leaders. As an indicator that measures the magnitude of gains relative to the magnitude of losses,... READ MORE
During today's DecisionPoint show on StockCharts TV (airing Fridays at 4:30p EST), Carl and I discussed how, while we're still bearish, there are signs of improvement. The main problem will be getting too overbought. Three signs of definite improvement are the two new IT Price... READ MORE
Editor's Note: This article was originally published in John Murphy's Market Message on Friday, February 15th at 12:40pm ET. Charts 1 and 2 show the Dow Industrials and S&P 500 building on their gains after rising above their 200-day averages (red lines). Both... READ MORE
There are some indicators that have been warning of a price top for a couple of weeks, but the market just keeps powering upward. (1) There is an OBV reverse divergence, where the OBV has exceeded its December top well ahead of price. This means that heavy volume hasn'... READ MORE
Life can be cruel if change happens and you miss the signs during the transition. I’ll offer up four examples with mild to toxic consequences: Weather, Science, Superstars and finally, the Stock Market. Pretty much everyone is aware of the predictable and abrupt shift in the weather as the... READ MORE
NASDAQ MAY BE THE THIRD MAJOR STOCK INDEX TO CROSS ITS RED LINE ... Charts 1 and 2 show the Dow Industrials and S&P 500 building on their gains after rising above their 200-day averages (red lines). Both now appear headed for a test of their early December peaks.... READ MORE
* Reviewing the Weight of the Evidence * New Highs Expand in XLK * Sector Table is Net Bullish (XLK, XLV, XLI Lead) * What If December-January Never Happened? * Four Consolidations to Watch (XLF, IAI, XRT, IBB) * New Additions to the ChartList * AMD Keeps Flag Alive * Finisar Holds Breakout * Intuitive Surgical Breaks Pennant * Walgreens-Boots... READ MORE
Market Recap for Thursday, February 14, 2019 Real estate (XLRE, +0.38%) and communications services (XLC, +0.37%) were the leaders yesterday as Wall Street staged a rally attempt after dealing with an early blow - a very weak December retail sales report. There's one thing everyone should... READ MORE
Humans are emotional beings, generally making decisions based on their emotional state. Consequently, when the market moves against your positions, you will most likely have a visceral reaction to that event. The fear of losing and/or the fear of missing out are often the causes of bad investment decisions.... READ MORE
One of the choices in the drop-down selection on the Relative Rotation Graphs page is the DJ-industrials (Dow 30 Industrials). This RRG shows the rotation of all 30 Dow stocks against the $INDU. The RRG above shows the daily rotation and highlights the rotation of JP Morgan Chase & Co.... READ MORE
Chinese stocks came to life after their New Year's holiday with the Shanghai Composite ($SSEC) and some ETFs breaking double bottom resistance. Before looking at these charts, let's review the double bottom, which is a bullish reversal pattern. First and foremost, there must be a downtrend... READ MORE
Market Recap for Wednesday, February 13, 2019 The stock market is beginning to exhibit a bit of the borishness that accompanies bull market advances. The Volatility Index ($VIX) remaining below 16 is confirming the reduced level of fear. There were certainly swings intraday yesterday, but the panicked, impulsive-type selling appears... READ MORE
No changes to the DecisionPoint Scoreboards today. My concern now rests on the new bearish rising wedge that has appeared on the SPX chart. Not all of the indicators are confirming the recent rally. The newest change to the DecisionPoint Sector Scoreboard was an IT Trend Model BUY on the... READ MORE
S&P 500 CROSSES ABOVE ITS 200-DAY AVERAGE... Up to last night, the Dow Industrials were the only major stock index to trade above their 200-day average. The S&P 500 closed marginally above its 200-day line yesterday. Chart 2 shows the SPX extending that gain over its... READ MORE
Market Recap for Tuesday, February 12, 2019 Another government shutdown was averted and the U.S. stock market reacted quite favorably, as you might expect, with all of our major indices surging higher. Our major indices had quite a day: Dow Jones: +1.49% S&P 500: +1.29%... READ MORE
We are 29 trading days into 2019 and the S&P 500 is up a very respectable 9.49%. Furthermore, some 465 stocks in the S&P 500 are up year-to-date, which means 35 are down year-to-date. CBOE Holdings (CBOE) is one of these stocks (-3.91% year-to-date)... READ MORE
* SPX High-Low Percent Nears Signal Flip. * Intuitive Surgical Breaks Out. * Walgreens-Boots Bounces off 200-day. * Careful with AMD. * RSI Improvements in Intel. ... Five of the nine breadth indicators are on bearish signals right now, but S&P 500 High-Low% ($SPXHLP) reached 9.8% on Tuesday and is close to triggering... READ MORE
To prove that I read all comments, here are some pair charts and data that is updated to 12/31/2018. First a review of what pair analysis is. My pair analysis is accomplished on weekly data. Think of the ratio line like this: when it is moving upward it... READ MORE
Market Recap for Monday, February 11, 2019 Industrials (XLI, +0.53%), energy (XLE, +0.48%) and financials (XLF, +0.31%) were Monday's leaders as bifurcated action was once again present. The clear index leader was the small cap Russell 2000 index (+0.84%) and that's become... READ MORE
* Dollar About to Break New Ground? * Euro Starting to Break Down * Swiss Franc at a Major Juncture Point * The Fortunes of the Canadian, Australian and EM Currencies are Tied to Commodities Dollar About to Break New Ground? I last wrote about the dollar at the end of January, pointing out... READ MORE
In a September 2017 blog, we studied Workday, Inc. (WDAY). We looked at WDAY as an emerging ‘Campaign Stock’. These stocks have characteristics that could propel their uptrends for years to come. The Wyckoff Method offers the tools to identify these candidates. Chief among them is structural chart analysis and... READ MORE