The chart above shows the weekly rotation for the Materials sector, XLB, within the universe of US sectors against SPY. After the tail turned upward inside the lagging quadrant, XLB kept up with the performance of SPY and moderately outperformed the market until the sector started to lose relative momentum... READ MORE
NOVEMBER HIGH IS BEING TESTED ... After having one of the strongest starts to a new year in history, major stock indexes find themselves testing yet another potential overhead resistance barrier. And they're doing so while in an over-extended technical condition. But they've been looking over-extended for... READ MORE
* Resistance in an Uptrend? * Bulk of the Evidence Bullish. * Utilities, REITs and Industrials Lead in Price. * Finance Holds Flag Breakout. * When Bad News is Good (SQ). * Volume Picks up in Fox Factory. * A Classic Breakout and Throwback (SCWX). * ChartList Updates. ... Resistance in an Uptrend? ... The S&P 500 advanced... READ MORE
Market Recap for Thursday, February 28, 2019 Our major indices were lower across the board on Thursday, but losses were minimal. The Dow Jones, S&P 500, NASDAQ and Russell 2000 dropped 0.27%, 0.28%, 0.29%, and 0.35%, respectively. That's not much damage considering... READ MORE
Market Recap for Wednesday, February 27, 2019 We're seeing how the stock market deals with a bit of adversity with a Volatility Index ($VIX) at 15 vs. when it was in the 20s and 30s. Every time it appears we're going to have a nasty day,... READ MORE
On the weekly Relative Rotation Graph for US sectors, XLI, the Industrials sector is crossing over into the leading quadrant from improving. This indicates further improvement for Industrial stocks compared to other segments of the market. While zooming in on the RRG for Industrial stocks against XLI I noted the... READ MORE
In mid-week DP Alerts, I generally only review the SPX, as it is a Scoreboard index. However, DecisionPoint signals are reported to Timer Digest based on the SPY. Yesterday, the SPY generated a Long-Term Trend Model (LTTM) BUY signal. The SPX still has some ground to cover before it can... READ MORE
TREASURY BOND ETFS ARE UP AGAINST CHART RESISTANCE... Last Thursday's message suggested that an overbought Treasury bond market was looking vulnerable to some profit-taking. That's still the case. The weekly bars in Chart 1 show the 7-10 Year Treasury Bond IShares (IEF) just below potential overhead... READ MORE
Here's some shameless self-promotion! On Monday 11 March I will be doing an RRG presentation at the TradersEXPO in New York and you are invited. For FREE ;) Julius presenting RRG at TradersEXPO New York I have never attended one of the TradersEXPO events let alone presented at them... READ MORE
Market Recap for Tuesday, February 26, 2019 In what has become a rarity in 2019, all of our major indices finished in negative territory on Tuesday, but it wasn't without a fight. There was early selling, but stocks rallied throughout much of the session to forge to intraday... READ MORE
Apple, Amazon and Alphabet account for around 9 percent of the S&P 500 SPDR and around 27 percent of the Nasdaq 100 ETF. Thus, the next directional move in these three will clearly impact the broader market. As the charts now stand, Apple, Amazon and Alphabet are lagging... READ MORE
It is a mixed bag for the big biotech stocks this year. Of the top ten stocks in IBB, five are underperforming SPY and five are outperforming. Regeneron is slightly outperforming SPY this year and sports a bullish pattern on the price chart. First and foremost, the bigger trend is... READ MORE
* Shanghai Composite Secular Uptrend Line is Still Intact * If China Rallies, Will It Take Commodities Along for the Ride? * China vs. Hong Kong * Chinese ETFs Experiencing a Reversal Shanghai Composite Secular Uptrend Line is Still Intact Chart 1 features a really important benchmark for the Shanghai Composite - a secular... READ MORE
Market Recap for Monday, February 25, 2019 If you looked at the final numbers yesterday, you'd probably think it was just another day in this two-month long advance, but it wasn't just another day. It was a reversal off a gap higher with the market initially... READ MORE
Another Obvious Resistance Level If the S&P 500 declines from current levels, we will be able to look back at this level and see it as an "obvious" resistance level. Ain't hindsight great! Keep in mind, however, that this is the third "obvious&... READ MORE
The daily chart for Vertex (VRTX) is quite a mess with several dips under the 200-day SMA over the last ten months, but a short-term bullish pattern is shaping up and the weekly chart also sports a bullish setup. Let's look at the weekly chart first because the... READ MORE
CISCO, INTEL, AND MICROSOFT ARE DOW LEADERS ... A glance at today's most actives list for the Dow shows three stocks attracting a lot of the buying. Chart 1 shows Cisco (CSCO) surging to an all-time high. Its rising relative strength line (upper box) shows it leading the Dow... READ MORE
Market Recap for Friday, February 22, 2019 Software stocks ($DJUSSW, +1.44%) continued their impressive dash higher, eclipsing their October high to enter all-time high territory. It was a significant breakout as the DJUSSW has been a relative leader for a long, long time. Check this out: Perhaps the most... READ MORE
Rural Electrification Corporation Limited (RECLTD.IN) * This stock has now witnessed a breakout from a bullish Ascending Triangle formation. * The breakout occurred above 127.50, but the stock might still witness some pullback, with the zone of 127-130 potentially acting as support. Once the consolidation is out of way, there... READ MORE
The U.S. Mining Index is composed of industries that manufacture a broad spectrum of materials used in manufacturing and infrastructure projects. Typically, the Mining Index comes into a performance leadership position as the economy heats up. Therefore, in the middle to late stage of a business cycle expansion this... READ MORE
The 200-day moving average is perhaps the most widely used moving average and the S&P 500 is the most widely followed benchmark for the U.S. stock market. Taken together, the S&P 500 and the 200-day SMA can be used to identify major trends in the... READ MORE
In our previous weekly note, we mentioned that the NIFTY was slipping below its 50-week moving average and highlighted the importance of this important weekly level. While the markets experienced continued weakness in the early part of the past week, the middle of the week saw the NIFTY rebounding following... READ MORE
In a basketball game on Wednesday a Nike shoe literally peeled off the foot of 285-pound, 6-foot-7-inch Zion Williamson. The resulting knee injury was regrettable, but the reporting of the incident was rather amusing. For one thing, the video of the incident ran over, and over, and over. I considered... READ MORE
* Mid-caps and Small-caps Join Large-caps. * Breadth Tables Improve. * XLU Shows Strongest Breadth. * Changing My Mindset. * Home Construction iShares Clears 200-day. * Three Flags at Different Breakout Stages. * Pfizer Gets Second Breakout. * Berry Plastics Completes Big Reversal. * Expedia Breaks Channel. * ChartList Notes and Deletions. ... Mid-caps and Small-caps Join Large-caps ... The Mid-Cap %Above... READ MORE
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