The DecisionPoint Scoreboards are nearly all "green" with BUY signals. Today the NDX completed its green Scoreboard with a PMO BUY signal on the daily chart. The Technology Sector (XLK) and the NDX ETF (QQQ) also logged new Short-Term PMO BUY signals. It appears the tech sector is... READ MORE
LONG-TERM TREND OF THE DOLLAR IS STILL UP... The direction of the U.S. dollar is important because it influences (or is influenced by) by a lot of other markets. That includes commodities, global interest rates, and global stocks. Dollar direction also influences the relative performance of small cap stocks... READ MORE
Market Recap for Tuesday, August 7, 2018 It was another nice rally on Wall Street, led by energy (XLE, +0.74%) and industrials (XLI, +0.71%). Since the beginning of July, we've seen renewed strength in larger cap stocks. Industials, along with financials (XLF, +0.46%) have been... READ MORE
Relative Rotation Graphs are a great tool to visualize equity sector rotation and they are probably most used for that purpose. However, there are many more areas where RRGs can be used to get a big picture view of what is going on among a group of securities or related... READ MORE
Yesterday's breakout on UUP was impressive and although the Dollar pulled back slightly today, it didn't matter to the Price Momentum Oscillator (PMO) as it crossed its signal line and triggered a BUY signal. While studying the OHLC chart for UUP, I realized if I looked... READ MORE
FINANCIALS SPDR BREAKS OUT ... Global stocks are having a strong day. Rebounds in foreign developed and emerging markets set the tone for higher trading in the states. All major U.S. indexes are in the black, as are most stock sectors. The strongest sectors are energy, financials, industrials, and materials.... READ MORE
In my recent Building a Rules-Based Trend Following Model series, I talked extensively about the Weight of the Evidence. This is my measure to tell me what the market is doing based upon nine different technical measures made up of price, breadth, and relative strength (PBR, like the beer). Tushar... READ MORE
Market Recap for Monday, August 6, 2018 The Russell 2000 and NASDAQ paced a day of strength on Wall Street as they gained 0.65% and 0.61%, respectively. The S&P 500 and Dow Jones enjoyed smaller gains as money rotated back towards more aggressive areas. The 10... READ MORE
* The Inflation/Deflation ratio * Lagging sectors * Defensive sectors The Inflation/Deflation ratio Last week I charted my Inflation/deflation ratio for the first time in a while and was surprised to see that it had broken to the downside. For those unfamiliar with the concept, the Inflation Ratio (!PRII) consists... READ MORE
Market Recap for Friday, August 3, 2018 The stock market has clearly turned more defensive over the past 2-3 months and Friday was another perfect example of that. The more aggressive small cap Russell 2000 was the laggard, dropping 0.52%. Meanwhile, the NASDAQ produced only a minor 0.12%... READ MORE
Gilead is in the midst of its fourth Bollinger Band squeeze in the past year. The last four instances foreshadowed pretty strong moves so I will be watching the current squeeze closely for the next directional clue. A Bollinger Band squeeze occurs when the bands contract and the Bandwidth indicator... READ MORE
ChartCon 2018 is fast approaching and preparations are being made. Let’s take a few minutes during this busy week to study some charts. For contrast we will compare the NASDAQ Composite, which is one of the leadership indexes, to the Dow Jones Industrials, which is a laggard. A big... READ MORE
CONSUMER STAPLES TURN UP... Although the stock market continued to climb this week, it's a little surprising to see defensive stocks leading it higher. The four strongest sectors this past week were REITs (+3.3%), healthcare (+2.1%), consumer staples (+1.7%), and utilities (+1.2%). All did... READ MORE
Buying is so easy. When you pull that trigger to buy, optimism abounds. Maybe it was a recommendation from a friend. Perhaps there was water cooler talk of the next Apple (AAPL). You might even have uncovered it from a time-tested scan. The reason doesn't really matter. The... READ MORE
Relative Rotation Graphs are a great tool to visualize equity sector rotation and they are probably most used for that purpose. However, there are many more areas where RRGs can be used to get a big picture view of what is going on among a group of securities or related... READ MORE
Trend following strategies are built on the premise that trends persist and we can make money by simply following the trend until it ends. There will be losers along the way, but a few strong trends will more than make up for the losses. It sounds great in theory, but... READ MORE
Editors Note: This article was originally published in John Murphy's Market Message on Thursday, August 2nd at 1:43pm ET. TARIFF THREATS PUSH CHINESE MARKETS LOWER ... Threats of higher tariffs on Chinese imports, combined with Chinese threats of retaliation, put international markets on the defensive today. It started... READ MORE
On Thursday, when Apple's (AAPL) market cap went over the $1 trillion mark, Dennis Gartman (The Gartman Letter) said something to the effect that this is the kind of thing we see at market tops, not in the middle of a long advance. I felt the same way.... READ MORE
What's a technical guy doing talking about fundamentals? Well, I believe that charts of fundamental data are as useful as price charts in helping us visualize fundamental context and trends. In the case of earnings, the following chart shows us where the S&P 500 would have... READ MORE
* Weekly Performance Review. * Changing of the Guard Continues * S&P SmallCap iShares Outperforms Russell 2000 iShares * S&P 500 is in a Bull Market * High-Low Lines Continue to Rise * QQQ Becomes Short-term Oversold * IJR Consolidates Near Highs * Measuring Trend Strength with Stochastics * XLF and XLI Challenge Resistance * This... READ MORE
Special Note I will be traveling to Seattle this weekend for ChartCon 2018. My schedule the next two weeks is likely to be quite different and sporadic, perhaps posting articles during the trading day or possibly even after the market closes. If you've grown accustomed to my articles... READ MORE
* 3- and 10-year series challenging their secular down trendlines * Three indicators that suggest lower bond yields * The Crunch Chart 3- and 10-year series challenging their secular down trend lines US government bond yields have reached very important resistance, at a time when they are overextended on a long-term momentum basis.... READ MORE
The ST Trend Model Neutral signal that the NDX carried for a few days gave way to a new BUY signal as the 5-EMA launched above the 20-EMA on today's strong rally. I've annotated the change on the DecisionPoint Scoreboards below. TLT triggered a Long-Term Trend... READ MORE
Hello Fellow ChartWatchers! Can you believe that we’re just ONE WEEK AWAY from ChartCon 2018? Our 5th online investing conference goes LIVE on the morning of August 1oth at 10:00am ET, and I can hardly contain my excitement. The presentations have been sent in, our bonus videos are... READ MORE
TARIFF THREATS PUSH CHINESE MARKETS LOWER ... Threats of higher tariffs on Chinese imports, combined with Chinese threats of retaliation, put international markets on the defensive today. It started in Asia, spread to Europe, and caused a lower stock opening here. China took the biggest hit. The red line in Chart... READ MORE
Just in the course of a normal week, we are bombarded with information from sources such as the FED, television analysts, brokerage firm analysts, economists’ projections, newspapers, junk mail, neighbors, war reporters, fake news, etc. Making investment decisions without a plan or methodology is truly a gamble. And to think... READ MORE
Market Recap for Wednesday, August 1, 2018 Wednesday was a day of bifurcated action with Apple (AAPL) leading technology (XLK, +0.90%) and the NASDAQ higher, while the Dow Jones, S&P 500, Russell 2000 and most sectors finished lower. It was a case of one behemoth, nearly $1... READ MORE
* Pick your Timeframe to Suit your Message. * Aroons Signal Consolidation in XLU. * XLRE Breaks Out of Flag. * REITs, Utilities and the 10-year Correlation. * HACK Becomes Oversold in an Uptrend. * The Dreaded Double Dip in RSI. .... Timeframe and Message ... The Utilities SPDR (XLU), the Energy SPDR (XLE) and the Real Estate... READ MORE
The monthly charts 'went final' yesterday after the market closed, so it's time to review and prepare for next month. I highly recommend you check out the video version on today's MarketWatchers LIVE show where I had more time and space to discuss. The... READ MORE
This month, the Market Roundup carries a lot of information about how acute the current market position is in globally. Good luck and good charting, Martin J. Pring The views expressed in this article are those of the author and do not necessarily reflect the position or opinion of Pring... READ MORE
Market Recap for Tuesday, July 31, 2018 It was a solid day on Wall Street to close out July. The small cap Russell 2000, weak on a relative basis during July, regained its leadership role, spiking more than 1% and doubling the performance of its other major index counterparts. Industrials... READ MORE
Waters Corp led the market in 2017 with a 65 percent gain, but lagged in 2018 as the stock corrected the last six months. I am watching this correction pattern for a breakout that would signal a continuation of the bigger uptrend. Waters Corp makes analytical equipment and software for... READ MORE
The DecisionPoint Scoreboards were blemished by the loss of the green BUY signals on the NDX. The weekly PMO on the Dow has been holding out for awhile, but it is rising suggesting momentum is still positive in the intermediate term. Not to be alarmist, but the NDX has reached... READ MORE
INDUSTRIAL SPDR REACHES FOUR-MONTH HIGH ... While media attention seems to be focused on struggling FANG stocks, investors are putting their money elsewhere. Chart 1 shows the Industrial Sector SPDR (XLI) rising above its June high to reach the highest level in four months. That's a healthy sign for... READ MORE
Market Recap for Monday, July 30, 2018 Only three sectors were able to finish in positive territory on Monday as bears permeated Wall Street. Two of the three - financials (XLF, +0.07%) and healthcare (XLV, +0.06%) - barely managed to eke out gains. The only real strength was... READ MORE
US Bancorp lagged the broader market the first half of the year, but managed to firm from March to June and lead with a breakout in July. The chart shows USB falling from 57 to 49 with a sharp decline from late January to late March. The stock managed to... READ MORE
* Oil Surges back above $70. * XLE Turns Up within Range. * XES Surges off Support. * Chevron Bounces on Big Volume. * Halliburton versus Baker Hughes. ... Oil Surges back above $70 ... Oil fell on Friday and rebounded on Monday to keep its mean-reversion bounce alive. I highlighted oil, XLE and the Oil &... READ MORE
Market Recap for Friday, July 27, 2018 A second wave of internet troubles came in the form of Twitter Inc (TWTR) after the recently-soaring internet giant disappointed traders with its latest quarterly results. It was an UGLY reaction by Wall Street as TWTR fell nearly 21% exactly one day after... READ MORE
SMALL CAPS ROLL OVER WHILE SPY TESTS JANUARY HIGH ... Stocks are beginning to look a little toppy. That's especially true of small caps. Chart 1 shows the Russell 2000 Small Cap Index ($RUT) ending the week below its 50-day moving average (blue circle). The RUT has been losing... READ MORE
Hello Fellow ChartWatchers! In case you missed it, we just released a special behind-the-scenes video that I want to make sure you see. I can hardly believe that ChartCon 2018 is now only TWO WEEKS AWAY, but watching this video really made it feel even more real. Last week, while... READ MORE