The only red arrow left on the DP Scoreboards was erased today as the NDX triggered a PMO BUY signal on the daily chart. The last time we saw no red on the Scoreboards, it lasted about two days. The bull winds are blowing hard, so I think this all... READ MORE
MATERIALS SPDR HITS NEW RECORD ... In a strong market day, materials led stocks higher. Chart 1 shows the Materials Select SPDR (XLB) breaking out to a new record. The XLB has been finding support along its 50-day average. The XLB/SPX ratio (top of chart) has been lagging behing the... READ MORE
There is a certain ebb and flow in an uptrend where the advances consistently outpace the pullbacks. Think of it as two steps forward and one step backward. The chart for Analog Devices (ADI) shows a big move to new highs from August to November and then a 50-62% retracement... READ MORE
The Relative Rotation Graph for US sectors is showing us three sectors to avoid but also two which may offer good potential. Inside the leading quadrant, we find XLK and XLF still being the strongest sector in US equity market based on their JdK RS-Ratio reading. Energy (XLE) started heading... READ MORE
Market Recap for Friday, December 15, 2017 Friday's action was extremely bullish. I always love to see "trend days", where prices rise across the board from opening to closing bells. Strength was found in all of our major indices with the Russell 2000 (small caps) leading... READ MORE
The Nasdaq finally joined the Dow and S&P 500 in record territory on Friday. Chart 1 shows the PowerShares QQQ exceeding its November peak at week's end, and in heavy trading. The QQQ is based on the Nasdaq 100 index which includes the 100 largest non-financial... READ MORE
This may sound way too easy, but successful traders manage risk. They don't care about losing money on trades that don't work. They exit those trades and put their capital to work in a better trade. Many trading services will try to WOW you with a... READ MORE
Two favorite tools of Wyckoffians are Relative Strength analysis and Point and Figure (PnF) charting (Horizontal Method). As the year comes to a conclusion let’s reflect back on some case studies and bring them up to date. ‘In Gear with Relative Strength’ (click here for a link) profiled two... READ MORE
Happy holidays! I want to wish everyone a joyous holiday season and here's to a happy, healthy and prosperous 2018! Thank you so much for all your support of StockCharts.com in 2017! To better understand the reasoning for the stocks selected below, you first need to understand... READ MORE
TECHNOLOGY HAS A STRONG WEEK... After leading the market higher for most of the year, technology stocks saw some profit-taking near the end of November, and have lagged behind the rest of the market since then. This week, however, technology was the market's strongest sector. And that was... READ MORE
Overbought and oversold are funny terms. Well, actually, they are not that funny when you really think about it. Overbought is often overused in an uptrend and oversold is over used in a downtrend. Let's focus on overbought because that seems to be the term du jour right... READ MORE
This week the National Association of Active Investment Managers (NAAIM) Exposure Index reached the highest reading since its inception in 2006. Rather than stay 100% invested, NAAIM members will raise or lower their fund's market exposure based upon their assumptions regarding future market action. The potential range of... READ MORE
Put a man on a bicycle and he’ll surprise you. Put a man on a machine and he’ll amaze you. Teach him asset allocation and he’ll electrify you! Due to the unusual number of new subscribers who read my Traders Journal blog about Asset Allocation, I’ve... READ MORE
---- Day 53 Since Becoming "Overbought" ---- Small-cap Underperformance Becomes Pronounced ---- IJR Forms Bull Flag ---- SPY Hits New High as QQQ Breaks Flag ---- What's Up (literally) with TLT? ---- Junk Bonds Continue to Weaken ---- XLU with Bull Flag and Oversold CCI ----... READ MORE
Market Recap for Thursday, December 14, 2017 Walt Disney (DIS) announced plans to purchase $52 billion of 21st Century Fox (FOXA) assets and that lifted both the broadcasting & entertainment index ($DJUSBC) and the consumer discretionary sector (XLY, +0.31%), not to mention both DIS (+2.75%) and FOXA (+6.... READ MORE
I haven't talked Small Caps in quite awhile and I think there are some interesting points that need to be made--good and bad. First, the technicals on the S&P 600 are not looking good at all. However, Tom Bowley, my co-host on MarketWatchers LIVE and fellow... READ MORE
We'll soon find out. But, as a short-term trader, I'd have sold Mylan (MYL) into the close today. A close above 40.09 on heavy volume would confirm a breakout. Today, MYL hit 41.59 intraday, but fell all the way back to close at 40.... READ MORE
* General thoughts on the discounting process * Short-term indicators poised for, but not yet signalling a decline General thoughts on the discounting process There is an old adage on Wall Street to the effect that traders should, in the case of war, sell the rumor and buy on the sound of... READ MORE
DISNEY AND FOX SURGE ... The announcement that Walt Disney was buying $66 billion worth of assets from Fox sent both stocks surging today. And they helped make cyclical stocks the day's biggest gainer. Chart 1 shows Disney (DIS) surging more than 3% to the highest closing level since... READ MORE
.... Selectively Consuming News .... Finisar and VCSELs .... Narratives are Dangerous .... Finisar Forges an Island Reversal .... Lumentum Firms near Key Retracement .... II-VI Corrects within Uptrend .... Stocks to Watch (CENX, JJU, PRGO, LH) .... I do follow the financial press on a regular basis, but on a very selective basis. I am mostly interested... READ MORE
Market Recap for Wednesday, December 13, 2017 It was a simple case of "buy the rumor, sell the news". Financials (XLF, -1.24%) slumped on Wednesday after the Fed decided to raise interest rates another quarter point. Higher 10 year treasury yields ($TNX) typically result in money rotating... READ MORE
No new changes to the DecisionPoint Scoreboards. The NDX is holding onto its PMO SELL signal and it still has some margin to cover before the new PMO BUY signal can generate. Of particular interest today, and of course coming on the heels of a very bullish blog on the... READ MORE
Market Recap for Tuesday, December 12, 2017 It was mixed and bifurcated action on Tuesday. The Dow Jones and S&P 500 continued their assault on the record books, but the NASDAQ and Russell 2000 both paused and pulled back. With the 10 year treasury yield ($TNX) moving back... READ MORE
The two sector Performance charts below show a rather dramatic shift in market leadership over the last two months. First, note that these PerfCharts are using the nine equal-weight sector ETFs. In contrast to the cap-weighted sector SPDRs, these equal-weight ETFs provide us with a performance picture for the "... READ MORE
We've seen some very interesting sector rotation this past year as the market continues to climb higher. Money doesn't seem to really be leaving the market, just rotating from one sector to the next. The Utilities sector was a good run through October and into November.... READ MORE
BOND YIELD IS CLIMBING... The daily bars in Chart 1 show the 10-Year Treasury Yield climbing 2 basis points to 2.40%. The 5-year Treasury Yield (not shown) has climbed to the highest level in six years. Today's strong PPI report may have something to do with that.... READ MORE
Market Recap for Monday, December 11, 2017 The Russell 2000 remained in true December form as it continues to struggle during the first half of the month, despite records being set on both the Dow Jones and S&P 500 on a daily basis. It truly is an anomaly.... READ MORE
.... Health Care SPDR Renews its Breakout .... Pfizer and Bristol-Meyers Bounce off Support .... HACK and IGN Confirm Big Continuation Patterns .... Cisco and Fortinet Lead their Groups .... Copper Gets Oversold Bounce (plus COPX) .... Tesla Surges off Support Zone .... Short-term Ugliness with Long-term Bullishness .... Health Care SPDR Renews its Breakout The Health Care... READ MORE
On Friday, the NDX logged a new ST Trend Model BUY signal. Currently DP indicators are looking bullish and seeing improvement in the technology sector is encouraging for the market in general. I did point out on today's MarketWatchers LIVE show that one could make a case for... READ MORE
Ingersoll-Rand (IR) is showing renewed signs of life with a surge off support and two mini breakouts. Note that IR is part of the industrials sector and this sector is showing upside leadership with a 52-week high recently. First and foremost, Ingersoll-Rand is in a long-term uptrend with a 52-week... READ MORE
Market Recap for Friday, December 8, 2017 While we didn't set intraday all-time highs, we did manage to close at record levels on both the Dow Jones and S&P 500, which rose 0.49% and 0.55%, respectively, on Friday. The NASDAQ tacked on 0.40%... READ MORE
On October 26th, Intel (INTC) posted quarterly earnings results and beat both revenue and EPS estimates. It resulted in a very strong gap higher the next morning and then INTC continued rising, tacking on another 10% within a week. But INTC became very overbought with an RSI above 90 and... READ MORE
Horizontal Point and Figure (PnF) analysis offers a method for estimating the potential extent of a move. The dilemma is what to do when the price objective has been met. Should there be an automatic response of reducing position size in the price objective zone? Are there more dynamic strategies... READ MORE
INDUSTRIAL SECTOR CONTINUES NEW LEADERSHIP ROLE... Industrial stocks assumed a new market leadership role during November and remained in that role again this week. Chart 1 shows the Industrial Sector SPDR (XLI) gaining 1.4% during the week which made it second only to the financial sector's gain... READ MORE
In the DP Weekly Wrap I normally lead with a chart of the market, but this week Bitcoin was so prominent in the news, I thought a chart of the Bitcoin Index would be more appropriate. What we have here is a classic parabolic advance (the red arc), with price... READ MORE
Market Recap for Thursday, December 7, 2017 December began with a huge intraday selloff and recovery and since then, it's been mostly down action. Yesterday was the first day this month that the bulls could celebrate and feel good. Eight of nine sectors advanced with many of the... READ MORE
.... Breadth Indicators Confirm Chart Strength .... SPY Stalls as QQQ Edges Lower .... Watch TLT for Clues on IJR .... Three New Highs and One Stall .... XLE Stalls, but Holds its Breakout .... Getting Perspective on XME .... Steel ETF Forms Big Continuation Pattern .... IEF and TLT Remain Divergent .... Gold Breaks as Dollar Turns Up... READ MORE
Last week Wednesday (29 November) I was the guest of Tom and Erin in the Market Watchers Live show. During the show, we talked a lot about RRG, Relative Rotation Graphs, covering some basics and some new(er) techniques and interpretations that I have been working on. If you missed... READ MORE
* 18-month ROC is literally off the charts * Bitcoin and short- term momentum * Comparing Bitcoin to the Bitcoin Trust * Conclusion * Links to videos on Bitcoin 18-month ROC is literally off the charts There are two Bitcoin directly related vehicles that are available on the StockCharts platform. These are the NYSE Bitcoin... READ MORE
I'm constantly looking for short-term trading opportunities and Perrigo (PRGO) fits the bill. After reporting better-than-expected results in its latest quarter, PRGO gapped up strongly and today filled its gap before finishing on a solid note to print a hammer (blue circle below) - many times a signal... READ MORE