Market Recap for Wednesday, September 20, 2017 It was another stellar day for industrials (XLI, +0.73%) as this sector led the Dow Jones to a 6th consecutive record closing high. The gains have been fairly slow and methodical, but that's how bull market advances work. They tend... READ MORE
DecisionPoint tracks not only the sector SPDRS, but we also follow the equal-weight versions. For more information about the benefits of trading equal-weight ETFs, you can read this article written by Carl. Today is a teachable moment with these three IT Trend Model BUY signals arriving on the same day.... READ MORE
* Dollar begins a short-term rally * Fed action boosts rates * Financials set to move higher Fed action on Wednesday had the effect of boosting rates, thereby causing short-term reversals in several markets and relationships. These inflexion points in the markets are expected to influence prices over the next few weeks. Dollar... READ MORE
DOW TRANSPORTS RISE TO TWO-MONTH HIGH... Recent messages have described the gradual improvement in transportation stocks since mid-August. It started with their ability to reclaim their 200-day average in late August, followed by a move back above their 50-day average earlier this month. Chart 1 shows the Dow Jones Transportation... READ MORE
This is my third straight DITC posting with a semiconductor stock. The first featured Texas Instruments forming a cup-with-handle pattern and the second featured Intel with a surge towards long-term resistance. Today's chart focuses on Broadcom, which is actually lagging the S&P 500 SPDR over the... READ MORE
Reminder Be sure to scroll down to the bottom of my article and click the "Notify Me" button if you'd like to receive my article each morning before the stock market opens. The subscription is FREE and my article is a great way to start your... READ MORE
The NASDAQ Composite ($COMPQ) has consolidated since early June. Two very prominent Buying Climax peaks arrived, one in June and the next in late July. They are labeled on the vertical chart and the Point and Figure chart. This has slowed the advance of the $COMPQ to a crawl. Meanwhile... READ MORE
It may seem strange that all of the Scoreboards are green except in the area of intermediate-term PMO signals. A look at the weekly charts for all four indexes reveals all but the NDX weekly PMO are rising up toward IT PMO BUY signals. The margin is still rather large... READ MORE
DOW JONES US INTEGRATED OIL & GAS INDEX MAY BE BREAKING OUT... Energy stocks have been the market's weakest performers during 2017. They're starting, however, to take a turn for the better, both in absolute and relative terms. Energy has been the market's strongest... READ MORE
Market Recap for Monday, September 18, 2017 It was another very bullish day on Wall Street as most indices finished with gains once again. The Russell 2000 ($RUT) led the charge with a 0.65% rise. Gains in the Dow Jones and S&P 500 were more modest, but... READ MORE
.... 52-week Highs Reflect Broad Strength .... Materials, Industrials and Technology Lead New High List .... Alphabet, Amazon and Facebook are Dragging .... CSCO Hits Multi-Month High .... Fiserv Turns Up after Pullback .... AMD Bounces off Key Retracement .... CHD and CL Start Turning UP .... How to Handle Overvalued Stocks .... 52-week Highs Reflect Broad Strength Large-caps,... READ MORE
The last two days have issued SIX new Intermediate-Term Trend Model (ITTM) BUY signals. It shouldn't be a surprise that the Energy SPDR (XLE) and Natural Gas (UNG) triggered given the buzz around that sector last week on MarketWatchers LIVE and headlines on our StockCharts.com Blogs page.... READ MORE
Oh no! He is losing it! I have stated a few times that the well seems to be running low; this article might confirm that. Here is an attempt to turn basic aerodynamics into an investment process. Where: CL is the coefficient of Lift p is the density of air... READ MORE
FINANCIAL SPDR CLEARS 50-DAY AVERAGE... Financial stocks are helping lead the market higher today. Chart 1 shows the Financial Sector SPDR (XLF) trading at the highest level in five weeks after clearing its 50-day average. Its relative strength ratio (top of chart) continues its September rebound. Banks are leading the... READ MORE
Some sixty stocks in the S&P 500 were up 5% or more last week, and Intel was one of them. Intel's importance seems to have diminished over the years, but it is still an industry gorilla that accounts for around 11% of the Semiconductor ETF (SMH)... READ MORE
Market Recap for Friday, September 15, 2017 It was another day of records on Wall Street to close out the week. Despite the peak of seasonal summer weakness approaching, buyers stepped up to the plate once again, this time driving S&P 500 prices to another all-time high close... READ MORE
Bringing up the Relative Rotation Graph that holds all members of the Utilities sector (XLU) gives the picture above. With NRG all the way up in the top-right corner of the leading quadrant and SCG in the lower left-hand corner of the lagging quadrant, the remaining stocks in the sector... READ MORE
ENERGY ETF REACHES FIVE-MONTH HIGH ... It was reported Thursday that the headline CPI for August rose 0.4% from the previous month, which was its biggest monthly gain since January. That boosted its year-over-year comparison to 1.9%, which is just shy of the Fed's target of 2%... READ MORE
If only it was that easy, right? The problem many times is that a company that reports great results one quarter fails to do so the next. But my strategy is to find companies that not only reported great results in the prior quarter, but also showed major accumulation at... READ MORE
We all know what a trend line is, but does a trend line actually dictate the trend? In other words, does a trend line break actually signal a trend reversal? Or, is a trend line break telling us something else? We cannot use a tool unless we fully understand it... READ MORE
This week sentiment was mixed. Typically we see the American Association of Individual Investors (AAII) and National Association of Active Investment Managers (NAAIM) exposure index give the same message. However when I pulled up the charts to present during the sentiment segment of MarketWatchers LIVE, I saw the dissonance. The... READ MORE
One of the benefits of technical analysis is being able to look at a chart to help determine if a stock is a viable trading candidate. In other words, what does a technician see in a chart that would lead to the conclusion that a specific stock is or isn&... READ MORE
For a few weeks I have been expecting an upside breakout, and on Monday the breakout finally happened. The internal action on that day indicated that a buying climax had taken place, an event that very often leads to some post-climax churning or pullback. Also, this was an options expiration... READ MORE
I attend investment seminars as half-monk, half-hit man. My time is a precious commodity, so if you are a speaker and see me in the audience, be prepared. My hot button is when speakers show a few elaborate slides, “share” their four favorite tenets to successful investing and then launch... READ MORE
ENERGY ETF REACHES FIVE-MONTH HIGH ... It was reported yesterday that the headline CPI for August rose 0.4% from the previous month, which was its biggest monthly gain since January. That boosted its year-over-year comparison to 1.9%, which is just shy of the Fed's target of 2%... READ MORE
* A few words on sentiment * The long-term technical remains bearish but… * Short-term is almost bullish * What about the euro? * Conclusion A few words on sentiment The Dollar Index has been in a virtual free fall since the end of last year. No market goes down forever, because traders exhaust their... READ MORE
.... Small-caps Extend Newfound Leadership Role .... AD Lines Hit New Highs .... RSI Notches another Overbought Reading for SPY .... IJR Continues to Grind Higher .... Tech, Industrials, Healthcare and Materials Lead .... XLI and XLB Extend after Breakouts .... XLF Fully Recovers with Flag Line Break .... XLY Puts Double Top on the Back Burner .... XLE... READ MORE
Market Recap for Thursday, September 14, 2017 Consumer discretionary (XLY, -0.54%) was the worst performing sector on Thursday, but you'd never know it from looking at the automobiles or auto parts stocks. The Dow Jones U.S. Automobiles & Parts Index ($DJUSAP) is featured below in the... READ MORE
Sometimes the best moves higher occur after an extended period of sideways price action, or basing. We recently saw a breakout in biotechs ($DJUSBT) and that industry quickly became one of the strongest. The healthcare sector (XLV) also has been among the strongest sectors. It makes sense that other healthcare... READ MORE
A day passed with no signal changes for the DP Scoreboards, but also for the SPDRs and their equal-weight counterparts that DecisionPoint follows. The market is taking a short pause. I suspect with options expiration tomorrow, we will see more flat trading though with higher volume. The purpose of the... READ MORE
Price Characteristics and Indicator Effectiveness There is NO SUCH thing as the perfect indicator. Further more, even if you find the almost perfect indicator, there is no such thing as the optimal setting. A 50-day SMA works great for one stock and lousy for another. 14-day RSI nails the oversold... READ MORE
Market Recap for Wednesday, September 13, 2017 Wide participation is a key to sustaining a bull market advance. We want as many indices, sectors and stocks on a buy signal as possible. That makes it nearly impossible for bears to regain control of the market as technical buyers show up... READ MORE
* Many positive indicators * Strong showing outside the US as well The last time I focused on the US stock market I pointed out that I liked the fact that the market was shrugging off bad news in the form of numerous widely circulated articles calling for a correction. While not... READ MORE
Lots of new signals today! Three important PMO signals arrived on the Dow, Bonds (TLT) and Dollar (UUP); not to mention two important Intermediate-Term Trend Model BUY signals on Russell 2000 ETF (IWM) and Consumer Staples SPDR (XLP). Feast your eyes on these charts! First and foremost, I must talk... READ MORE
SMALL CAPS ARE RISING AGAIN ... With the three major stock indexes hitting record highs yesterday, attention remains focused on market leaders. To me, the bigger story may be the resurgence of weaker parts of the market that have been holding it back. Small caps are at the top of the... READ MORE
Texas Instruments (TXN), the semiconductor behemoth, formed a bullish cup-with-handle pattern and a classic volume-based indicator points to a breakout. The chart shows TXN hitting resistance in the 83-84 area from June to September (red zone). In between these resistance points, the stock dipped to the 76 area in June... READ MORE
Market Recap for Tuesday, September 12, 2017 Financials (XLF, +1.18%) were the primary beneficiary on Tuesday as treasury yields rose. That typically leads to strength in this sector, with particular strength usually seen in banks ($DJUSBK) and life insurance ($DJUSIL). Yesterday was no exception and the DJUSBK is featured... READ MORE
No changes to the DP Scoreboards. We're just waiting on the Dow to log a PMO BUY signal. Reviewing the chart of the Dow we can see that a PMO BUY signal should trigger on the next positive close, if not sooner. Today's breakout to new... READ MORE
Technical analysis education suffered a great loss with the recent passing of Dr. Henry O. (Hank) Pruden. A consummate educator, in 1976, Hank combined his incredible capacity for inspiring students with his personal passion for Technical Market Analysis. The result was the very first graduate course, at an accredited university,... READ MORE
.... Sticking with a Strategy (IJR) .... Finance Sector Rebounds .... Broker-Dealer ETF Holds Up Better .... TD Ameritrade and Etrade Lead Brokers .... Industrials Sector Breaks Out .... Airlines Finally Perk Up .... Delta and American Lead Bounce .... Cisco, Teradata and Skyworks .... Sticking with a Strategy (IJR) Sticking with a strategy is perhaps the hardest part... READ MORE