Tesla is proving to be an excellent ongoing case study. We suspect that the Composite Operator (CO) is very active in the electric automobile manufacturer. Please take a few minutes and review two prior posts; ‘The Point and Figure Distribution Paradox’ (click here) and ‘Shorts Find Tesla Shocking’ (click here)... READ MORE
IBM has been a very interesting stock to watch, but not to own. After 23 consecutive quarters of declining revenues, traders finally found something to be excited about in IBM's latest quarterly earnings report. Five years ago, IBM traded near 165. At Friday's close, it was... READ MORE
WTIC COMPLETES BULLISH BREAKOUT... The weekly bars in Chart 1 show WTIC Light Crude Oil ending the week above its early 2017 peak near $55 for the first time in more than two years. That upside breakout puts WTIC in sync with Brent Crude Oil which rose over $60 for... READ MORE
When considering this question, I believe the correlation indicator tells us most of what we need to know. After all, we're pondering which global market movements tend to be reflected in similar movements in the U.S. market. For purposes of the U.S. market, I'll... READ MORE
An uptrend means prices are advancing and higher highs are the order of the day. We do not know how long a trend will persist, but there is clear evidence that trends persist. Just look at the S&P 500 since early 2016 for a recent example. The 50-day... READ MORE
My Wednesday message showed Brent Crude Oil trading over $60 for the first time in more than two years. Brent is trading over $62 today. It also showed West Texas Intermediate Crude Oil (WTIC) trying to break through overhead resistance at $55. Chart 1 shows WTIC trading slightly above that... READ MORE
Of my comment, "Not out of the woods yet," you might ask, "What woods?" The market, after all, did manage to grind higher this week, so what's the problem? The problem that I see is a persistent weakness in our intermediate-term indicators, but we... READ MORE
I've been expecting a new PMO BUY signal on both the SPX and the OEX. The OEX managed to wrangle the PMO above its signal line, but the SPX is struggling to garner its PMO BUY signal. Big news on Oil! We just got a new Long-Term Trend... READ MORE
WTIC CRUDE OIL ATTEMPTING BULLISH BREAKOUT OVER $55... My Wednesday message showed Brent Crude Oil trading over $60 for the first time in more than two years. Brent is trading over $62 today. It also showed West Texas Intermediate Crude Oil (WTIC) trying to break through overhead resistance at $55.... READ MORE
Earnings Season is winding down. So far it's been quite positive. How do I know? Just look at the overall market. We certainly saw strong earnings from the tech giants including Amazon, Apple, Facebook and Google. In fact all of these are ripe for nice trades IF you... READ MORE
A note to my readers: It is with great pride that I have written The Traders Journal blog every week since 2012 — 52 weeks a year. I am deeply grateful for the support and loyal following of all my readers throughout that time. However, I must announce that today marks... READ MORE
.... Those Pesky Timeframes .... SPY Notches another New High .... Broad Advance Lifts QQQ to New Highs .... IJR Fluctuates within Bullish Consolidation .... Finance and Technology Lead .... Consumer Discretionary Struggles Internally .... Utilities and Materials are Close to 52-week Highs .... Industrials and Healthcare Pull Back within Uptrends .... XLE Breaks Flag Resistance as Oil Hits... READ MORE
Market Recap for Thursday, November 2, 2017 Financials (XLF, +0.94%) and industrials (XLI, +0.57%) led a Dow Jones rally on Thursday. Goldman Sachs (GS) paced the financial stocks in the Dow with more than a 1% gain, while Boeing (BA) was the best performing Dow component and the... READ MORE
The Relative Rotation Graph above plots a number of world equity markets against the FTSE all-world index and shows their relative rotation around this benchmark. With all the chatter going around on the S&P 50o index camping in the nose-bleed area this gives a refreshing angle to look... READ MORE
* SPDR Homebuilder ETF (XHB) * iShares Home Construction ETF (ITB) * Euro and yen looking vulnerable Limitations being proposed for the popular interest rate deduction on tax filings hit the two homebuilder ETF’s for six on Thursday. These are the SPDR Homebuilder ETF (XHB) and the iShares Home Construction ETF (ITB)... READ MORE
I know we all have seen the commercials for the newest or best investment of the decade. Now we are getting emails flooding our inboxes claiming to have an "investment of a lifetime"! I'm not saying that these are traps or always bad, but I can... READ MORE
.... Big Winners and Losers During Earnings Season .... Automatically Charting Sector and Industry Group .... Follow the Broader Market .... De-selection is Part of the Selection Process .... Big Winners and Losers During Earnings Season Stock picking is a tough game, even in the best of times. Earnings season is still underway and we... READ MORE
Market Recap for Wednesday, November 1, 2017 U.S. stocks jumped higher out of the gates at Wednesday's open, but was unable to hang onto those gains - especially on the NASDAQ. We did see a bit of strength in the final couple hours, though, after the FOMC... READ MORE
I promised to inform you when the Swenlin Trading Oscillators bottom in a concerted move to the upside and it happened already today. I pointed out in yesterday's blog article that the Swenlin Trading Oscillators (STOs) were now hitting oversold territory. This is exactly what we want to... READ MORE
A couple of years ago I introduced a trend following technique which I first learned in the late 1970s. I thought this would be a good time to review it; especially since this technique is now available in StockCharts.com’s symbol catalog. A trend follower’s lament: “Only the... READ MORE
BLOOMBERG COMMODITY INDEX REACHES EIGHT-MONTH HIGH... With all of the attention focused on daily stock market records, it may be going unnoticed that commodity prices are starting to show some decent gains. The weekly bars in Chart 1 show the Bloomberg Commodity Index ($BCOM) rising to the highest level in... READ MORE
Market Recap for Tuesday, October 31, 2017 Don't look now, but crude oil prices ($WTIC) are on the verge of moving to a 2 1/2 year high. Energy (XLE, +0.33%) has shown life since ending its downtrend that began back in December 2016. Rising prices in... READ MORE
Ford (F) consolidated after a big advance and this consolidation looks like a bullish continuation pattern. First, industry group strength and the long-term uptrend are in Ford’s favor. Ford is part of the red-hot Global Auto ETF (CARZ), which is up over 20% from its April low and trading... READ MORE
WellCare Group (WCG) posted quarterly earnings that beat Wall Street consensus estimates and the stock soared above recent price resistance. Volume surged as traders accumulated the healthcare provider. The Dow Jones U.S. Health Care Providers Index ($DJUSHP) broke out recently and WCG has performed exceptionally well on a relative... READ MORE
The Swenlin Trading Oscillator (STO) is an overbought/oversold indicator that can assist in identifying short-term tops and bottoms. There are two versions, one using advances and declines (STO-B), and one using advancing and declining volume (STO-V). DecisionPoint analysis considers these to be short-term indicators. Right now they are quickly... READ MORE
The Relative Rotation Graph above holds six ETF that represent various asset classes. The picture gives you the big picture of what is going on at asset class level on a relative basis against VBINX which is a Vanguard balanced index fund (60% equity / 40% bonds). This one frame immediately... READ MORE
.... Comparing Global Treasury Yields .... Watch Junk Bonds as a Leading Indicator .... T-Mobile Fails to Hold Breakout .... Merck Plunges to Potential Support .... Two Discount Brokers with Bullish Charts .... HACK and three Cyber Security Stocks .... Today we will start with a view of global Treasury yields and show how the US remains... READ MORE
Market Recap for Monday, October 30, 2017 Weakness permeated the U.S. stock market on Monday with the small cap Russell 2000 losing more than 17 points, or 1.15%. Other U.S. indices mostly followed suit, although the NASDAQ gave back very little from Friday's massive gains... READ MORE
As I was preparing for today's MarketWatchers LIVE broadcast this morning, Tom asked me to take a look at a handful of large cap breakout charts. The one that jumped out at me was that of Intel Corp (INTC). The chart pattern is worrisome. The recent move from... READ MORE
BroadCom looks set to continue its long-term uptrend with a breakout and fresh 52-week high. The chart shows BroadCom (AVGO) with Bollinger Bands, the Bandwidth indicator and the Percentage Price Oscillator (PPO). First, notice that the stock hit a 52-week high in July and the PPO(50,200,0) has... READ MORE
Special Note Every Monday, I provide possible short-term trade setups (today's featured setup is reflected below in the Monday Setups section). All of these setups, along with setups from the past few weeks, can be accessed by CLICKING HERE. If you'd like to review these setups... READ MORE
Recently we studied the NASDAQ Composite ($COMPQ) as it appeared to be on the verge of jumping into an uptrend after building a Cause. Now the $COMPQ is within one box of the minimum PnF count of our prior study ‘$COMPQ Up Close’ (click here). We evaluated two trading counts... READ MORE
I'm a big fan of candlesticks, particularly reversing candlesticks as they many times signal that a short-term downtrend has ended in an overall uptrending stock. One of my favorite trading strategies is to trade strong stocks off gap support. So what happens when both strategies meet? Well, JD.... READ MORE
NASDAQ 100 GAPS TO NEW RECORD ON FRIDAY... It started after the market closed on Thursday when a raft of big internet and technology stocks reported huge earnings which pushed their stock prices higher in after-market trading. It continued on Friday when those stocks scored explosive gains on strong volume.... READ MORE
T-Mobile is showing signs of life with an upturn off support and a positive divergence in RSI. As always, lets review the bigger picture before trying to make sense of current conditions. TMUS basically doubled from February 2016 to April 2017 with a 108% advance. This massive advance gave way... READ MORE
Last week there was a one-day decline that didn't actually last a whole day. On Wednesday this week there was a rather more robust decline, but it didn't last a full day either, and the market took back a good chunk of its losses by the... READ MORE
Just a quick headline! NDX whipsawed back into a PMO BUY signal after two days on a SELL. After today's brilliant move by the technology sector, the PMO was yanked back up above its signal line. This was a beautiful breakout today with a gap up to form... READ MORE
We’ve all heard the cliche that “shutting the barn door after the horse has bolted” means one is late to action after the damage is done. Yes, it’s human nature not to dwell on negatives when the stock market ride since March, 2009 has been so exhilarating. Consider... READ MORE
.... Amazon and Google Fool Billy Bear .... SPY and QQQ Edge Lower after New Highs .... QQQ Joins the Small-cap Dip .... IJR Falls Back into Flag Pattern .... 5 Sectors Hit New Highs - Tech Leads .... XLB Jumps to Fresh High .... XLF Breaks out of Flag .... XLK and XLI Extend with New Highs... READ MORE
Market Recap for Thursday, October 26, 2017 U.S. indices spent Thursday attempting to bounce back from losses earlier in the week. Based on that goal, it was mostly a successful day as most major indices finished with fractional gains. The NASDAQ lagged, ending the session with a loss of... READ MORE