The Dow Jones U.S. Gold Mining Index ($DJUSPM) held price support on its late-September swoon, but that was not the case with the recent selling. The reason? It's probably the reverse head & shoulders breakout on the U.S. Dollar (UUP). A rising dollar normally sends gold... READ MORE
I updated the DecisionPoint Scoreboards yet again today. Yesterday saw the new PMO SELL signals on the NDX and OEX and today the SPX has followed suit by generating its own PMO SELL signal. You'll note that "one of these things is not like the others"... READ MORE
Market Recap for Wednesday, October 25, 2017 It's difficult to know what to expect after U.S. equities posted their largest decline since September 5th. I don't recall the last time we saw all nine sectors lower, but that's exactly what we saw on... READ MORE
.... Active Management Comes at a Cost .... Add Some Beta with the S&P 500 High-Beta ETF .... Get Serious Beta from the IBD 50 List .... Creating a ChartList of the IBD 50 .... Today I am going to step back and show how we can set up a ChartList to focus... READ MORE
* Global short-term indicators start to go bearish near-term * VIX and other US oscillators showing signs of vulnerability Global short-term indicators start to go bearish near-term A couple of weeks ago I suggested that several short-term indicators were hinting at a near-term downside or range bound correction. Usually, I put in... READ MORE
Two important changes occurred on our DP Scoreboards today. The OEX and NDX both logged new PMO SELL signals as their PMOs crossed below their signal lines. I had expected the SPX to follow suit, but by an incredibly thin margin, its PMO BUY signal survived. The SPY wasn'... READ MORE
TEN-YEAR TREASURY YIELD REACHES SEVEN-MONTH HIGH ... Treasury bond yields are leading an upturn in global bond yields. Chart 1 shows the 10-Year Treasury Yield ($TNX) rising to the highest level since March. Part of the reason for the upside breakout in the TNX is that foreign yields are also rising.... READ MORE
Laboratory Corporation of America (LH) reported earnings today and surged above the 50-day moving average on the results. The trend since late July remains down, but recent price action is constructive and a breakout could be in the offing. The stock surged around 20% and hit a 52-week high in... READ MORE
Market Recap for Tuesday, October 24, 2017 The Dow Jones powered to another record high close on Tuesday, finishing the session higher by 167.80 points. Gains on the other major indices were much more modest as the Dow Jones pushed to record levels behind the strength of two components,... READ MORE
The Dow Jones U.S. Biotechnology Index ($DJUSBK) broke out of serious longer-term consolidation when it cleared 1800 price resistance in mid-June. Since then, we've seen a nice uptrend, characterized by rapid advances and steady pullbacks. The group lost nearly 120 points from Friday's intraday high... READ MORE
Market Recap for Monday, October 23, 2017 After early strength, Monday was a seller's market. As you might expect on one of the more bearish days of late, defensive sectors showed renewed relative strength with utilities (XLU, +0.05%) and consumer staples (XLP, -0.07%) the two top... READ MORE
.... Bonds, Gold and the Dollar .... XME Holds Breakout with Bullish Pattern .... Medtronic Hits Reversal Zone with Selling Climax .... Old School Tech Stocks Take the Lead .... Facebook and Amazon Stall .... Uptrends in Alphabet and Apple Slow .... Palo Alto Forms Bull Flag .... The short-term uptrend in the Dollar and short-term downtrend in... READ MORE
On Friday, Gold minted a new IT Trend Model Neutral signal, so it isn't surprising to see the opposite occur for the Dollar. Looking at the chart of UUP, there are plenty of bullish characteristics. This new IT Trend Model BUY signal is a great confirmation of the... READ MORE
US Bancorp (USB) ended a long corrective period with an upside breakout and this breakout is holding. Note that USB is part of the Financials SPDR (XLF) and the Regional Bank SPDR (KRE). These two are up double digits over the last six weeks and this puts has sector and... READ MORE
Market Recap for Friday, October 20, 2017 Friday was a day of more all-time high closes. It's been quite redundant, but the bulls certainly don't mind. This time we saw leadership from aggressive areas of the market - a very bullish sign indeed. Financials (XLF, +1.... READ MORE
Let me start by stating that the NASDAQ 100 has earned 61.9% of its gains over the past 20 years during the fourth quarter. Yep, October through December has accounted for nearly two thirds of the gains on the NASDAQ 100. So you would think that most of its... READ MORE
General Electric (GE) is a venerable old company in the Dow Jones Industrial Average. It was formed (Thomas Edison was the most famous of its founders) in 1892 and in 1896 it was among the first 12 stocks in the newly formed Dow Jones Industrial Average. Now GE is the... READ MORE
There are different ways to view best seasonal stocks depending on whether you're interested solely in average returns for a particular month or time period or if you're interested in the percentage times that a security rises for a particular month or time period. Thus, is... READ MORE
The EW S&P 500 ETF, S&P MidCap SPDR and S&P 500 SPDR moved to new highs this week, but the S&P SmallCap iShares and Russell 2000 iShares are lagging and remain below their early October highs, which were 52-week highs. The PerfChart... READ MORE
The fact that U.S. rates are rising faster than elsewhere on the globe is boosting the dollar. A rising dollar usually hurts the price of gold. And it is. Chart 1 shows the upturn in the Dollar Index (UUP) near the start of September (when Treasury yields turned up)... READ MORE
I recently wrote about Gold in the DecisionPoint blog. We saw the 20-EMA pull out of its decline to keep its ITTM BUY signal. However, the gravitational pull of price after it couldn't hold support at 1300 was too much and the 20-EMA finished just below the 50-EMA... READ MORE
Back in September the market had a small pullback that took all of three days (blue circle on chart below). This week I was expecting at least something similar, but all that happened was an intraday dip on Thursday that disappeared by the time the market closed! Then on Friday... READ MORE
Earnings season is in full swing now and so far so good. How do I know this? All you have to do is look at the overall market reaction. And it doesn't hurt when a giant tech company left for dead knocks it out of the park. Take... READ MORE
When is the last time someone offered to give you a couple hundred hours of “time”? We are here to do precisely that! You’ve all heard the cliche that “even the richest man has only the same 24 hours in a day as the poorest man.” Regardless of what... READ MORE
UPSIDE BREAKOUT IN BOND YIELDS MAY BE IMMINENT... Bonds yields are jumping again today. That may be based on increased chances for a tax reform package. Chart 1 shows the 10-Year Treasury Yield ($TNX) gapping 6 basis points higher in Friday trading. That puts the TNX within striking distance of... READ MORE
.... Large-caps and Mid-caps Hit New Highs .... SPY has been "Overbought" Since mid September .... QQQ Hits Another New High .... Flags, Pennants and Short-term Consolidations .... IWM and IJR Remain with Falling Flags .... XLY Forms Bullish Pennant .... XLF and XLI Consolidate after Big Moves .... XLE Tests Flag Lows .... Tech, Healthcare and... READ MORE
Reminder: If you enjoy my blog, please look for the green "Notify Me" button at the bottom of this article and subscribe! Simply type in your email address and hit that button and VOILA! You'll receive my articles the moment they're published. And don&... READ MORE
In the top-right corner of the homepage at StockCharts.com, there is a table that holds "Market Movers". It defaults to the top10 "most active" in the S&P 500 but you can change that using the buttons and drop-downs. Below the table, you will... READ MORE
Applied Optoelectronics (AAOI) was one of the darlings of Wall Street in 2017.....until early August. Since that time, AAOI has declined nearly 60% in less than three months and has shown no signs of a reversal. The most recent drop a little over a week ago was as a... READ MORE
Tom Bowley and I have been talking on MarketWatchers LIVE about sector rotation and how the healthcare sector is getting more "healthy". Today I got confirmation that this sector is back in favor. A PMO BUY signal was generated on both the Healthcare SPDR (XLV) and on the... READ MORE
Market Recap for Wednesday, October 18, 2017 The Dow Jones sliced through 23000 like a hot knife through butter. Many times, these round numbers represent a psychological challenge for traders, but that was not an issue for this bull market. Instead, the Dow Jones soared 160 points to yet another... READ MORE
.... Small-cap ETFs Form Falling Flags .... XLE Stalls as XES Breaks Down .... Watching Two Timeframes for Oil .... Shipping ETF Turns Up .... Oracle Bounces off Support .... There are lots of small consolidations on the charts as the market digests the gains from mid August to early October. The S&P 500... READ MORE
The short-term rally in large-cap indexes like the SPX, OEX and INDU was not contagious for the S&P 600 or Russell 2000. Below I've annotated their associated ETFs, IJR and IWM to show you the new PMO SELL signals. Although these SELL signals arrived today, a... READ MORE
TEN-YEAR TREASURY YIELDS IS RISING AGAIN... After a modest setback last week, global bond yields are rising again. Chart 1 shows the 10-Year Treasury Yield ($TNX) climbing four basis points today. The TNX appears headed for another test of its July/early October peaks formed near 2.40%. An eventual... READ MORE
* Special K offers a trend reversal signal * Euro looks toppy * Gold could be vulnerable * Watch those commodities Special K offers a trend reversal signal The Dollar Index ETF, the UUP, remains below its long-term moving averages and most long-term smoothed momentum, such as the KST also continues to drop. That... READ MORE
Market Recap for Tuesday, October 17, 2017 Healthcare stocks (XLV, +1.34%) led the Dow Jones to yet another all-time high close as the Dow traded above 23000 on an intraday basis for the first time in its history, closing just beneath that psychological level at 22997. It was really... READ MORE
Chartists should watch Gilead (GILD), Amgen (AMGN) and Merck ($MRK) because all three are forming bullish continuation patterns. First and foremost, all three hit new highs in September so it is safe to assume that the long-term trends are up. AMGN and MRK have been trending higher the last 12... READ MORE
Over the past twenty years, Mettler Toledo Intl (MTD) has averaged gaining 23% per year, but that's not the most impressive performance stat for the company. During the months of October and November, MTD has risen 85% and 95% of the time, gaining an average of 3.3%... READ MORE
Teflon rally, perma-rally, overbought rally, irrational exuberance...whatever you call it, our indicators are suggesting at a least pause in the action, if not a pullback. Looking at the DP Scoreboards, we see all green arrows (buy signals) except for the IT PMO signal on the NDX. Although the NDX&... READ MORE
Market Recap for Monday, October 16, 2017 In true bull market fashion, U.S. stocks rose once again in rather boring action. The Dow Jones, S&P 500 and NASDAQ gained 0.37%, 0.18% and 0.28%, respectively, to each finish at all-time closing highs. The record levels... READ MORE