.... Finance Sector Ignores Flattening Yield Curve .... 2-yr Yield Hits New High .... Yield Curve is not a Problem Until .... Correlation between KRE and the 10-yr Yield .... Correlation is Not Everything .... Back to Chart Basics .... Play the Pullback .... Finance Sector Ignores Flattening Yield Curve What would happen to the EW Finance ETF... READ MORE
I honestly do not know when or where I first heard of James Montier but believe it was a turning point in my investing and money management. Behavioral Finance / Investing is a relative newcomer to the world of investing, or at least the identification and writing about it. The human... READ MORE
Bank of America (BAC) broke out of a large bullish continuation pattern three weeks' ago and this breakout is holding. Overall, BAC surged from June 2016 to February 2017 and then consolidated with a large triangle pattern. A consolidation within an uptrend is a bullish continuation pattern and the... READ MORE
Market Recap for Friday, October 13, 2017 There are plenty of superstitious folks out there, but apparently the majority of stock traders don't fall under that umbrella. U.S. equities again rose on Friday with the Dow Jones, S&P 500 and NASDAQ all climbing to all-time... READ MORE
Dear Point and Figure Diary, As you know, I made an entry into your pages on July 15th of this year (click for a link). At the time, it appeared that two Reaccumulation Point and Figure Counts (PnF) were stacking up. This suggested another rally phase ahead in the Dow... READ MORE
Juniper Networks (JNPR) was under heavy selling pressure last week to open October, a seasonally bullish month for JNPR as the stock has averaged gaining more than 13% each October over the past two decades. The irony here is that we've seen JNPR twice in recent years open... READ MORE
Citrix (CTXS), which is part of the Internet ETF (FDN) and Software iShares (IGV), appears to have ended its correction and resumed its long-term uptrend. The stock hit a 52-week high in early 2017 and then declined from May to August. CTXS underperformed the market and its peers during this... READ MORE
Last week I identified a short-term parabolic advance, a pattern in which price advances in an ever-steepening upward curve. Typically parabolics become too steep and they collapse. In this case price moved sideways through the curve, effectively neutralizing the bearish implications of the formation. We currently have a small rising... READ MORE
Picture this: I am at a cocktail party chatting with three people about investing. The first person says, “I could be a really successful investor if only I could emotionally tolerate a bit more risk.” The second person claims, “I could be a world-class investor too if I had access... READ MORE
BOND YIELDS WEAKEN... Chart 1 shows the 10-Year Treasury Yield ($TNX) pulling back today to the lowest level for the month. The TNX is backing off from a test of its July peak near 2.4% which isn't too surprising. Its 14-day RSI line (top of chart) had... READ MORE
Market Recap for Thursday, October 12, 2017 It was certainly a bifurcated day among sectors. Four sectors advanced, including industrials (XLI, +0.53%) and utilities (XLU, +0.52%), while five declined. Financials (XLF, -0.76%) were hardest hit as the 10 year treasury yield ($TNX) has struggled to gain any... READ MORE
.... Consumer Discretionary Weighs on Market .... SPY and QQQ Hit Fresh New Highs .... IJR Edges Lower after Big Run .... A Hat Trick in the Technology Sector .... Industrials Pick up the Slack .... Materials Sector Leads with More New Highs .... Finance Sector Stalls Near New High .... Bullish Continuation Patterns Form in Energy .... XLU... READ MORE
A MarketWatchers LIVE viewer emailed me today and suggested I revisit the Put/Call Ratio chart. Upon recommendation, I did just that and was glad that he pointed it out to me so that I could point it out to you. I'll be talking about it in more... READ MORE
The Relative Rotation Graph for US sectors shows seven sectors clustered around the benchmark in the middle of the graph (SPY) and three of them further away. XLE is more or less detached from the rest of the universe while XLP and XLY are breaking away together and heading deeper... READ MORE
Advanced Micro Devices (AMD) spent over a year with its SCTR among the highest of all individual stocks. It was an impressive rally for sure as its stock price rose from below $2 to above $15 in 13 months. But even the hottest stocks need to evenually consolidate to unwind... READ MORE
Market Recap for Wednesday, October 11, 2017 A strange pair - utilities (XLU, +0.43%) and technology (XLK, +0.33%) - combined to lead our major indices higher on Wednesday with the NASDAQ rising 0.25% to close at another all-time high. Seven of the nine sectors ended the day... READ MORE
.... Microsoft Leads Fab Five with New High .... Alphabet Breaks Triangle Line .... Apple Reverses after Oversold Reading .... Amazon Breaks Wedge Line .... Avago Pattern Evolves into Ascending Triangle .... Cornerstone OnDemand Forms Double Bottom .... Universal Display Firms at Support and Zoetis Turns Up .... Understanding Cryptos and Blockchain .... Bitcoin Index Hits New High .... Microsoft... READ MORE
Carl and I have been watching the Gold chart carefully for a likely Intermediate-Term Trend Model (ITTM) Neutral Signal. However, with the rally of the last two days, both the 20-EMA and 50-EMA have slowed their descent. A negative 20/50-EMA crossover will trigger that ITTM Neutral signal. Why not... READ MORE
GOLD SPDR FAILS TEST OF RESISTANCE LINE... A month ago it looked like gold might be on the verge of a bullish breakout. It didn't happen. My September 7 message showed gold nearing a test of a major "neckline" extending back three years. The weekly bars... READ MORE
A recent double top and failure at the 200-day SMA point to lower prices for Comcast (CMCSA). The double top formed from May to early September with two highs around 42 and a low around 38. Comcast broke this low with a sharp decline and then became oversold. The stock... READ MORE
Market Recap for Tuesday, October 10, 2017 The Dow Jones finished 69 points higher on Tuesday to close at yet another all-time high. It's an illustration of how equities can remain overbought for an extended period of time. The Dow Jones moved into overbought territory (RSI 70+) 7-8... READ MORE
No changes to the DP Scoreboards today, but you can see that every signal is a BUY signal except the IT PMO signal on the NDX. Check out my ChartWatchers article to learn more about why that is the case. Ultra-short-term indicators had pointed to a possible "rally pop&... READ MORE
F5 Networks (FFIV) has a seasonal history of performing extremely well in October and November, but technically the stock has been a wreck since topping in March 2017 and the early October returns haven't been very good either. There is hope, however, in the form of upcoming price... READ MORE
Watching the evening news can give you a misleading and often wrong perspective on the stock market. Most commentators mention whether the Dow Jones Industrial Average was up or down and by how much, and that is just about the complete financial report, even though the Dow Jones’ 30 large... READ MORE
Market Recap for Monday, October 9, 2017 The U.S. major stock market indices took a breather - if you want to call it that - on Monday as the Dow Jones, S&P 500 and NASDAQ all fell less than 0.25%. Only the Russell 2000 lost more... READ MORE
.... Nearing the Moment-of-truth for TLT and $TNX .... How the 10-yr Yield Affects other Names .... Gold, Silver and Gold Miners Reverse Near Key Retracement .... Newmont Forms Bull Flag .... Working with High-Low Percent Indicators .... Finance, Industrials, Tech and Materials Lead New High List .... New Highs Expand for XLK .... Three Different Sector Views... READ MORE
* Short-term October stock market correction? * Healthcare not looking so healthy * Dollar likely to digest recent gains over the immediate short-term * How about a rally in gold? Short-term October stock market correction? The strongest seasonal of the year for equities comes at year-end. Since this is a bull market, it seems... READ MORE
This morning I saw a commercial for the Global X Lithium ETF (LIT), and I thought, "Hmmm, lithium . . . batteries for iPhones, MacBooks, etc." So I pulled up a chart of LIT, and all kinds of things jumped out at me. First I saw the parabolic advance that got... READ MORE
The S&P 500 is near all time highs and we are in a bull market, but Advance Auto Parts (AAP) did not get the memo and recent signals point to new lows. First and foremost, the long-term trend is down because the 50-day SMA is below the 200-day... READ MORE
Market Recap for Friday, October 9, 2017 Extremely overbought and extended conditions. Complacency in the form of a very low Volatility Index ($VIX) reading. Geopolitical tensions. Then a negative jobs report. The market was surely doomed on Friday, right? Wrong. That complacency, as evidenced by near record low readings in... READ MORE
While we've seen many indices, ETFs and individual stocks break out over the past several weeks, there are still many that are consolidating in bullish fashion and those, upon breakout, provide solid trading opportunities. Enter DXC Technology Company (DXC). Over the past two months, the S&P... READ MORE
They say how time flies; and it's true, especially from one earnings season to another, and starting this week we're going to start hearing from thousands of companies as they release their numbers. And boy, there's nothing traders and longer term investors care about... READ MORE
Chart 1 shows the Powershares QQQ ETF hitting a record high this week. It was the last of the major stock indexes to do so, and its breakout is a positive sign for the market. It also did slightly better than the rest of the market. The QQQ, however, has... READ MORE
The Relative Rotation Graph above shows the rotation of the three size indices that make up the S&P Composite 1500 index. Although the S&P 500 large cap index ($SPX) is still clearly on the right-hand side of the RRG, making very small rotations close to the... READ MORE
NASDAQ 100 HITS NEW HIGH... Chart 1 shows the Powershares QQQ ETF hitting a record high this week. It was the last of the major stock indexes to do so, and its breakout is a positive sign for the market. It also did slightly better than the rest of the... READ MORE
I've been following the stock market for a long time and I'm always searching for that perfect signal that never fails. I still haven't found it and there are never any guarantees in the stock market, BUT following the rotation of money to aggressive... READ MORE
The Energy SPDR (XLE) is the top performing sector SPDR since mid August with a double digit advance over the last seven weeks. On the price chart, XLE broke out of the channel, exceeded its summer highs and pushed RSI above 70 for the first time this year. It was... READ MORE
Two strong sectors in September were Materials (XLB) and Industrials (XLI). During the second half of a business cycle expansion these themes typically do well, and that is the case here. The economy has begun to expand at a faster rate. These industries develop pricing power which allows them to... READ MORE
Today all but the NDX garnered new PMO BUY signals in the intermediate term. The intermediate-term PMO signals are gathered from the weekly chart PMOs and their crossovers. I'll give you a peek at the NDX weekly chart too, but it is much further away from a new... READ MORE
I awoke Monday morning to news of the outrage that had taken place in Las Vegas the night before, and I experienced the now all-to-familiar feelings of weariness at the state of the world. There has been enough rehash of this terrible event, and my purpose of mentioning it was... READ MORE