Imagine a football coach who has the best eleven quarterbacks in the NFL altogether on the same team and puts them on field at the same time. This “dream team” would get clobbered. Without tight ends, tackles, guards, wide receivers and a center there to present a balanced attack, there... READ MORE
.... Small-caps Lead Broadening Rally .... Small-caps High-Low Percent hits 2017 High .... Death of QQQ Greatly Exaggerated .... IJR Extends on Breakout .... Sectors Reflect Broad Strength .... Tech, Finance, Industrials and Materials Lead .... HealthCare SPDR Turns Up after Pullback .... XLY Catches a Strong Bid .... XLU Goes for a Flag Breakout .... Energy Stalls after Big... READ MORE
Market Recap for Thursday, October 5, 2017 Well, if you were worried about an underperforming technology sector and the inability of the NASDAQ 100 ($NDX) to reach new highs, you can stop worrying. Both broke out on Thursday with emphatic moves to clear highs established over the summer. First, check... READ MORE
It took the NDX two weeks to a month more to update its Short-Term PMO to a BUY signal in comparison to its peers. The dates underneath the signals on the Scoreboard tell the story of a difficult decline and then rally run for the NDX and technology in general.... READ MORE
The relationship between Stocks and Gold * Long-term Picture * Three interpretive rules * Looking at it the other way. The Gold/stock Ratio * Two Politically troubled ETF’s, are so technically troubled Long-term Picture One of the areas I focused on in my latest Market Roundup Webinar was the tight trading range... READ MORE
COPPER PRICES ARE REBOUNDING ... After rising to the highest level in three years a month ago, the price of copper experienced a modest correction during September. Chart 1 shows the metal pulling back to initial chart support along its August low and its 50-day moving average. But it's... READ MORE
Blackberry's (BBRY) demise from 2008 through 2012 has been well documented and I'm not really interested in dwelling in that past. More recently, however, BBRY has attempted on multiple occasions to clear price resistance in the 11-12 range. Clearing such resistance would be technically significant and... READ MORE
.... Testing the Basic PPO Signal Line Cross .... Setting the Benchmark .... Consulting, Software and Data .... System Ground Rules .... PPO Signal Line System .... A Winning Chart and a Losing Chart .... Breaking a Tie and Favoring Momentum .... Backtest Results Favor Large-caps .... Profit Factor Metric .... Conclusions and Caveat Emptor .... Testing the Basic PPO Signal... READ MORE
Market Recap for Wednesday, October 4, 2017 This bull market advance continues to be about rotation. Index rotation. Sector rotation. Individual stock rotation. Few areas of the market are breaking down. It's mostly about gains, consolidation, then more gains. On Wednesday, the red hot Russell 2000 took a... READ MORE
Developed by Sherman and Marian McClellan, the McClellan Summation Index is a breadth indicator derived the McClellan Oscillator, which is a breadth indicator based on Net Advances (advancing issues less declining issues). The Summation Index is simply a running total of the McClellan Oscillator values. Even though it is called... READ MORE
Alphabet, which some of you may know as Google, surged off a support zone with good volume and broke short-term resistance. This breakout could evolve into more because the big picture is also bullish. GOOGL advanced to a new high in May and then consolidated with a long consolidation. The... READ MORE
Market Recap for Tuesday, October 3, 2017 It didn't take long for the seasonal tailwinds to kick in for airlines ($DJUSAR). I posted last Friday that airlines were poised to breakout technically and highlighted Alaska Air Group (ALK) as one airline that has performed extremely well during the... READ MORE
Plenty of actionable rotation towards the edges of the Relative Rotation Graph above. The RRG holds the 30 members of the Dow Jones Industrials index. Scanning around the outside of the chart the following stocks draw the attention. In the weakening quadrant, MCD is at the lowest JdK RS-Momentum reading... READ MORE
The Market Round Up Video Recording for October is available. Use the HD button for better clarity when viewing. Market Round Up Live With Martin Pring 2017-10-04 from StockCharts.com on Vimeo. Good luck and good charting, Martin J. Pring The views expressed in this article are those of the... READ MORE
No new changes on the DecisionPoint Scoreboards at this time, but we should see the IT PMO signals change on Friday. I was notified by my Technical Alert that weekly PMO crossovers occurred on all but the NDX. These signals will need to stay intact at the end of trading... READ MORE
Airlines ($DJUSAR) absolutely "took off" in today's action as buyers emerged to drive nearly every airline higher. Spirit Airlines (SAVE) surged 7.10%. JetBlue Airways (JBLU) popped 7.08%. Delta Air Lines (DAL) jumped 6.62%. One fundamental reason for the group's strength was... READ MORE
AIRLINES TAKE OFF... Airlines stock are finally gaining some altitude. Previous messages have shown rails, truckers, and delivery service stocks leading the Dow Transports to record highs. My September 20 message described airlines as the weakest part of that sector, but showed them in an oversold condition and trying to... READ MORE
Market Recap for Monday, October 2, 2017 It was another record day on Wall Street. The Dow Jones, S&P 500, NASDAQ and Russell 2000 all closed at fresh all-time highs. Wide participation is a hallmark of a bull market rally and, make no mistake, there's been... READ MORE
.... The Little Bull that Could .... Industrials, Finance and Tech Lead New High List .... Cyber Security and Networking ETFs Turn Up .... Strategy Note - A New High in the Future .... Metals-Mining and Steel ETFs Bid to End Pullbacks .... Freeport McMoran Stalls within Uptrend .... Nucor and Steel Dynamics Attempt to End Corrections... READ MORE
FINANCIALS CONTINUE TO LEAD ... Financial stocks continue to build on their strong September gains. Chart 1 shows the Financial Sector SPDR (XLF) hitting a new record high again today. Rising interest rates are the main force driving money into banks, brokers, and insurers. The black line just above the price... READ MORE
Wanted to update readers on two new signal changes that triggered after the close today. You'll see that the NDX DecisionPoint Scoreboard has logged yet another change for the NDX. This time a ST Trend Model BUY signal. The NDX triggered an ST Trend Model BUY signal today... READ MORE
3M (MMM) is helping itself and the Dow Industrials with a breakout in mid September. As a price-weighted average, the stocks with the highest price carry the most weight and MMM, which is the third highest-priced stock, accounts for around 6.5% of the Dow. On the price chart, the... READ MORE
I have written often about market internals or market breadth. In fact, there was a whole series of articles as I was updating my “The Complete Guide to Market Breadth Indicators” book. The articles began with CGMBI; there were 10 of them, all back near the beginning of my article... READ MORE
Market Recap for Friday, September 29, 2017 We wrapped up the third quarter on Friday with all-time highs showing up everywhere. There was a big buying push into the close on Friday, likely in anticipation of more strength during the fourth quarter. There was strength in most aggressive areas of... READ MORE
* Two bullish dollar charts * Several dollar sympathy relationships are likely to reverse In a couple of September articles on the dollar I suggested that the potential for a short-term rally existed, as bearish sentiment and other indicators appeared to have moved to an extreme. A rally of some kind does... READ MORE
Delivery services ($DJUSAF) broke out of a bullish continuation cup with handle pattern a few weeks ago and appears poised for a further fourth quarter rally, albeit with some profit taking along the way. Bullish continuation patterns require a prior uptrend and the DJUSAF certainly had that. Check out the... READ MORE
Last week I thought that a market correction was beginning, but all we got was a one-day, downside blip that ended at the low on Monday. From there the market edged higher, closing at new, all-time highs on Thursday and Friday. Nevertheless, the gain for the week was less than... READ MORE
Most investors will admit that they have at some point been guilty of chasing yield. This is not surprising with the ultra low yields on money market accounts and the expanding Baby Boom generation’s needs for income. It’s a common refrain. Problems arise when one does not completely... READ MORE
.... VIX Extends its Low Run .... Revisiting Seasonality .... QQQ Lags, but Doesn't Drag .... Small-caps and Micro-caps Take the Lead .... Biggest Momentum Surge in 10 Years for IJR .... Sector Participation Supports Bull Market .... Industrials and Finance Lead with Fresh Highs .... Technology and Materials Not Far Behind .... Healthcare and Utilities Correct... READ MORE
Market Recap for Thursday, September 28, 2017 After early selling on Thursday, U.S. indices mostly rebounded throughout the balance of the day resulting in mostly slight gains by day's end. Materials (XLB, +0.71%) performed quite well after nearly testing its rising 20 day EMA on Wednesday.... READ MORE
Within the past week, we've seen the $NDX beaten up. However, it really has been the result of a few large-cap stocks that have taken the NDX so low. I think this can be most clearly seen when you compare the equal-weight NDX ETF (QQEW) with the $NDX.... READ MORE
Most of us are familiar with positive and negative divergences in momentum indicators. These divergences suggest that directional momentum is slowing and there could be a trend reversal. There is just one problem. Most divergences are at odds with the bigger trend. Most negative divergences form in an uptrend and... READ MORE
HIGH YIELD BONDS ARE OUTPERFORMING INVESTMENT GRADE BONDS... One of the ways that we can tell which way interest rates are expected to trend is to compare the relative performance of various bond categories. Let's start with corporate bonds. Chart 1 is a ratio of the iBoxx High... READ MORE
Market Recap for Wednesday, September 27, 2017 U.S. stocks were lifted at least in part by rising treasury yields. The 10 year treasury yield ($TNX) spiked 8 basis points and that represents a significant selloff in treasuries. Those proceeds tend to be reinvested in equities and that was certainly... READ MORE
It's clear looking at the NDX Scoreboard that technology has been taking it on the chin. Today, tech titans like Micron (MU), Apple (AAPL) and Advanced Micro Devices (AMD) had a great day and consequently pushed the NDX upward. It wasn't enough to clear the ST... READ MORE
10-YEAR TREASURY YIELD SURGES TO TWO-MONTH HIGH... The green bars in Chart 1 show the 10-Year Treasury Yield ($TNX) jumping 8 basis points today to reach the highest level since the end of July. The chart also shows the TNX having risen above a falling trendline drawn along its March/... READ MORE
Market Recap for Tuesday, September 26, 2017 Late day selling created a bifurcated U.S. market on Tuesday as small caps performed quite well ($RUT, +0.34%), while the Dow Jones finished slightly in negative territory. Technology (XLK, +0.36%) rebounded after Monday's selling to lead most of... READ MORE
The US Dollar ETF (UUP) is made of five currency pairings. The Dollar/Euro ($USDEUR) pair accounts for 57.6%, Dollar/Yen ($USDJPY) weighs 13.6%, Dollar/Pound ($USDGBP) is 11.9%, Dollar/Canadian ($USDCD) is 9.1% and Dollar/Swiss ($USDCHF) is 3.6%. Clearly, the Dollar/Euro relationship... READ MORE
RUSSELL 2000 ISHARES LEAD SMALL CAPS TO RECORD HIGHS... The S&P Small Cap Index ($SML) and the Russell 2000 Small Cap Index ($RUT) are hitting record highs today. Small cap value stocks are the main driver behind the breakout. Chart 1 shows the Russell 2000 Value iShares (IWN)... READ MORE
Let’s have a peak at some interesting sectors. At times, sectors can tip us off to the motives of the market. Sectors and Industry Groups have a general tendency to be either early, coincident or late business cycle beneficiaries. This business expansion has certainly been a long one and... READ MORE