The sector SPDRs are weighted by market-cap and this means the biggest stocks carry the most weight. The Materials SPDR (XLB), for example, is dominated by Dow Chemical (11.86%) and DuPont (12%). These two behemoths are poised to merge and the combined company will clearly dominate XLB going forward.... READ MORE
Market Recap for Tuesday, August 22, 2017 All nine sectors advanced on Tuesday to lead a broad-based advance on Wall Street. The NASDAQ and Russell 2000 were the top performing indices, but the S&P 500 also saw a gain of nearly 1% and the Dow Jones bounced nearly... READ MORE
After a wonderful wedding and honeymoon, I have finally returned! It took some time to review and update my annotations and I see that we've had quite a few signal changes while I was gone. The market has been meandering lower this month since I left and consequently... READ MORE
Market Recap for Monday, August 21, 2017 Healthcare (XLV, +0.45%) led the market's advance on Monday's total solar eclipse day as money rotated into more defensive areas of the market. Utilities (XLU, +0.37%) and consumer staples (XLP, +0.36%) also benefited and this move... READ MORE
.... EW S&P 500 ETF Stalls in Potential Reversal Zone .... Checking the Chandelier Exit on IJR .... S&P 500, Five Percent and the 200-day .... Scanning for Short-term Relative Strength .... Scanning within a Sector .... Bottom Fishing for the Long-term .... PKI Firms at a Key Retracement .... Small-cap Breadth, Large-cap Leadership,... READ MORE
Newmont Mining (NEM) is one of the bigger gold players and its performance is tied to the price of gold, which is challenging resistance. Note that the Gold SPDR (GLD) has yet to break above its April-June highs, but Newmont is starting to outperform bullion with a break above these... READ MORE
Market Recap for Friday, August 21, 2017 Late day selling killed the market's earlier attempt to rebound from Thursday's heavy losses. A market that finishes multiple days in a row weak is a market that requires a renewed buying effort. While we could see that at... READ MORE
I'm mostly a short-term momentum trader that likes to follow the big picture trend. But it's hard to ignore stocks after they've been bludgeoned for a potential quick bounce, especially when you see a reversing candle on heavy volume. Enter AMC Entertainment Holdings (AMC)... READ MORE
The Relative Rotation Graph above holds the 30 stocks that make up the Dow Jones Industrials Index and compares their relative rotation to $INDU. From the first observation of this chart, a few tails/stocks catch the eye. First, there is BA in the top-right, leading, quadrant still powering further... READ MORE
Bull markets are fueled by sector and industry group rotation. Throughout the bull market since 2009, we've seen each of the key aggressive sectors take their turn leading on a relative basis. Within each sector, we also see relative leadership and weakness among industry groups. For example, over... READ MORE
S&P 500 FALLS TO SIX-WEEK LOW... Selling pressure resumed with a vengeance today. And a lot of support levels have been broken. Chart 1 shows the S&P 500 falling back below its 50-day average to the lowest level in more than a month. Volume was higher.... READ MORE
As earnings season winds down traders are going to be looking for new reasons to be long the market. So far, according to Thompson's Reuters, 460 of the companies represented in the S&P 500 have reported earnings with almost 74% beating expectations. This is 10% above... READ MORE
Doubles Tops are forming in two key ETFs, the Semiconductor SPDR (XSD) and the Consumer Discretionary SPDR (XLY), and chartists should watch these important groups for clues on broad market direction in the coming week or two. First, let's talk about the Double Top. These patterns form with... READ MORE
Last week I wrote: "I would like for the correction to continue for a while, but honestly, we may have just hit bottom." Well, the market did make a bottom, but it was just for a short bounce prior to this week's failed retest of last... READ MORE
Today the Dow Jones Industrial Average ($INDU) 5EMA crossed down through the 20EMA, changing a Short-Term Trend Model (STTM) BUY signal to NEUTRAL. Recently we have been plagued by deluge of whipsaw signals on the other three major indexes we track here, but the Dow has been quite unambiguous, holding... READ MORE
The reality is that markets operate within the law of groupings. This is precisely why I have formatted my unique chart view in a pull-down menu under ChartStyles. You simply click on “Gatis Roze” at the bottom of “Predefined Settings” and up pops the Tensile Trading analysis format that clearly... READ MORE
* Bearish short-term charts suggest there is more to come on the downside * Consumer Discretionary—not so discreet * Energy—out of gas * Utilities—a place to hide? Bearish short-term charts suggest there is more to come on the downside For the last two weeks, I have been zeroing in on a... READ MORE
The market has been rising ahead of earnings for over two years, and it is very overvalued. Nevertheless, bullish investors seem unconcerned. The chart below shows the S&P 500 Index (black line) in relation to where it would be if it were undervalued (P/E 10 - green... READ MORE
.... Those Noisy Small and Mid Caps .... Correction Signals versus Bear Market Signals .... High-Low and AD-Volume Lines Turn Down .... SPY and QQQ Have Yet to Break Down .... Non-confirmation between RSP and SPY .... Small-caps Extend Oversold Readings .... Utilities and Technology Leading .... Finance and Staples Still Holding Up .... Industrials-Healthcare-Materials Extend Corrections .... TLT Extends... READ MORE
Market Recap for Thursday, August 17, 2017 For now it's just a short-term issue, but money is rotating to defensive areas and fear is rising. The Volatility Index ($VIX) jumped over 32% yesterday to close at its 5th highest level of 2017. The highest close of 16.04... READ MORE
Mr. Wyckoff called his charting methodology ‘Tape Reading’. Determining the present position and probable future direction of prices from their own action. Prices have tendencies which can be detected on the charts. Context is the idea that recent price action will provide clues about what to expect next. This is... READ MORE
Unless there's a reversal on Friday, the Dow Jones U.S. Internet Index ($DJUSNS) will close lower for the fourth consecutive week, equaling its longest losing streak since the DJUSNS bottomed in late 2008. There's a decent chance a new record could be set next week... READ MORE
Today both the S&P 100 ($OEX) and Nasdaq 100 ($NDX) Indexes switched from Short-Term Trend Model BUY signals to NEUTRAL, when their 5EMAs crossed back down through their 20EMAs. With only two days since the last signal changes, this is more annoying whipsaw, but I think these signals... READ MORE
S&P 500 FALLS TO SIX-WEEK LOW... Selling pressure resumed with a vengeance today. And a lot of support levels have been broken. Chart 1 shows the S&P 500 falling back below its 50-day average to the lowest level in more than a month. Volume was higher.... READ MORE
Market Recap for Wednesday, August 16, 2017 All of our major indices finished higher on Wednesday and seven of our nine sectors finished higher as well. The primary laggard on the session? Energy (XLE, -0.96%). Go figure. A significant reason for the XLE's renewed relative weakness has... READ MORE
.... Medical Devices ETF Bids to End Correction .... An ETF is Only as Good as it's Component Stocks .... Scanning for Trends with a ChartList .... Charting the Top Five IHI Stocks .... Abbot Surges off Support .... Thermo Fisher Consolidates after Gap .... Danaher Bounces after Support Break .... Boston Scientific Firms in Retracement... READ MORE
** While Erin is away, we will be posting some of her "greatest hits" educational blogs. Some information may be dated ** During the MarketWatchers LIVE program (airs 12:00p - 1:30p EST M/W/F), Tom Bowley and I have started a segment called "Anatomy of a... READ MORE
WHY IT'S IMPORTANT TO TRACK THE PERFORMANCE OF SMALLER STOCKS... One of the concerns expressed recently by several technical analysts (including myself) has been the relatively weak performance by small stocks. That's because they often tell us more about the true state of the stock market... READ MORE
The long-term trend for Applied Materials (AMAT), a big semiconductor equipment manufacturer, is clearly up and the short-term trend could be turning up again with a gap three days ago. The chart below shows AMAT hitting a 52-week high in early June and then forming a large triangle. This is... READ MORE
Market Recap for Tuesday, August 15, 2017 July retail sales doubled expectations (+0.6% actual vs +0.3% consensus estimate) and we saw the kind of reaction in the bond market that we'd expect with treasury prices tumbling and treasury yields spiking. But what happened to retail stocks?... READ MORE
HOME DEPOT AND LOWES TUMBLE... Heavy selling in retail stocks is weighing on cyclical stocks which are the one of the day's weakest sectors. Home improvement stocks are the day's weakest group in that sector. Chart 1 shows Home Depot (HD) losing nearly -3% and falling... READ MORE
Did you hear about the six-foot tall Texan that drowned while wading across a stream that averaged only 3 feet deep? The “World of Finance” is fraught with misleading information. The use of average is one that needs a discussion. Figure A shows how easily it is to be confused... READ MORE
Market Recap for Monday, August 14, 2017 When the stock market goes up, I want to see money rotate towards aggressive areas and we definitely saw that on Monday. Technology (XLK, +1.59%), financials (XLF, +1.37%) and industrials (XLI, +1.05%) were the three big winners on the session... READ MORE
.... Transport ETF Bounces off Key Retracement .... Airline ETF Returns to Breakout Zone .... Railroad Stocks are in Uptrends .... XSD Bounces of Support .... Diodes and Skyworks Turn Up .... Microsoft, Facebook and Apple Lead the Fab Five .... Pfizer Shows Good Volume Trends .... Thor Surges off Gap Zone .... Transport ETF Bounces off Key Retracement... READ MORE
** While Erin is away, we will be posting some of her "greatest hits" educational blogs. Some information may be dated ** With the market overbought and ready for at least a pullback, I decided to run one of my bear market Price Momentum Oscillator (PMO) scans to see if... READ MORE
On Friday the S&P 100 ($OEX) and Nasdaq 100 ($NDX) had Short-Term Trend Model (STTM) signal changes from BUY to NEUTRAL. Today they switched back to BUY. The dreaded whipsaw again. Also, the Dow Jones Industrial Average ($INDU) had a short-term PMO signal change from BUY to SELL.... READ MORE
The Dow Industrials is in a clear uptrend with a fresh 52-week high just last week. Note that this senior Average is hitting these new highs without much help from its second largest component, Goldman Sachs. For reference, the Dow Diamonds (DIA) is up around 13% year-to-date and GS is... READ MORE
Market Recap for Friday, August 11, 2017 Here's a fact: The benchmark S&P 500, along with all the major U.S. indices, had a rough week last week. Traders aren't used to weekly declines of more than 1%, yet that's exactly what... READ MORE
The Russell 2000 fell for the third consecutive week and its 2.70% loss last week fell below its rising 20 week EMA for only the second time in 2017. It was a significant violation and now this index is staring at key price and moving average support in the... READ MORE
Golden Gate University’s technical analysis courses are in demand from students around the globe. The Wyckoff classes that Dr. Pruden and I teach welcomes students from many countries. These students, applying the Wyckoff Methodology, present stock case studies to the class. Often the international students highlight stocks listed on... READ MORE