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INTEREST RATES CLIMB ALONG WITH THE DOLLAR -- INVESTMENT GRADE CORPORATES WEAKEN -- DROP IN JUNK BONDS MAY BE SHORT-TERM WARNING FOR STOCKS -- SMALL CAPS THREATEN 50-DAY LINE -- ENERGY SPD...

INTEREST RATES CLIMB ALONG WITH THE DOLLAR -- INVESTMENT GRADE CORPORATES WEAKEN -- DROP IN JUNK BONDS MAY BE SHORT-TERM WARNING FOR STOCKS -- SMALL CAPS THREATEN 50-DAY LINE -- ENERGY SPDR PLUNGES ON FALLING CRUDE OIL

BOND YIELDS CONTINUE TO CLIMB... Chart 1 shows the 10-Year Treasury Yield (TNX) climbing to 2.55% which is the highest level this year. The 2-Year Treasury yield (most sensitive to a Fed rate hike) has climbed to 1.35% which is the highest level in seven years. Odds for...   READ MORE 

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Is The Global Bull Market In Interest Rates Resuming?

Is The Global Bull Market In Interest Rates Resuming?

* The global picture * Short-term rates * Longer-term rates * International rates The Global Picture When I talk about interest rates I am referring to a general advance that takes place at both ends of the yield spectrum. I make this reference because in many situations certain maturities and credit qualities do not...   READ MORE 

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Microsoft Stalls within Uptrend as Stochastic Oscillator Starts to Turn

Microsoft Stalls within Uptrend as Stochastic Oscillator Starts to Turn

It always piques my interest when a stock bucks the broader market. Note that SPY and QQQ closed lower the last two days and Microsoft (MSFT) closed higher. Even though it is only for two days, this little morsel of relative strength could foreshadow a bullish resolution to the current...   READ MORE 

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Treasury Yield Shows Building Expectations For Next Rate Hike

Treasury Yield Shows Building Expectations For Next Rate Hike

Market Recap for Tuesday, March 7, 2017 Next Tuesday, another FOMC meeting begins with their policy decision announced next Wednesday.  Expectations are that we'll see another quarter point rate hike.  It's not a slam dunk and there are some who believe we should wait to see...   READ MORE 

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New NDX PMO SELL Signal Likely the First of Many

New NDX PMO SELL Signal Likely the First of Many

Many of you may have noticed yesterday's DecisionPoint Alert blog headline, "New PMO SELL Signal for the NDX". I had thought we'd make it to DP Scoreboards with all BUY signals, but the NDX refused to give up the Long-Term Price Momentum Oscillator (PMO)...   READ MORE 

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Webinar Reminder 4:30pm EST Today

Webinar Reminder 4:30pm EST Today

I just wanted to send out a quick reminder about a webinar that I'll be conducting with EarningsBeats.com President and CEO John Hopkins.  It starts in roughly an hour with the webinar doors opening as the stock market closes.  I will be discussing trading strategies during earnings...   READ MORE 

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HOMEBUILDING LEADERS ARE DR HORTON, LENNAR, AND PULTEGROUP -- HEALTH CARE INSURERS LED HIGHER BY HUMANA, CIGNA, AND UNITEDHEALTH GROUP -- BIOTECH AND DRUG ETFS MEET RESISTANCE -- HEALTHCAR...

HOMEBUILDING LEADERS ARE DR HORTON, LENNAR, AND PULTEGROUP -- HEALTH CARE INSURERS LED HIGHER BY HUMANA, CIGNA, AND UNITEDHEALTH GROUP -- BIOTECH AND DRUG ETFS MEET RESISTANCE -- HEALTHCARE SPDR TESTS OLD HIGHS -- BAXTER INTL RECOVERS

DR HORTON, LENNAR, AND PULTE LOOK STRONG... Recent messages have shown bullish breakouts in a couple of ETFs tied to housing. The stronger of the two is the U.S. Home Construction iShares (ITB) which is the purest play on homebuilders. That's because its five biggest stocks are...   READ MORE 

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Double divergence building up in SPY:IEF ratio and commodities need another rotation through lagging.

Double divergence building up in SPY:IEF ratio and commodities need another rotation through lagging.

Summary * Opposite rotations for Equities and Bonds on both weekly and daily RRGs * Rapid weakening of commodities over past six weeks * Current positioning of SPY suggests some short-term weakness before resuming trend * IEF in consolidation pattern after breaking long-term uptrend * Double divergence in SPY:IEF ratio points to potential corrective...   READ MORE 

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Evaluating The Technical Health Of Energy And Healthcare

Evaluating The Technical Health Of Energy And Healthcare

Market Recap for Monday, March 6, 2017 U.S. equities experienced a little profit taking on Monday, nothing technically damaging, but all our major indices did finish lower.  The only sector to escape damage was energy (XLE, +0.22%), while all the others declined.  On a relative basis, the XLE...   READ MORE 

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Small-Cap Breadth Deteriorates - Bonds Could Hold the Key for Stocks

Small-Cap Breadth Deteriorates - Bonds Could Hold the Key for Stocks

.... Small-cap Breadth Deteriorates .... TLT Tests Support and 2-yr Yields Hits 52-week High .... Mind the Gaps in these 4 Bank Stocks .... Where to Check Earnings and News .... 12 Stocks with Bullish Charts .... PCN, CX, NUE, EOG, LNG, GE, ATI, JNPR, AKAM, T, EXPE, CAKE Small-cap Breadth Deteriorates Stocks declined for the,...   READ MORE 

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Intel Struggles as Bearish Patterns Take Shape

Intel Struggles as Bearish Patterns Take Shape

Intel is not keeping pace with the broader market and chartists should watch the bearish wedge for signs of further weakness. There are two patterns at work on the price chart. First, INTC formed a rising wedge after a sharp decline and this looks like a short-term bearish continuation pattern....   READ MORE 

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Sticking With Global Theme, China Stocks Look Bullish

Sticking With Global Theme, China Stocks Look Bullish

Market Recap for Friday, March 3, 2017 We saw bifurcated action on Friday with the Dow Jones, S&P 500 and NASDAQ all posting minor gains while the Russell 2000 fell slightly.  Sector action behaved similarly as about half the sectors climbed fractionally while the rest finished in negative...   READ MORE 

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GOLD: Slight Breakdown

GOLD: Slight Breakdown

On Friday gold broke below the rising trend line that forms the bottom of a rising wedge pattern. A breakdown was expected because that is the normal and highly reliable resolution of most rising wedge patterns. The minimum downside target is 1180, but downside estimates for rising wedge patterns are...   READ MORE 

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Two-Year Treasury Yield Reaches Seven-Year High, Dollar Turns Up

Two-Year Treasury Yield Reaches Seven-Year High, Dollar Turns Up

Chart 1 shows the 2-Year Treasury yield climbing above 1.30% on Thursday, for the first time in seven years. That shorter term yield is more sensitive to the potential for a rate hike than longer-range maturities. That suggests that fixed income traders are taking expectations for a March rate...   READ MORE 

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Get to the Point and Figure

Get to the Point and Figure

Sector activity can illuminate important thematic trends unfolding within the market. Point and Figure studies identify large Accumulation and Distribution Structures related to these themes poised to be campaigned over many months and years. The Sector can be campaigned using Exchange Traded Funds (ETFs). Also, by drilling down into the...   READ MORE 

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Treasury Yields Rising As Home Construction Breaks To 10 Year High

Treasury Yields Rising As Home Construction Breaks To 10 Year High

The FOMC will be meeting to discuss a potential rate hike in less than two weeks.  A hike would continue the hawkish tone that began when the FOMC increased interest rates in December 2015 for the first time in nine years.  It was about six months later that the 10...   READ MORE 

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Special Home Construction Review - Stocks To Consider

Special Home Construction Review - Stocks To Consider

I'm providing this special Saturday edition of Trading Places as a result of a very significant breakout in the home construction index ($DJUSHB).  One way to participate in this breakout is to buy an ETF that tracks home construction stocks.  One example is the ITB.  The latest disclosure...   READ MORE 

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Actual Price Action versus Relative Price Action

Actual Price Action versus Relative Price Action

The price relative tells us how a stock is performing relative to a market benchmark, such as the S&P 500. Even though this relative performance indicator is good for measuring relative momentum, it does not always tell the entire story. A stock can show weakness in relative momentum,...   READ MORE 

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Weekly Market Review & Outlook 4-Mar-17 (w/ video) - Breadth is Strong Enough

Weekly Market Review & Outlook 4-Mar-17 (w/ video) - Breadth is Strong Enough

----- Video Link ----- Art's Charts ChartList (updated 4-Mar) ----- Weekly Market Review & Outlook 4-Mar-17 Financials, healthcare and energy stocks led the stock market higher this week with the S&P 500 SPDR, Nasdaq 100 ETF and S&P MidCap SPDR hitting new highs. The...   READ MORE 

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Chart Spotlight: Exxon-Mobil (XOM) Reveals Possibilities

Chart Spotlight: Exxon-Mobil (XOM) Reveals Possibilities

During the DecisionPoint Report webinars I've added a "chart spotlight". For those of you who were members of the original DecisionPoint website, you probably remember Carl's "Chart Spotlight" on Fridays. Viewers and readers offer up some symbol suggestions via Twitter (@_DecisionPoint) and...   READ MORE 

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Patience in an Overbought Market

Patience in an Overbought Market

The rise in the major indexes since the election has been stunning. The S&P alone is up over 15% in just over 3 months. That would be a terrific year by any measure. The Dow was up 18% since the election at its all time high on Wednesday,...   READ MORE 

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Heavy Construction Ready To Do Some Heavy Lifting

Heavy Construction Ready To Do Some Heavy Lifting

Market Recap for Thursday, March 2, 2017 Thursday was a day of profit taking as all of our major indices retreated with the small cap Russell 2000 taking the biggest hit, falling 1.27%.  Every sector finished lower with the exception of the defensive utilities sector (XLU), which actually gained...   READ MORE 

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SystemTrader - Testing a 58-ETF Portfolio using Trend-Timing and Momentum-Rotation

SystemTrader - Testing a 58-ETF Portfolio using Trend-Timing and Momentum-Rotation

.... Introduction .... Review of the Testing Period .... Universe, Timeframe and Data .... Stock Market and Portfolio Benchmark .... Trend-Timing System using the PPO .... Different Faces of Momentum .... Market Filter, Trend Filter and Momentum .... Scanning Code Sample .... Testing Four Momentum Indicators .... Equity Line and Drawdown Chart .... Conclusions Introduction Last week I presented a trend-timing...   READ MORE 

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Energy SPDR Showing No Improvement - XLE Reaching a Decision Point

Energy SPDR Showing No Improvement - XLE Reaching a Decision Point

Every Wednesday and Friday, I review the DecisionPoint Market/Sector Summary with my webinar viewers. It is actually only one table that is taken from the full Market/Sector Summary found in the "DP Reports" blog. This table shows us the DecisionPoint Intermediate-Term Trend Model (ITTM) "posture&...   READ MORE 

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This Part Of Europe Just Made A Major Long-Term Breakout

This Part Of Europe Just Made A Major Long-Term Breakout

The London Financial Times Index ($FTSE) had sideways consolidated for 17 years after topping back in 2000.  That consolidation period has ended in a big way in 2017 and this index appears poised for a very significant rise.  Despite how you might feel about Brexit, the market has casted its...   READ MORE 

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The Secret of Making an Investment Methodology Produce Consistent Profits

The Secret of Making an Investment Methodology Produce Consistent Profits

“I have heard many men talk intelligently, even brilliantly, about something – only to see them proven powerless when it comes to acting on what they believe.  Investors must act in time.”  -- Bernard Baruch There is a fine line between embracing your methodology, trading it, trusting it, understanding all its...   READ MORE 

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TWO-YEAR TREASURY YIELD HITS SEVEN -YEAR HIGH ON INCREASED ODDS FOR MARCH RATE HIKE -- THAT'S BOOSTING THE DOLLAR WHICH MAY BE ENDING ITS 2017 CORRECTION -- GOLD ETF STALLS AT 200-DAY LINE...

TWO-YEAR TREASURY YIELD HITS SEVEN -YEAR HIGH ON INCREASED ODDS FOR MARCH RATE HIKE -- THAT'S BOOSTING THE DOLLAR WHICH MAY BE ENDING ITS 2017 CORRECTION -- GOLD ETF STALLS AT 200-DAY LINE -- GOLD MINERS ARE EVEN WEAKER

TWO-YEAR TREASURY YIELD REACHES SEVEN-YEAR HIGH... Chart 1 shows the 2-Year Treasury yield climbing above 1.30% today for the first time in seven years. That shorter term yield is more sensitive to the potential for a rate hike than longer-range maturities. That suggests that fixed income traders are taking...   READ MORE 

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Article Summaries - 11-2016 to 2-2017

Article Summaries - 11-2016 to 2-2017

Periodically I write an article that reviews the past few months of articles.  Why on Earth would I do this?  Primarily for two reasons.  One is that many new readers are involved and often they do not go back and look at the past articles.  Two is that my articles...   READ MORE 

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Dow Jones Soars 300 Points, Breaks 21000; FTSE Very Bullish

Dow Jones Soars 300 Points, Breaks 21000; FTSE Very Bullish

Market Recap for Wednesday, March 1, 2017 U.S. equities surged on Wednesday, with the Dow Jones and S&P 500 gaining 1.46% and 1.37%, respectively.  The small cap Russell 2000 rebounded big time after its Tuesday drubbing, spiking 27 points, or 1.94%, to 1413 -...   READ MORE 

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STOCKS HIT NEW RECORDS AS BOND YIELDS AND THE DOLLAR CLIMB -- FINANCIALS, INDUSTRIALS, AND MATERIALS LEAD RALLY -- SO DO SMALL CAPS AND TRANSPORTS -- GOLD AND OTHER SAFE HAVENS WEAKEN

STOCKS HIT NEW RECORDS AS BOND YIELDS AND THE DOLLAR CLIMB -- FINANCIALS, INDUSTRIALS, AND MATERIALS LEAD RALLY -- SO DO SMALL CAPS AND TRANSPORTS -- GOLD AND OTHER SAFE HAVENS WEAKEN

STOCKS SURGE TO NEW RECORDS ... Last night's presidential speech appears to have re-energized the reflation trade that favors stocks over bonds, and economically-sensitive stocks in particular. The first three charts show ETFs of the three major U.S. stock indexes gapping into new highs. Their RSI lines remain...   READ MORE 

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EuroTop 100 Index Ends Consolidations and Resumes Uptrend $EUR

EuroTop 100 Index Ends Consolidations and Resumes Uptrend $EUR

The EuroTop 100 ($EUR) has further room to run after breaking out of a bullish continuation pattern. The price chart shows the index basing from March until November and then breaking above a major resistance zone in early December. After a 13.1% advance in nine weeks, the index paused...   READ MORE 

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Overbought Aggressive Sectors Lead Decline In U.S. Equities

Overbought Aggressive Sectors Lead Decline In U.S. Equities

Market Recap for Tuesday, February 28, 2017 It was a day of profit taking on Tuesday.  All of our major indices declined, although the selling was certainly contained.  The S&P 500, for instance, dropped just 0.26% and remains near its all-time high.  Weakness in consumer discretionary (XLY,...   READ MORE 

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SPX and OEX - Two New Long-Term PMO BUY Signals - Monthly Chart Review of DP Scoreboards

SPX and OEX - Two New Long-Term PMO BUY Signals - Monthly Chart Review of DP Scoreboards

The DecisionPoint Scoreboards in the DP Chart Galleries are now almost completely bullish. Two new Long-Term Price Momentum Oscillator (PMO) BUY signals appeared for the S&P 500 and S&P 100 when the monthly charts went final today. We don't tally up our Long-Term PMO...   READ MORE 

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$GOLD : A Bear Market Rally Or A New Bull Market?

$GOLD : A Bear Market Rally Or A New Bull Market?

* The all-important trading range * The short-term trend for Gold * What’s going on with those Gold shares? * Hail Silver? $GOLD has been rallying of late and the question naturally arises as to whether this advance is for real or is a normal bear market counter-cyclical advance. The answer is not...   READ MORE 

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BIOTECH ISHARES NEAR UPSIDE BREAKOUT -- TWO SMALLER BIOTECH ETFS HAVE ALREADY BROKEN OUT -- TEN YEAR TREASURY YIELD THREATENS 2017 LOW -- SMALL CAPS ARE STARTING TO WEAKEN

BIOTECH ISHARES NEAR UPSIDE BREAKOUT -- TWO SMALLER BIOTECH ETFS HAVE ALREADY BROKEN OUT -- TEN YEAR TREASURY YIELD THREATENS 2017 LOW -- SMALL CAPS ARE STARTING TO WEAKEN

BIOTECH ISHARES NEAR SEPTEMBER HIGH... I've been writing about the recent upturn in the healthcare sector. And that the rally was being led higher medical device and equipment stocks, as well as health insurers. Biotechs and pharmaceuticals have lagged behind. Chart 1, however, shows the Nasdaq Biotechnology iShares...   READ MORE 

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History Suggests Energy, Financials And Industrials Are Poised To Lead U.S. Stocks

History Suggests Energy, Financials And Industrials Are Poised To Lead U.S. Stocks

Market Recap for Monday, February 27, 2017 Energy (XLE, +0.86%) led the market advance on Monday and that hasn't happened much over the past few months.  But as I have shown below in the Sector/Industry Watch section, I believe there are several technical signs that we...   READ MORE 

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Fibonacci Retracements are Not Science and 17 Stocks to Watch

Fibonacci Retracements are Not Science and 17 Stocks to Watch

.... Small-caps Hold Breakout, but Still Lag .... A Classic Throwback for Nucor .... Oil Remains Stuck in Consolidation .... Watch the Big Three (XOM, CVX, SLB) for Clues on XLE .... Two Oil Refiner Stocks (MPC, VLO) .... Four Oil & Gas Equipment and Services Stocks (NE, NOV, RDC, RIG) .... Fibonacci Retracements are Not Science...   READ MORE 

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TJX Companies Looks Poised to Extend Uptrend $TJX

TJX Companies Looks Poised to Extend Uptrend $TJX

TJX Companies (TJX), which operates TJ Maxx and Marshalls, recently broke out of a corrective pattern and this argues for a continuation of the bigger uptrend. It has been a rough year for most retail stocks with the Retail SPDR (XRT) down around 1% year-to-date. In contrast, TJX is up...   READ MORE 

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Utilities Taking Advantage Of Tumbling Treasury Yields

Utilities Taking Advantage Of Tumbling Treasury Yields

Market Recap for Friday, February 24, 2017 The 10 year treasury yield ($TNX) tumbled 7 basis points on Friday and that continued the recent string of solid days for utilities (XLU, +1.52%).   Healthcare (XLV, +0.48%) is also benefiting from the rotation to defensive areas of the market as...   READ MORE 

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Bye bye NVDA, WDC, MU and Hello, ADBE, AAPL, SWKS

Bye bye NVDA, WDC, MU and Hello, ADBE, AAPL, SWKS

Summary * XLK only sector inside leading quadrant for S&P 500 universe * QCOM nosediving inside Lagging quadrant * NVDA rapidly losing its top position within the sector * WDC tracking MU lower into the weakening quadrant * GLW providing excellent example of stable uptrend (price and relative) * ADBE pushing into leading from...   READ MORE