Market Recap for Monday, December 12, 2016 The Dow Jones advanced for the 21st time in the last 25 trading days on Monday, capturing yet another record high close on Monday. While it was led by mostly defensive areas like utilities, REITs and pharmaceuticals, offensive areas didn't exactly... READ MORE
* Some key averages showing signs of temporary exhaustion * Energy burnt out? * Defensives and interest sensitives looking more positive * What about those bonds? I have been bullish on the stock market for some time and in terms of the main trend I still am. I also council on focusing on the... READ MORE
As a percentage of total issues, small-caps are churning out more new highs than large-caps and leading the market. The chart below shows new highs (green) and new lows (red) for the S&P 500, S&P MidCap 400 and S&P Small-Cap 600 over the last... READ MORE
Market Recap for Friday, December 9, 2016 Gains permeated our major indices on Friday, but it was difficult to overlook the flight to safety. Perhaps traders were just growing a bit more cautious after the huge run higher the past month or maybe it was big money knowing that the... READ MORE
In an article, I published some time ago, The Many Faces of Technical Analysts, one example was the Story Teller. I captured this idea from Barry Ritholtz when he asked the question “Are you a Trader or a Story Teller?” Parts of that section are reproduced below. In that article,... READ MORE
In a post-Brexit article I wrote back in July I concluded that we were in a cyclical bull market that launched off the February lows. At the time there had been a decisive breakout above important resistance at about SPY 208.00. From there the campaign-burdened market meandered sideways until... READ MORE
The U.S. stock market has been flying high over the past month, but shares of Anheuser-Busch InBev (BUD) have fallen close to 30% since reaching an all-time high in late September. Technically, there's hope that BUD is at or approaching a very significant bottom, however. Let'... READ MORE
As this year comes to an end, investors and traders begin thinking about the year ahead. Wyckoff as a tape reading process is concerned with what the current position indicates about the future direction of markets. Ideally Wyckoffians develop their tape reading skills (chart analysis) to a level where market... READ MORE
POWERSHARES QQQ NEARS NEW RECORD... A lot has been made recently about domestic-oriented American businesses leading the market rally (like small caps, retailers, and transports to name a few). And how large tech stocks have gone from market leaders to market laggards. Technology companies derive nearly two-thirds of their earnings... READ MORE
Far too many investors get it wrong, and perhaps no other group more so than the Millennials. In a recent cover page article on the investing habits of the Millennial generation, IBD reported that Index ETFs are the investment vehicles of choice for these 19 -35 year olds. I maintain... READ MORE
SystemTrader .... An RSI Mean-Reversion System .... Setting Market Conditions .... System Rules .... Why 5-day RSI and 30/70? .... The Four Backtests .... Key Performance Metrics .... Test Tables: Buy Cross Above/Below 30 and Sell Cross Above/Below 70.... Conclusions - IJR is King .... Further Study .... //// ........ Testing and Tweaking RSI(5) with SPY, QQQ... READ MORE
* Using Gold as a barometer for commodity prices * Gold versus other precious metals * Gold and the stock market Earlier in the week I wrote an article pointing out the fact that the Gold price ($GOLD), technically speaking, had reached, what seemed to me, to be a critical technical point. That... READ MORE
Market Recap for Thursday, December 8, 2016 The Dow Jones Transportation Average ($TRAN) finished higher once again on Thursday and has now risen more than 4% this week. In addition, the TRAN has climbed 16.7% since the close on November 4th. It's been an amazing run for... READ MORE
It took two months of consolidation, but Cabot Corp (CBT) finally pulled it off. It cleared neckline resistance in its inverse head & shoulders pattern at the 52.50 level. One of the keys of any continuation pattern is that it requires a prior trend in place to continue. CBT... READ MORE
EURO FALLS ON ECB... The ECB had some good and bad news for the Euro today. The ECB offered to extend its bond buying program for an additional nine months after next March. But it also announced that it was reducing the amount of bond purchases. The market interpreted the... READ MORE
Market Recap for Wednesday, December 7, 2016 Money poured into risk yesterday as global markets rallied in anticipation of strengthening economies worldwide. Here in the U.S., nearly every single industry group pushed higher, many of them 1%-2% higher or more. Significant leadership came in the form of consumer... READ MORE
Equal-weights are Leading Large-caps .... IJR is Greater than IWM .... Supply of Stocks Continues to Shrink .... QQQ Surges within Uptrend .... Trailing the Bull Flag Breakout in IWM .... Charting the Fab Five (FB, AAPL, AMZN, GOOGL, MSFT) .... Leadership from Consumer Discretionary is Very Positive .... Four Homebuilder Stocks to Watch (DHI, KBH, LEN,... READ MORE
AUTO PARTS INDEX TURNS UP... My message from last Thursday was headlined: "Autos Drive Cyclicals Higher". It showed an index of auto stocks achieving a bullish breakout led by GM and Ford. Auto parts are today's cyclical leaders. That shouldn't be surprising since they&... READ MORE
Apple (AAPL) reversed its long-term downtrend with a series of breakouts this summer and the stock is currently trading over 20% above its May low. Notice how the stock broke the early June high, the red trend line and the 40-week EMA with a surge in July-August. The 10-week EMA... READ MORE
Market Recap for Tuesday, December 6, 2016 I've been waiting to see if the German DAX would join the S&P 500 in breakout territory and, thus far, I'm getting my answer today with the DAX currently up 155 points, or 1.44%, this morning... READ MORE
I recently received a tweet (follow me on Twitter @_DecisionPoint) thanking me for an updated chart of UNG on November 21st which helped him bag a 20% gain. Back in late October, I wrote an article on Natural Gas (UNG) discussing a possible bull market move to $12 if it... READ MORE
* Will the current short-term oversold level in Gold trigger a rally to reverse long-term bear signals? * Gold leads commodities * Gold breaks down against some commodities Will the current short-term oversold trigger a sufficient rally to reverse long-term bear signals? Earlier in the year $GOLD proved to be one of the... READ MORE
----- Webinar Video ----- Art's Charts ChartList ----- Slow Down Time for XLF, XLI, and KRE? .... XME Target Based on Rising Channel .... Broken Resistance Turns First Support for XES .... EuroTop Index Stalls Near Resistance .... Webinar Preview.... //// .... Slow Down Time for XLF, XLI, and KRE? The Finance SPDR (XLF)... READ MORE
Market Recap for Monday, December 5, 2016 Financials (XLF, +1.19%) were back on top of the sector leaderboard on Monday after taking a "lengthy" one day pause. It's been a crazy run for financial stocks and we're growing accustomed to the almost daily... READ MORE
Some of the following is from my book, “The Complete Guide to Market Breadth Indicators,” published by McGraw-Hill in 2005, with the Second Edition now available in Amazon Kindle format. “The noblest pleasure is the joy of understanding.” Leonardo da Vinci Market Breadth Market breadth indicators are those indicators that... READ MORE
The chart below shows year-to-date price action for the Milan Index ($MIB) and German DAX Index ($DAX). Note that the MIB is down around 22% year-to-date and the DAX is down around 2% since January. In contrast, the S&P 500 is up around 6% so far this year.... READ MORE
Market Recap for Friday, December 2, 2016 Friday saw continuing bifurcation, but with this time the NASDAQ and Russell 2000 leading while the Dow Jones and S&P 500 lagged. Rotation wasn't all positive, however, as utilities (XLU, +0.91%) and consumer staples (XLP, +0.64%) led... READ MORE
An RSI(5) Setup for QQQ .... IWM Corrects with Bull Flag .... Three Sector SPDRs with Short-term Bullish Setups .... Biotechs Hold the Key to Healthcare .... ChartList Update .... QCOM, SYMC, ACN, ATI, AVGO, CHKP, CTRL, AMGN, BMY, MRK, PFE, TASR and XOM .... //// .... An RSI(5) Setup for QQQ QQQ plunged on Wednesday-Thursday... READ MORE
The Relative Rotation Graph above shows the rotational picture for US sectors. For a change the rotations are well defined and clearly visible, which immediately raises the question; " For how long?" I will try to answer the question, but no-one ever said it was easy.. ;) Summary * Well defined... READ MORE
I pulled up one month returns for all industry groups and there were several groups that have performed quite poorly over this period, despite the overall market strength. Toys ($DJUSTY) are down 6.78% over the last month, but a negative divergence on its weekly chart is likely the culprit.... READ MORE
The market has rallied about +6.5% from the November low, but less than half of that can be attributed to the election results. As of the close on Tuesday, November 8, it was widely believed that Clinton would be the winner. When the opposite result emerged, the market rallied... READ MORE
We are often asked to explain the rationale for why the horizontal Point and Figure (PnF) method works for estimating price objectives. The horizontal PnF method which requires judgment and nuance to employ, is rarely used these days, yet it works surprisingly well. The judgment required is in knowing how... READ MORE
I spend a great deal of time scouring the market and looking for interesting trade setups. It's quite often that I see a stock that I really like, but it's not at a price level where I'm ready to pull the trigger. If I... READ MORE
Two days after the election (November 10), I wrote a message entitled: "Rotation Out of Growth Stocks into Value Stocks Causes Profit-taking in Technology". We're seeing a replay of that rotation again this week as technology stocks are underperforming the market while financials, energy, and industrials... READ MORE
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The whole is only as strong as the sum of its parts. Applying this logic to the stock market, the S&P 500 represents the whole and the nine sector SPDRs represent the sum of the parts. Let's see just how strong the parts of the S&... READ MORE
The daily chart of the Nasdaq 100 doesn't really resemble any of the other large-cap indexes or even most small-cap indexes. Technology sectors have performed terribly. The Election "euphoria" enjoyed by the Dow Industrials and most other indexes really didn't do much for tech.... READ MORE
I’ve analyzed over one million charts. That’s not bravado, just math. A hundred to two hundred charts a day (most days) for over 25 years, and that’s the number you reach. I share this because chart reading practice has indeed allowed me to train my eye in... READ MORE
Charting 52-week Highs on SPY .... QQQ Lags, but Chart Remains Bullish .... Downloading Data and Creating User-Defined Indexes .... Small-caps Ripe for Rest, but Still Bullish .... Top Ten Large-caps are Greater than All Small-caps .... The Case for a Grind Higher .... Scanning for Percent Above/Below EMA .... //// .... Charting 52-week Highs on SPY The... READ MORE
Market Recap for Thursday, December 1, 2016 It was another very strange day on Wall Street. The Dow Jones finished the session Thursday with a gain of 68 points, closing at 19192 and another all-time high. The NASDAQ appeared to be trading in another world as technology was crushed, leading... READ MORE