The market has been in non-stop higher mode ever since the election. The NASDAQ is up over 6%. The Dow rose 1000 points in four trading days. The small cap Russell 2000 rose over 13%. At the same time, bond yields have soared with the ten year US Treasury Note... READ MORE
As an individual investor, what you bring to the table in the way of intellectual, emotional and behavioral skills will determine whether you succeed or fail. This is hardly a breakthrough revelation, but it needs to be said nonetheless. It’s been my experience that great investors are not born.... READ MORE
It's been downhill for a long time for CF Industries (CF), but finally its downtrend was broken and volume has been pouring into the stock at these lower prices. CF's short-term strength has taken it to a 50 week SMA test for the first time since... READ MORE
TWO-YEAR TREASURY YIELD ALSO HITS NEW 2016 HIGH... Most recent attention has been focused on the surge in the 10-Year Treasury yield to the highest level since last December (middle line in Chart 1). That's based on expectations for stronger economic growth and higher inflation. It's... READ MORE
Offensive Sectors Lead Defensive Sectors ..... Consumer Discretionary ETFs Hit New Highs .... Risk Ratios Hit New Highs .... This Week's Articles and ChartList .... Another Bullish Breadth Surge .... Marking Pullback Support for SPY .... Biotech ETFs Hold Gaps .... Medical Devices ETF Bounces off Retracement .... //// .... Offensive Sectors Lead Defensive Sectors .... The market began... READ MORE
Market Recap for Thursday, November 17, 2016 U.S. stocks posted gains once again on Thursday, this time with the benchmark S&P 500 closing within a whisker of an all-time high. Strength came from all the right areas too with financials (XLF, +1.37%), consumer discretionary (XLY, +1.... READ MORE
Today the NDX switched to a Short-Term Trend Model BUY signal. This signal was triggered when the 5-EMA crossed above the 20-EMA. I don't use STTM signals for trading, but they do work as a temperature gauge. This new STTM BUY signal tells us that the NDX may... READ MORE
Market Recap for Wednesday, November 16, 2016 Computer hardware ($DJUSCR) led a tech-fueled rally on Wednesday that resulted in bifurcated action in our major indices. The NASDAQ finished with a nice 0.36% gain while the Russell 2000 was flat and the Dow Jones and S&P 500 ended... READ MORE
Vanguard Financials ETF Hits Channel Trend Line .... Spotting Pullbacks within an Uptrend .... Trading with MACD-Histogram and RSI .... Scan Code for Pullbacks .... Microsoft and Apple Trigger Signals.... //// .... Vanguard Financials ETF Hits Channel Trend Line Many stocks and ETFs surged over the last two weeks and became short-term overbought. Keep in mind... READ MORE
SOME TECHNOLOGY WINNINGS WENT INTO FINANCIALS... A lot is being made of the fact that technology stocks have underperformed the broader market since last Tuesday's election. I suggested last week that technology selling was most likely a rotation out of some expensive technology stocks (mainly in the Internet)... READ MORE
Home Depot is the perfect cyclical stock because it sits at the crossroads of retail, housing and the consumer. The stock was a poster child of the bull market with a 200+ percent gain from 2013 to 2015. It did not stop there and even managed to hit new highs... READ MORE
Market Recap for Tuesday, November 15, 2016 In my blog article yesterday morning, I pointed out that both crude oil ($WTIC) and internet stocks ($DJUSNS) hit significant price support. In the case of the WTIC, there was a big reversal in place that suggested we'd see continuing strength... READ MORE
There are many who are now talking about the Hindenburg Omen so I thought I would explain what it is and where it now stands. This is easy since I knew Jim Miekka (creator of the Omen) as he offered to assist me when I included some of his material... READ MORE
With the post-election rally continuing to march ahead, only a few sectors are lagging; the majority, however, are moving to Intermediate-Term Trend Model (ITTM) BUY Signals. BUY signals are triggered when the 20-EMA crosses above the 50-EMA. The Market/Sector Summary posture table is located in the DP Reports blog... READ MORE
--- Webinar Video --- Art's Charts Chartlist --- Stock Market Shows Broad Strength .... Record Highs in Mid-cap and Small-cap Indexes .... Don't Blame the Entire Tech Sector .... SPY Holds Breakout .... XLY Surges to Resistance Zone .... Consumer Discretionary Breadth Remains Bullish .... Scan Correction .... //// .... Even though some stocks and... READ MORE
Market Recap for Monday, November 14, 2016 The dollar shot higher on Monday as treasury yields continue to soar. This combination has set the stage for a major rally in financial stocks (XLF) and they have not disappointed. Also, all the selling that's taken place in bonds have... READ MORE
S&P RETAIL SPDR SURGES ... My last message on Thursday mentioned a rotation into discretionary sectors like retailers and out of defensive consumer staples. That rotation is looking even more impressive today as retail stocks are strong. Chart 1 shows the S&P Retail SPDR (XRT) surging nearly... READ MORE
The Russian Trading System Index has yet to break down, but it is positively correlated to Brent Crude and the recent breakdown in Brent could foreshadow a breakdown in the Russian Index. The chart shows the index stalling just above its rising 40-week EMA over the last few months. Meanwhile,... READ MORE
Market Recap for Friday, November 11, 2016 Friday may not have seemed like a particularly bullish day as the Dow Jones gained just 39 points and the S&P 500 even lost a few points. But check out the Russell 2000's 2.46% gain! Historically, the Russell... READ MORE
President-elect Trump has suggested that his presidency will focus on infrastructure and, as a result, heavy construction ($DJUSHV) finished last week higher by 12.36% to lead all industrial groups. While there are plenty of quality companies to choose from, Granite Construction (GVA) surged 23.80% to follow many small... READ MORE
An oversold rally began on Monday, when a Clinton win was assumed to be in the bag. Early Wednesday morning a Trump win was obvious, and the futures markets went crazy with panic -- at one point the Dow futures were down almost -800 points in pre-market trading -- but... READ MORE
When a bull market begins, near the end of a recession in business activity, the fed is actively pumping money into the banking system. This new money seeks a place to go where it can work the hardest. During the early stages of the economic recovery the real economy is... READ MORE
Yes, I’ve profited handsomely for years by trading on the coattails of top mutual funds when they report their new holdings each quarter. Yes, this is precisely why so many of you download the Tensile Trading ChartPack each quarter because we make it super easy for you to coattail... READ MORE
* What’s the direction of the primary trend of interest rates? * What do the shorter-term maturities say? * Appraising the short-term technicals In early September, I wrote an article suggesting that things were beginning to fall in place for higher yields. Since then they have edged up a bit, but look... READ MORE
Three Ratios Showing Risk-On .... Small-caps Lead New High Expansion .... Finding and Scanning for New Highs .... How to Use a New High List .... Notes from the MTA Meeting ... A Relative Breakdown for EEM .... //// .... Three Ratios Showing Risk-On While there is no guarantee that the wicked rotations of the last two days... READ MORE
Market Recap for Thursday, November 11, 2016 First let me say a heartfelt thank you to all our veterans today for your service - past, present and future. Please thank those that protected or protect our freedoms every day. Financials (XLF, +3.69%) and industrials (XLI, +2.13%) once again... READ MORE
This week has been volatile for the market and the country. After Dow Futures were down well over 5% and even 8% at one point Tuesday night, the Dow surprised everyone with a solid rally on Wednesday. Today that rally was followed by a breakout to new all-time highs. The... READ MORE
Over the past two trading sessions, treasuries are being sold hand over fist with corresponding yields soaring. Financials have exploded higher on this development. This is simply a continuation of what we've seen since the Brexit-related lows in June. Those higher yields will add profits to the bottom... READ MORE
DOW THEORY LOOKS STRONG... Chart 1 shows the Dow Industrials trading at a new record high today. That's a positive sign. But so is the fact that the Dow Transports achieved a bullish breakout on Monday. That puts both Dow Averages in sync on the upside for the... READ MORE
Market Recap for Wednesday, November 9, 2016 Talk about your fickle traders. A little more than 24 hours ago with traders around the globe wrestling with an unexpected Presidential victory by Donald Trump, equities sold off hard. The Dow Jones futures were down 800 points at its low. Japan'... READ MORE
Mean-Reversion Strategy Hits Key Level .... SPY Breaks Out of Corrective Channel .... Finance, Industrials and Materials Dominate New High List .... Ranking Sectors by %Above 200-day EMA .... Industrials, Materials and Mining Surge Together .... Oil Greets Moment-of-truth with Feeble Bounce .... //// .... Mean-Reversion Strategy Hits Key Level Developing a trading system is sometimes easier than... READ MORE
STOCKS SURGE AFTER WEAK NIGHT... Today's strong stock market builds one surprise on top of another. The first surprise was a Trump victory. The second is today's sizable stock market gain. It was widely expected that a Trump victory would push stocks sharply lower. And it... READ MORE
The Steel ETF (SLX) is leading the stock market on Monday with a 10% gain in early trading. Notice that this gain is simply extending an existing trend. In other words, chartists would have done just find by looking at the chart and ignoring the news. Notice that SLX surged... READ MORE
Market Recap for Tuesday, November 8, 2016 The U.S. stock market paused on Tuesday, awaiting results from the U.S. Presidential election. All nine sectors did manage to finish in positive territory but gains were fairly minimal. The NASDAQ outperformed, rising 0.53% but on just 1.7 billion... READ MORE
Key Levels and Indicators to Watch for SPY .... Indicators are Not Bearish until they Trigger .... Treasury Yields Surge .... Will Correlations with the 10-yr Yield Hold Up? .... Biotech ETFs Try for Higher Lows.... //// .... Key Levels and Indicators to Watch for SPY The S&P 500 SPDR (SPY) fell 2.54%... READ MORE
Technical analysis is a vast discipline that covers many different analysis processes. Through my continuing studies, I remembered reading about the "Presidential Election Cycle" and its effect on the markets. I thought this was a timely article given today is voting day. In this article I'll... READ MORE
Market Recap for Monday, November 7, 2016 After nine consecutive losing sessions on the benchmark S&P 500, the bulls needed some relief and they woke up to it on Monday. U.S. futures were soaring and looking to erase several days of losses at the opening bell. While... READ MORE
Finance, Tech and Industrials Show Chart Leadership .... Copper and Aluminum Go for Big Breakouts .... Using RSI Ranges to Define the Trend .... Gold Indicators are Bullish, but Price Breakdown Looms .... Rising 10-yr Yield is Negative to Gold .... Intermediate Trend Dominates 7-10 YR T-Bond ETF .... No Webinar this Week .... //// .... Finance, Tech and... READ MORE
* A brief synopsis of Dow Theory * Transports could be explosive * Was there anything wrong with Monday’s rally? * Market remains short-term oversold * Good looking ETF’s Monday's explosion in prices sent the Dow Transports well above their previous intermediate high. This price action confirms the buy signal already... READ MORE
The Finance SPDR (XLF) is leading the sector SPDRs with a new 52-week high on the price chart and with the price relative. On the price chart, XLF triggered its first breakout in early August with a move above the red resistance zone. Even though the ETF did not seem... READ MORE