The summer months can be very difficult for U.S. equities, as history has proven over time. But there's always a bull market somewhere and the consumer electronics space seems to find a sweet spot in August. There are only two industry groups that average more than 5%... READ MORE
TECHNOLOGY SPDR SHOWS NEW LEADERSHIP... Stocks had another good week with the Dow and S&P 500 ending Friday at new records. One of the other positive developments was new upside leadership by technology which was the week's strongest sector. Chart 1 shows the Technology Sector SPDR... READ MORE
SystemTrader // System Rules and Conditions // Why 5-day RSI? // Testing with S&P 500 Trend Condition // Surviving Some Bad Signals // Sensitivity Testing // Reducing the MDD with Another Trend Condition // Testing Each SPDR Individually // The Power of the Portfolio // Further Study //// ........ Today's Trading Strategy article will test different trading... READ MORE
During the bear market that ended in 2009, the broad market indexes traced out a large base. Using the horizontal Point and Figure counting methodology, a Wyckoffian could generate a very large price objective. The countline was at the 8,100 level on the Dow Jones Industrial Average, with a... READ MORE
The last three months since Wiley published our book, Tensile Trading, has given us a unique opportunity to talk with many investors. In doing so, we’ve been able to discuss with them the big picture challenges of managing one’s assets, as well as hear unique testimonials extolling the... READ MORE
Market Recap for Thursday, July 21, 2016 Aggressive sectors took a break on Thursday, as did the overall market. The S&P 500 saw its most intraday weakness since breaking out above 2131 to all-time highs more than a week ago. Technically, however, there was little damage done. In... READ MORE
DecisionPoint timing models are tracked by Timer Digest, a professional journal for technical analysis timing. Per their website, "Timer Digest monitors over 100 of the nations leading market timing models, ranking the top stock, bond, and gold timers according to the performance of their recommendations over the previous 52... READ MORE
Actually, Encana (ECA) has broken two downtrends - a short-term trend and a long-term trend. ECA hit its all-time high of roughly 42.50 just before this bull market began. Shareholders of ECA haven't seen much bullish action since this seven year bull market began, but technically things... READ MORE
Market Recap for Wednesday, July 20, 2016 Technology (XLK, +1.31%) had another huge day on Wednesday as consumer electronics ($DJUSCE) and software ($DJUSSW) paced the advance. It didn't hurt that biotechs ($DJUSBT) were up more than 1.50%, leading healthcare to outsized gains as well. But let&... READ MORE
Nothing to Do but Trail a Stop // Reviving the Raff Regression Channel for QQQ // Chandelier Exit for IWM // Retail Continues to Impress // Applying the 5-day RSI-StochRSI Strategy to IEF and TLT // USO, BNO and XES Stutter after Bullish Signals // Scan Code for RSI-StochRSI Strategy // Emerging and Latin American Markets Turn... READ MORE
* The Dollar Index-too heavily weighted in favor of the Euro * A closer look at the long-term cross Dollar relationships * What are the Dollar sympathy indicators saying? * Short-term technicals The Dollar Index - Too heavily weighted in favor of the Euro A few months ago I declared the Dollar Index to... READ MORE
US HOME CONSTRUCTION ISHARES TURN UP ... Several of my recent messages have written about the upturn in homebuilding shares. A lot of that has been due to the drop in bond yields and mortgage rates. Improvement in the housing area is also an encouraging sign for the economy. Chart 1... READ MORE
The surge in stocks entered its fourth week with QQQ extending its channel breakout. The chart below shows the ETF surging earlier this year and then embarking on a correction with a falling channel into June. This correction clearly ended with the breakout near 110 and this zone now becomes... READ MORE
Market Recap for Tuesday, July 19, 2016 The Dow Jones managed to close at another all-time high on Tuesday despite seven of nine sectors falling. Most of the weakness, however, was confined to materials (XLB, -0.59%) and energy (XLE, -0.56%). None of the other sectors fell more than... READ MORE
Webinar Video SPY Continues to Lead the Big Three // RSI Nears 70 for IWM // Sector SPDRs Reflect Broad Market Strength // Webinar Preview - Using Breadth Indicators // Submit a Webinar Question //// ..... SPY Continues to Lead the Big Three Stocks are up sharply over the last three weeks with small-caps leading the... READ MORE
Market Recap for Monday, July 18, 2016 The action on Monday was led by the NASDAQ's 0.52% gain with technology (XLK, +0.67%) pacing the advance. One bullish piece of technical news within the technology space was the breakout of internet stocks ($DJUSNS), which gained 2.0%... READ MORE
The S&P Small-Cap 600 has been leading the S&P 500 since mid February as a key ratio chart hit a multi-month high last week. The main window in the chart below shows the $SML:$OEX ratio, which plots the performance of the S&P Small-Cap... READ MORE
SystemTrader // Introduction - the Bias is Obvious // High-Low Percent Calculation // Massaging the Data with Different Indicators // Setting Bullish and Bearish Thresholds // Breaking Down the S&P 1500 for more Clues // Conclusions on this Trend Following Indicator // High-Low Percent Symbols at StockCharts //// . . . . . Introduction - the Bias is Obvious 52-week highs... READ MORE
Market Recap for Friday, July 15, 2016 It was another day of bifurcation on Friday as the Dow Jones and Russell 2000 were able to eke out gains while both the S&P 500 and NASDAQ finished in negative territory. Similar bifurcation was found among sectors with materials (XLB,... READ MORE
The Dow Industrials and S&P 500 continue to hit record highs. I've been showing upside breakouts in other parts of the market that include small caps and the NYSE Composite Index. Here's another one. Chart 3 shows the Wilshire 5000 Composite Index ($WLSH) having... READ MORE
The "official" start to earnings season began when Alcoa reported its numbers after the bell last Monday. The market liked what it saw and heard with AA up close to 10% by the time the week ended. We also saw some major banks report their numbers with mixed... READ MORE
Hello Fellow ChartWatchers! Are you a watcher of charts? By that I mean how much do you trust what you see on price charts? Do you trust the charts more than the commentary/opinion of others? Do you trust stories in the financial press more than what you see on... READ MORE
The S&P 500 Index 2016 first quarter earnings results are in, and it is time once again to take our quarterly look at our earnings chart, which shows the S&P 500 in relation to its normal value range. (Note: The chart is a static graphic, not... READ MORE
Since 2008 natural gas has been in a downtrend and has generally under-performed crude oil, common stocks and other commodities. Recent price strength for natural gas could be indicating change is in the air. Is this a sign of better days ahead or just a tease before prices sag and... READ MORE
Let me first profess that I am not an avid follower of cycle charts. They generally take too much tinkering for my taste as they never quite fit over the long haul. However, as I was flipping through some of my longer-term charts, I ran into a chart I created... READ MORE
* Whipsaw leads to sharp rally * Global equity markets starting to heat up * Broad sector participation * What’s going on with the yield curve? Whipsaw leads to sharp rally Chart 1 compares the Dow ETF (DIA) with my Dow Diffusion Indicator, an oscillator that monitors a basket of Dow Stocks above... READ MORE
MSCI ALL COUNTRY WORLD INDEX ISHARES BUILDS ON BULLISH BREAKOUT... Global stocks resumed their uptrend today in a replay of Tuesday's shift toward riskier assets. Chart 1 shows the MSCI All Country World Stock Index iShares (ACWI) building on its bullish breakout that took place on Tuesday when... READ MORE
Prior to the opening bell on Tuesday, Fastenal (FAST) confessed to below consensus revenues and EPS, normally a big problem for a stock. Sure enough, FAST fell approximately 4% on the open Tuesday, providing short sellers a quick profit. The problem, however, is that FAST is trading within a multi-year... READ MORE
Note: I will be traveling this weekend and unable to post here in my Trading Places blog on Friday. I hope everyone has a great weekend! Back on Monday! Market Recap for Wednesday, July 13, 2016 The bullish run that began on June 28th continues despite Wednesday's pause.... READ MORE
Market Recap for Tuesday, July 12, 2016 Energy (XLE, +2.48%) resumed its leadership role in a big way on Tuesday as rising crude oil prices ($WTIC) and a bullish pattern on the U.S. dollar provided energy bulls all they needed to send the XLE to its highest close... READ MORE
SystemTrader // Introduction // Picking the Market Benchmark // Advance-Decline Percent // Massaging the AD Data // Measuring Significant Shifts // Dividing, Conquering and Affirming // Conclusions AD Percent Indicators at StockCharts //// . . . . . Introduction This is the first in a multi-part series on the key breadth indicators I use to determine the broad market environment. Most readers are... READ MORE
TREASURY YIELDS REBOUND ALONG WITH STERLING... A surge in global bond yields is contributing to a rotation out of safe havens and into riskier assets. Chart 1 shows the 10-Year Treasury Yield gapping 9 basis points higher to 1.52%. That puts the TNX back above its July 2012 closing... READ MORE
Market Recap for Monday, July 11, 2016 Despite all the reasons for being cautious at this stage of the current seven year bull market rally, nothing is more important than simple price action and yesterday the S&P 500 did what it had never done before - it closed... READ MORE
Webinar Video for Tuesday, July 12th S&P 500 Reaches Uncharted Territory // Support and Resistance for Indexes and ETFs // Small-caps and Mid-caps Outperforming // S&P 500 Breadth Finally Confirms // Small-cap New Highs Surge // Percent above 200-day Stays Bullish // Webinar Preview //// ..... S&P 500 Reaches Uncharted Territory The... READ MORE
* Take a deep 'breadth' * Broadening formations * Long-term indicators support an upside breakout The recent breakout by the S&P and Dow to new high ground has caught the attention of market observers. Some say that the market is overvalued and that prices are unlikely to move higher.... READ MORE
Quanta Services (PWR) is showing signs of a long-term trend reversal with its third resistance break this year. The weekly chart shows PWR breaking down in October 2014 and trending lower until early 2016. This downtrend showed its first sign of reversing with the February surge and breakout near 19.... READ MORE
Special Notes Beginning today, I will be providing a "Monday setups" section every Monday, offering up potential trading candidates and technical reasons for possible entry. Please do your own due diligence - both technically and fundamentally - before you decide to trade any of these candidates. They will... READ MORE
On the Relative Rotation Graph of the S&P economic sectors (GICS I), Utilities is one of the leading sectors as measured by the JdK RS-Ratio. As described in my last RRG blog on US sectors, the fact that Utility stocks and Staples are leading the current sector rotation,... READ MORE
Devry, Inc. (DV) topped at close to 50.00 during the fourth quarter of 2014 and it has spent the last 18 months declining steadily until reaching what now appears to be a bottom just above 15.00. A positive divergence has emerged on its weekly MACD and volume trends... READ MORE
Since the monthly PMO topped in December 2014, then crossed down through its signal line in early 2015, I have been looking for a bear market to begin. There were two promising price tops in 2015, but the subsequent declines petered out at about -14% and established the lower limit... READ MORE