Gold has been on an Intermediate-Term Trend Model (ITTM) BUY signal since January 25, 2016. The longer-term outlook is still positive, but there are signs that a price correction may be imminent. First, a rising wedge pattern has formed, and the technical expectation is that it will resolve downward. Reinforcing... READ MORE
Using The Special K To Identify Major Trend Reversals: * What’s the Special K saying for US equities? * Important parts of Asia are looking sick * Gold and the dollar two diverging trends At my bi-weekly Tuesday Market Roundup Webinar 2015-05-10 last week, I had a few words to say about... READ MORE
I was recently discussing trading and investing with Carlos Obando, former portfolio manager and graduate of a famous east-coast Business School – yes, Harvard. And as regular readers know, my MBA is from Stanford. Both schools are famous for their respective teaching methods, but as investment professionals, Carlos and I agreed... READ MORE
SPY Pulls back within Uptrend // QQQ Battles Support and Lags // Breadth Indicators Stall // High-Low Lines Extend Advances // Sector Table Remains Bullish // Consumer Discretionary and Technology are the Weak Links // Finance and Industrials are Holding Up // Healthcare Weighed down by Biotechs // Staples and Utilities Remain the Leaders // Energy and Materials Maintain... READ MORE
Market Recap for Thursday, May 12, 2016 Defensive. That's the best way to describe it. With consumer stocks, traders are choosing staples. If it's a question of transportation vs. utilities, it's really not a question. Utilities rule. Small caps or the S&P... READ MORE
The last RRG blog on US sector rotation dates back to late March, about six weeks ago. Since that post "Bad health (care) for XLV" some of the rotations in play continued while others were not able to maintain their expected rotational paths and moved the other way.... READ MORE
The Nasdaq 100 lost its Intermediate-Term Trend Model (ITTM) BUY signal yesterday, so it wasn't a total surprise to see the QQQ and QQEW (equal-weight version of NDX) lose theirs today. What is interesting, is that QQEW moved to an ITTM SELL signal versus the NDX and QQQ... READ MORE
We have reached the one year anniversary of the Wyckoff Power Charting blog. Many thanks for being enthusiastic and supportive readers. Let’s pause and look back at what we did in the first year. Richard D. Wyckoff’s emphasis was, first and foremost, to educate investors about the ‘Real... READ MORE
Overbought stocks frequently move above RSI 70, but during periods of selling or consolidation, it's fairly routine to see the RSI dip back to the 40-45 area. Here's a simple scan from the Standard Scan Workbench to find stocks that could be great trading candidates (from... READ MORE
BIOTECHS PULL HEALTHCARE LOWER ... Healthcare is one of the day's weakest sectors. Chart 1 shows the Health Care SPDR (XLV) pulling back to retest its 50- and 200-day moving averages. Its relative strength line (top of chart) has starting to slip as well. Biotechs are the main drag... READ MORE
* Balancing out the possibilities for US equities * Show me the bullish sectors * Those rates were supposed to go up but the charts say that might not be the case Balancing out the possibilities for US equities Chart 1 shows the NYSE Composite ($NYA) and the Coppock Curve. The curve gives... READ MORE
Market Recap for Wednesday, May 11, 2016 It was a bad day for consumer discretionary (XLY, -2.01%) and, in particular, retail stocks (XRT, -4.44%). Macy's (M) delivered an opening blow when their latest quarterly earnings report disappointed Wall Street. On the surface, it didn't... READ MORE
SPY Tests the Gap // Giving QQQ a Little Wiggle Room // Broad Selling in Finance and Consumer Discretionary // XLF and XLI Test Breakout Resolve // Treasuries Reflect Risk-off Mode // Seven Stocks with Bullish Setups to Watch //// ........... SPY Tests the Gap The S&P 500 SPDR (SPY) gapped up on Tuesday and... READ MORE
The EW Consumer Discretionary ETF (RCD) got a bounce off support Monday-Tuesday, but gave it all back on Wednesday and broke support with a sharp decline. The chart shows the ETF forming a lower high in April and ultimately breaking support on Wednesday with a gap down. This makes for... READ MORE
TECHNOLOGY SPDR BOUNCES OFF 200-DAY LINE ... The technology sector has been one of the market's weakest sectors over the last month. That, however, may be changing for the better. The daily bars in Chart 1 show the Technology Sector SPDR (XLK) bouncing off of its 200-day moving average... READ MORE
Market Recap for Tuesday, May 10, 2016 Energy (XLE, +1.76%), industrials (XLI, +1.72%) and basic materials (XLB, +1.67%) led a wide participation rally on Tuesday that finished with all of our major indices up at least 1% (the Russell 2000 was the lone exception at +0.95%... READ MORE
Coca-Cola (CCE) is lining up for a possible short-term breakout and rally. One of my many Price Momentum Oscillator (PMO) scans pulled up this stock. The scan looks for stocks with positive Trend Model configuration (5-EMA > 20-EMA > 50-EMA > 200-EMA) that have just had a PMO BUY signal... READ MORE
Here we are at the end of the Candlestick Analysis series; hopefully a few of you are still with me. I’m going to show in this article the process I would use to incorporate candle patterns into my trading even though I am no longer a trader; not sure... READ MORE
Market Recap for May 9, 2016 Biotechnology stocks ($DJUSBT) gained more than 2% on Monday, leading the healthcare sector (XLV, +1.14%) to the top of the sector leaderboard, doubling the one day return of the next best sector, utilities (XLU, +0.57%). While Monday's strength was a... READ MORE
SPY Firms within Bull Flag // Treasuries Could hold the Key for Stocks // Mind the 13-April Gaps // Banks are Holding Up Well // XRT Reverses within Zigzag Pattern // Internet ETF Grinds Higher // Webinar Preview //// ....... The green Raff Regression Channel defines the overall uptrend in SPY and the red Raff Regression Channel marks... READ MORE
The Shanghai Composite ($SSEC) took a hit on Monday and closed below support from the April low. This move is reversing the counter-trend bounce and signaling a continuation of the bigger downtrend. $SSEC is in a big downtrend with lower lows and lower highs since the initial breakdown in June... READ MORE
Market Recap for Friday, May 6, 2016 We saw several successful tests of key price, gap and moving average support on Friday. The price action into the close was bullish with our major indices finishing on or near their highs of the session. Money rotated much more aggressively as well... READ MORE
Consumer Discretionary Groups Underperforming // $SPX Pullback Nears first Support Zone // XLK Nears Broken Resistance and Key Retracement // Apple, Alphabet and Microsoft Firm at Support // Five Big Banks Tests their April Breakouts //// ....... I will be showing some group charts to provide analysis for the risk indicators, the broad market indexes, the... READ MORE
Children's Place (PLCE) printed a reversing hammer on Friday just after touching gap support at 70.51. This comes off a lengthy downtrend that began in mid-April after a negative divergence had developed. Take a look at the technical picture on a daily chart first: Adding further bullishness... READ MORE
The signal table from the DecisionPoint Alert daily report shows all major market and sector indexes on Trend Model BUY signals, and all but three are profitable, so there is some cushion against the downside. However, this is just a one-dimensional picture of the market status generated by moving average... READ MORE
Hello Fellow ChartWatchers! The market moved lower this week, retreating from its failed assault on the highs of last August. Optimists can conclude that more consolidation is needed before the market will be ready to put in new highs. Last week's earnings announcements certainly played a roll as... READ MORE
THE TRADITIONAL NYAD LINE HITS NEW RECORD... Chartists look to the NYSE Advance-Decline line to help determine the trend of the stock market. The NYAD line is simply a running cumulative total of the number of advancing stocks minus decliners on the big board. And it has a good track... READ MORE
2016 has been a very good year thus far for the energy sector (XLE) as it's gained 17.51% in just the last three months alone. Unlike many of the other sectors that have been battling slowing momentum in the form of negative divergences, momentum remains very strong... READ MORE
If you've been trading for a decent period of time you know how quickly things can turn against you. Sometimes with no warning, all of the good work you've done seems to disappear and before you know it, profits quickly disappear as well. As a trader... READ MORE
Oil remains in an uptrend this year, but the bigger trend remains down and this could be just a counter-trend bounce. The price chart shows the USO Oil Fund (USO) in the top window and June Crude (^CLM16) in the bottom window. I am using June Crude for analysis because... READ MORE
As I reviewed the charts of the Nasdaq 100 with my viewers during webinar today, I started to wonder how the equal-weight version was stacking up against the NDX ETF (QQQ). Typically the equal-weight versions do better over time than their cap-weighted counterparts. (Carl wrote an excellent article on this... READ MORE
Stepping Stone Reaccumulation (SSR) formations are significant yet common. An SSR is a pause where the stock rests before resuming the uptrend. SSR formations often have a signature of making the lowest low early in the pause (in the first third to half of the total time spent in the... READ MORE
Isolating the Key Trend in the S&P 500 // Breadth Indicators Near Moment-of-truth // New Highs Still Outpacing New Lows // The Weight of the Evidence Is.... // Using Breadth and Price Action for Sectors // Sector Summary and Ranking Table // Friday Food for Thought //// ....... Isolating the Key Trend in the S&... READ MORE
The legendary Warren Buffet once said, “You only have to do a few things right in your life so long as you don’t do too many things wrong.” Co-authoring an investment book alongside my son, Grayson Roze, stands out as one of the most profoundly “right” things I’ve... READ MORE
Market Recap for Thursday, May 5, 2016 The energy sector (XLE) was back on top on Thursday, once again leading the market. The XLE gained .82% as four sectors advanced while five declined. Consumer discretionary (XLY) was the weakest link, dropping .64%. Apparel retailers ($DJUSRA) fell 3.0%, led by... READ MORE
Back in January, I wrote an article about the bullishness of the Put/Call Ratio 10-DMA. As I was reviewing charts to determine what today's article would be about, I came upon this chart again. I think it would be interesting to look at the static version of... READ MORE
Apple (AAPL) is the most influential stock considering all its branches and its psychological effect, not to mention its $510 billion market cap. But all is not well technically for AAPL and we're going to soon find out if it can hold support and resume its uptrend or... READ MORE
THE TRADITIONAL NYAD LINE HITS NEW RECORD... Chartists look to the NYSE Advance-Decline line to help determine the trend of the stock market. The NYAD line is simply a running cumulative total of the number of advancing stocks minus decliners on the big board. And it has a good track... READ MORE
Market Recap for Wednesday, May 4, 2016 Wednesday's theme was defense. In many sports circles, defense wins championships. That's not the case with the stock market. Strong "defense" here means skepticism, fear and generally a downtrending stock market. So I'm not a... READ MORE
A Market Entitled to a Correction // Using StochRSI to Time Pops in QQQ // A Mild Correction for SPY // Big Techs and Biotechs Drive QQQ Lower // Breaking Down the Big Five - FAAAM // Apple is the Weakest of the Big Five, but.... // Microsoft and Alphabet Hit Interesting Junctures //// ....... A Market Entitled... READ MORE