I really appreciate receiving your questions, emails and webinar comments. They so often will spur an article and it likely is of interest to many others if someone took the time to send it to me. So here is today's question: "As for short term indicators, e.... READ MORE
* The primary trend in the dollar is still bullish but.. * Broad momentum measures of the dollar are negative * Euro is caught between two possible scenarios The US Dollar Index ($USD) has been in a trading range for several months and may be about to break out, but which way? The... READ MORE
Airlines ($DJUSAR) have traded sideways to down most of 2015. Yet this industry group is one of the best performers historically in the month of October. Furthermore, several airline stocks are in bullish patterns OR are approaching key technical levels of support/resistance. The chart below summarizes several of the... READ MORE
Market Recap for Wednesday, October 7, 2015 European markets ended in positive territory again on Wednesday and that's certainly providing a lift for the U.S. market. Healthcare (XLV) picked itself off the floor and led the action, gaining 1.60%. The beaten down biotech space bounced 2.... READ MORE
Monday's Gaps Hold the First Key I am still working under the assumption that bigger trend is down after the August break down. Furthermore, SPY and QQQ are in the midst of counter trend moves denoted by a rising channel. The channel lines are based on the closing... READ MORE
The first article of each calendar quarter will contain the best 10-12 questions posed by readers over the past 3 months. This is the second one in this Q&A series; the first one is here. This hopefully will encourage asking questions via the Comments section. Of course, the... READ MORE
ENERGY SECTOR MAY BE BOTTOMING... Global stocks continue to bounce off important support levels. One of the supporting factors is new strength in commodity-related energy and material stocks. I've written previous messages on new signs of strength in commodity markets -- especially copper and energy. My August 27... READ MORE
Market Recap for Tuesday, October 6, 2015 No one could claim victory on Tuesday. First, we had a bifurcated market in which the Dow Jones rose while the S&P 500, NASDAQ and Russell 2000 all lost ground. Three sectors gained while the other six fell. Clearly, there was... READ MORE
Monster Beverage (MNST) did not partake in the early October surge and a key volume indicator suggests that distribution is underway. Let's start with the price chart. MNST fell sharply in August and then firmed just above the rising 200-day moving average in September. Volatility contracted as the... READ MORE
Overall, the major index ETFs remain in no man's land. Put another way, the market is between a rock (bigger downtrend) and a hard place (smaller uptrend). The bigger trend turned down with the August breakdown and broken resistance represents the rock around 2050. Short-term, the S&... READ MORE
I received a question from a reader that I thought would make a great article: "Can you explain if there is any significance to spike on the Total Assets Rydex Bear Index Funds chart?" First, a quick refresher on the Rydex Asset Ratio. The Rydex Asset Ratio makes... READ MORE
Welcome to No Man's Land After months of dull trading, the stock market turned into Thrillsville in late August and volatility has continued into early October. This volatility is reminiscent of the periods from June to August 2010 and from early August to early October 2011. It took... READ MORE
Market Recap for Monday, October 5, 2015 This tennis match continues to unfold with the bulls returning serve the past few trading sessions. It appeared to be game, set and match on Friday morning when the disappointing jobs numbers were released, but there's been nothing but buying since.... READ MORE
EMERGING MARKETS LEAD GLOBAL RALLY ... Stocks around the world are continuing the rally that began Friday after the very weak U.S. jobs report. Part of the reason for the renewed optimism may be the belief that the weak job report took a Fed rate hike off the table for... READ MORE
Stock market declines are good because they expose the weak hands and highlight potentially strong stocks. Stocks that hold up during a broad market decline show relative strength and this could lead to outperformance when the market turns up again. Xilinx (XLNX) is one such stock because it held up... READ MORE
Note that I will post a video around 10AM ET. Volatility is clearly heating up as the S&P 500 completed its fifth 3+ percent swing since the August closing low. That is almost one 3+ percent swing per week (based on closing prices). With a 3.7% surge... READ MORE
One reminder: You can subscribe to my blog and receive all of my blog posts via e-mail each morning by simply clicking on the "Yes" button below and providing your e-mail address. This applies to all of the blogs here at StockCharts.com so stay ahead of the... READ MORE
The stock market continues to test underlying support levels formed during the summer. The first chart (below) shows the Dow Industrials holding chart support along the 16,000 level. The second chart shows the Nasdaq Composite holding support along its August 25 closing low at 4500. The last chart shows... READ MORE
Hello Fellow ChartWatchers! Friday's market action is causing quite a buzz in the financial analysis world. After the "meh" US jobs report came out Friday morning, stocks gapped down sharply at the open but then rallied throughout the day and finished up roughly 1.5% (depending... READ MORE
This is one of my favorite charts, although I look at it infrequently because it's a little like watching grass grow. Instead just showing a graph of earnings, it puts earnings in a different context by presenting a set of bands that show where the S&P... READ MORE
* 8/16 PPO triggers a buy signal for the S&P Composite * Resource-based stocks showing signs of improving relative action * Bonds experience an exhaustion day Earlier in the week I noted that the market was getting pretty close to the August lows but that the indicator that I usually... READ MORE
In evaluating whether a positive (or negative) divergence exists on a chart, you must remember to use closing prices. If you use candlesticks like I do, it's not always easy to spot divergences. I'll give you an example - Baidu (BIDU). On the chart below, the... READ MORE
If you believe that crude oil ($WTIC) is dirt cheap and the primary trend from here will be higher, then one simple trading strategy is to own the XLE (Energy Select Sector SPDR). Over the years, the correlation between the two is strong - and perhaps obvious. Since the 2000-2002... READ MORE
For many weeks, the DP Scoreboard for the Nasdaq 100 was the most positive in comparison to the S&P 500, S&P 100 and Dow Industrials. In fact, back when the NDX was in the lead with the most bullish signals, the others were grappling with more... READ MORE
The much weaker than expected jobs report this past Friday put a kibosh on any intention the Fed might have had to raise interest rates during the month of October. In fact, barring a major improvement in the economic outlook, it's doubtful the Fed will be raising rates... READ MORE
The Oil & Gas Equip & Services SPDR (XES) perked up on Friday with a massive engulfing pattern on high volume. Combined with a bullish failure swing in RSI, the ETF could be setting up for a tradable low. Created by Welles Wilder, the Relative Strength Index (RSI) is a... READ MORE
I am on the road this week so this will be a brief post. As you know, I continually emphasize the motives and roles of the Composite Operator. We call the C.O. a heuristic, or a useful fiction. There are many large interests at work in the markets simultaneously.... READ MORE
BOND YIELD PLUNGES... This morning's dismal jobs report pushed Treasury prices sharply higher and bond yields lower. Chart 1 shows the 10-Year Treasury Note Yield plunging to the lowest level since August. Treasury bond prices saw the biggest gains, while investment grade corporate bonds also bounced. High yield... READ MORE
I had the pleasure of having dinner with a mutual fund portfolio manager who manages over $8 Billion and who has the impressive record of outperforming the S&P 500 over the past 10 years. In other words, a Wall Street insider and real pro. My apologies upfront for... READ MORE
Note that I will add a video around 11AM ET. Stock futures were higher before the employment report and then moved sharply lower after non-farm payrolls came in below expectations. Bonds are moving higher and the 10-YR Treasury Yield ($TNX) fell below 2%. The decline in stocks and rise in... READ MORE
Market Recap for Thursday, October 1, 2015 We finished on a strong note on Thursday by rallying into the close and ending near highs of the day across our major indices - very similar to Wednesday. Unfortunately, the strength was centered in materials and healthcare, two of the three worst... READ MORE
The title "suggest more upside" refers to the short term, not the intermediate or long terms. We are still in a bear market, a genuine bear market, so we shouldn't expect bullish results. However, even within a bear market, there are rallies. The important thing to... READ MORE
Actually, this chipmaker's chart looks very strong, especially longer-term. After a strong advance in late 2014, a negative divergence emerged and was followed by a topping head & shoulders pattern. The measurement of that pattern - from the top of the head to the neckline -was roughly 17.... READ MORE
Most blog authors on StockCharts.com are writing about the current markets and do an exceptional job. Erin Heim has become a chip off the old block – her Dad, Carl Swenlin. I do not write about the current markets as wanted to share my experiences after 40+ years as a... READ MORE
Market Recap for Wednesday, September 30, 2015 The month of September and the third quarter of 2015 came to a close on Wednesday and the bulls were able to reduce their losses for the month and quarter. The S&P 500 finished September down 2.6% while the tumultuous... READ MORE
Between a Setup and a Signal Note that I will post a video around 10AM ET. Trends are the driving force, signals are the exception and no-man's land is the norm. What the heck does that mean? First, the bigger trend is the driving force in my trading... READ MORE
The Relative Rotation Graph below shows the trends in relative strength for a number of asset classes against the Vanguard Balanced Index Fund (VBINX). The most important message sent by this chart is the opposite move of equities (SPY) versus bonds (IEF and LQD) indicating that the Equity / Bond ratio... READ MORE
Corn is showing signs of firming near the June lows and a possible wave 2 could be ending for the Corn Trust ETF (CORN). I will first start with December Corn Futures (^CZ15) because this is the most widely traded instrument for corn. Note that StockCharts provides end-of-day (EOD) data... READ MORE
Market Recap for Tuesday, September 29, 2015 We once again saw a bifurcated market - one in which both the Dow Jones and S&P 500 finished in positive territory while both the NASDAQ and Russell 2000 fell. That relative weakness in our more aggressive indices is not a... READ MORE
The medium-term and short-term trends for the major index ETFs are down, but there are some stocks holding up well over the last two months and I am highlighting ten today. The charts below extend six months with the PPOs in the first indicator window and the price relative in... READ MORE