I've been watching the dollar, UUP (PowerShares US Dollar Index ETF) in particular. A short-term double-bottom has been forming and today price penetrated the neckline, executing this bullish chart pattern. Looking at a six-month daily chart the pattern is easy to see. When a double-bottom pattern executes, the... READ MORE
HONG KONG MARKET HITS SEVEN-YEAR HIGH... China has been the strongest stock market in the world over the last year. The launch of the Shanghai-Hong Kong Stock Connect last November allowed Chinese investors to buy Chinese stocks traded on both exchanges. It also opened up Chinese shares to foreign investors.... READ MORE
* World Stock ETF looks set for an upside breakout if it can get a small push in that direction * Treasury yield curve begins to steepen * Gold shares and silver caught in an important trading range. Equities Last week’s headline addressed the question of whether Chinese equities would drag US... READ MORE
Over the years during hundreds of presentations I stressed that there are three primary components to a solid rules-based model; in my case it was trend following. First, you need to Measure the market. This can be a group of indicators designed to show you what the market has been... READ MORE
Julius de Kempenaer noted the surge in Chinese stocks in his most recent RRG post and Tom Bowley noted the breakout in SouFun in a blog post on Wednesday. I will add a third China-related post to the mix by pointing out Baidu. Chinese stocks have been on a tear... READ MORE
Stocks meandered all day and finished slightly higher. QQQ (+.79%) and IWM (+86%) led the bounce with modest gains. SPY (+.34%) and DIA (+.18%) lagged. Seven of the nine sector SPDRs were up, but the gains and losses were small. Biotechs led the industry group ETFs as the Biotech SPDR... READ MORE
SFUN serves as a real estate internet portal in the Peoples Republic of China and is rallying strongly today on the heels of overall strength in most Chinese shares. Technically, the downtrend in SFUN has been reversed on a series of positive technical developments. First, SFUN had been in a... READ MORE
The first time I wrote about international equity markets on this blog was last year in October. Already back then China had entered the leading quadrant on the Relative Rotation Graph holding a number of international equity indices. And if we look today we will see that China is still... READ MORE
Stocks surged on Monday morning and plunged on Tuesday afternoon. The S&P 500 is still up over the last two days, but Tuesday's final hour sell off could foreshadow a tougher trading environment ahead. Small-caps and mid-caps led the selloff as IWM lost .64% and MDY... READ MORE
The market was mostly in a holding pattern today until the final 20 minutes when price broke down to close in the red. Ultra-short-term support is lurking, while a second area of support is waiting at the March 26th low. The purpose of the DecisionPoint Daily Update is to quickly... READ MORE
S&P 500 SPDR BOUNCES OFF SUPPORT ZONE... The following charts and commentary come from the webinar on Tuesday, April 7th. I am leading off with a long-term monthly chart to emphasize two things: markets trend and long-term timing is possible. While past signals are not guaranteed to work... READ MORE
Lazard (LAZ) has left Goldman Sachs (GS) and Morgan Stanley (MS) in the dust by outperforming these two behemoths since early February. The SharpChart below shows year-to-date performance for these three stocks and the Finance SPDR (XLF). GS is near break even for the year, MS is down over 6%... READ MORE
Technology stocks have been lagging throughout 2015. One of the primary reasons for their uninspiring performance has been the underwhelming action in the Dow Jones US Semiconductor Index ($DJUSSC). Before we delve into the semiconductors, let's see what technology as a whole is facing - take a look... READ MORE
Note that I will be doing a webinar today at 1PM ET (Tuesday, April 7th). I will cover market breadth, gold, oil, the dollar and some stock setups. Click here to register. Stocks shrugged off the miss in non-farm payrolls on Friday and surged in early trading on Monday. The... READ MORE
S&P 500 SPDR BOUNCES OFF SUPPORT ZONE... Link for today's video. Chart 1 shows the S&P 500 SPDR (SPY) falling to the top of its support zone last week and surging on Monday. This surge is most interesting because stock futures were down Friday... READ MORE
FMC Technologies (FTI) provides technology solutions for the energy sector. Much of the energy space has struggled for the last several months for a number of reasons, one of which has been the higher dollar. The rising greenback has provided a headwind for energy companies, but with the suddenly weak... READ MORE
It was a rather strange week for stocks. DIA and SPY were up around .50% as of Thursday's close, but Friday's decline in stock futures wiped out this small gain and they ended the week slightly negative - for all intents and purposes. IWM was up... READ MORE
Standard & Poors finalized 2014 Q4 earnings on Thursday, and I like to review the numbers and the earnings chart. (Note that earnings are reported during the three months following the end of each quarter.) First we have an excerpt from the DP Overview of Market Fundamentals Report which we... READ MORE
Hello Fellow ChartWatchers! The other day I was out with my Dad and he said "Boy, the market has been really volatile recently hasn't it?" And I said "Umm, not really. Where did you hear that?" "All the cable news channels are talking... READ MORE
Emerging markets usually do better when Treasury yields are dropping along with the dollar. Which may help explain why emerging markets were among the world's strongest stocks this week. The red daily bars in the first chart show Emerging Markets iShares (EEM) ending the week at a new... READ MORE
Trading stocks is never for the faint of heart. It requires great skill and discipline to consistently succeed. For those who believe technical analysis is an important part of trading, learning to read and interpret charts is a very important part of the equation. Understanding technical analysis alone does not... READ MORE
I use this ChartPack during every trading day. It is absolutely invaluable and a "must-have" for any of you who tend to find yourself glued to StockCharts when the market is open. The beauty of this ChartPack, it is only one ChartList, so for any of you that... READ MORE
Two months ago, there weren't many better looking industry groups than the Dow Jones US Electrical Components & Equipment Index ($DJUSEC). The breakout above price resistance was clear, but after a continuing advance of another 10% into mid-March, the DJUSEC ran into technical issues. Take a look at... READ MORE
NOTES FROM THE MTA SYMPOSIUM... As John Murphy pointed out on Friday, Stock futures were down sharply after weaker-than-expected non-farm payrolls. The S&P 500 and Nasdaq were down around 1%. Treasury bonds moved sharply higher as the 10-YR Treasury Yield ($TNX) fell below 1.85%, and to its... READ MORE
Technical analysis cuts to the chase by showing us the only thing that matters: price. Even those using fundamental analysis can benefit from technical analysis because we only make money when prices move in the desired direction. Here are four ways technical analysis can improve your investment returns. 1. All... READ MORE
MARCH JOBS REPORT IS THE WEAKEST SINCE DECEMBER 2013... The March jobs report released this morning showed only 126,000 new jobs created, which was nearly half what most economists were expecting (245,000). In addition, jobs created for January and February were revised downward. The unemployment rate remained unchanged... READ MORE
Generally, I review my trading positions on a stock by stock basis. If I've hit my target on one, I try to be disciplined and take the profits - or at the very least partial profits. If my stop loss has been triggered, it's time to... READ MORE
There’s nothing like teaching a seminar to fifty sharp investors on this topic and having them demand more clarity and specifics to encourage one to do the same for my blog readership. To bring you up to speed, please read my previous blog on this subject. https://stockcharts.com/... READ MORE
The Dollar Index has been on a tear the last four months as the spread between the 10-YR Treasury Yield ($UST10Y) and German 10-YR Bund Yield ($DET10Y) widened to historic levels. The chart below shows 10-yr yields for four countries in the top window. US and UK yields are by... READ MORE
Since about mid-March I've gotten quite a few questions from subscribers asking me to look at the $SPX monthly chart because it shows a monthly Price Momentum Oscillator (PMO) negative crossover. We haven't seen a monthly PMO crossover since the positive crossover occurred at the end... READ MORE
I discussed how using the MACD in concert with price/volume can be instrumental in making a high probability exit in Parts 1 and 2. Today, I want to focus on candlesticks. I'm a fan of Steve Nison's and have read his books on candlesticks. The... READ MORE
I’m not sure when I heard this the first time but I’m quite sure it was a long time ago. “The markets go up most of the time,” or even to be more convincing, “The market goes up 40% of the time.” I never challenged that until I... READ MORE
Stocks were lower most of the day, but rallied in the final fifteen minutes to cut their losses. SPY closed with a small loss and IWM closed with a fractional gain. The sector SPDRs did not move much either. Healthcare was the big loser with a 1% decline. Utilities bucked... READ MORE
* Dow Jones Transports flirting with key support. * Chinese ETF (FXI) experiences a long and short-term breakout. * Emerging markets on the edge of a breakout. US Equities Since the middle of last year we have seen two different market characteristics develop. The first, as epitomized by the S&P 500... READ MORE
The Consumer Discretionary SPDR (XLY) is perhaps the single most important sector in the stock market because it is the most economically sensitive sector. Industry groups in this sector include retail, restaurants, autos, media and home construction. XLY is weighted by market cap and reflects the performance of the large-caps... READ MORE
Let's continue the discussion from yesterday. Broadcom (BRCM) had fallen back in late January to test both price and multiple gap supports, with an intraday move beneath both that suggested we could be witnessing a breakdown. By the close, however, BRCM printed a very bullish reversing candlestick (hammer)... READ MORE
Stocks were mostly lower on Tuesday. The S&P 500 opened lower, stalled for a few hours and then moved lower again in the final hour. Large-caps led the way, while small-caps fell fractionally and showed relative strength again. Eight of the nine sector SPDRs were down with the... READ MORE
After consolidating the correction last week, price rebounded on Monday, but it was over today as price stayed in the red all day. It consolidated in negative territory, but the end of the day price saw price fall back down and out of that area of congestion. Interestingly, you can... READ MORE
QQQ AFFIRMS SUPPORT... The charts today come from today's webinar. Not all charts, however, are featured here. See the last section of this Market Message for the symbosl and contecnt found exclusively in the webinar recording. Chart 1 shows the Nasdaq 100 ETF (QQQ) hitting support after a... READ MORE
Trading successfully certainly requires a ton of patience and discipline. Emotions run high when it comes to your money and the prospects of losing it. Panicked selling is the easiest kind because you simply can't take the pain any longer. The best way to rid yourself of the... READ MORE