Stocks stalled over the last few days, but the short-term uptrends have yet to reverse. In fact, the existing trends for TLT (up), UUP (up), USO (down) and GLD (down) also remain unchanged. SPY is up around 5% since August 7th. This is a very steep advance and the ETF... READ MORE
TALE OF TWO INDUSTRY GROUPS TODAY... Health Care continues to be a leading sector. Within healthcare, the Biotechnology sector is a rapidly changing field with huge medical advancements being made. There are currently 6 SCTR ranked large cap stocks that have really strong SCTR rankings and strong weekly charts in... READ MORE
The German DAX Index ($DAX) is at an interesting juncture because it broke down in July and then retraced 62% of the prior decline with a bounce in August. Notice that broken support turns into resistance in the 9600 area as well. The index stalled on Wednesday and was trading... READ MORE
Stocks turned mixed on Wednesday with fractional gains and losses in the major index ETFs. The sectors were also mixed, but the Utilities SPDR (XLU) caught a bid and surged 1.09%. Networking stocks weighed on the tech sector as the Networking iShares (IGN) fell .69%. Regional banks weighed on... READ MORE
* Short-term indicators still bullish for stocks. * Growth (IVE) about to break out against value (IVW). * Commodity market experiences bullish short-term divergence. (Click here for a video version of this commentary.) US Equities The short-term indicators i.e. those monitoring trends that range from 3-6-weeks remain in a bullish mode and... READ MORE
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EMERGING MARKET ISHARES REACH THREE-YEAR HIGH ... The weekly bars in Chart 1 show Emerging Markets iShares (EEM) now trading at the highest level in three years. Just over a month ago, the EEM broke above its late 2012 high near 44.00. That bullish breakout bodes well for emerging market... READ MORE
Stocks edged higher again with the Russell 2000 iShares (IWM) leading the way, though the gain was just .65%. Eight of the nine sectors were higher with the Energy SPDR (XLE) and Finance SPDR (XLF) leading. The Utilities SPDR (XLU) was the lone loser. As the chart below shows, XLU... READ MORE
Dollar-Weighted Volume (DWV) is a short-term indicator. Generally the DWV and the price index run pretty close together, with tops confirming tops and bottoms confirming bottoms. What we look for are positive/negative divergences and for instances where volume doesn't confirm price, meaning that volume either leads or... READ MORE
Looking at today's DecisionPoint ETF Tracker, I noticed three new PMO BUY signals on Copper (JJC), Steel (SLX) and Palladium (PALL). Gold (GLD) and Silver (SLV) are still suffering and haven't joined the party. Below is a cross-section of the DP ETF Tracker report where I... READ MORE
RUSSELL 2000 ETF LAGS, BUT MAINTAINS BULLISH EDGE... There has been some concern that the Russell 2000 (small-caps) is lagging the Russell 1000 (large-caps). Relative weakness in small-caps detracts from a broad market advance because these stocks represent the appetite for risk and the high-beta end of the stock market.... READ MORE
Stocks opened strong and then traded flat the rest of the day. The major index ETFs closed with small gains as the opening surge held. All nine sectors were higher with the Finance SPDR (XLF) and Energy SPDR (XLE) leading the way. Energy is getting an oversold bounce and money... READ MORE
Contrary to seasonal tendencies, August has been a strong month for the stock market. The Sector PerfChart shows the S&P 500 SPDR (SPY) up just over 3% since July 31st. Of the nine sectors, the Industrials SPDR (XLI) and the Consumer Discretionary SPDR (XLY) are up over 4%... READ MORE
INDUSTRIALS, TECH AND DISCRETIONARY SECTORS HIT NEW HIGHS... Link for today's video. Stocks were broadly higher around midday on Monday with several major index ETFs hitting new highs. The Dow Diamonds, Nasdaq 100 ETF, S&P 500 SPDR and Equal-Weight S&P 500 ETF hit new... READ MORE
Stocks put in another strong performance last week with the Dow Diamonds (DIA) and S&P MidCap SPDR (MDY) gaining over 2%. All sectors were up with the consumer discretionary, technology, finance and industrials sectors gaining over 2%. It is hard to argue with broad strength in the four... READ MORE
FINANCIALS LEAD AS XLF AND REM HIT NEW HIGHS... Link for today's video. The Finance SPDR (XLF) and the Equal-weight Finance ETF (RYF) moved to new highs this week to affirm their long-term uptrends. Things can't be all that bad when these two sector ETFs record... READ MORE
You wouldn’t ever try to change the tires on a moving car, would you? You wouldn’t go to a dentist who hadn’t finished his dental degree, would you? Yet investors every day seem to do exactly the equivalent by investing in the stock market with little or... READ MORE
Stocks eked out some gains on Thursday to extend the run that started on August 8th. In particular, the Finance SPDR (XLF) led the way with a 1+ percent gain. Banks and brokers were also higher as the Regional Bank SPDR (KRE) advanced over 1%. Gold returned to its roots... READ MORE
$SPX SPENDS THE DAY BREAKING THROUGH TO NEW ALL TIME HIGHS... While the S&P500 ($SPX) worked through to all time highs today as shown on Chart 1, there was a continuous drumbeat towards the 2000 level for the $SPX. The market peaked out at 1994, which was 3... READ MORE
We have a set of very short-term indicators we look at every day, and they are showing some internal deterioration in that time frame (days). Note that they have been backing off from the overbought readings of just a few days ago, even as price has moved higher. The peak... READ MORE
The finance sector is showing strength as the annual conference in Jackson Hole gets under way. Fed Chair Janet Yellen will speak tomorrow and this could move Treasury yields and further affect the group. The image below comes from the Sector Carpet and shows the finance sector leading with a... READ MORE
Relative Rotation Graphs, RRGs, are a wonderful tool to get a grip on the bigger picture of markets and the rotational movement of trends in relative strength across various instruments in a universe or a portfolio. However, this is only the beginning. Once you have detected something that could be... READ MORE
There are six setups today. First, we start with a healthcare stock forming a triangle after an advance. Second, there is a tech stock with a high volume breakout. Third, we have a regional bank reversing just above a support zone. Fourth, there is an internet stock that did not... READ MORE
Stocks were mixed with the S&P 500 SPDR (SPY) edging higher and the Russell 2000 iShares (IWM) closing modestly lower. Relative weakness in small-caps is a small concern for two reasons. First, IWM represents a little less than 8% of total market cap for the US stock market.... READ MORE
I thoroughly enjoyed speaking at ChartCon 2014 and meeting so many that were thirsty to learn more about DecisionPoint indicators, charts and reports. At the end of my presentation, I briefly demonstrated how the DecisionPoint Tracker reports can be used to "bottom fish". It appears there are quite... READ MORE
CONSUMER DISCRETIONARY SPDR HITS NEW HIGH... A positive sign for the stock market and the economy is the ability of the Consumer Discretionary SPDR (XLY) to hit a new high this week, as shown in Chart 1. The relative strength line (above chart) had fallen during the first half of... READ MORE
The Point & Figure chart below, which is based on 10 points per box, shows the S&P 500 with successive upside breakouts in April, May and June. A key tenet of technical analysis is that broken resistance turns into support. The green support box, therefore, is based on... READ MORE
Stocks opened strong and remained strong on Tuesday. SPY and IWM are up almost four percent over the last eight days. QQQ is up 4.75% and leading the pack. The advance is getting a little extended for the short-term, but overbought is a sign of strength, not weakness. Of... READ MORE
SMALL-CAP FINANCIALS ETF RECAPTURES KEY MOVING AVERAGE... Link for today's video. Yesterday I noted that the Consumer Discretionary SPDR moved back above its short-term support break. The Finance SPDR (XLF) also joined with a surge back above 22.50 over the last few days. As with XLY, the... READ MORE
* Bottom Fisher goes bullish. * Bonds continue to break to the upside. * Dollar Index due for a pause. * Watch $27.50 and $130 on the GDX and the GLD. US Equities The Pring Bottom Fisher market indicator (!PRBFISH), shown in the lower window of Chart 1 (and discussed in more detail... READ MORE
Stocks opened strong and closed strong with small-caps leading the way. Eight of the nine sectors were higher with industrials and finance leading. The utilities sector lost ground. The Home Construction iShares (ITB) and the Retail SPDR (XRT) lifted the consumer discretionary sector. Strength in these two groups would be... READ MORE
There are five setups today. First, we have a mining and oil concern with a correction underway. Second, we have an auto parts maker firming within a key retracement zone. Third, there is a shipping stock with a triangle breakout. Fourth, we feature a solar energy stock with a high... READ MORE
Delta Airlines (DAL) appears to be ending its two month correction with a surge back above the 50-day moving average. Notice how the stock successfully tested the 35 level twice and did not even test the rising 200-day. The recent move above the June trend line and 50-day moving average... READ MORE
BIG TECH SHOWS RELATIVE STRENGTH AS SMALL TECH ATTEMPTS BREAKOUT ... Link for today's video. The Nasdaq 100 ETF (QQQ) continues to lead the major index ETFs with another new high. Not many ETFs are trading at or above their July highs right now. QQQ shows both chart strength... READ MORE
Accessing the RRG chart tool from the home page will bring up a number of major index as the default universe. The drop down box labelled "pre-defined" groups will show a number of, indeed just like the title says, pre defined groups for use on a Relative Rotation... READ MORE
If one follows the financial media, it seems as if Ukraine and Iraq are driving the markets these days. While these two regions are certainly a concern, I am not sure how much lasting influence they will have on the overall direction for US stocks. The German DAX Index ($DAX)... READ MORE
The yield on the 10-Year Treasury Note fell to 2.34% this week which is the lowest level in fourteen months. Heavy buying of Treasury bonds in an apparent flight to safety was a big reason for the yield plunge. A bigger reason may have signs of economic weakness overseas,... READ MORE
Hello Fellow ChartWatchers! First off, thanks again to everyone that attended ChartCon 2014 last weekend in Seattle. From my perspective the conference was a huge success with lots of great speakers, great presentations, great discussions, great food, and great weather. For those of you that weren't able to... READ MORE
NASDAQ LEADS MARKET HIGHER... The Nasdaq market led this week's stock market rebound (gaining 2.15%). Chart 1 shows the Nasdaq Composite Index ending the week well above its 50-day average, and within striking distance of its July peak. So far, the Nasdaq is the only major U.... READ MORE
Gold broke out with a surge in early August, but stalled the last eight days and failed to follow through. Despite lack of follow through, the breakout is holding and has yet to be proven other wise. Let's see what it would take to prove this bullish signal... READ MORE