Basic Elliott wave teaches us that there are two types of price movements: impulse and corrective. Similarly, Dow Theory teaches us that there are primary price movements and secondary price movements. Impulse and primary moves are in the direction of the bigger trend. Corrective and secondary price moves run counter... READ MORE
RUSSELL 2000 ETF PLUNGES TO FIRST SUPPORT... Link for today's video. The stock market rally took a breather this week as the S&P 500 ETF traded flat the last five days and the Russell 2000 ETF (IWM) fell rather sharply. In afternoon trading on Friday, SPY... READ MORE
1. Embrace the laws of nature. Springs produce either salt water or fresh water. Not both. I am either trading the long side (bullish equities) or the short side (bearish equities) but never both. That’s just experience and knowing myself. 2. Review every chart of every position you own... READ MORE
This PerfChart shows ten ETFs that cover the intermarket picture. Notice that nine of the ten moved higher with stocks and gold leading the way. Oil was hit the hardest with a 5+ percent loss. In a surprise, the Dollar and the Euro both gained. Dollar strength can be attributed... READ MORE
The indicator summary remains firmly positive, but stocks stumbled this week with small-caps and financials weighing on the market. After big runs the last three weeks, the major index ETFs are again short-term overbought. However, these runs produced new highs to affirm the overall uptrends. Also note that the AD... READ MORE
Stocks were mostly weak on Thursday, but selling pressure was modest and there were a few pockets of strength. The Russell 2000 ETF (IWM) led the way lower with a .58% decline. The Nasdaq 100 Equal-Weight ETF (QQEW) managed a .03% gain on the day. Seven of the nine sector... READ MORE
BOND RALLY IS NOW OVERBOUGHT ... After selling off sharply between May and September, bond prices have been bouncing for the last two months. The bounce, however, has reached technical levels that may cap the rally. Chart 1 shows the 7-10 Year T Bond iShares (IEF) having retraced 50% of its... READ MORE
LinkedIn (LNKD) was hit with a high volume decline on Wednesday, but managed to firm near a support zone on Thursday. Support stems from the mid August and early October lows. The indicator window shows the Aroon indicators converging below 30. This convergence suggests little directional movement over the last... READ MORE
Big banks show relative weakness and short-term breakdowns. BAC C JPM. Plus $HOG and $ACN Video is at top. Individual charts are below. Click here for iPad/iPhone Version **This chart analysis is for educational purposes only, and should not be construed as a recommendation to buy, sell or sell-short... READ MORE
Stocks finally took a breather with small-caps leading the way lower. The Russell 2000 ETF (IWM) fell 1.37% and the Russell Microcap ETF (IWC) fell 1.70%. All sectors were down, but the losses were relatively modest. The Consumer Staples SPDR (XLP) led the way lower with a .86%... READ MORE
With a strong open and weak close, dozens of stocks and ETFs made the bearish engulfing scan on Wednesday. These patterns form when the current open is above the prior close and the current close is below the prior open. The result is a black candlestick that engulfs the body... READ MORE
SMALL-CAPS START TO UNDERPERFORM... Link for today's video. Small-caps are starting to underperform and show relative weakness. Chartists should keep an eye on this because prior break downs in the $OEX:$RUT ratio foreshadowed periods of weakness in the broader stock market. Small-caps are considered the canaries in... READ MORE
We're finally back to seeing an "orderly" sector rotation situation on the 3-month S&P Sector PerfChart: The "offensive sectors" on the left of the chart are all positive while the "defensive sectors" are all now below zero. Comparing this to... READ MORE
The rally rabbit continued its run as the S&P 500 ETF (SPY) hit a new high. All major index ETFs were up, but the gains were modest and I am starting to see a little relative weakness in the Russell 2000 ETF (IWM) and S&P Midcap... READ MORE
BroadCom (BRCM) gapped down after an earnings miss and opened near 25 last week. The stock hit its low in the first 30 minutes with a spike in volume (6 million). The stock subsequently rallied and ended the day with over 30 million shares. Moreover, the stock continued higher the... READ MORE
DOW NEARS RECORD HIGH ... The Dow Jones Industrial Average is the only major U.S. stock index that hasn't hit a new record. But that may be about to change. Chart 1 shows the Dow trading within 40 points of its September high. A close above that level... READ MORE
Stocks finished mixed on Monday with the Russell 2000 ETF (IWM) falling .05% and the S&P 500 ETF (SPY) rising .16%. The sectors were also mixed with relatively small moves, excluding the Consumer Staples SPDR (XLP), which surged 1.31% and hit a new high. Semis rebounded with... READ MORE
AMTD Forms Flag after Breakout. Aroon Indicators in Parallel Decline for $ATVI. Plus $CPRT $CX $EA $RDC $TTWO $TSN Video is at top. Individual charts are below. **This chart analysis is for educational purposes only, and should not be construed as a recommendation to buy, sell or sell-short said securities*... READ MORE
The Consumer Staples SPDR (XLP) surged above its May-September highs and recorded a 52-week high with a big move over the last three weeks. A look at the Sector Market Carpet shows Hershey (HSY), Avon (AVP) and Coca-Cola (KO) leading with 2+ percent gains on Monday. HSY also recorded a... READ MORE
NETWORKING ISHARES TESTS IMPORTANT SUPPORT ZONE... Link for today's video. The technical outlook for IGN is deteriorating and this could have ramifications for the technology sector and Nasdaq. With a sharp decline the last five days, the Networking iShares (IGN) is testing an important trend line and support... READ MORE
Oracle (ORCL) held its own from July to September, but weakened in October and showed relative weakness. The indicator window shows the price relative turning down and breaking below the August-September lows. On the price chart, ORCL fell to 32 and then formed a rising wedge the last few weeks.... READ MORE
QQQ SURGES TO YET ANOTHER NEW HIGH... Link for today's video. The Nasdaq 100 ETF (QQQ) stuttered with a dip on Wednesday, but got its mojo back on Thursday and Friday with a move to new highs. Weakness in semiconductor and networking stocks weighed on tech stocks the... READ MORE
I’ve always believed that an accurate way to take the measure of a person is to ascertain which books had the most significant influence on his or her life. Most people will find it difficult to be 100% truthful. I will endeavor to be truthful, but will adjust the... READ MORE
Stocks simply continue to march higher. Buying pressure may be waning, but it is still outpacing selling pressure. The Nasdaq and NYSE AD Lines and AD Volume Lines hit new highs. Net New Highs surged in October and four of the five major index ETFs recorded 52-week highs this month.... READ MORE
The major index ETFs edged higher with modest gains. Selling pressure hit some areas of the market, but there were some pockets of serious strength that lifted the stocks. In particular, the Home Construction iShares (ITB) continued its rise with a 2.84% advance on the day. Strength in housing... READ MORE
The Gold Miners ETF (GDX) got a nice bounce the last seven days with a break above the late August trend line. Even though the big trend remains down, the short-term trend is now up with this small breakout. Longer-term, a potential double bottom is taking shape with the August... READ MORE
TRANSPORTS HIT RECORD HIGHS AS INDUSTRIALS LAG... During the summer, we wrote about bullish signals given by the Dow Theory. That theory holds that a major uptrend is intact when the Dow Industrials and Transports are hitting new highs together. That positive event took place during August and September (see... READ MORE
After hitting new highs for the move early Tuesday, stocks weakened over the last two days with the Technology SPDR (XLK) and Energy SPDR (XLE) leading the way lower. Over the last three days, the S&P 500 ETF (SPY) formed a reversal with a gap up, consolidation and... READ MORE
ADSK Hits Support Zone after Pullback. CZR Retraces 62% with a Wedge. Plus SRPT, USG, WDAY Video is at top. Individual charts are below. **This chart analysis is for educational purposes only, and should not be construed as a recommendation to buy, sell or sell-short said securities** Click here for... READ MORE
TECH STOCKS WEIGH ON STOCK MARKET... Link for today's video. Weakness in the technology sector weighed on the stock market Wednesday. Chart 1 shows the Equal-weight Technology ETF (RYT) falling over 1% with a long black candlestick. I am using this equal-weight ETF to capture performance for the... READ MORE
Our good friend Martin Pring has contributed today's episode of "Don't Ignore This Chart!" In case you aren't familiar with his work, Martin has authored over 15 books on the subject of Technical Analysis including the classic "Technical Analysis Explained."... READ MORE
Stocks extended their rally with another broad based advance. The S&P 500 ETF (SPY) and the S&P Equal Weight ETF (RSP) both gained around .70% on the day. Eight of nine sectors were up with the Materials SPDR (XLB), Consumer Staples SPDR (XLP) and Utilities SPDR... READ MORE
Alcoa moved below 9 in mid 2012 and proceeded to form a long base over the last 15 months. This base gave way to a reversal with a surge above 9 and a 52-week high (intraday). Also notice that the surge started with strong volume. This week's volume... READ MORE
COH Firms within Falling Flag. DOX Breaks out on Good Volume. Plus GTIV, LMT and RTN Video is at top. Individual charts are below. **This chart analysis is for educational purposes only, and should not be construed as a recommendation to buy, sell or sell-short said securities** Click here for... READ MORE
Stocks treaded water with mixed trading on Monday. The Nasdaq 100 ETF (QQQ) edged higher with a .22% gain, while the Russell 2000 ETF (IWM) edged lower with a .20% loss. The sectors were mixed with the Technology SPDR (XLK) gaining .54% and the Healthcare SPDR (XLV) loosing .51%. Homebuilders... READ MORE
A short-term breakdown is in the works for the Biotech SPDR. The ETF returned to broken support and this zone turned into resistance as a bearish engulfing formed on Friday. The ETF followed up this reversal pattern with a trend line break on high volume. This break signals a continuation... READ MORE
TLT BREAKS OUT AS RATES FALL... Link for today's video. It is going to be a big week for Treasuries. First, the employment report is scheduled for Tuesday morning before the open. Even though quantitative easing seems a lock for the next three to six months, a strong... READ MORE
The bull stampede continued last week as the Nasdaq 100 ETF (QQQ) led the major index ETFs to new highs. All sectors were higher last week with the Finance SPDR (XLF) and Energy SPDR (XLE) leading the charge. Finance is the big story because this sector went from relative weakness... READ MORE
The US Congress came through at the 11th hour once again as many expected they would in opening the government and raising the debt ceiling, but only for a short while really. However, the decision to "kick the can down the road" is causing the US Dollar to... READ MORE
I've mentioned it before, but I'll say it again. I LOVE trading stocks (in bull markets) that gap higher on better-than-expected revenues and earnings and very strong volume as it's a sign of great management execution and investor accumulation. That combination is difficult to... READ MORE