Stocks remained under pressure on Thursday with the major index ETFs falling 1% or more. As has been the case for some time, the Russell 2000 ETF (IWM) and the Nasdaq 100 ETF (QQQ) led the way lower. All nine sectors were down with the Consumer Discretionary SPDR (XLY) and... READ MORE
CONSOLIDATED ENERGY AND PEABODY TUMBLE AFTER ELECTION... A couple of recent market messages showed new buying taking place in coal stocks. Two of the stronger stocks in that group were Consolidated Energy (CNX) and Peabody Energy (BTU). Unfortunately, those two coal leaders tumbled on Wednesday along with the entire group.... READ MORE
The Dow Jones Defense Index ($DJUSDN) plunged on Wednesday and broke support with further weakness on Thursday. This move reverses a five month uptrend. MACD also moved lower and is on the verge of turning negative for the first time since mid June. Click here to see a listing of... READ MORE
The markets moved from pre-election risk to post-election fear. Stocks, oil, copper and the Euro moved lower. Treasuries, the Dollar and gold moved higher. Yes, it is rare, and potentially stock market bearish, to see both gold and the Dollar moving higher. The finance sector was hit on the prospects... READ MORE
ABX Firms at Key Retracement. ERIC Bucks the Selling Pressure. Plus KGC, SCHW, SWC, TGT This commentary and charts-of-interest are designed to stimulate thinking. This analysis is not a recommendation to buy, sell, hold or sell short any security (stock ETF or otherwise). We all need to think for ourselves... READ MORE
There are not many gainers today, but a few can be found on the Sector Market Carpet. The isolated green boxes show the stocks bucking the selling pressure. Tenet HealthCare and Hospira are up in the healthcare sector, while Best Buy and Time Warner are up in the consumer discretionary... READ MORE
NET ADVANCES REFLECT BROAD SELLING PRESSURE... Link for todays video. Selling pressure hit the stock market on Wednesday with broad-based declines affecting most areas. All sectors moved lower. Of the 105 Dow Jones industry groups in the sector summary, only two were up at midday. The DJ US Mortgage Finance... READ MORE
The markets embraced a little pre-election risk on Tuesday with the Dow Industrials SPDR (DIA) and S&P MidCap 400 SPDR (MDY) leading the way. The gains were modest, the election is over and investors can now turn to the next big issue (the fiscal cliff?). Energy, finance, materials... READ MORE
Even though the 50-cent P&F chart for QQQ sport a double bottom breakdown, the overall trend is up because QQQ remains above the Bullish Support Line (blue). Also notice that the ETF is hitting support from broken resistance at 65. The moment-of-truth is here for QQQ. Click this... READ MORE
Stocks managed to firm on Monday with small gains in the major index ETFs. The Nasdaq 100 ETF (QQQ) and Russell 2000 ETF (IWM) led the way (up .66%). Six of the nine sectors were up with the Basic Materials SPDR (XLB) and Energy SPDR (XLE) leading the way. The... READ MORE
AMAT Breaks Wedge Resistance. ARUM Forms at 50% Retracement. Plus DUK, HUM, MCHP This commentary and charts-of-interest are designed to stimulate thinking. This analysis is not a recommendation to buy, sell, hold or sell short any security (stock ETF or otherwise). We all need to think for ourselves when it... READ MORE
Amazon.com surged with a long white candlestick last week and then stalled the next four days. Notice that these four candlesticks are all within the range of the long white candlestick. These inside days reflect a consolidation. Watch for a range break to trigger the next directional signal. Click... READ MORE
MACD TURNS DOWN FOR DOW INDUSTRIALS SPDR ... Link for todays video. A lot can happen between now and Wednesday so I am going to focus on the weekly charts for some perspective that will be relatively immune to whatever happens after the election. Stocks have been weak for seven weeks... READ MORE
Markets move to risk-off mode in mid October. Since October 16th, the S&P 500 ETF is down 2.73%, the Euro Currency Trust (FXE) is down 1.7%, the US Oil Fund (USO) is down a whopping 8.16% and the Gold SPDR (GLD) is down 4.03%... READ MORE
Hello Fellow ChartWatchers! It's a question I get everywhere I go. After every talk I give, someone comes up and asks "What's the one market indicator I should watch to see where things are headed?" Many years ago that question gave me fits. In... READ MORE
One month ago, I discussed the increased risk of holding gold as key price resistance was being tested with a long-term negative divergence on the MACD present. That was a sign of slowing momentum and that, combined with price resistance, simply tells us to grab profits and respect the resistance... READ MORE
Lumber prices surged Wednesday after the devastation on the east coast. [I live in New Jersey which was hit especially hard]. There's a lot of rebuilding that's going to be needed as a result And that's going to require a lot of lumber. Lumber... READ MORE
Stocks surged on Thursday and even followed through on Friday morning, but strength did not last long as selling pressure kicked in after the initial pop. Perhaps some pre-election jitters produced this classic pop and drop. Whatever the case, the Russell 2000 hit stiff resistance near its channel trend line... READ MORE
The Consumer Discretionary SPDR (XLY) is getting a boost on Friday from several big moves within the sector. As the StockCharts Technical Rank (SCTR) table shows, the top four SCTR gains come from the consumer discretionary sector. You can read more about SCTR in our ChartSchool article. Click this image... READ MORE
RUSSELL 2000 ETF TURNS BACK AT CHANNEL RESISTANCE... Link for todays video. Stocks surged on Thursday and even followed through on Friday morning, but this strength did not last long as selling pressure kicked in after the initial pop. Perhaps the stock market has election jitters. Whatever the case, the... READ MORE
The indicator summary remains neutral. Weakness in the Nasdaq weighed on the Nasdaq AD Volume Line and the technology sector, both of which are bearish. Strength in the finance sector kept the NYSE AD Line strong and NYSE Net New Highs remain positive. I am also starting to see relative... READ MORE
Better than expected data on the economy lifted stocks and punished treasuries. The ISM Manufacturing Index rose to 51.7 in October. Anything above 50 favors economic expansion. In a preview of today's non-farm payroll report, the ADP Employment report showed the biggest increase in private payrolls since... READ MORE
The S&P 500 declined sharply in October, but caught a bid on November 1st and held above the Bullish Support Line. This line has held since October 2011 and represents a one year uptrend. A move below this trend line would signal a reversal. Click this image for... READ MORE
LUMBER NEARS MAJOR UPSIDE BREAKOUT... Lumber prices surged yesterday after the devastation on the east coast. [I live in New Jersey which was hit especially hard]. There's a lot of rebuilding that's going to be needed as a result And that's going to require... READ MORE
Stocks are holding their breath ahead of an economic avalanche and presidential election. Today we can expect the ADP Employment Report, Challenger Job Report, Jobless Claims, ISM Manufacturing Index, Construction Spending, Consumer Confidence and Auto/Truck Sales. The Employment Report and Factory Orders will be on Friday. And, of course,... READ MORE
ADP Breaks Pennant Support. AEE Bounces off Support with Good Volume. Plus BDX, BWA, DUK, ESRX, JCP, PAYX This commentary and charts-of-interest are designed to stimulate thinking. This analysis is not a recommendation to buy, sell, hold or sell short any security (stock ETF or otherwise). We all need to... READ MORE
QQQ TAGS THE 200-DAY MOVING AVERAGE... Link for todays video. Chart 1 shows the Nasdaq 100 ETF (QQQ) hitting the rising 200-day moving average and the Percent Price Oscillator (PPO) moving into oversold territory. This combination may set the stage for an oversold bounce. Also notice that the 50-61.80%... READ MORE
A look at the Dow Jones industry groups shows strength coming from the DJ US Building and Fixtures Index ($DJUSBD), the DJ US Industrial Suppliers Index ($DJUSDS) and the DJ US Heavy Construction Index ($DJUSHV). These three groups, which are in the industrials sector, are likely benefitting from the rebuilding... READ MORE
Bombardier (BBD/B.TO) got a big surge in early September and then formed an extended triangle the last six weeks. Upside volume within the triangle is picking up as OBV moves higher in the indicator window. A triangle breakout would signal a continuation of the September surge. Click this... READ MORE
TELUS Corp (T.TO) is showing signs of price strength with a channel breakout in late September and a surge over the last four days. This four day surge reinforces support in the 61-62 area. TELUS is on the verge of a breakout, but volume has been weak and has... READ MORE
AUTO STOCKS MAINTAIN UPTREND AHEAD OF KEY REPORT... Link for todays video. The US equity markets are closed on Monday due to Hurricane Sandy. Even though we are looking at a shortened week, we can expect plenty of fireworks because there are several big economic reports due. Chicago PMI, oil... READ MORE
First, note that the NYSE and Nasdaq are closed on Monday because of hurricane Sandy. I am going to review some daily charts to offer a little more perspective today. After a rough start to the week, stocks managed to firm the last three days. Firmness is one thing. Buying... READ MORE
The uptrend in the Home Construction iShares (ITB) is stalling as three bearish engulfing patterns formed in the 26 area. ITB was poised to break resistance with a surge on Thursday, but failed to hold its gains and continued lower on Friday. The Sep-Oct lows mark key support. Click this... READ MORE
THREE FALLING PRICE CHANNELS TO WATCH CLOSELY... Link for todays video. With the major indices weakening since mid September, a number of stocks and ETFs formed falling price channels the last 5-6 weeks. These are usually viewed as corrective patterns that form after a sharp advance. We did indeed see... READ MORE
The indicator summary reflects the split nature of the stock market. The finance sector is strong, but the technology sector is weak, very weak. The consumer discretionary and industrials sectors are holding the line though. Much of the weakness stems from the Nasdaq and technology sector. The Nasdaq AD Volume... READ MORE
Stocks managed to eek out small gains on Thursday as the Russell 2000 ETF (IWM) advanced .41% and the Nasdaq 100 Equal-Weight ETF (QQEW) added .52%. Note, however, that the Nasdaq 100 ETF (QQQ) closed down a fraction (.01%). Stocks were under selling pressure after the close as Amazon and... READ MORE
MINER ETFS LOOK POISED TO RESUME UPTRENDS ... One of the ways to determine the technical condition of precious metals is to look at how their stocks are performing. Chart 1 shows the Market Vectors Gold Miners ETF (GDX) in a "wedge-like" correction within two declining trendlines and testing... READ MORE
Nordstrom (JWN) surged last week, but gave back these gains with a sharp decline the last six days. JWN is now testing support from the late September low. Momentum abruptly shifted as well. Notice that CCI plunged below -100 and this may signal that a new downtrend is emerging for... READ MORE
Stocks remained under pressure on Wednesday, but the losses were relatively muted. Techs were again under pressure with declines in the Semiconductor SPDR (XSD), Networking iShares (IGN) and FirstTrust Internet ETF (FDN). These three held up relatively well on Tuesday, but gave it all back on Wednesday. There has been... READ MORE
CHH Consolidates after Breakdown. IMAX Forms Bull Flag after Surge. Plus CTSH, F, LXK This commentary and charts-of-interest are designed to stimulate thinking. This analysis is not a recommendation to buy, sell, hold or sell short any security (stock ETF or otherwise). We all need to think for ourselves when... READ MORE