CITIGROUP LEADS FINANCIALS HIGHER... News that Citigroup is having a good quarter has pushed that stock sharply higher today and helped spark a global stock rebound. The daily bars in Chart 1 show Citigroup gapping 34% higher (and on rising volume). The 14-day RSI (solid line) is rebounding from... READ MORE
Click here for a live version of this chart. Long term answer: Mid caps. Next question?... READ MORE
NEW "WHAT'S NEW" AREA - We've reworked the "What's New" area on the "Members" page so that it now shows you all of the latest posts from our various blogs. I know that some of you just look at... READ MORE
This year has seen the S&P decline by -24.3%; with the building crescendo of "fear" likely to provide for a bottom that can be traded sooner rather than later. We're looking towards sector rotation to play a large part in our trading strategy;... READ MORE
At the start of the 20th century, Charles Dow invented the Dow Theory. It was a simple idea. He created two stock indexes -- one for industrial stocks and one for the transports (which were exclusively rails). His reasoning was that both indexes should rise together in a healthy economy. While... READ MORE
At the end of last week the S&P 500 had declined to and had settled on the support created by the November lows. It was poised to either rally and lock in a double bottom, or break down. On Monday prices broke down through support, and by Thursday&... READ MORE
Significant market bottoms generally share many key characteristics. I like to see a spike in volume to get that last wave of selling in place. During this "panicked" phase, it's also important to see pessimism rise to a relative level where we can be fairly confident... READ MORE
Click here for a live version of these charts. OK - I apologize for the size of the image above, but it's worth the extra time needed to download I promise! These are 6-month candlestick charts of the 30 stocks that make up the Dow Jones Industrial Average.... READ MORE
This is the third part of a series of articles about Technical Analysis from a new course we're developing. If you are new to charting, these articles will give you the "big picture" behind the charts on our site. if you are an "old hand&... READ MORE
DOW THEORY STILL IN DOWNTREND... At the start of the 20th century, Charles Dow invented the Dow Theory. It was a simple idea. He created two stock indexes -- one for industrial stocks and one for the transports (which were exclusively rails). His reasoning was that both indexes should rise together... READ MORE
STOCKS FALL IN BROAD DECLINE... Today's Market Message was written by Arthur Hill. - Editor It was a sea of red on Wall Street. All nine sectors were lower with financials leading the way. Just when you thought they could not go any lower, chart 1 shows the Financials... READ MORE
EURO FALLS AFTER ECB DECISION... Today's Market Message was written by Arthur Hill. - Editor On Thursday, the European Central Bank (ECB) cuts its key rate by 50 basis points (bps) to 1.5%. Even though their key rate is at its lowest level ever, analysts expect further rate... READ MORE
Click here for a live version of this chart. Only one Nasdaq stock began a new uptrend today. Well... began a new uptrend as defined by the ADX indicator. ACI Worldwide Inc recently had a bullish 50/200 Moving average crossover (corresponding to a nice bump up on good volume)... READ MORE
STOCKS STAGE BROAD ADVANCE... Today's Market Message was written by Arthur Hill. - Editor The stock market staged a broad advance on Wednesday with eight of nine sectors moving higher. While this advance looks impressive by itself, it needs to be considered in the context of the prior decline.... READ MORE
VIX LAGS THE S&P 500 ... Today's Market Message was written by Arthur Hill. - Editor The S&P 500 Volatility Index ($VIX) measures the implied volatility for a basket of S&P 500 options, both puts and calls. John Murphy pointed out a rising VIX... READ MORE
Click here for a live version of this chart After gapping down during December and January, AutoZone gapped up significantly in mid February and zoomed upwards today hitting a high of 157 at one point. So why is the Chaikin Money Flow not zooming upwards as well? The CMF gave... READ MORE
GLOBAL BENCHMARKS... A couple of readers ask where foreign stock markets were in relation to their 2002 lows. And they wanted to see the charts of the actual cash markets instead of Exchange Traded Funds. Charts 1 through 5 show five major foreign stock benchmarks through yesterday's close.... READ MORE
INVERSE ETFS ARE RISING ... Rather than showing you pictures of falling stock indexes, I'm going to show you charts of stock indexes that are rising. That would of course be inverse (or bear) ETFs. These inverse funds are designed to trade in the opposite direction of their respective... READ MORE
NOWHERE TO HIDE... Another massive loss by AIG and problems at HSBC, which is Europe's biggest bank, have helped send global stocks sharply lower today. The heavy selling started in Asia before spreading to Europe and the U.S. The Dow and S&P 500 broke their... READ MORE
Click here for a live version of this chart The VIX is the Volatility Index published by the Chicago Board Options Exchange (CBOE). It measures the "implied volatility" of a hypothetical SPX option created from a weighted average of several actual SPX options. (For all the gory details,... READ MORE
WEAK ECONOMIC NUMBERS PUSH STOCKS LOWER... The Dow Industrials and the S&P 500 closed at the lowest level in twelve years on Monday. I cautioned, however, that the most important close of the week would take place on Friday. That's because today is the last trading... READ MORE
SECTOR LEADERS SUCCUMB TO THE BEAR... Today's Market Message was written by Arthur Hill. - Editor There are not many places to hide in this market. Richard Russell, of Dow Theory Letters, used to say: "In a bear market, everyone loses, and the winner is the one who... READ MORE
BONDS MOVER LOWER ... Today's Market Message was written by Arthur Hill. - Editor Bonds are coming under pressure from the prospect of increasing supply. The bailouts and stimulus package will require the government to raise large amounts of money through bond auctions (sales). Today, the government is set to... READ MORE
Click here for a live version of this chart. Apple has been bouncing around $90 since October. Is that support going to hold? One way to gauge the strength of a support level is to use the "Vol by Price" overlay - the horizontal histogram on the left side... READ MORE
STOCKS RECOVER FROM LOWS... Today's Market Message was written by Arthur Hill. - Editor Stocks dipped sharply lower in early trading, but staged a tech-led comeback in the afternoon. Nothing has changed on the daily charts, but I did notice a couple of interesting patterns on the intraday... READ MORE
SPY TESTS NOVEMBER LOW... Today's Market Message was written by Arthur Hill. - Editor The stock market surged on Tuesday with the Nasdaq 100 ETF (QQQQ) and S&P 500 ETF (SPY) both gaining over 3.5%. This is an impressive gain when viewed as a single day.... READ MORE
GOLD STOCKS BACK BELOW 200-DAY AVERAGE... Gold stocks are coming under new selling pressure. Chart 1 shows the Market Vectors Gold Miners ETF (GDX) trading back below its 200-day moving average today. Part of that selling is coming from the two biggest gold stocks. Chart 2 shows Barrick... READ MORE
Click here for a live version of this chart. The MACD Histogram shows the change in momentum of the MACD Line. The MACD Line - in turn - shows the change of momentum in the underlying stock. In the case of CQP, the MACD Line has been moving up pretty steadily since... READ MORE
2002 LOWS UNDER PRESSURE ... Price declines in excess of 3% pushed the Dow and S&P 500 to the lowest closing price in twelve years. The monthly bars in Charts 1 and 2 show those two indexes closing under the previous bear market low formed in the fourth quarter... READ MORE
In our last commentary, we noted that the S&P Energy ETF (XLE) was in the process of forming a bearish consolidation that argues for sharply lower prices. And since then, prices have consolidated further, but are now poised to breakdown below trendline support and the October-2008 lows.... READ MORE
In case you missed it, we are now publishing a ton of new content about charting and technical analysis on our seven(!) different blogs. One of the great things about blogs is that you can "subscribe" to a blog and then get notified as soon as anything new... READ MORE
I receive a lot of questions regarding the "ultra" shares and "ultrashort" shares and how to effectively trade them. In particular, there are always questions asking why those "juiced" ETF returns don't correspond to the indices they're supposed to track... READ MORE
Two weeks ago I featured the Nasdaq 100 ETF (QQQQ) with a triangle breakout, strong OBV and relative strength. The ETF surged to resistance from the early January high, but ultimately failed to break above this key level. With a sharp decline over the last eight trading days, the trading... READ MORE
GOLD TOUCHES $1000 FOR FIRST TIME IN A YEAR... A number of financial markets are testing important chart points. Let's start with gold. Bullion touched $1,000 today for the first time since last March. Chart 1 shows the streetTracks Gold Trust (GLD) very close to touching its... READ MORE
The long-awaited retest of the November lows has finally arrived. The S&P 500 is still slightly above that support, but the Dow has penetrated it. Even though every rally since November has been greeted with intense hope of a new advance that would end the bear market,... READ MORE
This is the second part of a series of articles about Technical Analysis from a new course we're developing. If you are new to charting, these articles will give you the "big picture" behind the charts on our site. if you are an "old hand&... READ MORE
GOLD TOUCHES $1000 FOR FIRST TIME IN A YEAR... A number of financial markets are testing important chart points. Let's start with gold. Bullion touched $1,000 today for the first time since last March. Chart 1 shows the streetTracks Gold Trust (GLD) very close to touching its... READ MORE
Click here for a live version of this chart. Today the Dow Jones Industrials closed below its 6 year low just under 7500. What's the next important support level? What's the one below that? (and, gulp, the one below that?) Here you go. Let's... READ MORE
DOW CLOSES BELOW NOVEMBER LOW... Today's Market Message was written by Arthur Hill. - Editor As noted yesterday, a close below 7552.29 in the Dow Industrials would confirm a Dow Theory sell signal. The Dow Transports already did its part with a close below the November (closing) low... READ MORE
Click here for a live version of this chart. Trying to catch a "falling knife" like Asia Time (TYM) is extremely risky in any market. Doing it in today's market is pure folly. And yet... TYM is the only stock on any of the major markets... READ MORE