Regional Banks and Biotechs are Leading – Plus 4 Healthcare Stocks to Watch

Remember the Failed Flag in SPY? XLI Fails and Breaks Support. KRE Holding Up Well. USB Forges Island Reversal. Biotech ETFs Breakout. 4 Healthcare Stocks to Watch. On Trend on Youtube. ... Remember the Failed Flag in SPY? ... Not too long ago, the S&P 500 SPDR (SPY) surged and formed a bullish flag. Instead of breaking out to the upside, the ETF broke below the flag lows...

DP Bulletin: Dow First to Lose Its PMO BUY Signal – Will Others Follow?

The DecisionPoint Scoreboards nearly made it to "all green" as the NDX was the first to manage a PMO crossover on the weekly chart and the others seemed sure to follow until this recent pullback. To make matters worse, the Dow which had just managed a PMO BUY signal on its daily chart two weeks ago, lost it. 

< p class"entry-more-link">Continue reading "DP Bulletin: Dow First to Lose Its PMO BUY Signal - Will Others Follow?" »

6/19 MWL Recap – "Introduction to Momentum Indicators" Workshop – "Small Change"

  Welcome to the recap of today's MarketWatchers LIVE show, your antidote for the CNBC/FBN lunchtime talking heads. Listen and watch a show devoted to technical analysis of the stock market with live market updates and symbols that are hot. The show runs throughout the day on StockCharts TV or you can find the latest episode on the YouTube StockCharts channel here. Information abounds in our Monday through Friday 12:00p - 1:30p shows, but the MWL Blog will give you summary slides and time stamps for viewing later. Be sure and check out the MarketWatchers LIVE ChartList for the 10 in 10 charts.  Your comments, questions and suggestions are welcome. Our Twitter handle is @MktWatchersLIVE, email is marketwatchers@stockcharts.com and come "like" our MarketWatchers LIVE Facebook page. Don't forget to sign up for notifications at the end of this blog entry by filling in your email address.  < p class"entry-more-link">Continue Continue reading "6/19 MWL Recap – "Introduction to Momentum Indicators" Workshop – "Small Change""

Global Equities Are Falling Apart But It’s MAGA For US Relative Action

New bull market high for US equity relative action International markets are breaking down Commodities lose some upside momentum US equities have been hit hard so far this week, but that's nothing compared to China, Emerging Markets, Europe and other markets around the globe. As a result, we are getting some pretty powerful bullish signals for the US performance relative to the rest of the

Solar Stocks Go Dark

Since mid-May the renewable energy stocks have tumbled. This may have come as an unexpected surprise to many. Let’s do a mini-blog case study of the Dow Jones Renewable Energy Equipment Index ($DWCREE) to determine if there was advance warning of trouble brewing.

As Wyckoffians we are really in the dark here as volume is not available. To shed some light on this problem, look at two actively traded renewable energy ETFs: TAN and ICLN. They have a family resemblance to $DWCREE (with volume) for study purposes. < p class"entry-more-link">Continue reading "Solar Stocks Go Dark" »

This Industry Group Tries To Clear Resistance For The 23rd Time; Dow Futures Tumble

Market Recap for Monday, June 18, 2018

Trade war fears are picking up again this morning and it's rattling equities worldwide.  It created a bit of a stir on Monday morning as futures were weak, signaling a rough start for U.S. equities.  That's exactly what we saw as the Dow Jones opened down well over 200 points.  The good news is that buyers stepped up throughout the session.  The bad news is that the short-term downtrend in this index remained in play despite the recovery:

< p class"entry-more-link">Continue reading "This Industry Group Tries To Clear Resistance For The 23rd Time; Dow Futures Tumble" »

The BIG picture in ONE picture

Note 1: This article was posted earlier as part of the ChartWatchers newsletter last weekend. One paragraph and an up-to-date daily version of the Relative Rotation Graph for asset classes has been added to the bottom of this article. Note 2: A pre-populated universe for Asset Allocation has been added to the Groups drop-down. Relative Rotation Graphs® originally emerged out of my work on sector (rotation) analysis while employed as a sell-side analyst providing services to institutional clients. Shortly after the first introduction as a tool to visualize sector-rotation a lot of other possibilities to use RRGs sprung to mind. One of the first ideas was to use a Relative Rotation Graph at the highest level of an investor's decision tree, Asset Allocation. The first decision someone has to make whether he (or she) wants to invest or stay with a savings account. But once the decision to invest has been made, the next Continue reading "The BIG picture in ONE picture"

The Single Biggest Influence on Individual Stocks

Correction Time? XLI and XLF Resume their Lagging Ways. Charting the Big Five Sectors. Watch the Risk-Off Assets. On Trend and Stocks to Watch. ... The Single Biggest Influence on Individual Stocks There are several influences on the price of an individual stock, but one influence rises far above the others. Using the S&P 500 as the proxy for the stock market, price...

6/18 MWL Recap – Monday Set-Ups – Earnings Spotlight – DecisionPoint Report

  Welcome to the recap of today's MarketWatchers LIVE show, your antidote for the CNBC/FBN lunchtime talking heads. Listen and watch a show devoted to technical analysis of the stock market with live market updates and symbols that are hot. The show runs throughout the day on StockCharts TV or you can find the latest episode on the YouTube StockCharts channel here. Information abounds in our Monday through Friday 12:00p - 1:30p shows, but the MWL Blog will give you summary slides and time stamps for viewing later. Be sure and check out the MarketWatchers LIVE ChartList for the 10 in 10 charts.  Your comments, questions and suggestions are welcome. Our Twitter handle is @MktWatchersLIVE, email is marketwatchers@stockcharts.com and come "like" our MarketWatchers LIVE Facebook page. Don't forget to sign up for notifications at the end of this blog entry by filling in your email address.  < p class"entry-more-link">Continue Continue reading "6/18 MWL Recap – Monday Set-Ups – Earnings Spotlight – DecisionPoint Report"

Energy Leads Market Lower, Watch These Two Support Levels

Market Recap for Friday, June 15, 2018

We finished Friday's action with lower major indices, primarily the result of a very weak energy sector (XLE, -2.15%).  Unfortunately, that masked one of the best absolute and relative performance days in consumer staples (XLP, +1.28%) since the January high.  Technically, the XLP looks the best it's looked since January.  We're seeing strengthening price momentum, the recapture of prior price support lost, and on Friday the XLP enjoyed a "golden cross".  Check out the chart:

< p class"entry-more-link">Continue reading "Energy Leads Market Lower, Watch These Two Support Levels" »

Ross Stores Stalls after Breakout

Ross Stores was hit hard with a high volume gap down in late May, but immediately firmed and recovered. The stock broke out of a long triangle in early June and then stalled with a small flag last week. Basically, we have two bullish continuation patterns at work.   The long-term trend is up because the 50-day EMA is above the 200-day EMA and the stock recorded a 52-week high last Monday. With the long-term trend up, the long triangle consolidation is considered a bullish continuation pattern. The breakout, therefore, signals an end to this rest period and a resumption of the bigger uptrend. The breakout surge was over 10% and the stock corrected a little last week with a falling flag. These are short-term bullish continuation patterns and a breakout would open the door to new highs in the stock. The indicator windows shows OBV hitting a new high Continue reading "Ross Stores Stalls after Breakout"

Commodities Get Smoked 2018-06-15 – Video

Well, after the big buildup of the last two recordings, we saw the dramatic climax to the big buildup in tension. Oil, Gasoline, Heating oil, Copper, Steel, Aluminum, Rare earth metals, Coal, Natural Gas stocks, Gold and Silver all had a bad week. With the G7 meeting, the Singapore summit, another Fed meeting on Wednesday, Mario Draghi speaking on Thursday and Quadruple Witching Options Expiration on Friday, the week was loaded for drama. While the indexes were moderate for the week, the commodities got smoked. 

Oil wasn't too bad, but the stocks around oil, spilled! < p class"entry-more-link">Continue reading "Commodities Get Smoked 2018-06-15 - Video" »

The BIG picture in ONE picture

Relative Rotation Graphs® originally emerged out of my work on sector (rotation) analysis while employed as a sell-side analyst providing services to institutional clients.

Shortly after the first introduction as a tool to visualize sector-rotation a lot of other possibilities to use RRGs sprung to mind. One of the first ideas was to use a Relative Rotation Graph at the highest level of an investor's decision tree, Asset Allocation. The first decision someone has to make whether he (or she) wants to invest or stay with a savings account. But once the decision to invest has been made, the next decision is to decide "in what?"
< p class"entry-more-link">Continue reading "The BIG picture in ONE picture" »

6/15 MWL Recap – Guest Co-Host Arthur Hill – Seasonal Doldrums – DP Sentiment Report

  Welcome to the recap of today's MarketWatchers LIVE show, your antidote for the CNBC/FBN lunchtime talking heads. Listen and watch a show devoted to technical analysis of the stock market with live market updates and symbols that are hot. The show runs throughout the day on StockCharts TV or you can find the latest episode on the YouTube StockCharts channel here. Information abounds in our Monday through Friday 12:00p - 1:30p shows, but the MWL Blog will give you summary slides and time stamps for viewing later. Be sure and check out the MarketWatchers LIVE ChartList for the 10 in 10 charts.  Your comments, questions and suggestions are welcome. Our Twitter handle is @MktWatchersLIVE, email is marketwatchers@stockcharts.com and come "like" our MarketWatchers LIVE Facebook page. Don't forget to sign up for notifications at the end of this blog entry by filling in your email address.  < p class"entry-more-link">Continue Continue reading "6/15 MWL Recap – Guest Co-Host Arthur Hill – Seasonal Doldrums – DP Sentiment Report"

Historic High on NAAIM Exposure – NDX Scoreboard All Buy Signals

On Friday, the weekly charts went "final". With that finalization, the NDX which had been carrying a positive Price Momentum Oscillator (PMO) crossover throughout the week, finally posted the IT PMO BUY signal on its DP Scoreboard. Additionally, sentiment charts were very interesting this week. The National Association of Active Investment Managers (NAAIM) posted the 3rd highest market exposure reading since it started in 2006 and put/call ratios are at multi-year lows.

< p class"entry-more-link">Continue reading "Historic High on NAAIM Exposure - NDX Scoreboard All Buy Signals" »

Some Consumer Staples Stocks Start Hitting Scans

I ran some scans this morning looking for some new breakouts to 1-year highs. With the market pushing up for the last month, these food companies are starting to accelerate.

First, Archer Daniels Midland is breaking out to new three year highs. Pinnacle Foods is breaking out above prior year highs. Nomad Foods (NOMD) has a nice chart that looks like it is starting to reaccelerate. If you are looking to diversify into the unloved Consumer Staples sector, these names have nice setups.
I host a new TV show on StockCharts.com called The Final Bar. It airs Thursdays at 5 PM ET and is repeated throughout the week on StockCharts TV. You can also catch it on my Vimeo channel or on the StockCharts.com YouTube Channel.  Good trading,
Greg Schnell, CMT, MFTA
Senior Technical Analyst, StockCharts.com Book: Stock Charts for Dummies
Twitter: Follow @Schnellinvestor

Relative Strength Is Your Guide To A Winning Stock Portfolio

It seems simple enough.  Buy stocks/ETFs that are outperforming the benchmark S&P 500.  Well, that's part of it for sure.  But it really goes a lot deeper than that.  StockCharts.com provides you a myriad of ways to evaluate relative strength.  I tend to use relative ratios most of the time so I'll focus on this method in my article.  As an example, let's compare the consumer discretionary sector (XLY) to the S&P 500 ($SPX) by using the symbol "XLY:$SPX":

< p class"entry-more-link">Continue reading "Relative Strength Is Your Guide To A Winning Stock Portfolio" »

Two Continuation Patterns Take Shape in XLI

The Industrials SPDR (XLI) has struggled in 2018 and is pretty much unchanged year-to-date. Despite flat performance this year, a pair of bullish continuation patterns are taking shape. Let's look at the key levels to watch going forward. Long-term, the trend is still up because the PPO(50,200,0) is positive, which means the 50-day EMA is above the 200-day EMA. The ETF also recorded a 52-week high in January. The first continuation pattern is a large falling wedge. This pattern represents a correction after the big advance from October to January (~22%). The falling wedge retraced around 2/3 of this advance as the ETF reversed course in the 70-71 area.  XLI then broke above the wedge line and exceeded the April high. This bullish breakout reverses the wedge decline and signals a continuation of the prior advance. The second continuation pattern is a flat flag. XLI surged 7% in May Continue reading "Two Continuation Patterns Take Shape in XLI"

Organizing Your Trading Strategy By Trend Strength (Or, How to Make Sense of Jim Cramer’s Stock Picks)

If you watch Jim Cramer's Mad Money show on CNBC for a week, you will hear about so many stock picks (symbols) that it might drive you crazy.  He spews so many symbols, that in a month's time you will  be easily overwhelmed.  So here is a useful chart to put into perspective any stock picks you encounter in the mass media or blogs such as this one.

  Chart 1:  The stocks in the S&P 500 universe are distributed along a line stretching from lower left (weakest stocks) to the upper right (strongest stocks).  Many stocks are in a neutral zone, roughly stretching from 20:80 along each axis (see below). < p class"entry-more-link">Continue reading "Organizing Your Trading Strategy By Trend Strength (Or, How to Make Sense of Jim Cramer's Stock Picks)" »

DP Weekly Wrap: Market Still Strong

The bearish rising wedge formation we had been watching resolved upward last week, though not by a decisive margin. This week price reached, then retreated from horizontal resistance, forming a top which created a new rising wedge formation. In spite of the modest pullback early Friday, price was virtually unchanged by the close. Again, let me remind you that the very high SPX volume on Friday was associated with options expiration occurring near the end of the quarter. If there is any message there, it is buried under that avalanche.

< p class"entry-more-link">Continue reading "DP Weekly Wrap: Market Still Strong" »