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About this blog: is our free newsletter for individuals interested in technical trading and chart analysis. It is sent out twice a month via email. This blog contains early-access, preview versions of the articles that later appear in the official newsletter.

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ChartWatchers

Why All The Talk About The Yield Curve Flattening?

by Greg Schnell

StockCharts.com has a nice Dynamic Yield Curve tool that anyone can use. It's extremely friendly. As we roll through the pictures in this article, notice the date in the upper left corner of the yellow box. The red vertical line on the yellow background on the right side shows it in the context of the stock market. Here is a snapshot of the tool on July 12, 2016. In the picture above, we can see the line tilted sharply higher. The black shading is the yield each of the bond maturity dates have travelled and the red is the line at the snapshot in time.  About 2% between Read More 

ChartWatchers

The Trading Strategy That Makes Money

by Tom Bowley

Let's first talk about a trading strategy that doesn't work. I steer clear of companies that struggle to meet Wall Street expectations and there's a very simple reason why.  Management helps Wall Street set their expectations.  So when companies miss their targets, it's essentially a confession by management that they could not deliver on their promise.  They weren't capable of executing.  Let me give you a perfect example of what I avoid. PriceSmart, Inc. (PSMT). Here's a company that missed its earnings expectation for the Read More 

ChartWatchers

Checking out the land down under on a Relative Rotation Graph

by Julius de Kempenaer

On the Relative Rotation Graph above I have grouped a selection of world equity market indices, mainly some big regions, and put them against the Vanguard Total World Stock Index (VTWSX) as the benchmark. What immediately grabs our attention, or at least mine is the fact that this selection is clearly split between positive (Leading) and negative (Lagging). The universe The universe on the RRG is found in the table below I have collected a number of ticker symbols for important international equity markets Read More 

ChartWatchers

Health Care SPDR Achieves Bullish Breakout

by John Murphy

On a day when stocks are rising, and all eleven market sectors are in the black, healthcare is the standout performer. This chart shows the Health Care SPDR (XLV) rising to the highest level since the middle of March. The bottom box shows the XLV/SPX ratio rising to the highest level since late April. The XLV has been rising faster than the SPX since the start of May. The XLV now appears to be on the verge of exceeding its March intra-day high at 86.23. Biotechs are the main driving force behind today's healthcare surge. Read More 

ChartWatchers

Profiting from Earnings Reports

by John Hopkins

The market has been in stall mode for quite some time now. Even though the S&P perked up some on Friday it's still hanging out near levels seen in early January, going nowhere fast.   At the same time the market has had all kinds of reasons to totally collapse; tariff wars, Fed tightening, rising US dollar, to name a few. Yet the S&P is back above all key technical levels, waiting for any bit of good news to move it into high gear. And where might that good news come from? Earnings.   For sure there's actually no way of telling Read More 

ChartWatchers

Finding Chart Breakouts with Momentum

by Erin Swenlin

I've presented my favorite PMO scan numerous times during the MarketWatchers LIVE show, but also in articles. Here's a link to my article on that scan. However today I wanted to present my "Chart Breakouts" scan. I use this scan during the MarketWatchers LIVE show to find stocks or ETFs that are just beginning to breakout and also picking up momentum. Below is the CandleGlance of the chart breakouts I presented in today's show. Not all of these are great, but you can see that most have broken declining tops trendlines or above very short-term resistance. Read More 

ChartWatchers

The BIG picture in ONE picture

by Julius de Kempenaer

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 Read More 

ChartWatchers

Historic High on NAAIM Exposure - NDX Scoreboard All Buy Signals

by Erin Swenlin

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. High readings on NAAIM suggests excessive bullishness. I've annotated the Read More 

ChartWatchers

Some Consumer Staples Stocks Start Hitting Scans

by Greg Schnell

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 Read More 

ChartWatchers

Relative Strength Is Your Guide To A Winning Stock Portfolio

by Tom Bowley

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": Consumer discretionary is one of four "aggressive" sectors that historically perform Read More 

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