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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

Aerospace Starts A Launch Sequence

by Greg Schnell

With another SpaceX launch and more news this week about delivering multiple cargos on one delivery rocket, the Aerospace industry continues to accelerate. This week, the group of public aerospace companies all sported nice chart setups heading into the fourth quarter. I have circled the SCTR rankings. I did a review of UTX on a Don't Ignore This Chart article titled United Technologies UTX Pushed The Penthouse Button. Let's look at a few more below. TransDigm is flying. While Boeing gets all the love, this chart has just had a nice reset and looks ready to make Read More 

ChartWatchers

Three Great Stocks And An Offer To Download My Strong Earnings ChartList

by Tom Bowley

Special Offer If you would like a copy of my Strong Earnings ChartList, simply follow these steps and I'll send it to you: 1.  You MUST be a paid Extra or Pro member of StockCharts.com as that's the only way you can download my ChartList.  If you're unsure of your account service level, click on the "Your Account" tab in the upper right hand corner when you're on the SC.com home page.  At the very top of the Your Account page under Membership Details, you'll find your service level.  That must say either Extra or Pro.  If it says Basic, you will need to Read More 

ChartWatchers

XLE Gains PMO BUY Signal - Still Too Many Negatives in Intermediate Term

by Erin Swenlin

If you look at our DecisionPoint Sector Scoreboard below you'll see that the Energy is the only sector carrying an Intermediate-Term Trend Model Neutral signal. All other sectors have BUY signals in both the intermediate term and long term. While Energy did log a new Price Momentum Oscillator (PMO) BUY signal today, the negatives on the daily and weekly charts outweigh the positives. I've annotated the new PMO BUY signal on the daily chart below. Energy hasn't been performing well since peaking in May. It spent most of the summer months traveling sideways within a trading channel Read More 

ChartWatchers

Equities (SPY) is the only asset class inside the leading quadrant AND it is at a positive RRG Heading

by Julius de Kempenaer

The Relative Rotation Graph shows the relative positions of various asset classes (ETFs) against VBINX, a Vanguard balanced index fund, as the benchmark. The long tails for Real Estate and Commodities stand out, as well as the cluster of fixed income related asset classes inside the red oval. The strongest clue, on this RRG chart, however, is coming from SPY which is the only asset class inside the leading quadrant AND the only asset class moving at a positive RRG-Heading. The weak rotation for the US dollar index theoretically suggests that Read More 

ChartWatchers

The Single Best Thing a Stock Can Do

by Arthur Hill

There are lots of indicators out there, but one metric stands head and shoulders above the rest. No, it is not a head-and-shoulders pattern. There are hundreds, if not zillions, of ways to measure the trend and identify trend reversals. Over the years, I have found trend reversals to be more the exception rather than the norm. Trends show a tendency to persist and this means we are better off staying with the trend instead of looking for reversals. The single best thing a stock can do is record a new 52-week high. A stock that hits a new high is in an uptrend and is a Read More 

ChartWatchers

Traders Still Attracted to Strong Earnings

by John Hopkins

The bulls have remained in charge for a long time now in large part due to continuing, strong earnings. Even with the constant daily noise surrounding the market it almost always comes down to the bottom line. Thus when traders are looking for high reward to risk trades it makes a lot of sense to zero in on those companies that handily beat earnings expectation. As an example, take a look at the chart below on SWIR, a company that reported its earnings at the beginning of August and easily beat both top and bottom line expectations. You can see that the stock moved up sharply on Read More 

ChartWatchers

Can Banks Rally For The Fourth Quarter?

by Greg Schnell

At one of the CMT Association meetings in NYC, I was given an interesting tip about the markets. The tip was that bank charts hold clues because bankers see everyone else's business success from the financial side. From this, it's never a bad idea to keep track of what the banks are doing. The reason I want to write about the bank charts this week is that multiple charts are at an important inflection point. This suggests the view is broader than one bank. We also have a Fed meeting in a couple of weeks which is widely expected to raise rates one more time. If the banks Read More 

ChartWatchers

Three Stocks To Bolster Your September Returns

by Tom Bowley

It's widely known that September historically has been a difficult month for U.S. equities.  Since 1950, the S&P 500 has risen during the month of September 30 times and moved lower 38 times.  It's the only calendar month where the bears have had long-term success.  The September annualized return of -5.58% is one of only two calendar months with negative annualized returns.  The other is August, which has produced annualized returns of -1.04%.  There are several well-known, large cap companies that have bullish track records in September Read More 

ChartWatchers

Combining Relative Rotation Graphs and the (dynamic) yield curve tool

by Julius de Kempenaer

In one of my recent articles, I high lighted that Relative Rotation Graphs can do (much) more than just show equity sector rotation by showing how RRG can be used to analyze rotation among the different commodity groups against a broad commodity index. In this post, I want to expand that a little further and show how you can combine the relative rotation of the various segments of the (US) yield curve with the, relatively unknown, dynamic yield curve tool that we have available here on Stockcharts.com. There is no holy grail Read More 

ChartWatchers

When the Minority becomes the Majority - Weighting the Sectors

by Arthur Hill

The S&P 500 hit a new high in August, but only four of the ten sector SPDRs joined in on this high: the Consumer Discretionary SPDR, the Technology SPDR, the Health Care SPDR and the Real Estate SPDR. This suggests that the other six are lagging in some way shape or more. Even so, this is not a problem for the S&P 500 because the four that hit new highs account for around 57% of the index. Leading versus lagging is important when selecting individual sectors, but the weight of the evidence is what really counts for broad market analysis. The customized Read More 

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