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August 2012

ChartWatchers

Our New PRO Service Includes Powerful User-Defined Indexes

by Chip Anderson

Hello Fellow ChartWatchers! Last weekend's ChartCon conference in Seattle was amazing.  Myself and the other newsletter authors met so many terrific people during the event and the feedback that we are getting from the attendees is extremely positive.  Thanks again to everyone that attended! We made several big announcements at ChartCon, but the biggest had to be the announcement of our new PRO service.  PRO is a new service for members that want to break through the limitations of our Extra and ExtraRT services.  15-second refresh rate too slow for you?  PRO Read More 

ChartWatchers

COMBINING FUNDAMENTALS AND TECHNICALS TO PRODUCE SUPERIOR RESULTS

by Tom Bowley

First, let me say that it was AWESOME meeting so many of you at Chartcon 2012 in Seattle last week.  It was also great to finally meet several of the co-authors of ChartWatchers.  I've been to a LOT of trading conferences and this one surpassed all of the others on so many levels.  If you weren't able to make it, please mark your calendar for August 2013 in the event that Chip decides to host the ChartCon 2013.  ChartCon 2012 was truly outstanding. My background is in public accounting and while my first choice is always to believe the technicals, it's difficult to Read More 

ChartWatchers

STOCKS ABOVE 200-EMA INDEX SHOWS ERODING SUPPORT

by Carl Swenlin

When a stock is above its 200-EMA, it is considered bullish, and in the broadest sense the stock can be considered to be in a long-term rising trend. A good way to determine the amount of support behind a rally is to analyze the percentage of stocks above their 200-EMA.  Decision Point keeps track of this percentage for the S&P 500 Index, and it indicates that there are fewer stocks pushing the SPX to the current highs than there were at the April highs. Also, we can see that the percentage in April was lower than it was at the 2011 highs. Taking 2011 by Read More 

ChartWatchers

We've Released 36 Major Improvements So Far This Month

by Chip Anderson

FEATURES WE'VE ADDED SO FAR THIS MONTH: Eight new Technical Indicators Five new Chart Color Schemes Five new Time Period choices (2-, 3-, 120-minute as well as quarterly and yearly) The new Two Year Subscription Option (w/3 free months) The New "Best of s.c.a.n." Blog Parabolic Curves Transparent shapes Rotated shapes The Inspector's new Measuring Stick Unlimited Annotation colors Workbench Skins Predefined Technical Alerts User-Defined Technical Alerts - * Read More 

ChartWatchers

Large-caps Lead as S&P 100 Records 52-week High

by Arthur Hill

Large-caps continue to lead the market as the S&P 100 ($OEX) recorded a 52-week high this week. Thus far, the S&P 100 is the only major index to reach this milestone. The Nasdaq, Russell 2000, S&P 500 and Dow Industrials remain shy of their spring highs. This means the S&P 100 is leading the market and large-caps are showing relative strength. Even though $OEX may be short-term overbought, this fresh 52-week high confirms that this key index remains in an uptrend. The PerfChart shows the three month percentage change for six major indices: the S&P 100, S&P 500 Read More 

ChartWatchers

IT'S THE BIGGEST WEEK FOR NEW FEATURES IN STOCKCHARTS' HISTORY!

by Chip Anderson

Hello Fellow ChartWatchers! Today I'm happy to announce that we've started rolling out several important new features for our SharpCharts charting tool.  These new features include more choices for bar periods and an improved version of our interactive "Inspector" tool. I'm even more pleased to announce that this is just the beginning of the big announcements for this upcoming week.  Of course, at the end of the week we are holding our annual "ChartCon" conference here in Seattle.  In addition to being a great event for everyone that attends, ChartCon provides us with a Read More 

ChartWatchers

WORLD STOCK INDEX PEAKED IN 2011

by John Murphy

One of my previous messages showed a rotation out of small cap stocks into mega-caps in the middle of 2011 which continues to this day. That suggests that investors have been growing increasingly defensive over the last year.  The chart below provides graphic evidence that global stocks may have actually peaked last year as well. It shows the Vanguard Total World Index (VT) since 2009. [The VT includes stocks from all over the world in both developed and emerging markets. It has a surprisingly large weight to North America (51%). Europe accounts for 22%, emerging markets 13%, and the Read More 

ChartWatchers

152 TOP 10 BLUE CHIP INDEX SHOWS UNHEALTHY MARKET

by Carl Swenlin

Decision Point publishes a daily Tracker report of our 152 Blue Chip list. This list is composed of the stocks in the S&P 100 Index, the Dow 65, and some large-cap Nasdaq stocks. We also track the Top 10 stocks in ths list, ranked by relative strength measured by Decision Point's proprietary PMO (Price Momentum Oscillator). I have observed this list over a long period of time, and my impression has been that the top stocks do exceptionally well during a bull market, and extremely poorly in a bear market; however, I wanted to develop a more objective way to measuring the Read More 

ChartWatchers

AGGRESSIVE INDICES AND SECTORS FLASHING A WARNING?

by Tom Bowley

Any time the S&P 500 moves to fresh new highs, I try to determine the likelihood that the move is a sustainable one.  Traders need to be in the right mindset to carry prices further.  They need to be aggressive in terms of where they place their trading dollars.  If sector leadership comes from financials, technology, industrials and consumer discretionary, it's a sign that it's a risk-on environment, which generally is quite bullish.  But as we saw in May 2011, it's never a good sign to break out with defensive areas of the market leading the way.  In my Read More 

ChartWatchers

ENJOY S&P 500 RALLY WHILE IT LASTS

by Richard Rhodes

For now, the S&P 500 is rallying in a manner that is abrupt to say the least - several days higher, then several days lower, and then repeat. This, coupled with the European fiasco has caused investor/trader sentiment to become rather archly bearish; and therefore the short-term trend appears to be higher towards the all-time highs around the 1500 zone. Certainly the 160-week moving average defines the trend higher as it is rising; but also the 80-week exponential moving average was recent tested and held. Resistance stands at upper wedge resistance and the previous highs at 1500 - Read More 

ChartWatchers

WHAT IS THE PRICE OF CRUDE TELLING US?

by Greg Schnell

On Thursday August 2, $WTIC crude made an interesting turn. Currently crude is in a downtrend denoted by the red line.We have started August creating a downward column of O's. The Red 8 shows the first box in August with a move of at least $3.You can see that since June (The red 6), we were stuck in a range into July. In July (Red 7) Crude was able to push above $87. It then pulled back, roared to $93 and has since settled back to sit just around the previous support / resistance level built in June.Upside: If Oil can rally from this level, it would be very bullish. A push through to $93 Read More 

ChartWatchers

IWM Bounces off 200-day and Tests Channel Resistance

by Arthur Hill

Stocks turned a negative week into a positive week with a sharp advance on Friday. The S&P 500 ETF, Dow Industrials SPDR and Nasdaq 100 ETF recouped their early week losses and exceeded their July highs. The Russell 2000 ETF (IWM) and S&P MidCap 400 SPDR (MDY), however, recovered a portion of their early week losses and have yet to exceed their mid July highs. In other words, these two remain short of breakouts and have yet to confirm strength in the other three. For now, three of the five are in clear uptrends and the bulls have the edge. I will be watching IWM and MDY to see if Read More