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June 2014

ChartWatchers

Use ChartStyles to Stop All the Clicking!

by Chip Anderson

Hello Fellow ChartWatchers! Small Caps have been on a tear recently - have you noticed?  This week all the major market averages moved higher with the Russell 2000 Small Caps (+1.85%) leading the way.  The same is true for the month of June so far with the Russell up over 5% since June 2nd.  Year to date, Large Caps are still the big winners with $SPX up 6.2% but the Small Caps are gaining quickly.  You can watch all of the action using our Major Markets PerfChart: To see the exact chart above, click on the link for the Major Read More 

ChartWatchers

Energy and Metals Lead Commodity Rally

by John Murphy

The weekly bars in Chart 1 show the Reuters/Jefferies CRB Index closing at the highest level since the third quarter of 2012. [The CRB Index includes 19 commodities that are traded on exchanges in the U.S. and U.K.]. Commodity prices turned up during the first quarter of 2014 for the first time in two years. After consolidating during the second quarter, they appear to be regaining upward momentum. Energy prices spiked higher the previous week on increased tensions in Iraq. Precious metals jumped sharply this week. That might also be the result of increased global tensions. This week's Read More 

ChartWatchers

Industrial Suppliers Waiting Their Turn?

by Tom Bowley

The Dow Jones US Industrial Suppliers Index ($DJUSDS) experienced a HUGE bull market run off the 2009 lows through mid-2013, quadrupling in value during the period.  Momentum on the weekly chart turned negative, as evidenced by the long-term negative divergence on its MACD.  As a result, this index has gone nowhere for the past 15 months or so as money has rotated away from the group into other areas like semiconductors, transportation, etc.  The good news is that this basing has set up what could be another powerful move to the upside as money rotates back into what is Read More 

ChartWatchers

Eight of Nine Sector SPDRs Hit New Highs

by Arthur Hill

The overall picture remains bullish for stocks and sector participation is broad. Six of the nine sector SPDRs hit new highs this week, and seven of the nine hit new highs this month. The Consumer Discretionary SPDR is the only one that has yet to hit a new high and remains around 2% below its March high. Even without the consumer discretionary sector, the majority rules and the majority shows strength. The table below is an edited version of the technical alert summary. Notice that XLI and XLB hit new highs last week and the other six hit new highs this week. Even though the broader Read More 

ChartWatchers

The Healthcare Sector - Get Me A Investment Doctor !

by Greg Schnell

In reviewing my charts this weekend, I noticed that one of my annotations was about to slip off the charts. You can see it on the chart below. The Healthcare Bill passed over 4 years ago and it was about to scroll off my Healthcare Bullish Percent Index. ($BPHEAL). March 22, 2010 was the date the Healthcare bill passed. 42 weeks later, the Healthcare Sector SPDR (XLV) broke out to new highs above the March 22, 2010 high of $30.15. This was the birth of a new bull market for Healthcare stocks. Looking at the Healthcare Bullish Percent Index ($BPHEAL) since the Read More 

ChartWatchers

Five Things StockCharts Members Need to Try Today

by Chip Anderson

Hello Fellow ChartWatchers! We are half-way through 2014 and so far it has been a positive year for stocks with the S&P up 5.5%, the Nasdaq up 3.5% and the Dow up 2.1%.  Small-Caps haven't participated nearly as much as their larger counterparts however.  The Russell 2000 is only up 0.1% over that same period of time. Utilities is the best performing sector for the first half of the year (up 9% relative to the S&P) with Energy and Health Care also doing well.  Consumer Cyclicals is the big loser, underperforming the S&P by over 5% so far this year. Read More 

ChartWatchers

Nasdaq and Russell 2000 Charts Turn Positive

by John Murphy

This week's strong chart action in the Nasdaq market and small caps has lent more support to large cap stock indexes that have been setting new record highs. Chart 1 shows Powershares QQQ Trust breaking out to a new recovery high this week. Its relative strength ratio (above chart) has also been rising. Relative weakness in the Nasdaq between February and April had been one of the drags on the rest of the market. The same is true of small caps. Chart 2 shows Russell 2000 iShares (IWM) climbing to a two-month high and ending well above its 50-day moving average. Small caps actually did Read More 

ChartWatchers

Small Caps Rebound After Holding Major Support

by Tom Bowley

In my last article, I posted a chart of the Russell 2000, identifying a potentially bearish head & shoulders pattern.  This pattern, however, requires a high volume breakdown to confirm the likelihood of future weakness.  That breakdown never occurred and small cap bulls used historical bullish tendencies from late May and early June to send small caps spiraling higher.  From the May 15th low to Friday's high, the Russell 2000 delivered spectacular gains - rising 7.64% in just three weeks!  The question now becomes, "Can small caps sustain their recent rally?"  Read More 

ChartWatchers

Weekly PMO Readings Insightful

by Erin Swenlin

In many cases, we all spend a lot of time looking at daily charts and varying indicators. The Price Momentum Oscillator (PMO) using daily, weekly and monthly data to create a unique value for the chart you're looking at. The daily PMO may be reacting quite differently in comparison to the weekly PMO and both can be very different from the weekly PMO. I spent some time today looking at the weekly charts for many of the indexes, sectors and ETFs that we cover on the DecisionPoint Alert Daily Report. Some of these charts show the PMO either just crossing over or changing directions, which Read More 

ChartWatchers

$NATGAS Is Making New Highs 3 Weeks In A Row

by Greg Schnell

Natural Gas ($NATGAS) has been moving higher every week for three weeks now. As we head into the cooling season for air conditioning, it might be timely to stay in tune with the producers of Natural Gas. A few things make this particular turn compelling. While the RSI is back above 50 and the long period Full Stochastics have crossed the signal line, there is one more feature on the chart that is compelling. After having a significant moon shot on the chart in February, the Natural Gas chart pulled back. The best part was it found support at the previous Read More 

ChartWatchers

Key Breadth Indicators Confirm New Highs in the Stock Market

by Arthur Hill

The AD Line and AD Volume Line are aggregate measures of participation. The AD Line favors small and mid-caps because an advance equals +1 and a decline equals -1, regardless of market cap. This means an advance in Apple ($556 billion market cap) counts the same as an advance in Digital River ($475 million market cap). The AD Line is a summation of net advances (advances less declines) for each day. An uptrend in the AD Line indicates broad participation in an advance. In contrast to the AD Line, the AD Volume Line favors large-caps because large stocks usually have the most volume. Apple Read More