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June 2015

ChartWatchers

Some Big Happening's Last Week - What's Next?

by John Hopkins

What a week! First, on Wednesday the Fed made its interest rate announcement, making it clear they are going to leave all options open, including the pace at which rates are changed in the future. This gives them the maximum flexibility to make changes relative to current economic conditions without backing themselves into the corner. This announcement calmed the market, saw bond yields retreat, and by the next day there was a nice rally. The nice rally on Thursday was followed by some profit taking on Friday but history was made as well when the NASDAQ made another all time high. That Read More 

ChartWatchers

Finding Strengthening Strength

by Chip Anderson

Hello Fellow ChartWatchers! You know, sometimes we overthink things.  Actually, in the realm of Technical Analysis, overthinking things is an epidemic!  People are constantly asking us for more indicators, more tools, more features more data - more, more, more!  "If I just have this one additional thing, then I will have everything I need to make money in the market."  Hog wash. The fact is StockCharts will continue to provide a huge collection of proven, helpful tools and indicators for everyone who wants to use technical analysis in whatever way they want, but I Read More 

ChartWatchers

Flags Fall for Light Crude and Brent

by Arthur Hill

Oil surged in early June and looked poised to break flag resistance. A little follow through last week was all that was needed. US stocks did their part as the Russell 2000 and Nasdaq hit new highs. The Dollar did its part as the US Dollar Index fell 2.8% this month. The tea leaves were aligning for a breakout, but oil did not oblige and remained stuck below flag resistance. Failure to break out suggests buyer fatigue that could foreshadow weakness in the coming days or weeks.  The first chart shows August Light Crude Futures (^CLQ15) in the top window and the USO Oil Fund (USO) in Read More 

ChartWatchers

Solar Gets Cloudy

by Greg Schnell

Back in December we reviewed a group of Solar related stocks and positioned our ChartLists for alerts if they did break out. Well, that worked out swimmingly well as January brought the all clear and the stocks soared. Lots of them shot up and made nice big moves to the upside. But as time rolls through, each day is a data point and the charts have some major tests of support in play right now. The solar stocks sold off when crude oil sold off and started to turn up before crude turned up. Now the question is what to do when the price of crude oil has been range bound for two months Read More 

ChartWatchers

Scanning with SCTRs for Fun and Profit!

by Chip Anderson

Hello Fellow ChartWatchers! The markets continue to lose momentum and carve out toppish type patterns on the main index charts.  We, on the other hand, continue to crank out webinars with great commentary and content for chartists like yourself.  Have you seen any of our recent ones?  No?  Good news!  Here's a link to the latest "ChartWatchers LIVE" webinar that we did just this morning with myself and John Murphy:            ChartWatchers LIVE for June 6th with Chip Anderson and John Murphy It really is worth a Read More 

ChartWatchers

DP Scoreboards Detect Market Deterioration

by Erin Swenlin

If you haven't checked out the new DP Scoreboard in the DP Chart Gallery, I highly recommend you click over there soon. In fact, here is an article I wrote about the Scoreboard and how the signals are determined right here. For those of you who are very "visual", the Scoreboard makes analysis of market trends and conditions effortless. Here is the most current Scoreboard for the S&P500. The top row gives you our Trend Model positions which describes price trends in three time frames. The bottom row tells you where the Price Read More 

ChartWatchers

Money Rotates To Financials, Is Consumer Finance Next?

by Tom Bowley

A solid labor market had bond traders heading for the exits on Friday and that extended the recent surge in treasury yields.  The 10 year treasury yield ($TNX) closed at its highest level since early October and that has many traders heading for the financial sector.  While the financial ETF (XLF) has been flat over the past six months, badly lagging consumer discretionary (XLY), healthcare (XLV) and technology (XLK), the relative performance of the XLF has turned considerably higher since early February.  During these past 3+ months, the TNX has risen from 1.65% to 2.40% Read More 

ChartWatchers

Dow and S&P 500 Lose Ground While Nasdaq Holds Firm

by John Murphy

U.S. stocks lost ground during the week, but not enough to do any serious chart damage. Chart 1 shows the Dow Industrials falling to the lowest level in a month and sliding below its 50-day moving average (in rising volume). But the Dow has yet to break a rising support line drawn under its April/May lows. Chart 2 shows the S&P 500 looking pretty much the same. The Nasdaq, however, held relatively steady. Chart 3 shows the Nasdaq Composite Index bouncing on Friday to end the week essentially flat. It also remains above its 50-day moving average. Although the broader market lost ground Read More 

ChartWatchers

Strong Fundamentals + Strong Charts = Strong Results

by John Hopkins

It seems like an easy enough concept to grasp. If a company has strong fundamentals (earnings) plus a strong chart (technicals) it should make a stock a strong reward to risk trading candidate. It turns out it does. As part of Invested Central we provide a service that zeroes in on companies that beat earnings and also have strong charts. This allows us to put stocks on our "radar screen" and to provide members with ideas that they might find fits their trading strategy. We wanted to determine if the combo of strong earning (beat expectations) and strong charts produced positive results Read More 

ChartWatchers

Marking The 1 Year Anniversary In Crude Oil's Decline

by Greg Schnell

Crude Oil is the engine of nations. On June 13th, 2014 crude oil peaked and started a precipitous decline. From an intraday high of $107.68 to a low of $42.41 it has been a painful ride for energy companies and the oil and gas service sector. This chart sports numerous technical patterns.  A double bottom $43.58 and $42.41. There was positive divergence with the MACD making a significantly higher low up near zero on the second low. Price action continues to be under the 200 DMA a year later. We are testing that area now, which gets closer every day as the 200 DMA Read More 

ChartWatchers

Should the Stock Market Worry about Rising Rates?

by Arthur Hill

There have been four big surges in the 10-year Treasury Yield since the bull market for the S&P 500 began in 2009. These big moves certainly sent shock waves through the bond market, but the stock market was not rattled because the S&P 500 produced double digit gains during each of the three yield surges. Note that we are currently in the midst of the fourth surge. While I am not predicting double-digit gains in the S&P 500, there is a clear positive correlation at work here and this is, well, positive for stocks. Moreover, the S&P 500 hit a new high just last month and Read More