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September 2016

ChartWatchers

New Long-Term PMO BUY Signal for $TSX

by Erin Swenlin

Hopefully I won't be stepping on Greg Schnell's Canadian toes, but as I was going through charts from last Wednesday's webinar, I saw that $TSX just had a new LONG-TERM Price Momentum Oscillator (PMO) BUY Signal. These are incredibly infrequent; for the last twenty years, we've only had nine long-term PMO crossover signalsthat's BUY and SELL signals combined. I've annotated in the chart below with red vertical lines at PMO SELL signals and blue vertical lines for PMO BUY signals. Today's BUY signal is very promising when you review the Read More 

ChartWatchers

Treasury Yields Continue to Climb, Investment Service Stocks Show New Leadership

by John Murphy

I've been writing about the upturn in global bond yields, which has boosted Treasury bond yields. Chart 1 shows the 10-Year Treasury Yield trading above 1.70% in today's trading. Foreign yields are bouncing as well. One of the side-effects of rising bond yields is the recent rotation out of bond proxies like staples, telecom, telecom, and REITs and into financials like banks, brokers, and life insurers. My main focus has been on bank stocks that usually benefit from higher bond yields. Over the last month, however, the two strongest financial groups have been life insurers and investment Read More 

ChartWatchers

Sitting on the Edge

by John Hopkins

September has a reputation of being a difficult month for traders. So far it is living up to its reputation. The S&P started out the month pretty much like it had the prior many weeks; going nowhere. And on September 8 the S&P remained within easy striking range of its all time high. But the following day stocks got hammered with the S&P losing almost 2.5% in one session. It also closed below both its 20 and 50 day moving averages, technically wounded and unable to make much progress since. While the S&P and Dow suffered technical damage last week, the NASDAQ Read More 

ChartWatchers

How ChartCon 2016 Will Help You Make Better Investing Decisions

by Chip Anderson

Hello Fellow ChartWatchers! Markets are pulling back from their highs on increasing volume.  You can see the weekly and daily charts with my annotations by clicking here.  But even in this declining market environment, there are always possibilities.  My "Strengthening Strength" scan (included at the bottom of the page I just linked to) found several promising gems including the Biotech Products ETF (BBP), Glaukos (GKOS), Clovis Oncology (CLVS), Activision/Blizzard (ATVI) and several others.  (Read this article if you aren't familiar with my stock picking Read More 

ChartWatchers

Combining Seasonality And Strong Technical Patterns

by Tom Bowley

This is the final ChartWatchers newsletter before all of us here at StockCharts.com descend upon Northern California to produce what I believe will be one of the most educational online financial conferences of our time.  Leading technical experts will be divulging their best kept secrets to hopefully add weapons to your arsenal as you trade and invest for higher profits.  You still have time to register, but that window is closing FAST!  A small investment in education can go a long way toward higher profits, so please be sure to check out our Read More 

ChartWatchers

Grocers Sit On A Knife Edge On The Weekly Time Frame

by Greg Schnell

The Grocery chains are usually a free cash flow machine and are in the Consumer Staples Group. Walmart is an exception sitting in the Consumer Cyclicals group. Walmart started as a Broadline Retailer and added groceries. However, the grocers are not having a good year and major support levels are in play. Kroger (KR) is an example. After being in a fabulous uptrend through 2013-2014, Kroger went sideways in 2015 and is breaking support in September 2016. One could argue they broke support in August, but they are now surging away from that level. Either way, the chart looks broken Read More 

ChartWatchers

Tech Sector Breaks Away from the Pack

by Arthur Hill

There is the tech sector, and then there is the rest of the stock market. It is not that bad, but the tech sector is clearly head and shoulders above the other sectors. This is true with the Technology SPDR (XLK) and the EW Technology ETF (RYT). The first SharpChart shows the nine sector SPDRs in performance mode. Since May, XLK is up the most, by far. XLK accounts for around 21% of the S&P 500 and this is clearly helping the broader market.  The second chart shows the nine equal-weight sectors to prove that this is not just a large-cap affair Read More 

ChartWatchers

Thrust/Trend Model Chart Warns of More Decline

by Erin Swenlin

A comment on a recent DecisionPoint Alert blog article prompted me to review the Thrust/Trend Model indicator chart. During Friday's webinar I brushed over it as time was quickly disappearing. I promised to go over it in more detail in my ChartWatchers article. So here we go! First, here's a quick refresher on the signal generation of the Thrust/Trend Model. When Sell or Neutral signals are generated by the trend component (basically the Intermediate-Term Trend Model) of the Thrust/Trend Model , the next buy signal is dependent on the "thrust" component--dual positive crossovers by Read More 

ChartWatchers

Finding Trading Opportunities in a Flat Market

by John Hopkins

The market has been in consolidation mode for over six weeks now. The S&P closed at 2173 on July 20. It closed at 2179 on Friday. During that period of time any pullbacks have been shallow and short-lived with the S&P topping twice at 2193 and getting as low as 2157 on Thursday before roaring back on Friday to close back above all key moving averages. So on the surface, very bullish action; no one is really selling. Yet trying to trade successfully and make money during a flat market like we've experienced the past six weeks is a tricky proposition. During this period of time I Read More 

ChartWatchers

S&P 600 Hits New Record, Hong Kong IShares Reach Two-Year High

by John Murphy

While most of the media focus is on sideways action in large cap stocks, smaller stocks have been rising. The weekly bars in Chart 1 show the S&P 600 Small Cap Index ($SML) ending the week at a new record high. The solid matter is a relative strength ratio of the SML divided by the S&P 500. It shows smaller stocks leading large caps higher since the February bottom. Smallcaps had been market laggards since the middle of 2014. Their relative strength ratio is close to a two-year high. That's a positive sign for them and rest of the market. Small cap leadership is a sign that Read More 

ChartWatchers

ChartCon 2016 Preview

by Chip Anderson

Hello Fellow ChartWatchers! The markets continue to move sideways causing trend and momentum indicators to gradually lose their usefulness.  The best way to see that is to look at the "2000 DJIA - Daily Analysis" chart on the new "ChartWatchers LIVE ChartList"  (click on the link and then scroll down).  This is a list of charts that I track for the ChartWatchers Live webinar (which happens every other weekend).  I haven't updated the annotations on those charts since my last webinar back on August 13th and, frankly, I haven't needed to.  Sideways Read More 

ChartWatchers

It's Still A Very Bullish Market Setup

by Greg Schnell

I am not sure if everyone is watching how stellar the performance of the two particularly strong sectors in September has been. A look at the one-month performance shows a clear lean on Financials and Energy. Everyone keeps pointing to oil's volatility but the energy stocks have some of the strongest SCTR's.   For a bull market, we want to see the stocks on the left side of this panel outperform. If we add a cycle line to the chart, it fits almost perfectly over the last month. This is a very nice bullish setup. The Bullish Percent Index (BPI's) are Read More 

ChartWatchers

Intel Leads Semis with a 52-week High

by Arthur Hill

Semiconductors are leading the charge in tech stocks as the Semiconductor SPDR (XSD) extends its gains and notches another 52-week high this week. Note that the ETF is up around 15% the last three months and it is one of the top performing industry group ETFs. The Semiconductor iShares (SOXX) is also trading at a 52-week high. On the price chart, XSD broke out and the breakout zone in the 45-46 area turns first support to watch on a throw back. A throw back occurs when prices breakout and then return to broken resistance, which then becomes support. The indicator window confirms upside Read More 

ChartWatchers

What Can We Expect From September (Besides ChartCon)

by Tom Bowley

  First, I'd like to invite everyone to join us via the internet for ChartCon 2016.  It's only three weeks away and everyone here is growing very excited for this one-of-a-kind event.  There will be tons of technically-oriented presentations from leading technical experts.  You don't want to miss this!  Be sure to register soon as ChartCon is rapidly approaching.  There's an information page discussing the speakers, agenda, theme, etc.  CHECK IT OUT HERE!!!   I'll be discussing repeating Read More 

ChartWatchers

Rydex Cashflow and NAAIM Chart Suggest Market Liquidity

by Erin Swenlin

Liquidity can be equated to the availability of money. In terms of the market, when there is money on the sidelines, it is available for investing and could boost the market when/if it is invested. There are many measures, but I like using the Rydex Cashflow Ratio chart as a gauge.  Rydex has a set of mutual funds that work well for this. There are bear funds, money market assets and bull funds that are tracked and updated nightly. The cashflow chart shows us which direction the money is flowing and the ratio gives you the sentiment, low reading is bullish and high reading is Read More