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July 2017

ChartWatchers

Solar Stocks Start Shining

by Greg Schnell

Solar stocks are starting to shine after a year in the unloved corned of the market. First Solar is the industry leader and a Don't Ignore This Chart article was published on it in June. There are some others in the group starting to perform as well. Sunpower (SPWR) is just breaking out of a nice base now. Canadian Solar (CSIQ) is moving as well. Jinkosolar (JKS) is breaking out to new 52 week highs this week. There are some new stocks shimmering after dominant leadership by Technology. You might want to look at Read More 

ChartWatchers

Bond Yields Drop, Falling Rates Boost Technology Stocks

by John Murphy

BOND YIELDS DROP ON LACK OF INFLATION June's CPI report showed no change from the previous month, reflecting the absence of inflation. Its annual gain of 1.6% was the smallest since last October. Excluding food and energy, the core CPI saw a modest monthly bounce of 0.1% (for an annual rate of 1.7%). The main reason why the core CPI is slightly higher than the headline number is the exclusion of food and energy. While food prices were flat, energy saw a June drop of -1.6% (more on that later). Given the Fed's growing concern with low inflation, those numbers are lowering market Read More 

ChartWatchers

Risks Associated with Earnings Reports

by John Hopkins

Q2 Earnings Season is underway with 4 of the nations largest banks reporting their numbers Friday and thousands of companies getting ready to report over the next few weeks. Earnings season brings with it both the highs and lows of trading. We'll see companies that beat expectations and move higher and others that beat and move lower. We'll also see companies that miss expectations and move lower while others might miss but move higher. In almost every case, traders are as or more interested in forward guidance than actual results. For example, a company might miss its earnings and Read More 

ChartWatchers

Go Away In May? Let's Try July

by Tom Bowley

As a stock market historian, if there's one thing that really annoys me, it's the talking heads saying to "go away in May".  While the May through October period is clearly less bullish than its November through April counterpart, there are loads of reasons to be long U.S. equities during May, June, July and October.  Seasonal strength to open and close calendar months is one such reason.  The following are bullish historical periods on the S&P 500 during the May to October time frame with their respective annualized returns since 1950: May Read More 

ChartWatchers

Update on Sentiment - AAII, NAAIM and Rydex Ratio

by Erin Swenlin

On Fridays during the MarketWatchers LIVE show (12:00p - 1:30p EST), I do a regular segment that checks what weekly sentiment charts are telling us. Three of the best sentiment charts from DecisionPoint are the American Association of Individual Investors (AAII) sentiment poll, the National Association of Active Investment Managers (NAAIM) and the Rydex Asset Ratio. Despite jumping to a new all-time high on Friday, sentiment shows that the bullish exuberance may be fading somewhat. Typically we read sentiment charts as "contrarian". This means that when these charts so an exceptional Read More 

ChartWatchers

Will These Summer Breakouts Materialize?

by Tom Bowley

It's generally not a great idea to wait until after a stock or index breaks out to consider short-term trades.  It would seem somewhat obvious to instead plan for those breakouts by watching patterns develop and keeping an eye on volume.  So let's do exactly that and focus on a few potential trading candidates in the days and weeks ahead. 1.  Sirius XM Holdings (SIRI): SIRI looks very promising as it remains very close to a breakout level despite all the volatility and bouts of selling that we saw in our major indices during June.  The price resistance Read More