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About this blog: is our free newsletter for individuals interested in technical trading and chart analysis. It is sent out twice a month via email. This blog contains early-access, preview versions of the articles that later appear in the official newsletter.

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ChartWatchers

Mindful Investors Minimize Distractions

by David Keller

When you're a student pilot, your first couple of solo flights remain very close to your home airport. Basically, you get up in the air and do a couple laps around the landing pattern. This is meant to get you comfortable being in the plane by yourself, as well as help you gain confidence for the long solo flights. The long solo is where you actually travel away from your airport and go somewhere else. This involves navigation, communication with air traffic control and many other moving parts. Honestly, it ends up being fairly overwhelming. Read More 

ChartWatchers

Alert Yourself To Pullback Opportunities In Fast-Moving Stocks

by Mary Ellen McGonagle

It’s been quite a star-spangled week for the markets, with the S&P 500 and Nasdaq hitting a new high 3 out of their 4 sessions. One sector showing particular strength has been Technology, which also reached a new high as many underlying stocks are posting significant returns. While this bullish action may have you eager to jump into some of these fast Tech movers, chasing stocks hitting a new high in price can be the surest way to frustration, as the inevitable pullback will have you wishing you waited. By contrast, waiting for these pullbacks presents a much Read More 

ChartWatchers

Why U.S. Equities Are Poised For Another 40-50% Surge

by Tom Bowley

I want to discuss two charts that really need to be monitored closely as we enter the second half of 2019. A rise in these charts is synonymous with massive bull market rallies. They both make great common sense, so let's discuss them before visualizing the charts. 1. 10 Year Treasury Yield ($TNX) One very important lesson to understand about the stock market is that money comes from two places. One rather obvious source is new money entering the stock market. A simple example is deciding to use cash to buy a stock. The stock market goes higher based on more Read More 

ChartWatchers

CRB Still Caught in a Trading Range

by Martin Pring

Editor's Note: This article was originally published in Martin Pring's Market Roundup on Tuesday, July 2nd at 12:36pm ET. Back in May, I wrote an article entitled “Commodities: Down Now, Up Later?" in which I pointed out some of the long-term technical bullish potential for the commodity markets, as well as some of the near-term vulnerabilities. The thought was that prices would experience some near-term weakness, after which some of these bullish factors could come into play. As it turned out, the CRB Composite dropped about 10 points and subsequently regained 8 of them. As Chart 1 Read More 

ChartWatchers

EARNINGS: 2019 Q1 Finalized; S&P 500 Still Overvalued

by Carl Swenlin

The S&P 500 earnings for 2019 Q1 have been finalized. The following chart shows us the normal value range of the S&P 500 Index, as well as where the S&P 500 would have to be in order to have an overvalued P/E of 20 (red line), a fairly valued P/E of 15 (blue line) or an undervalued P/E of 10 (green line). There are three hash marks on the right side of the chart, which show where the range markers are projected be at the end of 2020 Q1. Since 2016, price has been well above the traditional value range, with the exception of the late 2018 price decline (which Read More 

ChartWatchers

The S&P Just Broke Out of a Two-Year Consolidation, But There are Still Some Pockets of Concern

by Julius de Kempenaer

A short, but strong, trading session just before the Fourth of July holiday pushed the S&P, along with the Nasdaq 100 and the DJ Industrials indexes, to new highs. Breaks to new highs are pretty strong signs and should not be ignored. At the end of the day, it's hard to be bearish when a market makes new highs. As I write this, daytime in Amsterdam on Friday, 5 July, the weekly close for these indexes in the US is not yet available. European markets are unchanged and probably waiting for guidance from the US. On the daily chart below, the Read More 

ChartWatchers

Building Portfolio Power: Start With Stocks Like These!

by John Hopkins

Let me start by saying that we track a "Best of the Best" list at EarningsBeats.com. Technically, it's actually 3 "Best of the Best" lists - a Model Portfolio, an Aggressive Portfolio and an Income Portfolio. They each include 10 stocks that are weighted equally in the portfolio and held for three months. After the next earnings season is over, we cash in the 10 stocks in each portfolio and replace them with our next "Best of the Best" list. Here is the actual return of our Model Portfolio since its inception and the corresponding return of the benchmark Read More 

ChartWatchers

These Stocks Can Pick You Up

by Greg Schnell

The IPO frenzy has been well-documented this year, with CrowdStrike, Beyond Meat, Slack, Pinterest, Uber and Lyft all garnering media attention. One thing that can happen with IPOs is a sudden surge in either direction. However, for chartists, with no chart history, these IPO's are hard to buy. What works better for me is when the stock pauses and builds a base. Two stocks line up nicely this week for that concept. First of all, UBER does not make any money, so until the stock forms a price range to trade around, we have no relative value of what investors are willing to pay. By Read More 

ChartWatchers

S&P 600 Under the Indicator Microscope - Bouncing Off Relative Lows

by Erin Swenlin

Be prepared! I have a plethora of charts this week to share that focus only on the S&P 600. If you look closely, you can see that, even before the last two days of an impressive rally, the indicators were already suggesting a renewed interest in small-cap stocks. Below is the relative chart of the major indexes to the SPX. Note that we are seeing an increase in relative strength for the S&P 400 and S&P 600 after logging relative lows that we hadn't seen all year.  I'm going to introduce you to all of the charts that are in our Read More 

ChartWatchers

How to Spot Reversal Alert Zones and Get the Jump on Breakouts

by Arthur Hill

Breakouts are bullish and often look great, but they do not always offer the best reward-to-risk ratio when taking a trade. As with so many aspects of technical analysis and trading, we must often walk the fine line between anticipation and confirmation. The first step to anticipating a breakout is spotting a reversal alert zone before the breakout occurs. Going on alert before the breakout can improve the entry price and the reward-to-risk ratio. There are three parts to a reversal alert zone. First, the decline leading to the reversal zone should be considered a Read More 

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