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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

Spring Savings Are Here, With A Very Special Twist...

by Grayson Roze

Hello Fellow ChartWatchers! The springtime sun is shining bright here in the Pacific Northwest, and we think that's cause for celebration. So, I'm coming to you this week with a very special announcement. For a limited time only this month, we're giving you 2 FREE months of StockCharts service when you sign up or renew for a 12-month subscription. That means you can save up to $80 off our regular subscription prices. If you're a current StockCharts Member and love the service, you can extend your existing subscription now and save. If you're not a member Read More 

ChartWatchers

Volume Ratio Charts - Climactic Attention Flags

by Erin Swenlin

My dad, Carl Swenlin, was a guest on MarketWatchers LIVE last Wednesday (here is a link to that show). He brought in some DecisionPoint indicator charts that I hadn't looked at in quite some time (truth be told, he hadn't looked at them in awhile either) and many of our viewers asked about how to obtain them. One of the ChartLists in the DecisionPoint Market Indicators ChartPack is labeled "Volume Ratios" - it's actually a very elegant indicator in its simplicity. What surprised us both was the timeliness of the attention flags that the climactic readings presented Read More 

ChartWatchers

Profiting from Pullbacks

by John Hopkins

When you're a bull, the last thing you want to see is a pullback in stocks you own. This is understandable - who wants to see something they own lose value? But, at some point, the market and individual stocks will get overheated, so instead of worrying about a pullback, try to identify those stocks that are likely to get the most attention on any selling. A perfect example is Microsoft, a company that recently beat earnings expectations, moved up nicely, got overbought and could prove to be a solid reward-to-risk trade at the right price. You can see on the chart above Read More 

ChartWatchers

Strong Jobs Report Boosts Stocks - S&P 500 Nears Another Record

by John Murphy

Editor's Note: This article was originally published in John Murphy's Market Message on Friday, May 3rd at 1:34pm ET. A surprisingly strong jobs report this morning has given stocks a big boost today. All major indexes are having a strong day with the Nasdaq and small caps in the lead (more on that shortly). Transports are also have an especially strong day which is another positive sign. All eleven stocks sectors are in the black led by energy, cyclicials, financials, and industrials. Weaker sectors include more defensive utilities and REITS. Emerging markets are leading foreign stocks Read More 

ChartWatchers

Some Sector Rotation Is Starting To Appear

by Greg Schnell

With most of the large caps finished reporting, it's a good time to take a look and see what is working. Over the last two weeks, Health Care, Utilities, Financials and Real Estate have outperformed the big growth sectors of Communications and Technology. While that can happen from time to time, it surprises me that it is happening just as Apple announces a $75 Billion buyback, Facebook and Microsoft both posted great numbers and Amazon makes a run at $2000. More concerning is the fact that these fabulous earnings are struggling to pull the broader market up Read More 

ChartWatchers

Improving the Best Six Months Strategy by Adding Months and Timing

by Arthur Hill

The "Best Six Months" strategy suggests that the best time to own stocks is from November to April, and the worst time is from May to October. Testing over the last 25 years confirms the performance differences between these two periods, but this strategy still leaves money on the table. This article will show that a "Best Eight Months" strategy outperforms the Best Six Months strategy. Furthermore, this strategy can be improved with market timing and switching to the 20+ YR T-Bond ETF (TLT) during the worst four months. Yale Hirsch developed the Best Six Months Read More 

ChartWatchers

3 Reasons Why Semiconductors Are Poised To Lead

by Tom Bowley

Okay, let's start with the short-term reason.  Throughout much of this bull market, the month of May has been kind to semiconductors ($DJUSSC).  In fact, the DJUSSC has advanced in each of the last 7 years during May.  Check out this seasonal pattern: Not only have semiconductors moved higher during May, but they have scorched higher!  Their average May return of 7.1% over these past 7 years more than doubles any other calendar month.  Go away in May?  I think not! Next, consider what drives the stock market higher.  I'd be Read More 

ChartWatchers

Successfully Trading Stocks After They Report Earnings

by Mary Ellen McGonagle

In my ChartWatchers article from two weeks ago, I provided insights into signals that your stock may be poised to report earnings above Wall Street estimates. Given that the markets are currently rewarding positively reporting companies with an average 2.1%+ boost in price* (and in many cases, much more), you may want to review my article here. That said, there’ve been enough major earnings-related blowups this week that could easily temper your appetite for buying stocks right before earnings.  These include Irobot Corp (IRBT) which has plummeted over 23% since reporting, as well as Read More 

ChartWatchers

Five Trendlines You Should Be Watching

by David Keller

My process is built around simplicity. I am of the firm belief that investors, as well as the financial industry as a whole, tend to unnecessarily complicate things. As a result, we are led to believe that we need to track an endless number of data points to have a proper situational awareness for the markets. In reality, we need to work smarter, not harder. A small number of selectively prioritized and appropriately meaningful data points are all a savvy investor needs to get a fairly accurate read on what’s happening out there. When a chart is in Read More 

ChartWatchers

The SPY/EFA Ratio Completes an Inverse Head-and-Shoulders

by Martin Pring

Editor's Note: This article was originally published in Martin Pring's Market Roundup on Wednesday, April 24th at 7:03pm ET. Yesterday’s all-time new high in the S&P was well documented by the media, but what did not receive any attention was the fact that the SPY also reached a new high-water mark relative to the MSCI Europe Australia Far East ETF, a.k.a. the rest of the world. You can see that from Chart 1, where the ratio has broken out from a consolidation reverse head-and-shoulders. The RSI looks a little overstretched, but that does not necessarily translate into weakness Read More 

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