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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

Big Drop in Apple Hurts Tech Sector and The Nasdaq Which Are Leading Today's Stock Retreat

by John Murphy

Editor's Note: This article was originally published in John Murphy's Market Message on Friday, November 2nd at 12:28pm ET. It's usually not a good sign when the market's biggest stock takes a big hit. That's especially true when it happens the day after the company reported its fourth consecutive quarter of record revenue and profits. But that's today's biggest story. Chart 1 shows Apple (AAPL) plunging -7% and falling to the lowest level in nearly three months (after failing a test of its 50-day average). Over the past month, we've seen a succession of big tech stocks fall on Read More 

ChartWatchers

Be Prepared to Pounce on the "Best of the Best"

by John Hopkins

We're deep into earnings season, which means patient traders can put themselves into a position to profit handsomely. The process starts by identifying those companies that beat earnings expectations and gap up sharply on strong volume, because these are the types of stocks that traders will be watching to pounce on when things settle down. A perfect example is QuinStreet, Inc (QNST), a company that beat earnings expectations last week and exploded higher on massive volume. In fact, this was an EarningsBeats trade alert that rose 10% in just two days and 27% at its peak based upon its Read More 

ChartWatchers

Sector Relative Performance Suggesting Caution, Not Bear Market

by Tom Bowley

There are plenty of reasons why we should be cautious given the current market environment, but I'm not in the camp that believes we've entered a bear market.  It's simply too early to make that call, in my opinion.  Most corrections and bear markets begin similarly, with expanding volatility and fear, short-term price breakdowns and rotation from aggressive areas of the market to more defensive areas.  As I look back at the past month, check, check and check. The January 2018 top and subsequent breakout look very similar to the what we saw back in Read More 

ChartWatchers

DecisionPoint Sector Scoreboard Tells the Story

by Erin Swenlin

If you've explored the member dashboard, read a DP Alert or checked into the DecisionPoint Chart Gallery, you are likely familiar with our DecisionPoint Scoreboards for the SPX, OEX, INDU and NDX. What you may not have uncovered was our DecisionPoint Sector Scoreboard. Carl assembled a table that not only shows you intermediate-term and long-term buy/sell signals, but also includes the sector weightings. You'll find the DecisionPoint Sector Scoreboard in the DecisionPoint blog on Wednesdays (DP Alert) and Fridays (Weekly Wrap). Read More 

ChartWatchers

Energy Sector XLE - Black Gold Going Cold?

by Greg Schnell

The setting couldn't be more climactic. Oil, seems to be generating attention from the world through Saudi Arabia, Iran, Russia, pipelines, global slowdown, trade pressures with China, EU issues in Germany and Italy, Brexit, Steel tariffs and the list goes on. The world's awareness is always high. This week, the chart arrives at a critical point again. Oil closed the week testing the 3 year uptrend line off the 2016 low. Both the Exploration and Production ETF (XOP) as well as crude oil closed below the 10 week moving average. But more importantly, as oil has gone higher, the Read More 

ChartWatchers

Sector Shuffle: Explaining The New XLC and XLRE Additions And Historical Data Calculations

by Grayson Roze

Editor's Note: This article was prepared jointly by Julius de Kempenaer and Arthur Hill with assistance from members of the StockCharts data and business teams. You may have noticed that in September, a lot was written about the changes in sector classifications that were implemented after the close on the 21st by S&P Dow Jones Indices, the company that maintains and publishes the underlying indices for the popular range of SPDR sector ETFs (XLF, XLK, etc.). Changes to indices are not uncommon and happen on a regular basis (quarterly). Depending on the guidelines Read More 

ChartWatchers

Big Sectors Weigh as Defensive Sectors Buck the Selling Pressure

by Arthur Hill

One of my favorite methods for analyzing the sector SPDRs is with CandleGlance charts sorted by the Rate-of-Change indicator to rank performance. This is a great way to quickly separate the leaders from the laggards and analyze short-term price action. The charts below show the 11 sector SPDRs and the S&P 500 SPDR (SPY) with the 15-day Rate-of-Change, which covers the month of October. The first group shows six sectors, two are up this month and four are down. The Utilities SPDR and the Consumer Staples SPDR, two defensive sectors, are the only two showing gains in October (positive Read More 

ChartWatchers

The Three Dow Averages Are Giving Bearish Messages

by John Murphy

Editor's Note: This article was originally published in John Murphy's Market Message on Thursday, October 18th at 5:00pm ET. My last two messages spelled out a lot of technical reasons that are bearish for the stock market, and increase the odds that the nine-year bull run is ending. Besides the heavy selling that's taken place during October, my weekend message showed a number of serious negative divergences showing up on the market's weekly and monthly charts. Yesterday's message included the Sector Rotation Model which showed that rotation into consumer staples, utilities Read More 

ChartWatchers

Can Strong Earnings Provide a Safe Haven into Year End?

by John Hopkins

The market has been under fire for the past two weeks. Volatility has spiked. Traders have bailed as they've sold on rallies. Bad news is bad news. Good news is bad news. No one wants to touch stocks! We can take a look at Netflix as a great example of the mindset of traders at the moment as it reported strong earnings, gapped up sharply on strong volume then a day later gave all those gains back. We can ask ourselves - if the overall market environment was bullish, would Netflix's gains have held? Possibly, though there's no way of telling. But we may well find that the pullback in Read More 

ChartWatchers

Here's A Stock That Regularly Beats Its Earnings Estimates

by John Hopkins

We're approaching another earnings season, setting up trading opportunities in the normally bullish fourth quarter.  While we favor waiting to see quarterly earnings reports and the market's reaction to those reports, we also know many of you try to trade companies prior to their better-than-expected reports.  History never provides us guarantees of future results, but it can at least make us aware of tendencies. Take a look at WW Grainger's (GWW) track record over the past four quarterly earnings reports: Not only have EPS numbers come in ahead of Read More 

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