ChartWatchers Newsletter logo

StockCharts.com Icon
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.

Latest Posts

ChartWatchers

Defensive Sectors Fall Behind While Technology, Cyclicals, and Industrials Take the Lead

by John Murphy

Editor's Note: This article was originally published in John Murphy's Market Message on Thursday, June 27th at 3:49pm ET. Previous messages have pointed out that defensive stock sectors were top performers since the market hit a peak at the end of April when trade tensions started to resurface. Stocks, however, have recovered most of their May losses during the month of June. And sector leadership during June reflects that more opimistic alignment. Chart 1 shows sector performance for the past month. And it shows defensive groups like utilities, real estate, and consumer staples lagging Read More 

ChartWatchers

Small Caps and Biotechs Have Both Turned Positive - Here Are 3 Candidates for Your Consideration

by Mary Ellen McGonagle

June is shaping up to be quite a month, with the S&P 500 on track to outpace January as the best-performing period. Of special note is this week’s move into Biotechnology and Small Cap stocks, which both have struggled since stalling out in February. With money flows into these laggards, a downtrend reversal is shaping up. This is very good news, not only for these stocks but for the markets in general. Given the lowered liquidity in Small Caps and the lack of earnings in Biotechs, both of these areas are viewed as risky. A move back into these riskier stocks historically points Read More 

ChartWatchers

The Bullish Case For Gold Isn't All That Strong

by Tom Bowley

The price of gold ($GOLD) closed on Friday at $1400.10 per ounce. The weekly gain of 4.14% was the best such weekly advance since April 2016 and the close above $1400 was the first such close since September 3, 2013.  Since testing 2019 lows on May 21st, GOLD has rallied more than 10% in just one month. What's not to like? Well, for starters, there's the following 8-year relative downtrend vs. the benchmark S&P 500: What drives that type of relative underperformance in GOLD? A rising U.S. Dollar Index ($USD). The USD has had some short-term issues of late, closing on Read More 

ChartWatchers

Dialing Down the Dollar

by David Keller

Has the slow and grinding uptrend in the US Dollar finally reached its exhaustion point? A quick review of the charts suggests this may be the case. The $USD chart has certainly been a frustrating one for Dollar bulls, as the trend, while steadily positive, has not provided the upside follow-through you’d expect. Every time the Dollar index has approached the key 97.50 level, the greenback quickly reversed to find support around 94.50-95.00. That all changed in late April, when the $USD finally reached 98 as it trended above two upward-sloping moving averages. All is well Read More 

ChartWatchers

More Short-Term US Market Indicators Turn Bullish

by Martin Pring

Editor's Note: This article was originally published in Martin Pring's Market Roundup on Tuesday, June 18th at 2:30pm ET. Several reliable short-term oscillators have just turned bullish. Chart 5, for instance, features my Dow Diffusion Indicator. This one is similar to the Global Oscillator, but uses DJIA components instead. The green arrows show when it reverses to the upside from a position below the oversold line. The indicator recently turned up again, but not from such a subdued level. As long as it can continue to power its way higher, it represents a positive backdrop.Chart 5 Read More 

ChartWatchers

Will China Be Able To Complete Its Current Rotation Inside Positive Territory And Start A New Period Of Outperformance??

by Julius de Kempenaer

On the above Relative Rotation Graph, which shows the rotation for international stock indexes against the Dow Jones World index, we really ought to pay attention to the long tail inside the weakening quadrant for the Chinese market. This rotation follows a strong performance of the Chinese market during the first four months of the year, which was followed by a 50% correction. At the moment, $SSEC is putting a first higher low into place, which could offer good entry opportunities. China Regarding China, the big question will Read More 

ChartWatchers

Speeding Up the Price Momentum Oscillator (PMO)

by Erin Swenlin

Viewers of MarketWatchers LIVE know how much I rely on my scans to find all those interesting symbols I review. In a ChartWatchers article last month, I shared my new favorite scan (Bullish EMA | Midrange SCTR), where I adjusted my time-tested "scan to rule them all" and found I could get better results by tweaking the SCTR and EMA configuration. In that mindset, I decided to try something new and use a "faster" PMO by changing the (35,20,10) parameters to (12,26,9). I run the scan using the fast PMO but analyze the results using the slower default PMO parameters Read More 

ChartWatchers

I've Never Seen An Earnings Signal This Bullish

by John Hopkins

At EarningsBeats.com, we track the best U.S. companies in a "Strong Earnings ChartList." In order for a company to be included in our ChartList, they must do 3 things: (1) Beat quarterly revenue estimates (2) Beat quarterly EPS estimates (3) Look solid technically If a company doesn't meet those 3 requirements, we ignore them. Plenty of energy and materials stocks have met requirements 1 and 2 over the past 90 days, but the sectors have been shunned by Wall Street due to a strengthening U.S. Dollar Index and many of these companies are in downtrends, or at Read More 

ChartWatchers

Monthly Sector Rankings Show Defensive Leadership

by John Murphy

Editor's Note: This article was originally published in John Murphy's Market Message on Friday, June 14th at 1:20pm ET. Chart 1 is taken from the Sector Summary page for the past month. And it shows that investors are still gravitating toward defensive issues. Four of the top sectors are utilities, health care, real estate, and consumer staples. All four are defensive in nature. Even the month's strongest sector has a defensive tilt.  Materials were the month's strongest sector. But it was led higher by gold miners which rallied on the back of a stronger Read More 

ChartWatchers

Are Small-caps Really the Canaries in the Coal Mine?

by Arthur Hill

Many a pundit considers small-caps as the canaries in the coal mine and this implies that relative weakness in small-caps is negative for the broader market. As Missanei of Game of Thrones might say: It is known. Known, yes, but is it actually true?   In the interest of full disclosure, I bought into the argument that small-caps were the canaries in the coal mine and relative weakness was negative for the broader market. It certainly makes sense, but the markets often march to the beat of a nonsensical drummer. We can certainly eye-ball charts and find instances Read More 

Subscribe to ChartWatchers to be notified whenever a new post is added to this blog!