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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

All Eyes On The Mighty Greenback! This Is How It Looks On A Relative Rotation Graph

by Julius de Kempenaer

A lot of eyeballs are watching the USD these days. Not surprisingly, as a lot (or most) people pay attention to the chart of the USD index ($USD), which compares the USD to a basket of other currencies. That chart now seems to be breaking out - to the UPside, that is. The reason for watching the "Dollar Index" is that there is no such thing as the price of "the USD," just like there is no price for the British Pound or the Euro. Currencies are always expressed "in another currency," meaning the price of the USD expressed in Pounds is different than the price of Read More 

ChartWatchers

Insurance Companies Are Popping To New Highs

by Greg Schnell

Across the broad spectrum of insurance companies, the life insurance industry group has a group of names huddled at or around 52-week highs. With nice strong dividends, these stocks look set to surge. A good example to look at is Manulife Financial (MFC). MFC currently has its highest SCTR ranking in over a year, while its PPO, which shows momentum, has moved into positive territory. This move started just recently in March and has continued into April. The Full Stochastic continues to reside in the strong area above 50. Notice the drop downs on the price chart Read More 

ChartWatchers

Five 5G Technology Stocks to Ponder

by Erin Swenlin

5G is the next generation of mobile broadband and will eventually replace (or augment) your 4G LTE connection. With 5G, we should see exponentially faster download and upload speeds. All eyes are now turning toward the companies that will help launch the advent of this exciting technology. I picked out five stocks that looked interesting in this new space. Corning Inc (GLW): I decided to go through these five on a short-term and intermediate-term basis. GLW has been struggling with overhead resistance, but, with the new PMO BUY signal, it Read More 

ChartWatchers

Profiting from Companies that Beat Earnings Expectations

by John Hopkins

Earnings season is off and running and already some companies that beat expectations could set up as high reward-to-risk trades. JP Morgan (JPM) is a perfect example of a company that reported stronger than expected numbers; you can see below the positive response from the market below. In the week since JPM reported its numbers, the stock has risen by 8.7% and has moved closer to testing the September 20-21, 2018 highs. It could still get there, but it's now technically overbought and this is certainly not a good time to chase. Instead, for those who are patient it makes more sense Read More 

ChartWatchers

Railroad Stocks Lead the Transports and Industrial Sector Higher

by John Murphy

Editor's Note: This article was originally published in John Murphy's Market Message on Friday, April 19th at 10:21am ET. Two stock groups did better than the rest of the market this week. Transportation stocks had another strong week. As did the Industrial Sector SPDR (XLI) which was the week's strongest sector. Both have one group to thank for their strong performance. And that's railroads which are included in both groups. And the rails have become market leaders in both. Chart 1 shows the Dow Jones US Railroad Index climbing this week to a new record. The rails have been the Read More 

ChartWatchers

Here Are The Industry Groups Flying Into Earnings Season

by Tom Bowley

Analysts routinely visit management teams of public companies to see how their quarters are progressing.  Based on the knowledge they gain, they return to their offices and their firms issue recommendations to buy or sell.  It's the reason that we do what we do.  By analyzing price action, we begin to get a feel for which areas of the market we're likely to see a rapidly improving earnings environment.  To that end, I'd suggest taking a look at the following groups based on their recent relative outperformance: The green shaded area shows that each Read More 

ChartWatchers

An Aggressive Projection for the Dow

by David Keller

Have you ever played devil’s advocate in a group discussion? That's the situation where everyone comes to one conclusion, so you take the opposite side just to provide an alternative hypothesis and argue its merits. We often avoid this sort of “outside the box” thinking because of confirmation bias. Once we’ve decided we’re bearish, we assign greater importance to any new bearish evidence because it supports our predetermined thesis. One way to combat this is to play devil’s advocate with your own process. Once you’ve drawn a conclusion, force yourself to Read More 

ChartWatchers

Global Stocks Join Global A/D Line Above Key Trend Lines

by Martin Pring

Editor's Note: This article was originally published in Martin Pring's Market Roundup on Tuesday, April 9th at 1:08pm ET. Global stocks, represented in the form of the MSCI World Stock ETF (ACWI), peaked in January of last year and gradually worked their way lower into late December. However, a remarkable turnaround has enabled the price of this ETF to complete a 6-month inverse head-and-shoulders and crash through its bear market trend line. In addition, Chart 1 shows that my Global A/D line has completed a 12-month consolidation pattern and broken out decisively on the upside. This Read More 

ChartWatchers

Trading Stocks Before They Report Earnings - Tips to Improve Your Success Rate

by Mary Ellen McGonagle

Earnings surprises can move a stock substantially, leading to either huge gains or big losses in your portfolio. Today, I’ll be reviewing how you can trade during earnings season to your benefit.  There is no single absolute way to do this; rather, as you’ll see, it will depend on your willingness to put the work in before a company reports. For those of you more averse to the inherent risk of buying into the release of earnings, I’ll be reviewing profitable ways to trade a stock after it reports in my next ChartWatchers article (2 weeks from now!). Before we Read More 

ChartWatchers

EARNINGS: 2018 Q4 Finalized; S&P 500 Still Overvalued

by Carl Swenlin

S&P 500 earnings for 2018 Q4 have been finalized, and with a P/E of 21.4, the market is above the normal value range and very overvalued. The following chart shows us the normal value range of the S&P 500 Index. It shows us 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 to show where the range bands are projected be at the end of 2019 Q4. If earnings estimates hold and price doesn't change Read More 

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