DecisionPoint

February 2015

DecisionPoint

PMO + CandleGlance = Smart Money

by Erin Swenlin

The definition of "Smart Money": Money bet or invested by people with expert knowledge. I won't claim expert knowledge, but the pursuit of getting as close to that as possible is what we are doing here on StockCharts.com. In many of my previous DecisionPoint blog entries I've shown you how to use scans, DP Tracker Reports (members only), Price Momentum Oscillator (PMO), among others to help you find opportunities in a smart way. I'm going to tell you how to visually scan for the best prospects, see relative strength and evaluate the charts using only a few clicks.  Read More 

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DP Market Update: Price and Volume Disconnect - February 24, 2015

by Erin Swenlin

The market began trending higher after taking time to digest the this month's rally but it appears that there is downward pressure that has helped form a bearish ascending wedge. Expectation is a breakdown out of the wedge, but this is very short-term and the pattern only tells us that a breakdown out of the wedge is likely, not how far it will go.  The purpose of the DecisionPoint Daily Update is to quickly review the day's action, internal condition, and Trend Model status of the broad market (S&P 500), the nine SPDR Sectors, the U.S. Dollar Read More 

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Oil Bottom Looking Shaky

by Carl Swenlin

Crude oil has been trying hard to make a bottom, but it may take a little more work to get it done. After hitting an important low in January, U.S. Oil Fund (USO) bounced and has been consolidating for nearly a month. The consolidation may hold, but as of today it looks as if the consolidation could also be a double (or triple) top. If the neckline is violated, the minimum downside objective would be slightly lower than the January low. We should note that the moving averages are negatively stacked (the fastest located below the slowest), indicating that USO is in a bear market, and that Read More 

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Energy Sector Lights Up

by Erin Swenlin

Yesterday, we had a BUY signal light up on our DP Alert Daily Report for XLE, the cap-weighted Energy SPDR and today, a BUY signal was also generated on RYE, the equal-weighted Energy ETF. These were the only two sectors that had been sitting on Neutral signals on the entire table. Let's take a look at their charts and determine why the signals changed and whether this is a new day for the energy sector as a whole. The Intermediate-Term Trend Model BUY signal generated on XLE yesterday because the 20-EMA crossed above the 50-EMA. The location of the Read More 

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DP Market Update: All-Time Highs...Again - February 17, 2015

by Erin Swenlin

The market hit all-time highs today in less than impressive fashion, but they are all-time highs nonetheless. The ultra-short-term rising bottoms line is still intact and hasn't been tested since its inception, but it appears it will be forced to tomorrow. The purpose of the DecisionPoint Daily Update is to quickly review the day's action, internal condition, and Trend Model status of the broad market (S&P 500), the nine SPDR Sectors, the U.S. Dollar, Gold, Crude Oil, and Bonds. To ensure that using this daily reference will be quick and painless, we are as Read More 

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Initiation Impulse Confirms Triple Bottom Breakout

by Erin Swenlin

I've been skeptical but cautiously optimistic that the market was forming a triple-bottom within the trading range it has been bounded by since the beginning of January. Today, the market broke out of its doldrums and made a significant breakout, though not yet "decisive" which would be a 3% move above the resistance line. I was excited (yes this stuff excites the heck out of me!) to see what our DecisionPoint indicators had to say about this breakout and I wasn't disappointed. Let's first look at the SPY chart. The triple bottom is clearly visible and price broke above Read More 

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DP Market Update: Small Breakout - February 10, 2015

by Erin Swenlin

Today saw a breakout from the bullish descending wedge pattern that had formed over the past two trading days. In the last 20 minutes of the trading day, price hit overhead resistance at the 2/6 high and was turned back. ** Don't forget to sign up for tomorrow's DecisionPoint LIVE! webinar. I'll be demonstrating how you can use Tracker reports to find investment opportunities, as well as giving you the latest market overview. Sign up here! ** The purpose of the DecisionPoint Daily Update is to quickly review the day's action, internal Read More 

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Finding Investments Using the Short-Term Trend Model and the PMO

by Erin Swenlin

Finding shorter-term investments especially in a volatile market is very challenging. DecisionPoint has many tools for narrowing in on opportunities. One of our little known tools is the Short-Term Trend Model (ST/TM). Combine that model with our powerful Price Momentum Oscillator (PMO) and you should be able to narrow the field quite nicely.  The Trend Model we use extensively is the Intermediate-Term Trend Model (IT/TM). This model compares the 20/50/200-EMAs. When the 20-EMA crosses above the 50-EMA, the IT/TM generates a BUY Read More 

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HOT: SPY and Financials Equal-Weighted ETF (RYF) - COLD: Gold and the Dollar

by Erin Swenlin

When I took a look at the DP Alert Daily Report today, I noticed it had some important Price Momentum Oscillator (PMO) crossover BUY/SELL signals that you should know about. Additionally, the DecisionPoint Intermediate-Term Trend Model generated a BUY signal on the equal-weighted Financials ETF (RYF) and that chart looks great.  First let's look at what's hot. The SPY has moved into a medium-term consolidation, one that has confounded many of us who have spotted double-tops/double-bottoms that continually have teased us as price would hit the Read More 

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DP Market Update: Trading Range Holding On - February 3, 2015

by Erin Swenlin

** Don't forget to sign up for the DecisionPoint LIVE! webinar! Tweet your suggestions for the reader's request chart review @_DecisionPoint **  The market rallied above the previous three days' tops. A weaker dollar and stronger oil prices fueled the rally.  The purpose of the DecisionPoint Market Update is to quickly review the day's action, internal condition, and Trend Model status of the broad market (S&P 500), the nine SPDR Sectors, the U.S. Dollar, Gold, Crude Oil, and Bonds. Analysis will be quick and Read More 

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USO Breaks Out - Rydex Asset Analysis - Neutral Signals on Dow (DIA) and Technology Equal-Weight (RYT)

by Erin Swenlin

There were some exciting charts and interesting Trend Model signal changes today. We will look at the Oil breakout and determine if this is finally a buying opportunity for USO. Rydex Asset analysis suggests a possible price bottom for the market. United States Oil Fund (USO) finally had a significant breakout from what appeared to be a never ending decline. Note that Oil finally broke out which is of course responsible for the breakout in the (USO). The big question now is "Can we believe this is the price bottom we've been waiting for?". Looking at the chart below, it looks Read More