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Chaikin Money Flow Study ($SPX)

by Chip Anderson

Click here for a live version of this chart. Often we get asked "What settings should I use on my indicators?  What's the best?" and our answer is the always infuriating "It depends."  The chart above shows why "It depends" is always going to be our answer. I've added six different versions of the Chaikin Money Flow (CMF) indicator to this chart of the S&P 500.  Notice the different frequency with which the CMF lines cross the zero line and turn red.  The shorter the frequency, the more often (in general) the Read More 

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Catapulting Bulls (PL)

by Chip Anderson

Click here for a live version of this chart. The "Bullish Catapult" P&F pattern is a great way to find stocks that are breaking out above resistance.  Today, Protective Life Corp. (PL) was the only high volume stock to create a new Bullish Catapult pattern when it moved above 6.0.  Right now, the catapult line is short but the P&F Price Objective is at PL's recent support line of 8.0. ( Click here for an explanation of P&F Price Objectives.) Read More 

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Bullish Percent Sector Indices Moving Higher

by Chip Anderson

Click here for a live version of this chart. Click here for a live version of this chart. Bullish Percent indexes show the percentage of stocks in a given group that have a "Buy Signal" on their P&F chart.  Above are charts with the 11 different sector-based Bullish Percent Indexes that we calculate here at StockCharts.com (with the S&P 500 BPI thrown in for good measure). All of the BPIs started moving higher at the start of the month however some appear to be Read More 

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Singing in the (Ticker) Rain (FAS/FAZ)

by Chip Anderson

Click here to start watching Ticker Rain This is not your typical stock chart.  This is what you see after running our Ticker Rain program for a while.  It can show you what tickers are popular on StockCharts.com.  More importantly, it can show you what everyone else is looking at.  Each column represents a bunch of chart requests for a particular symbol.  The columns "grow" over time with the more popular symbols growing faster. For instance, are you aware of the FAS/FAZ frenzy that's going on these days?  FAS (#3) and Read More 

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Bouncing Off Bollinger Bands (MTXX)

by Chip Anderson

Click here for a live version of this chart How are your money management skills these days?  Here's a real test for you: Over the past 10 months, MTXX has been bouncing up and down between roughly 14 and 19.  One of the first signals that the stock is about to start moving higher again has been when it penetrates its lower Bollinger Band (blue arrows).  While extremely risky by themselves, those signals have often been confirmed by MACD Histogram crossovers within a couple of days (red arrows). Read More 

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Berkshire's "Flight to Safety" Breakouts (BRK/B)

by Chip Anderson

Click here for a live version of this chart. Continuing to look for "leading" technical signals that pointed to the market's recent crash.  It's always interesting to see how the country's "best" investor did.  Warren Buffet's Berkshire Hathaway had a couple of interesting jumps in its stock price during the period in question.  Comparing the percentage performance of BRK/B to $SPX, we can see two big jumps in 2007 (chart above) and one jump in 2008 (chart below).  Of course, not all jumps in BRK/B are signs of an impending crash - Read More 

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Gold at 700 was the Beginning of the End

by Chip Anderson

Click here for a live version of this chart. The S&P 500 Index (yellow line) hit its most recent high in early October of 2007 (red arrow).  Since then it's been all downhill.  Were there any clear warning signs before the plunge began? It's interesting to compare $SPX to $GOLD (the red line).  After creeping upwards consistently (on a log scale chart) since early 2001, gold spiked up to 715 in mid-2006 but quickly retreated back to its normal uptrend line.  However, gold's rate-of-increase increased as soon as it Read More 

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S&P Bullish Percent Chart Turning Upwards ($BPSPX)

by Chip Anderson

Click here to see a live version of this chart. Bullish Percent charts track the percentage of stocks in a specified group that have a P&F "Buy Signal" on their charts.  While the large-scale Bullish Percent indexes - the NYSE's ( $BPNYA) and the Nasdaq's ($BPCOMPQ) - are still in a downward column of O's, the S&P 500's ( $BPSPX) reversed today(!) and is heading higher.  Will the others follow the S&P 500's lead? Read More 

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Large Caps, Mid Caps or Small Caps?

by Chip Anderson

  Click here for a live version of this chart. Long term answer: Mid caps.  Next question? Read More 

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One of These Charts is Not Like the Others (Dow Stocks)

by Chip Anderson

Click here for a live version of these charts. OK - I apologize for the size of the image above, but it's worth the extra time needed to download I promise! These are 6-month candlestick charts of the 30 stocks that make up the Dow Jones Industrial Average.  As the old "Sesame Street" song goes, one of these things is not like the others.  Can you spot it? All of these charts look well terrible.  But if you look closely, you'll see that one has its moving average lines reversed(!).  Read More 

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The Only Nasdaq Stock in a New Uptrend Right Now (ACIW)

by Chip Anderson

Click here for a live version of this chart. Only one Nasdaq stock began a new uptrend today.  Well began a new uptrend as defined by the ADX indicator.  ACI Worldwide Inc recently had a bullish 50/200 Moving average crossover (corresponding to a nice bump up on good volume) and now its ADX line has moved back above 20 for the first time this year.  The ADX line - the thick black one - indicates if a stock is "trading" (i.e., moving sideways in a range) or "trending" (moving up or down fairly consistantly).  The ADX line for ACIW is now indicating Read More 

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Vroom! Autozone Jumps the Gap (AZO)

by Chip Anderson

Click here for a live version of this chart After gapping down during December and January, AutoZone gapped up significantly in mid February and zoomed upwards today hitting a high of 157 at one point.  So why is the Chaikin Money Flow not zooming upwards as well?  The CMF gave a big "sell" signal today because the stock closed well below the mid-point of today's candle and thus the CMF considers most of today's huge volume spike to be "selling" volume.  Will this become another case of "all gaps must be filled?" Read More