ACE: View my IBD 50, IOT and SPDR Select ETF charts*

Mike Carlton Has Had Over 100 Followers Rank: 19 Followers: 100 Votes: 67 Years Member: 8 Last Update: 26 August 2016, 20:52 Categories: Momentum Stocks
Trend Analysis
Ratio Analysis

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Three (3) new features of my Chart List are my favorite hand-picked IBD 50 Stocks, the Spyder Sector ETFs and the 13 Wonders known as the Internet of Things stocks!

The first two pages contain charts that measure perceptions of the overall markets. The main equity indexes (S&P500/ Dow Industrials/ Nasdaq) and key measures of bond markets, the TED Spread, Gold, Currencies, and special ratio charts in the special 'Ace way' that makes things clear and simple to see.

The 10 major Sector SPDR ETFs are tracked with Ace's favorite trend indicators and oscillators! If one understands the trends and cycles of these charts, then they will have a very good grasp of the major rotations of the smart money traders. These charts show up on Page 19 of my Chart List and their symbols begin with the letter 'X'.

The second new feature is a hand-picked selection of the IBD 50 stocks. I use many of my favored indicators on these DAILY charts, including the dynamic 13. 50, 100 and 200 MA lines. (IBD usually shows WEEKLY charts-- you can see DAILY here!) I show the proper bases on these charts as base theory is critical in the IBD 50 stock selection and CANSLIM systems. Of course, IBD 50 and CANSLIM are successful trading systems developed by Investor's Business Daily. These charts start on Page 10. I am not associated or affiliated with the IBD in any way and my charts are strictly my interpretations, Please visit their website to learn more at www.investors.com .

Finally, I have added a section known as 'the Internet of Things.' These are the 13 wonders identified by many investors as the key stocks leading the internet revolution as we enter the middle years of the 21st century. Now, track these stocks with me beginning on Page 12.

* IBD 50 and SPDR Select are trade-mark names; I claim no association with the vendors of these products. My chart interpretations are strictly one person's opinion of publicly traded stocks.

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-0.1 a - aTreasury - EuroDollar Spread ($TED)-daily

UPDATE 7/30/16: The TED Spread has spiked to a dangerous level at 0.57! This tells us that there is large imbalance somewhere in the credit/ financial system as it exists between Europe and the US. This spike follows the just released bank stress tests in Europe. This spike suggests that levered assets could be in for a downfall--use caution with long equity (stocks) and consider a move into US Treasuries and Gold for the time being. As always, consult a licensed financial advisor for advice-- I am not one, so this is only one person's opinion.

UPDATE 6/11/16: The TED SPREAD has gone back above 0.4 once again. This warns us that there is a financial imbalance growing between Europe and the US. With the Brexit vote less than 2 weeks away and the Frankfurt and Paris exchanges under great pressure, this is an index to be watched closely in the coming days.

UPDATE 9/20/15: The TEDDY has spiked to 0.34. This is a significant warning area. Keep an eye on the EU countries in the wake of the FED 'no rate hike' decision. A weaker US $ puts pressure on the EU's easy money strategies.

The TED SPREAD ($TED) -- sometimes affectionately called 'the TEDDIE'-- tracks the yield spread between the historically 'safe' 3 month US Treasury Note interest rate and the 3 month LIBOR Rate, which is the European base lending rate for banks around the world. Generally, when the spread is low, stock markets tend to perform well. In 2008, the Teddie rose dramatically which foretold of a significant and damaging credit event which eventually came to pass and led to a generational low in stocks in early 2009.

In mid-2012, we saw here that the TEDDY was falling dramatically, which led to the general call to get bullish in stocks. Since then, we have seen the US stocks (and other global stock markets) rally considerably in that time, even as many investors remained on the sidelines cubby-holed into US treasuries and other debt instruments.

-0.1 a - bGold - Continuous Contract (EOD)/Oil - Light Crude - Continuous Contract (EOD) ($GOLD:$W

UPDATE: July 10, 2016: The Gold-WTI Ratio is moving higher once again in the month of July and heading back toward record levels. Even now, the ratio remains well above previous high benchmarks which occurred during times of severe economic stress. It seems to this observer that the central banks are doing everything in their power to prop up the equity and high risk bond markets in order to create the illusion that all is right.

UPDATE: October 2015: The Gold-WTI Oil Ratio remains at historic highs. This barometer tells us that there is a great imbalance in the global economy. Gold being so strong vs. the price of oil tells us that the global economy is weak and that we should be on the lookout for economic stress.

Why compare Gold to the price of Oil? Both are priced in US dollars, and since many people believe the US currency is de-basing, we may not be seeing the REAL influence of gold to oil. By comparing the two directly, we eliminate the Dollar's influence to see what is really happening between these two prized commodities.

Also, gold is a store of value, and has only minor (but growing) usage by industrial markets. On the other hand, oil is a very important usage commodity...the world would basically grind to a halt without oil. When oil is thriving against gold, it can be said that the world economy is advancing.

-0.1 a - Crude Oil - Spot Price (EOD) ($WTIC) Daily

Daily chart for West Texas Intermediate Oil

UPDATE on 7/30/16: WTI OIl Index reached the 200 day line support on Friday. The FAST RSIs graph on my chart (top graph on my chart and only found here!) shows a possible bounce is beginning. OIl may find a bounce here, but probably only back to the down-trend channel area before the major new down-trend resumes, imho!

UPDATE on 7/9/16:: The ACE Triple-X signal has indicated an EARLY SELL indication. This sell signal is not yet confirmed, but do notice that a new down-trend channel had developed with lower highs and lower lows. Since the equities markets seem to be in close correlation with the price of oil, this may be an indication that the stock market rally is close to an end?

UPDATE on 6/6/16: The WTI Oil Index continues to rally after coming out of the bull flag, as I predicted last month.

UPDATE on 4/10/16: Sharp reversal occurred this past week, and now the pattern becomes more clear as a Bullish Flag reversal. Breakout of the flag occurred on Friday, thus confirming the wedge line breakout of about two weeks ago. Next target is the firm resistance at the 200 day line ($41).

UPDATE on 3/28/16: This chart shows that WTI is caught in a pocket between a rising 13 EMA line which is supporting price, and trapped by a descending 200 SMA line which has shown resistance. Also, price is re-testing a wedge line that it broke free of a few weeks ago. Bulls would view this pocket as a Bull Flag.

-0.1 a - Deutsche Bank AG (DB)

In trying to find the center of the looming storm (the new financial crisis), it seems to me that Deutsche Bank may be one of the triggers for that storm. The chart shows the bank stock to be in continual decline. This is the 11th largest bank by assets in the world, and considered by many to be 'too big to fail.' One prominent market observer has commented that the derivatives book of DB is large and that recent selling in the stock could be the proverbial 'canary in the coal mine.' In other words, another Lehman moment may be approaching, and DB could be at the center of that storm? Of course, Germany and the EU will 'do whatever it takes' to rescue this bank, but nonetheless, it could trigger problems in the international swap system and possibly trigger a crisis? Another European bank also swirling in bearish sentiment is Credit Suisse. If you scroll down a little on this page, you will find the CS chart. (June 16, 2016)

-0.1 a NYSE Summation Index (Ratio Adjusted) (EOD) ($NYSI)

August 2, 2016 UPDATE: The RSI drops below 70, a sell signal in the Ace system.

June 5, 2016 UPDATE: The NYSI RSI has begun its climb above the 30 mark--the new Bull Trend is gaining strength, just as I predicted. 'Few traders understand the tools of technical trading as well as you do, Ace.' - comments from a viewer on the Talking Stocks Forum at www.AceStockTrader.com .

May 24, 2016 UPDATE: The NYSI is nearing its bottom on the RSI cycle. This suggests that the rather strong selling of the past couple weeks may be subsiding by late May into early June.

April 12, 2016 UPDATE: The RSI was threatening to down-cross the 70 line and another correction seemed imminent...However, at the last possible moment, the RSI has reversed off the 70 line and this signals a '2nd wind' for US stocks...at least for several more days.

February 5, 2016 UPDATE- Keep in mind that when RSI 30 up-crosses occur on the $NYSI chart during a BEAR MARKET TREND, that such bounces can be weak or short in duration. This is because the RSI is a cyclical indicator, and such indicators are weak when the counter-trend is strong.

-0.1 aa $SPX - The Big Picture Chart

UPDATE: July 9, 2016. Yesterday, the SPX broke through a short term resistance line as well as the year long neckline of the Inverse H&S that I have remarked on before.Normally, this would be an 'all-in' signal to load up on stocks. HOWEVER, I am actually making a contrary call here. This looks to be a head-fake top. Have you ever wanted to know when to sell at the top? This may be it. Here are the market resistance points: As noted with my $WTIC oil chart, it appears that a strong SELLING trend is setting up in the oil market. OIl and Stocks have had a strong trading correlation this year. Second, the benchmark US Treasury yield reached a new all-time low yesterday--bearish! Third, the price of gold is holding near a two year high- bearish. Fourth: European banks like CS, DB and Italian banks are under distress, as noted on my charts list. Reason #5: China has quietly been de-valuating the Yuan in recent days which signals an exodus of capital from the world's best large growth economy.


UPDATE; May 24, 2016. Once again, totally unnoticed by the popular pundits is that the 400 day line was tested and held once more. On the SPX chart, the 400 day line has been drifting near the 2040 mark. Each time, the 2040 line has proved to be supportive to the SPX when tested in 2016. The Bull Market remains alive for now. However, do note that the 400 day line has flattened out and is no longer rising. That is a sign of a tired bull market, imho.


I thank you for your votes and support. On this board, WE are here to make profits in the stock market--pure and simple! By the way, I am an Associate Member of the Market Technicians Association (MTA). -Mike

-0.1 aa -United States Oil Fund, LP (USO)

UPDATE on 7/29/16: I just concluded a quite successful short trade on USO as the WTI OIl chart reaches my intermediate target at the 200 day line. Will wait for the bounce to play on out on oil, before looking to short USO again. Mike

-0.1 aa US Dollar Index - Cash Settle (EOD) ($USD)

Update on July 30, 2016: A sudden down-turn in the $. Is the FED trying to prevent another China Yuan devaluation? or has the FED re-opened swap lines for failing European banks following some poor results in the Bank stress tests?

Update: Major dollar reversal on Friday, June 4th following a very weak US Jobs Report. Notice that the chart predicted a possible pullback as the index reached the late January down-trend line, a key resistance point on the chart.

Update on May 24, 2016: The dollar rally has been strong the last few weeks. Notice it broke free of the deep downtrend channel in mid-May and then pushed through the influential 50 day line.

Update on April 30, 2016: US $ is in free-fall, as noted in the previous two weeks, the 13 EMA line was guiding down in advance of this move.

Update on February 5, 2016: The US dollar index has collapsed in the past week, breaking down through the 50 and 200 day lines very quickly!

-0.1 aaa - Light Crude Oil - Spot Price (EOD) ($WTIC)

Weekly chart for West Texas Intermediate Oil

UPDATE: on 4/12/16 Break-through of down-trend wedge line is bullish for both oil and stocks. See daily chart for more precise positions, resistance and support lines.

UPDATE on 3/28/2016: The Weekly Chart shows WTI trying to break up through a steep down-trend line (blue-dashed), but so far, the strong resistance of that down-trend line is holding. OIL is at a crossroads--depending on how it breaks, will likely determine the direction of equities and commodities in the next few weeks. One can see that if WTI should break higher, that the next key resistance area would be $48. See the daily chart for more precise day-to-day projections.

-0.1 aaa db X-Trackers Harvest CSI 300 China A-Shares Fund (ASHR)

Update on 6/6/16: The A-shares ETF has broke free of the down-trend wedge line recently, Things are looking up for the Shanghai shares, at least in the near term.

This popular China A-shares ETF shows a bearish descending triangle on the daily chart. Though there may be strong rallies at times, the longer term projection is calling for a potential crash of the Shanghai stock market.See my comments on the US dollar chart for further insight.

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