ChartWatchers

August 2007

ChartWatchers

EXTREME PESSIMISM MARKS BOTTOM

by Chip Anderson

We've discussed in the past the tendency of the market to put in long-term bottoms when the bearish sentiment reaches extreme levels. Extreme bearishness is exactly what we saw on Thursday, August 16... Read More 

ChartWatchers

EXPECTING SHORT-TERM TOP

by Chip Anderson

In my August 17 article, Looking For A Retest, I speculated that we would get a bounce from the extreme price lows hit in mid-August, but that a retest of those lows needed to occur before we could be reasonably certain that the completion of a solid bottom had been accomplished... Read More 

ChartWatchers

WHERE ARE WE IN THE CYCLE?

by Chip Anderson

Given the volatility of the capital markets these past two weeks, we think it instructive to step back and take a longer-term viewpoint of the stock market to discern where we may be in the cycle... Read More 

ChartWatchers

DATA FEED UPGRADE UPDATE

by Chip Anderson

We are continuing to make progress in our efforts to get a second data feed into our offices. A second data feed should help us avoid the kind of problems we had several weeks back... Read More 

ChartWatchers

WHERE'S THE VOLUME?

by Chip Anderson

Friday's higher prices continued the market rally that started the previous Thursday. The three charts below show major market ETFs all back above their 200-day moving averages, which removes any immediate threat of a bear market... Read More 

ChartWatchers

DOW TECHNICALS TURNING POSITIVE, BUT...

by Chip Anderson

Last week, some significant positive technical developments occurred on our GalleryView chart of the Dow: After recovering to remain above the 200-day moving the previous week (see the red candle whose shadow dipped all the way to 12,517?), the Dow has rebounded nicely with a nic... Read More 

ChartWatchers

BULL/BEAR BATTLE THIS WEEK

by Chip Anderson

The S&P 500 ETF (SPY) firmed this week and found some support. The ETF hit support from the 40-week moving average and broken resistance. The 40-week moving average is equivalent to the 200-day moving average and this level is important to the long-term trend... Read More 

ChartWatchers

MARKET OVERSOLD AND DANGEROUS

by Chip Anderson

A month ago I wrote an article stating that I thought that the 20-Week Cycle was cresting and that we should expect a decline into the cycle trough that would probably break down through the support provided by the bottom of the trading channel, setting up a bear trap... Read More 

ChartWatchers

A BEAR MARKET IN FULL?

by Chip Anderson

Last week was a treacherous week indeed, with stock prices falling universally. That said, one of the "weakest indices" was related to the US small cap arena, and specifically to the Russell 2000 Index ($RUT)... Read More 

ChartWatchers

JULY PERFORMANCE FIGURES CARRY A MESSAGE

by Chip Anderson

The chart above shows "John's Latest Performance Chart" that reflects the market's stronger and weaker groups during the hightly volatile month of July. All are plotted around the S&P 500 which lost 3.2% during July. [The S&P can also be plotted as a zero line]... Read More 

ChartWatchers

THE BATTLE OF 13,200

by Chip Anderson

The troops are mustered. The swords are out. The orders have been posted. The pieces are in place. The die has been cast. (The metaphors are getting lame. ) However you want to say it, the battle line for the Bulls and the Bears has been drawn... Read More