ChartWatchers

September 2008

ChartWatchers

BUY THIS BOTTOM

by Chip Anderson

Market bottoms come in all shapes and sizes, but most have a few key ingredients. Without exception, critical market bottoms are borne out of excessive fear and panic. On Thursday, the VIX shot past 42... Read More 

ChartWatchers

VOLUME AND VOLITILITY SURGE

by Chip Anderson

Volume and volatility surges foreshadowed bear market rallies in November, January and March. Both surged again this week and the market took notice with a huge bounce over the last two days... Read More 

ChartWatchers

FINALLY A BOTTOM?

by Chip Anderson

In my September 5 article I said that I thought is more likely that we would see a continued decline, rather than a retest of the July lows. This week the market blew out the July lows and was very near to crashing on Thursday... Read More 

ChartWatchers

VIEWING OUR "RISK AVERSION" CHART

by Chip Anderson

We'll admit last week was one of the more "interesting" trading weeks we have seen in a number of years, and if we must liken it to anything we've seen in our 25-years of trading - it would be the week before and of the 1987 Crash... Read More 

ChartWatchers

FINANCIALS SURGE

by Chip Anderson

A massive government rescue plan and a temporary ban on short selling has boosted the Financials Sector SPDR by nearly 12% (Chart 1). It's the day's strongest sector on a day when all sectors are in the black. Brokers (not shown) are up 12% and banks nearly a similar amount... Read More 

ChartWatchers

DOLLAR'S RISE CRUSHING COMMODITIES

by Chip Anderson

The U.S. dollar couldn't move lower forever. It had to turn and when it did, we knew things might get ugly for commodities. Since the July 14th low in the dollar index, we've seen the greenback rise over 10% (see Chart 1). That has sent commodity prices reeling... Read More 

ChartWatchers

MOMENTUM TURNS BEARISH FOR DIA

by Chip Anderson

Stocks opened weak after Friday's employment report, but the bulls found their footing late morning and rallied for a mixed close... Read More 

ChartWatchers

BREAKDOWN POINTS TO LOWER PRICES

by Chip Anderson

On August 15 I wrote an article pointing out that an ascending wedge had formed on the S&P 500 chart. I noted that this is a bearish formation, and that the most likely resolution would be a breakdown from the wedge followed by a price correction... Read More 

ChartWatchers

MORE S&P 500 DECLINES AHEAD?

by Chip Anderson

The world's temperature gauge for risk is what we refer to as the "carry-trade" indicator...or the Euro/Yen Spread. When this spread is rising, then the world is said to be putting the carry-trade on and expanding risk profiles; conversely, when the spread is falling..... Read More 

ChartWatchers

FIBONACCI LINES - HOW MUCH IS "TOO MUCH"?

by Chip Anderson

How high is "too high?" How low is "too low?" Think back to any time that you've owned a stock and think about when you started to get worried about it's performance... Read More