ChartWatchers

December 2012

ChartWatchers

GOLD AND THE DOLLAR ARE FALLING TOGETHER

by John Murphy

One of the most consistent intermarket principles is that gold (and most commodities) usually trend in the opposite direction of the U.S. Dollar. That inverse relationship has broken down of late. Chart 1 compares the Gold Trust (GLD) to the Dollar Index (UUP) over the last year... Read More 

ChartWatchers

SMALL CAPS LEADING THE DECEMBER CHARGE - AGAIN

by Tom Bowley

To historians, this doesn't come as a surprise. Since 1987, the Russell 2000 has produced annualized returns during the month of December of 43.38%. April is the next best month for small caps with its annualized return of 21.84%, a very distant second... Read More 

ChartWatchers

KEEPING AN EYE ON GOLD

by Richard Rhodes

In the past several weeks, the FOMC has voted to "expand" its balance sheet until which time economic growth is strong and getting stronger ($45 billion long-term treasuries/$45 MBS)... Read More 

ChartWatchers

GOLD'S WEAKNESS PERSISTS

by Carl Swenlin

About a month ago I wrote an article stating that I thought that gold was resuming its long-term up trend, but that belief was conditioned upon price moving above the October top. That did not happen... Read More 

ChartWatchers

Finance Sector Leads and Regional Banks Come to Life

by Arthur Hill

2012 is ending with a bang for banking stocks as sentiment towards this sector improved significantly in December. Perhaps the big banks are looking forward to open-ended quantitative easing in 2013... Read More 

ChartWatchers

HOMEBUILDERS SEEING CRACKS IN THE FOUNDATION

by Tom Bowley

Homebuilders have been a leading industry group throughout the S&P 500 rally off the 2009 lows. This strength has been particularly obvious over the past year. Looking strictly at a shorter-term chart, technical indicators couldn't look much better... Read More 

ChartWatchers

TRANSPORTATION ON THE VERGE OF BREAKOUT

by Richard Rhodes

The Dow Jones Transportation Index ($DJT) is on the verge of a major breakout that could see prices rise by up to +20%... Read More 

ChartWatchers

FOREIGN STOCKS NEAR UPSIDE BREAKOUT

by John Murphy

Foreign stocks look technically stronger than the U.S. at the moment. Tuesday's message showed EAFE iShares testing their spring high. Emerging markets are rising as well. A more comprehensive measure of foreign stocks that includes developed and emerging markets is shown below... Read More 

ChartWatchers

Gasoline Breaks Down as Oil Forms Bear Flag

by Arthur Hill

Gasoline Jan13 (^RBF13) formed a lower high and broke support with a sharp decline this week. First, notice that the trend since mid September is down with a series of lower lows and lower highs taking shape the last few months... Read More