ChartWatchers

November 2013

ChartWatchers

Banks Surge As Bull Market Rages On

by Tom Bowley

I rarely question a market move to the upside when banks are leading the charge... Read More 

ChartWatchers

Buy Japan, Sell US

by Richard Rhodes

With the equity markets hitting all-time highs in many cases, we think it prudent to look around the world and determine if there are any better risk-reward countries into which one can invest or park money for the long-term... Read More 

ChartWatchers

Is Crude Oil Ready To Rally?

by Greg Schnell

Crude oil has had a huge setback. It has fallen below all of the common moving averages. Is it ready for a bounce? Here is why I think it will retest the $100 level soon. For the live link to the chart. $WTIC Notice the uptrend line on crude oil off the 2012 lows... Read More 

ChartWatchers

The Great Rotation is Well Underway

by John Murphy

There's a positive side effect to rising bond yields. When bond yields rise, bond prices fall. When bond prices fall, investors start moving money into stocks. That sequence supports the view that higher bond yields are already causing a generational shift in favor of stocks... Read More 

ChartWatchers

Stocks Overvalued but No Bubble

by Carl Swenlin

As usual we are hearing many claims regarding market valuation, mostly that stocks are undervalued based upon future earnings projections. We are also seeing a lot of headlines about stocks being in a bubble... Read More 

ChartWatchers

Tis the Season... for Seasonality Charts!

by Chip Anderson

Hello Fellow ChartWatchers! Almost everything is at record highs right now. Dow is above 16,000. S&P is above 1800. All of the S&P Sectors are higher year-to-date with Health Care being the strongest (+40.3%) and Utilities being the weakest (+13.9%)... Read More 

ChartWatchers

Finance Sector Leads with a Fresh 52-week High

by Arthur Hill

Three of the nine sector SPDRs hit new highs this week with the Finance SPDR (XLF) leading the way. The Energy SPDR (XLE) and the Healthcare SPDR (XLV) also recorded new highs... Read More 

ChartWatchers

Breadth Indicators Confirm with New Highs

by Arthur Hill

When a major index records a new high, I go straight to the key breadth indicators to see if these highs were confirmed. Breadth indicators are sometimes called "internal" indicators because they measure what is happening inside a specific index or ETF... Read More 

ChartWatchers

Bond Bounce is up Against Charts Resistance and Looks Overbought

by John Murphy

After selling off sharply between May and September, bond prices have been bouncing for the last two months. The bounce, however, has reached technical levels that may cap the rally. Chart 1 shows the 7-10 Year T Bond iShares (IEF) having retraced 50% of its previous downtrend... Read More 

ChartWatchers

Positive Seasonality Period Begins

by Carl Swenlin

Research published by Yale Hirsch in the Trader's Almanac shows that the market year is broken into two six-month seasonality periods. From May 1 through October 31 is seasonally unfavorable, and the market most often finishes lower than it was at the beginning of the period... Read More 

ChartWatchers

Head and Shoulders for Light Crude

by Richard Rhodes

For the past 9-weeks, Crude Oil has weakened from $112/barrel to below $95/barrel. This is a rather sharp drop indeed, but the fact of the matter is that the fundamentals are bearish Crude Oil, and so is the techncial state of prices... Read More 

ChartWatchers

The Currency Commodity Intermarket Relationship

by Greg Schnell

This week had bearish overtures for my view of the markets. Probably the one I worry about the most is the commodities Index, the $CRB. The break below the 5 year trend line is particularly disconcerting. One week does not make a new trend, but one week can start a trend... Read More 

ChartWatchers

Warning Signs or Another Seasonal Rally Opportunity?

by Tom Bowley

I've maintained a bullish stance throughout this bull market, but I have to admit I'm beginning to get a little nervous... Read More 

ChartWatchers

November is "Get Certified" Month at StockCharts.com!

by Chip Anderson

Hello Fellow ChartWatchers! October didn't live up to its fearsome repution this year. The major averages were all up somewhere between 2 and 4% for the month with the exception of the Russell 2000 (which was up only 0.7%)... Read More 

ChartWatchers

Surge in Yields Could Signal Resumption of Bigger Uptrend

by Arthur Hill

Basic Elliott wave teaches us that there are two types of price movements: impulse and corrective. Similarly, Dow Theory teaches us that there are primary price movements and secondary price movements. Impulse and primary moves are in the direction of the bigger trend... Read More