ChartWatchers

November 2020

ChartWatchers

Current Rotation Leading to Massive Short Squeeze Trades

by John Hopkins

The market rotation of late has resulted in some explosive moves in some "forgotten stocks." This has been particularly true of those stocks that have a high percentage of shares short. As an example, take a look at the two charts below... Read More 

ChartWatchers

Assessing Market Bias

by Carl Swenlin

We have all heard that "a rising tide raises all boats," and at DecisionPoint.com we have come to think of the direction of the market tide as being a bias that can benefit or work against our trading positions... Read More 

ChartWatchers

This Fast Moving ETF Is Revealing Top Candidates In A Strong Sector

by Mary Ellen McGonagle

With the move into Cyclical stocks continuing to expand, sectors such as Industrials have stocks with multiple reasons to continue to trade higher... Read More 

ChartWatchers

We Now Have Confirmation That It's Full Speed Ahead for this Secular Bull Market

by Tom Bowley

I'm going to keep this article short and sweet. We're going higher. If you're still convinced that the U.S. stock market is staring at a doom-and-gloom environment, I don't know what to say... Read More 

ChartWatchers

Sentiment Suggests Exhaustion of Buyers

by David Keller

"Bull markets are born on pessimism, grow on skepticism, mature on optimism and die on euphoria." - Sir John Templeton My macro process has three key steps: Price, Breadth and Sentiment... Read More 

ChartWatchers

Stock Uptrend Consolidates Above Support

by John Murphy

Major stock indexes continue to consolidate their November gains, and remain above recent support levels. Chart 1 shows the Dow Industrials pulling back over the last three days, but remaining above underlying support along their October peak and recent low near 29,000... Read More 

ChartWatchers

Sometimes You Need to Change Lanes to Stay on the Right Track

by Julius de Kempenaer

When I was preparing for last week's episode of Sector Spotlight and writing an article for the RRG Blog on the Growth/Value Rotation, I had to think back to an article that I wrote for this newsletter back in August... Read More 

ChartWatchers

Confidence is Breaking Out All Over, Which is Bullish for Stocks/Commodities and Bond Yields

by Martin Pring

Pfizer (PFE)'s announcement about a vaccine may have triggered a sharp rally on Monday, but its real effect was to boost confidence, which improved the status of a lot of different relationships that I follow, portending further gains for stocks and commodities down the road... Read More 

ChartWatchers

It's Early, But Rotation is SCREAMING to Buy This Sector!

by John Hopkins

This past week, we saw traders turning their attention away from some of the high-flying "Stay at Home" tech stocks to some other sectors that could fare well if the recently announced COVID vaccines have the promising effect that is hoped for... Read More 

ChartWatchers

Energy Sector Still Has Potential + DP Diamond of the Week Ready to Explode Higher!

by Erin Swenlin

Energy was the big winner this week as it gapped up on the open Monday. Since then, price has consolidated somewhat and could be forming a reverse island formation. Looking under the hood at our indicators for XLE, we have quite a few that are very overbought... Read More 

ChartWatchers

Two Biotech ETFs: One Stands Out as the other Forges a Big Continuation Pattern

by Arthur Hill

Even though the Biotech ETF (IBB) and the Biotech SPDR (XBI) represent the same industry group, their composition is very different and one is clearly outperforming the other... Read More 

ChartWatchers

Looking at New Highs on These Travel Names

by Greg Schnell

After the bludgeoning of the travel sector this year, it seems almost remarkable that these names could already be hitting new 52-week highs. It's not just one area, either - there are multiple areas related to travel that are hitting new highs... Read More 

ChartWatchers

Emerging Markets Achieve Bullish Breakout

by John Murphy

The U.S. dollar continues to weaken against both developed and emerging market currencies. Chart 1 shows the Invesco Dollar Bullish Fund (UUP) nearing a test of its yearly low. A drop below that level would put the dollar at the lowest level since early 2018... Read More 

ChartWatchers

Two Ways to Play the Current Bullish Uptrend

by Mary Ellen McGonagle

The markets posted their biggest weekly percentage gains since April as investors set their sights on a Biden win with a Republican-dominated U.S. Senate. This creates a gridlock in Washington and, as the CIO of Bank of America (BAC) puts it: "Gridlock = Goldilocks... Read More 

ChartWatchers

NEW! Streamline Your Charting Experience By Setting Your "Default" Charting Tool Across StockCharts

by Grayson Roze

Well folks, we're all seeing stars this week. And no, not because of that mind-bending +9.67% gain the Technology sector printed this week (although wowza, what a move)... Read More 

ChartWatchers

Bulls Need More New Highs

by David Keller

The S&P 500 wrapped a rather volatile week by settling in at the upper end of the 3200-3600 range. One key breadth indicator shows clear similarities to the bull run in early October, and also provides a prescription for bulls looking for validation of further upside... Read More 

ChartWatchers

Did We Already See "The Dip" or Is There Risk Ahead?

by Julius de Kempenaer

Every first Tuesday of the month in Sector Spotlight, I go over the completed monthly charts for the prior month... Read More 

ChartWatchers

Here's My Strategic Approach to Outperforming the S&P 500 - It Works in Any Market

by Tom Bowley

Let me preface my article by saying that I'm very bullish. I mean, like, extremely bullish. No, really, I'm talking CRAZY bullish... Read More