ChartWatchers

February 2021

ChartWatchers

One Key Signal That It's Time to Sell Your Stock

by Mary Ellen McGonagle

Every bull market cycle has its set of big, winning stocks – companies with strong fundamentals and increasing mutual fund sponsorship which helps propel these select stocks higher for huge gains... Read More 

ChartWatchers

Nasdaq Rotates Toward Bearish Phase

by David Keller

I recently tweeted the three steps for the S&P to signal a rotation from bullish phase to bearish phase, especially on the tactical time frame... Read More 

ChartWatchers

This Time-Tested Theory is Screaming To Buy NOW

by Tom Bowley

I know it was a rough week last week; I only need to take one look at my own portfolio to figure that out. But the stock market doesn't go up in a straight line. There will ALWAYS be pullbacks. But be careful which "stories" you listen to... Read More 

ChartWatchers

When the Tails are Diverging, Opportunities Arise

by Julius de Kempenaer

Last week, Friday 2/19, Tom Bowley invited me to be his guest in a webinar he did with EarningsBeats.com. Of course, I talked about RRG in general and we applied it to international markets, crypto-currencies and US sectors. All good fun... Read More 

ChartWatchers

A Major Theme That Will Carry Equities Higher

by Tom Bowley

I believe the bull market vs. bear market debate has ended. We've been through a trade war, 100-year pandemic, an economic shutdown, a very divisive political battle, mountains of debt, etc., and where do we stand? At an all-time high... Read More 

ChartWatchers

Want a Semiconductor? Try This One Instead of That One

by Erin Swenlin

Semiconductors are outperforming the market, but not all Semiconductors are enjoying the strong rally that's been ongoing since September. Some of the more popular names have underperformed within their industry group and against the SPX... Read More 

ChartWatchers

A Medium-term Breadth Indicator Waves the Caution Flag

by Arthur Hill

The Nasdaq 100 has been on a tear the last few months with a move to new highs, but a medium-term breadth indicator is not keeping pace here in February... Read More 

ChartWatchers

The Nightmare of Capital Efficiency

by Greg Schnell

This week, the liquid energy markets exhibited some serious stress. Oil surged in both $WTIC (North America benchmark) and $BRENT, an international benchmark to levels not expected even one or two months ago. Natural Gas also soared in some regions... Read More 

ChartWatchers

Supply-Demand Issues Are Pushing Stocks In This Group Much Higher

by Mary Ellen McGonagle

The markets are continuing to hit a new high amid stimulus hopes and a slowly improving economy. Add an accommodative Federal Reserve and the rolling out of a Covid-19 vaccine worldwide, and it's certainly easy to make a case for this bull market... Read More 

ChartWatchers

Using Short-Term Momentum to Define the Primary Trend Direction of Stocks, Bonds and the Dollar

by Martin Pring

They say that a rising tide lifts all boats, and so it is with freely traded markets. In the boating world, you can spot a rising tide with a steadily rising boat, but, with markets, the simplest approach is to observe a series of rising peaks and troughs... Read More 

ChartWatchers

Earnings are Driving the Market, But There are Two Road Blocks Ahead

by Tom Bowley

The quarterly earnings that have poured out are utterly amazing. We're not just talking slight beats; Corporate America is CRUSHING it and the pent up demand hasn't even kicked in yet... Read More 

ChartWatchers

Sector Rotation Model Suggests Bull Market in Stocks Ongoing

by Julius de Kempenaer

From time to time, I like to check the macro environment and try to see if I can find meaningful clues to draw conclusions from generally accepted theories/models. The Sector Rotation Model (From Sam Stovall's guide to sector rotation) is one of those models that I like to track... Read More 

ChartWatchers

Russell 2000 Hits New Record as Small Cap Leadership Continues

by John Murphy

Stocks are ending the week on a firm note with the S&P 500 and Nasdaq trading in record territory. The Dow isn't far behind. Small cap stocks, however, continue to lead the market higher. The daily bars in Chart 1 show the Russell 2000 iShares (IWM) hitting a new record... Read More 

ChartWatchers

A Tale of Two Sectors: Technology and Materials

by Erin Swenlin

Today, I will weave a technical analysis tale of two sectors--one of the popular star that is beginning to lose its shine, the other about a possible Cinderella story sector. The popular star and doted-upon sector is Technology (XLK)... Read More 

ChartWatchers

GME, GME and... GME

by John Hopkins

While the overall market was working its way to new highs, the entire investing world (and many who had never been involved in the market before) was tuning in daily to see what the price of Gamestop (GME) was... Read More 

ChartWatchers

Let Me Sleep On It

by Greg Schnell

It has been a wobbly few weeks as the market has swung back and forth. The indexes are at their highs and mega-cap tech has reported strong numbers. The Nasdaq is looking to close out Friday at all-time highs... Read More 

ChartWatchers

Seasonality Looks Weak, but Price Action is Strong

by Arthur Hill

The seasonal patterns over the next two months are not very strong, but price action is strong with the S&P 500 hitting a new high. Price action is more important than the seasonal pattern because profits and losses are driven by price changes, not seasonal tendencies... Read More