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The first two pages contain charts that measure perceptions of the overall markets. The main equity indexes (S&P500/ Dow Industrials/ Nasdaq) and key measures of bond markets, the TED Spread, Gold, Currencies, and special ratio charts in the special 'Ace way' that makes things clear and simple to see.
The 10 major Sector SPDR ETFs are tracked with Ace's favorite trend indicators and oscillators! If one understands the trends and cycles of these charts, then they will have a very good grasp of the major rotations of the smart money traders. These charts show up on Page 19 of my Chart List and their symbols begin with the letter 'X'.
The second new feature is a hand-picked selection of the IBD 50 stocks. I use many of my favored indicators on these DAILY charts, including the dynamic 13. 50, 100 and 200 MA lines. (IBD usually shows WEEKLY charts-- you can see DAILY here!) I show the proper bases on these charts as base theory is critical in the IBD 50 stock selection and CANSLIM systems. Of course, IBD 50 and CANSLIM are successful trading systems developed by Investor's Business Daily. These charts start on Page 10. I am not associated or affiliated with the IBD in any way and my charts are strictly my interpretations, Please visit their website to learn more at www.investors.com .
Finally, I have added a section known as 'the Internet of Things.' These are the 13 wonders identified by many investors as the key stocks leading the internet revolution as we enter the middle years of the 21st century. Now, track these stocks with me beginning on Page 12.
* IBD 50 and SPDR Select are trade-mark names; I claim no association with the vendors of these products. My chart interpretations are strictly one person's opinion of publicly traded stocks.
Comments from Ace's 'Forum: Talking Stocks' on June 18, 2014:
The world's two top reserve currencies are the US dollar and the Euro....the Euro has been the favored currency among Fx traders because short term ECB interest rates were a safe haven from the near zero rates in the US dollar and Japanese Yen which is the 3rd reserve currency and for this reason this is why the Euro has stayed above the 1.30 level...
But about 10 days ago, the ECB went to charging its member banks NEGATIVE INTEREST RATES which means the Euro overnight bonds have a yield lower than gold and silver. In other words, none of the world's reserve currencies provide any appreciably better yield than precious metals...for the last couple years, one thing the gold haters kept pointing out is that gold does not provide an interest rate yield and this is why it was not favored by many investors...that is no longer true when compared to the so-called 'safe haven' of bonds!
This might also explain why some gold miners like AEM are moving higher because some quality miners pay out a nice dividend....fundamentally, the game has changed for gold and silver miners and we may soon see the charts reflecting much stronger interest in the quality precious metals miners...imho.
Gold Fields is an example of a deeply oversold gold miner. Though it is clear that the stock shows little evidence of a recovery, one has to watch for certain signals and valuation metrics to determine when is an ideal time to begin a SPECULATIVE position for a possible recovery. GFI may be presenting such a situation now, though the exact time of the recovery is not discernible, the odds seem to have shifted per the comments on the chart. (June 29, 2013)
The MSCI Emerging Markets ETF is the most popular vehicle for investing into foreign emerging markets. On June 9, 2015, the MSCI index committee is to make a decision as to whether to include China's A-shares which trade in Shanghai and Schenzen.
Often overlooked by investors, the New Highs-New Lows List is an important barometer for market sentiment. When the index is positive, then investors tend to be bullish and the market tends to go higher. When the index goes negative, then the market tends to go bearish. If you are an investor who wants just one simple sign to tell you whether you should have your money in the market or out, I recommend the $NYHL as the simplest, at-a-glance indicator.
As of May 31st, 2013, the index finished at a positive 255. It has been as high as +878 in 2013 as the NYSE (and other US indexes) have rallied hard and made lots of money for the bullish investors. However, on May 29th, a HIndenburg Omen signal was issued by this index. This is a rather archaic formula that has called the 1987, 2000 and 2008 market crashes. However, the index has made a few false warnings over the years too. Suffice to say, it's crash signal should at least put investors on heightened awareness over the next 40 days after the signal (and up to 120 after, though the greatest likelihood of a deep sell-off should occur within the first 40 days.
Though I believe the formula for the Hindenburg Omen is rather convoluted and archaic, its main intent makes sense to me: that is, it measures extremes on the New Highs-New Lows list and sets off a signal if two days rather close to each other prove to be very volatile in hitting news highs and lows.
Also, of immediate interest to me is that the MACD signal just went under zero on May 31st on the $NYHL. This negative divergence signal often portends a sharp drop in the $NYHL within a short amount of time. In other words, investors should be taking some profits by now and bracing for greater market volatility in the summer months.
Daily chart for West Texas Intermediate Oil
UPDATE on 9/8/2016: WTI breaks out of a BULL FLAG. It might try to re-test the breakout point near $46.20 before it takes off much higher, so keep an eye on a possible 2nd entry point.
UPDATE on 7/30/16: WTI OIl Index reached the 200 day line support on Friday. The FAST RSIs graph on my chart (top graph on my chart and only found here!) shows a possible bounce is beginning. OIl may find a bounce here, but probably only back to the down-trend channel area before the major new down-trend resumes, imho!
UPDATE on 7/9/16:: The ACE Triple-X signal has indicated an EARLY SELL indication. This sell signal is not yet confirmed, but do notice that a new down-trend channel had developed with lower highs and lower lows. Since the equities markets seem to be in close correlation with the price of oil, this may be an indication that the stock market rally is close to an end?
UPDATE on 6/6/16: The WTI Oil Index continues to rally after coming out of the bull flag, as I predicted last month.
UPDATE on 4/10/16: Sharp reversal occurred this past week, and now the pattern becomes more clear as a Bullish Flag reversal. Breakout of the flag occurred on Friday, thus confirming the wedge line breakout of about two weeks ago. Next target is the firm resistance at the 200 day line ($41).
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