Systematic Trading Strategies and Next Level Trading Setups
Long-term, the weight of the evidence remains bullish. The chart below shows the bullish sequence starting with the Zweig Breadth Thrust on November 3rd. See the ZBT1500 Thrust in the middle window and the green arrows on the price
Chartists can improve their odds by focusing on stocks that are in long-term uptrends and showing upside leadership. This is similar to a dual-momentum approach, which was covered last week. Today’s example will use the 40-week SMA to define the trend, a 52-week high
Finding Leaders and Bullish Signals on the Price Chart Read More »
Stocks fell back this week with declines over the last two days, but the futures are pointing to a sharply higher open after Nvidia exceeded expectations. Once again, pullbacks are very short-lived as the market quickly rebounds
We are in a bull market, but some indicators are still pointing to a corrective period and a correction may have started last week. First, fewer stocks made it back above their 50-day SMAs as SPY moved higher in the first half of February. Second, seasonal patterns turned negative last week (mid February). Thinking in tornado terms, a tornado
The momentum phenomenon has been a fixture in the US equity markets for decades. There are two types of momentum to consider: absolute momentum and relative momentum. Absolute momentum refers to the underlying trend, up or down
Capturing the Momentum Phenomenon Read More »
Fewer stocks are partaking in the current advance, but SPY remains in a short-term uptrend and 4wk High-Low Percent is bullish. The chart below shows SPY moving higher
We are in a bull market, but evidence is pointing to a corrective period and a correction could begin this week. Warning signs appeared over the last few weeks as fewer stocks made it back above their 20-day SMAs this month. Seasonal patterns are also
There is no change in the overall market environment. The weight of the evidence remains bullish, but the stars are aligning for a correction. SPY and QQQ are overbought. Breadth is deteriorating within the S&P 500. Small-caps and mid-caps are weak with
The weight of the evidence remains bullish, but the stars are aligning for a correction. SPY and QQQ are overbought. Breadth is deteriorating within the S&P 500. Small-caps and mid-caps are weak with MDY and IWM forging lower highs from December to February. Seasonally, February is one of the weakest months of the year.
Divergences reflect a disconnect between price and the indicator. A bearish divergence forms when price forges a higher high and the indicator fails to confirm this high. In this case, we have the S&P 500 moving higher and fewer stocks
Generals March On, but Fewer Troops are Following (Free) Read More »
Stocks were hit with strong selling pressure on Wednesday with dozens of ETFs gapping down and falling more than 2%. Small-caps led the way lower with the biggest declines and all sectors lost ground. The Healthcare SPDR (XLV) had the smallest loss. Tech-related ETFs
Gold is not the most exciting asset at the moment, but it is in a long-term uptrend and it is perhaps the strongest commodity out there. There are also signs that the January decline is ending as RSI hits a momentum support zone and a bullish continuation pattern forms.
Gold is Making Waves Again (Free) Read More »
The broad market environment remains bullish with SPY and QQQ leading the way. This bull market started with the Zweig Breadth Thrust (ZBT1500) on November 3rd (green bar) and channel breakout in SPY a few days later. SPY also moved above the upper
The Technology sector, the Communication Services sector and Nasdaq 100 stocks are powering the S&P 500 SPDR higher. I am also seeing strength in the Healthcare sector. Outside
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This week’s analysis will stick with the multiple timeframe approach. Today we are featuring a biotech stock with a channel breakout on the weekly chart and a classic retracement on the daily chart. Moreover, a larger bullish reversal pattern could be forming on the daily chart.
This week’s analysis will stick with the multiple timeframe approach. Today we are featuring a biotech stock with a channel breakout on the weekly chart and a classic retracement on the daily chart. Moreover, a larger bullish reversal pattern could be forming on the daily chart.
2024 marks a new year with the same leaders. Large-caps are still stronger than mid-caps and small-caps. The Technology and Communication Services sectors are still the leading sectors. There is, however, a new leading sector this year: Healthcare.
The broad market environment remains bullish, which means we are in a bull market. There can still be corrections and pullbacks along the way. Corrections and pullbacks, however, create opportunities when the weight of the evidence remains bullish. One pullback or correction
Chartists looking to increase their odds should consider two timeframes for their analysis. The longer timeframe sets the strategic tone, while the shorter timeframe defines the trading tactics. Strategically, I am interested in stocks with long-term uptrends.
