Systematic Trading Strategies and Next Level Trading Setups
The 20+ Yr Treasury Bond ETF (TLT) failed again at the falling 40-week SMA and looks poised to resume its bigger downtrend. Keep in mind that bonds and yields move in the opposite direction. A resumption of the
20+ Yr Treasury Bond ETF Resumes its Downtrend Read More »
The Oil & Gas Equipment & Services ETF (XES) is showing strength here in March as it breaks back above its 40-week SMA. More importantly, the long-term trend is up and this week’s breakout argues for a continuation of this uptrend.
Oil & Gas Equipment & Services ETF Resumes its Uptrend Read More »
The first chart below shows the 4-wk High-Low Percent indicators for the S&P 500, Nasdaq 100, S&P MidCap 400 and S&P SmallCap 600. I explain the indicator and signals below the chart. This indicator combo turned bullish on November 2nd
Some tech stocks stumbled over the last few weeks, but other parts of the market picked up the slack. The chart below shows the percentage of stocks above their 50-day SMAs for the S&P 500, Nasdaq 100, S&P MidCap 400 and S&P SmallCap 600. This indicator
As its name suggests, the ATR Trailing Stop is normally used to trail a stop-loss for a long position. It can also be used to identify an outsized decline that could reverse an uptrend. Today’s example will show how to apply the ATR Trailing Stop on
Using the ATR Trailing Stop to Manage the Trade and Define the Trend Read More »
We remain in a bull market and the short-term trends are up for the major index ETFs. I am seeing weakness within the Nasdaq 100 and S&P SmallCap 600, but improvements within the S&P 500 and S&P MidCap 400. Today’s report will then look at 4-week High-Low Percent for the major index ETFs.
We are in a bull market, but the stock market is not firing on all cylinders in 2024. Overall, the weight of the evidence remains bullish because most cylinders are firing and supporting the uptrends. Note that the S&P MidCap 400 SPDR (MDY) and S&P 500 EW ETF (RSP) closed at new highs on Monday.
ChartTrader – 240305: MDY, XLRE, XLU, TLT, KBWB, ZTS, CVS, TDY (Premium) Read More »
Most stocks surged with the broader market in the fourth quarter of 2023. SPY and QQQ extended their advances in 2024, but some stocks did not partake and fell back. Even so, some of these stocks show signs of long-term trend reversals and their declines in
Spotting Tradable Pullbacks after Trend Reversing Surges Read More »
The short-term uptrend remains intact for SPY. The first chart updates SPX %Above 50-day SMA and SPX 4-week High-Low Percent. Over 90% of S&P 500 stocks were above their 50-day SMAs in early January and only 64% are above here in late February (mustard arrow). Fewer stocks are participating
Chart Trader – 240229: MDY, URA, CGSP, ZTS, CAH (Premium) Read More »
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
