Systematic Trading Strategies and Next Level Trading Setups

Looking Outside the Stock Market for Opportunities – with video (Free)

Correlations rise during bear markets. This means more stocks participate in broad market declines than broad market advances. In other words, the odds are stacked against us when picking stocks in bear markets. Traders are better off looking outside of the stock market for opportunities.

The Perfchart below shows the performance for 10 asset-based ETFs over the last forty days. Seven of the ten are down with Silver, REITs, the S&P 500 SPDR and the 20+ Yr Treasury Bond ETF leading the way lower. Three stand out. The DB Energy ETF (DBE), the Gold SPDR (GLD) and the Dollar Bullish ETF (UUP) are all higher.

Chart Trader featured weekly charts for oil and gold in Thursday’s report and video. Let’s take a look at the US Oil Fund (USO), which is forming a short-term bullish continuation pattern. USO broke out with a big advance from July to September. The Trend Composite turned positive on July 24th and confirmed this trend reversal.  

Short-term, the ETF became overbought in late September and fell back in early October. This decline, while sharp, held above the breakout zone so the breakout remained intact. USO went on to consolidate with a pennant, which is a short-term bullish continuation pattern. A breakout would signal a continuation higher and target a move to the upper 90s.

Today at Chart Trader we put forth downside targets for SPY, QQQ and IWM. It ain’t pretty. Our momentum-rotation strategies are in cash because of bear market conditions. Chart Trader is focusing outside of the stock market and highlighting some bearish setups. Reports and videos are published every Tuesday and Thursday. Click here for immediate access.   

ChartTrader – Long-term Targets for the Perfect Storm in SPY, QQQ and IWM – Symbols: GLD, USO, XES, NGG2024, UNG and NKE.

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We are taking a step back today with some weekly charts for a long-term perspective. It is not pretty because we are in a bear market and risk in stocks is well above average. SPY and QQQ recently reversed their upswings. This means the immediate

ChartTrader – Long-term Targets for the Perfect Storm in SPY, QQQ and IWM – Symbols: GLD, USO, XES, NGG2024, UNG and NKE. Read More »

ChartTrader – Breadth Deteriorates as Spreads Widen – Symbols: SPY, RSP, QQQ, QQEW, MDY, IWM, XLK, SOXX, IGV, URA, PPA (Premium)

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The weight of the evidence is bearish for stocks and deteriorating even further. Around 70% of S&P 500 stocks are below their 200-day SMAs. Some 26.4% of S&P 1500 stocks are above their 200-day SMAs, which means 73.5% are below.

ChartTrader – Breadth Deteriorates as Spreads Widen – Symbols: SPY, RSP, QQQ, QQEW, MDY, IWM, XLK, SOXX, IGV, URA, PPA (Premium) Read More »

ChartTrader – QQQ, XLK and SOXX Lead Lower – Symbols Covered: SPY, KIE, IHF, XLE, HACK, URA, GLD, PPA, LHX, TSLA, CRM (Premium)

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The weight of the evidence remains bearish for stocks. 62% of S&P 500 stocks and 65% of S&P 1500 stocks are below their 200-day SMAs. The S&P 500 EW ETF, S&P MidCap 400 SPDR and Russell 2000 ETF are well below their 200-day SMAs and

ChartTrader – QQQ, XLK and SOXX Lead Lower – Symbols Covered: SPY, KIE, IHF, XLE, HACK, URA, GLD, PPA, LHX, TSLA, CRM (Premium) Read More »

ChartTrader – Oversold Bounces for SPY and QQQ – Symbols Covered: XLK, XLC, IGV, SOXX, HACK, REGN, PAYX, MRCY, GE, TRIP, MAR

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SPY and QQQ are holding up and still in uptrends. However, some 63% of stocks in the S&P 1500 are below their 200-day SMAs and in long-term downtrends. The small-cap and mid-cap index ETFs are trading well below their 200-day SMAs and near their spring lows. The weight of the evidence is bearish for stocks. SPY and QQQ are

ChartTrader – Oversold Bounces for SPY and QQQ – Symbols Covered: XLK, XLC, IGV, SOXX, HACK, REGN, PAYX, MRCY, GE, TRIP, MAR Read More »

ChartTrader – Oversold Bounce within Bigger Downtrend – Symbols Covered: SPY, QQQ, UNG, FCG, FRE, FTNT, NTAP and ZTS (Premium)

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The weight of the evidence remains bearish for stocks. SPY and QQQ are in downtrends the last two months, but they are getting oversold bounces after becoming oversold last week. Large-caps and large-cap techs are leading the market. In particular, software and

ChartTrader – Oversold Bounce within Bigger Downtrend – Symbols Covered: SPY, QQQ, UNG, FCG, FRE, FTNT, NTAP and ZTS (Premium) Read More »

ChartTrader – Oversold Bounce Underway, Symbols Covered: SPY, QQQ, RSP, IWM, IGV, XLC, HACK, DKNG, CSCO and MA. (Premium)

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The weight of the evidence remains bearish for stocks. First, long-term breadth indicators are net bearish. Second, the S&P 500 EW ETF, Russell 2000 ETF and S&P SmallCap 600 are below their 200-day SMAs. These ETFs also fell back to their

ChartTrader – Oversold Bounce Underway, Symbols Covered: SPY, QQQ, RSP, IWM, IGV, XLC, HACK, DKNG, CSCO and MA. (Premium) Read More »

ChartTrader – Long-term Bearish and Short-term Oversold. Symbols: SPY, QQQ, USO, XLE, HACK, DD, EXPD, HPE, RL (Premium)

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The S&P 500 SPDR (SPY) almost tagged its rising 200-day SMA after a sharp decline from early September to early October. SPY is short-term oversold, but the weight of the evidence is bearish. The Composite Breadth Model is at -1 and most stocks within the index

ChartTrader – Long-term Bearish and Short-term Oversold. Symbols: SPY, QQQ, USO, XLE, HACK, DD, EXPD, HPE, RL (Premium) Read More »

Chart Trader – Breadth Remains Bearish, but Short-term Breadth is Oversold, QQQ Holds up Best, 5 NDX Stocks (Premium)

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There is a clear bearish chain of events over the last few months. It all started when the Russell 2000 ETF, S&P 500 EW ETF and S&P MidCap 400 SPDR failed at their February highs in July. SPY and QQQ were well above these highs, but small-caps and mid-caps were not keeping pace

Chart Trader – Breadth Remains Bearish, but Short-term Breadth is Oversold, QQQ Holds up Best, 5 NDX Stocks (Premium) Read More »

Chart Trader – SPY Becomes Short-term Oversold, Benchmark Lows, 3 ETFs and 3 Stocks Holding Up in September (Premium)

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SPY and QQQ remain in corrective mode, but they are both oversold after sharp declines the last nine days. These oversold conditions could pave the way for a bounce in the coming days. The risk is that SPY becomes oversold and remains oversold (continues lower). Most

Chart Trader – SPY Becomes Short-term Oversold, Benchmark Lows, 3 ETFs and 3 Stocks Holding Up in September (Premium) Read More »

Chart Trader – Correction Targets for SPY, Yield Spreads Hold Up, Two Defensive ETFs Hold Up in September, Five Stocks (Premium)

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SPY and QQQ broke down last week and the medium-term trends are down. That’s the negative news. On the positive side, the long-term trends are still up and both are well above their 200-day SMAs. This suggests that the current decline is a correction within the long-term

Chart Trader – Correction Targets for SPY, Yield Spreads Hold Up, Two Defensive ETFs Hold Up in September, Five Stocks (Premium) Read More »

Finding the Leaders after a Sharp Decline – with Video (Free)

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Stocks fell sharply in September with the S&P 500 SPDR (SPY) breaking below its August low. Chartists can now use this low as a benchmark low to gauge relative performance. Stocks that held above the August low are showing relative strength. This is valuable information because stocks that hold up better during declines have a better chance of moving higher. Let’s look at an example.

Finding the Leaders after a Sharp Decline – with Video (Free) Read More »

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