This post features chart notes on recent developments in our core ETF list, an update to the ETF ChartBook and a video covering all 60 core ETFs. Note that the video also covers some of the key charts from Friday’s commentary.
The recent breakouts and new highs in several key index, sector and industry group ETFs are bullish for the broader market. Now that we have the “all clear” for stocks, perhaps we should prepare for a pullback.
We have seen a pronounced shift over the last few weeks. ETFs that were lagging and in downtrends are breaking out and starting to lead, while ETFs that were leading a few months ago are correcting and lagging. Add ETFs that where already strong and leading to the mix, and we have the recipe for a broadening bull market in stocks.
The new high parade continued this week with the S&P 500 SPDR and four sector SPDRs hitting new highs. The Technology SPDR (XLK), Industrials SPDR (XLI), Finance SPDR (XLF) and Materials SPDR (XLB) recorded new 52-week highs. The Healthcare SPDR (XLV) recorded a new high for 2019, but remains just short of a 52-week high. …
New High Parade Extends – What About the Consumer Discretionary SPDR? Read More »
This week’s charts feature stocks in different stages of the corrective process. Some are still in downtrends and have yet to reverse their corrections, some have broken out recently and some are mean-reversion setups.
There were several new highs, and even a few all time highs, this week as stocks extended their October run into early November. This post features some ETF chart notes, an update to the ETF ChartBook and a video covering all 60 core ETFs.
The Nasdaq AD Line is not keeping pace with the Nasdaq Composite, but this is not necessarily bearish. Note that the Nasdaq hit a new high in July and again on November 1st
Something must be right in the global equity markets because we are seeing new highs in a number of key country indexes. The S&P 500 and Nasdaq 100
Even though stock-related ETFs are dominating here in October with big moves and new highs in several key groups, the precious metals and bond ETFs
The Biotech ETF (IBB) is making a bullish statement with recent developments in momentum, volume and trend.
The market as a whole is not firing on all cylinders, but that is not really important. What, then, is important? We cannot expect a perfectly bullish stock market and rising tide that lifts all boats, as was the case in 2013 and 2017. Instead, we need to know which cylinders are firing bullish and …
The S&P 500 SPDR (SPY) has gone nowhere since July, and that’s ok. Consolidations, corrections and pullbacks are all part of the process when it comes to uptrends. As the chart below shows, SPY is knocking on the prior highs and very close to a breakout.
Bullish continuation patterns are my favorite patterns when it comes to stocks and ETFs. As the name suggests, bullish continuation patterns, when confirmed, signal a continuation of the prior trend. Furthermore, because it is a “bullish” continuation, it means the prior trend was up and that trend is now continuing. With the S&P 500 spending …
Anatomy of a Classic Bullish Continuation Pattern – And a Live Example Read More »
Strength is broadening among the industry group and sector ETFs. In particular, several ETFs that were classified as trending lower and lagging have been upgraded to emerging leaders. I do not mean “Emerging” markets
The Industrials SPDR (XLI) and Finance SPDR (XLF) are two of the big six sectors in the S&P 500 and both are moving in the right direction: up. The Industrials sector accounts for 9.32% of the S&P 500, while the Finance sector accounts for 13.02%. They are important sectors because of their size and because …
XLI and XLF Do the Zigzag and Underpin Bullish Thesis Read More »
The lack of new highs may seem like a concern, but one cannot talk about new highs without also looking at new lows because there are two sides to the story.
Stocks have been mixed since summer with the major index ETFs trading in ranges the last three months. The S&P 500 SPDR and Nasdaq 100 ETF hit new highs before embarking on their trading ranges, while the S&P MidCap 400 SPDR and Russell 2000 ETF
The stock market took on a more offensive tone over the past week with some of the beaten down groups outperforming. In addition, some of the defensive leaders underperformed and even corrected. The Utilities SPDR, Consumer Staples SPDR and
SPY closed well below its intraday high to put this follow-through day in question. Nevertheless, chartists should not loose sight of the bigger picture.
My assumptions and biases are based on the bigger trend because it is the dominant force at work. When the trend is up, I view the cup as half full and expect more bullish resolutions than bearish resolutions.
The goal of this commentary is to cut through the day-to-day noise and focus on price action that actually matters. Noise can be in the form of news or random price fluctuations. Either way, we are often better off when we filter the noise and focus on what really matters. So what really matters? Trends …