Systematic Trading Strategies and Next Level Trading Setups

Breadth and RSP Signal Pullback, Two Housing ETFs Set Up, Extended Tech ETFs, Two Stock Setups

SPX/NDX Breadth, Yield Spreads, SPY/QQQ Trends, MAG7 Leads and Small-caps Try to Lead

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Today’s report will cover the broad market environment. We start with the long-term breadth indicators for the S&P 500 and Nasdaq 100 (%Above 200-day, %Above 150-day, High-Low Percent). Attention then turns to the BBB yield spread and long-term chart analysis for SPY and QQQ. QQQ found its mojo as the MAG7 ETF leads. Mid-caps are lagging, micro-caps are leading the small-caps are mixed.

SPX/NDX Breadth, Yield Spreads, SPY/QQQ Trends, MAG7 Leads and Small-caps Try to Lead Read More »

5 Stocks: Tight Bullish Wedges, A Bullish Setup Zone, A Breakout Leader and One Near a Prior Breakout Level – Plus XLV and XBI (Premium)

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Today’s report starts with a defense stock and a fintech stock forming tight wedges. After reviewing the rebounds in the Healthcare and Biotech ETFs, we then focus on two biopharma stocks: one testing a Bullish Setup Zone and the other with a leading breakout. And finally, we feature an under-the-radar tech stock trading near its breakout point from late October.

5 Stocks: Tight Bullish Wedges, A Bullish Setup Zone, A Breakout Leader and One Near a Prior Breakout Level – Plus XLV and XBI (Premium) Read More »

Plunge in 10yr Yield Triggers Home Builders – Analyzing ITB and Five Stocks (Premium)

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Today’s report analyzes the move in the 10-yr Treasury Yield, the surge in ITB and five home builder stocks. Home Builders were lagging the last few months, but the declines look like normal corrections. The retracements were normal and some surged off bullish setup zones. In addition, we are seeing a momentum thrust in %B.

Plunge in 10yr Yield Triggers Home Builders – Analyzing ITB and Five Stocks (Premium) Read More »

Drop in Yields Triggers Gap-Surge in Home Builders (Free)

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The 10-yr Treasury Yield plunged as Treasury bonds surged on the heels of a new nomination for Treasury secretary. These moves lifted small-caps, banks and homebuilders. Banks have been leading for some time and small-caps started their move last week. Homebuilders held out for interest rates and got their catalyst on Monday. Today’s report will analyze

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Four Prerequisites to Improve Your Odds – A Live Example (Free)

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Even though trading based on chart analysis involves some discretionary decisions, chartists can improve the odds of success by systematizing their process. This report will show four prerequisite filters based on a top-down approach. We will start with the broader market, look at the sector, and then apply two qualifying filters to the stock. First, I would make sure

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Chart Trader – Biotech Oversold, MLPs Surge, Lithium Consolidates, Uranium Breaks Out, Two Leading Stocks and Two with Pullbacks (Premium)

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Today’s report starts with some of the leading ETFs in strong uptrends – but without setups. These include software (IGV), fintech (FINX) and finance (XLF). Attention then turns to some oversold setups in Healthcare and Biotech, and the group’s leader (Medical Devices). MLPs are breaking out within the Energy sector and we are seeing two commodity ETFs strengthen (Uranium and Lithium). Turning to stocks, we have two breakout leaders (TJX, VRSK) and two former leaders with pullbacks (AVGO, UHS).

Chart Trader – Biotech Oversold, MLPs Surge, Lithium Consolidates, Uranium Breaks Out, Two Leading Stocks and Two with Pullbacks (Premium) Read More »

Chart Trader – QQQ Pulls Back, Using %B, Smalls Return to Breakout, Banks Lead, Cybersecurity Tests 50-day, Robotics hold Breakout (Premium)

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This report covers recent pullbacks in the major index ETFs (SPY, QQQ, MDY and IJR). Financials are a key driver for small-caps and I will show a leading uptrend in the Bank SPDR (KBE). We will then cover the breakout in the Robotics & AI ETF (BOTZ) and the pullback in the Cybersecurity ETF (CIBR).

Chart Trader – QQQ Pulls Back, Using %B, Smalls Return to Breakout, Banks Lead, Cybersecurity Tests 50-day, Robotics hold Breakout (Premium) Read More »

Understanding Equity Curve Performance and Setting Realistic Expectation (Premium)

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It is important to understand the ebb and flow of the equity curve when trading a strategy. How long is the strategy flat or down? How often do we see strong momentum runs? How often does the strategy experience double-digit drawdowns? How can we take advantage of drawdown? We will answer these questions and more.

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Chart Trader Weekly Report – Broad Market Analysis, Leading Groups (ETFs), Chart Setups and Trading Ideas (Premium)

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Stocks went on a tear the last eight days, but most of these moves were simply extensions of existing uptrends. Nevertheless, many stocks and ETFs became very overbought short-term. These include KBE, IGV, SKYY, FINX and CIBR. We also see the market pricing in policy shifts in Healthcare (XLV) and Defense (ITA), as well as the prospects of tariffs (CPER, DBB). Despite overbought conditions, it is a bull market we will highlight three stocks setting up: DDOG, CSX and CCEP.

Chart Trader Weekly Report – Broad Market Analysis, Leading Groups (ETFs), Chart Setups and Trading Ideas (Premium) Read More »

Do Overbought Filters Improve Performance for Momentum Rotation Strategies? (Premium)

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Buying stocks that seem overbought is difficult, but this is often required when trading a momentum-rotation strategy. By design, these strategies buy the strongest stocks and many seem “overbought”. Momentum is all about buying high and selling higher. This report will test the original Rotation Investor strategies with the addition of an overbought filter. In other words, we will avoid stocks that are overbought. Does this filter help or hurt performance?

Do Overbought Filters Improve Performance for Momentum Rotation Strategies? (Premium) Read More »

Chart Trader Weekly Report – Broad Market Analysis, Leading Groups (ETFs), Chart Setups and Trading Ideas (Premium)

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The election has come and gone, and the market trends remain the same. The major index ETFs were in uptrends well before the election, breadth was strong throughout September-October and yield spreads showed confidence. This broad market trio was, and is, bullish. Tech-related ETFs extended on their breakouts and we will feature three AI stocks. Commodities were all over the place so we will revisit industrial metals and copper. Analysis includes VRTX, FCX, COPX and DBA.

Chart Trader Weekly Report – Broad Market Analysis, Leading Groups (ETFs), Chart Setups and Trading Ideas (Premium) Read More »

Rotation Investor or Rotation Trader? Comparing and Contrasting (Premium)

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This report explains the difference between the Rotation Trader strategies and the Rotation Investor Strategies. Key difference include: market timing models, trend indicators, rank indicators, positions, holding times and profit factors. In short, RO-Trader trades more often, has short holding periods and generates smaller average profits. RO-Investor trades less often, has longer holding periods and generates larger average profits.

Rotation Investor or Rotation Trader? Comparing and Contrasting (Premium) Read More »

Finding and Trading Oversold Conditions within Long-term Uptrends (Free)

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There is only one way to trade in a long-term uptrend: long. Forget about picking tops and breaks below short-term moving averages. Leaning bearish within a long-term uptrend is not a profitable strategy. Instead, we should lean bullish and use oversold conditions to our advantage. In a long-term uptrend, I am only interested in

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Rotation Investor Nasdaq 100 – Explaining the Indicators, Universe, Methods & Signals

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Rotation trading strategies capture the power of momentum by rotating into the strongest stocks and out of stocks that are losing upward momentum. This report explains Rotation Investor NDX (RO-Investor-NDX), which trades Nasdaq 100 stocks using weekly signals. We cover the required conditions, trend indicators, momentum rank, rotation thresholds and exit signals. This report concludes with an overview of the signal pages and the ranking tables used to trade these strategies.

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Rotation Investor S&P 500 – Explaining the Indicators, Universe, Methods & Signals

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Rotation trading strategies capture the power of momentum by rotating into the strongest stocks and out of stocks that are losing upward momentum. This report explains the Rotation Investor SPX strategy (RO-Investor-SPX), which trades S&P 500 stocks using weekly signals. We cover the required conditions, trend indicators, momentum rank, rotation thresholds and exit signals. This report concludes with an overview of the signal pages and the ranking tables used to trade these strategies.

Rotation Investor S&P 500 – Explaining the Indicators, Universe, Methods & Signals Read More »

Chart Trader Weekly Report – Broad Market Analysis, Leading Groups (ETFs), Chart Setups and Trading Ideas (Premium)

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The weight of the evidence remains bullish for stocks, but a correction is underway as Treasury yields surge and semiconductors weigh on the largest sector. Semis account for 35.57% of the Technology SPDR and this sector accounts for 32.24% of the S&P 500. We will review the long-term breadth indicators and show some short-term breadth indicators to watch for oversold conditions. Names hitting bullish setup zones include XLV, GEHC, AMGN, ITA, INDA, CPER and COPX.

Chart Trader Weekly Report – Broad Market Analysis, Leading Groups (ETFs), Chart Setups and Trading Ideas (Premium) Read More »

Rotation Trader SPX & NDX – Explaining the Indicators, Universe, Methods & Signals

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This report explains the two Rotation Trader strategies (RO-Trader), which trade using weekly signals. These strategies use the same indicators and methods, but trade different universes. One trades stocks in the Nasdaq 100, while the other trades stocks in the S&P 500 (without financials). We cover the required conditions, trend indicators, momentum rank, rotation thresholds and exit signals. This report concludes with an overview of the signal pages and the ranking tables used to trade these strategies.

Rotation Trader SPX & NDX – Explaining the Indicators, Universe, Methods & Signals Read More »

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