Recent Posts from Chart Trader and System Trader:

Chart Trader Premium

Long-term Breadth has Yet to Break, Yield Spreads Show No Stress, Fed Easing, 10yr Yield Ignoring

The long-term breadth indicators deteriorated in December, but did not fall enough to trigger bearish signals. The absence of bearish signals means the weight of the evidence is bullish for stocks. This also means the current weakness is considered a correction within a bigger bull market. All bear market signals start with corrections, but not all corrections lead to bear market signals.

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Chart Trader Premium

A Breadth Divergence, SPY/QQQ Hold, Small-caps Fold, XLK Oversold, Industrials-Defense Set Up

The evidence still supports a bull market, but stocks are in the midst of a corrective phase. I am watching short-term breadth indicators for thrust signals that would signal an end to the correction. SPY and QQQ are holding up best, while IWM and KRE (banks) lead lower. Elsewhere, I see promising setups in Industrials and Defense ETFs, as well as a critical support test for the Semiconductor ETF (SMH).

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Chart Trader Free

Market Pullbacks Provide Opportunities to Build your WatchList – Here’s How

The stock market is in pullback mode with the S&P 500 EW ETF down 5.15% over the past month and down 1% year-to-date. This makes it a good time to monitor relative performance and create a relative strength watch list. Stocks and ETFs holding up best during pullbacks often lead when the market regains its footing. Today’s report will show a starter list and analyze the chart for an AI Robotics ETF.

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System Trader Market Timing

Market Timing Models – Weekly Signal Updates for Composite, SPX and NDX Breadth Models

Updated at the end of every week (usually Saturday mornings), this page shows charts and current signals for the three market timing models. The Composite Breadth Model is a broad-based breadth model, the SPX Breadth Model is geared towards large-caps and the NDX Breadth Model focuses on tech stocks. Traders can use these models to time different market segments and assess market conditions.

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System Trader Signals

Rotation Trader Nasdaq 100 – Portfolio, Signals and Rank Table (Premium)

This page covers signals for the Rotation Trader Strategy for Nasdaq 100 stocks. (RO-Trader-NDX). We first cover the NDX Breadth Model for timing. A table then shows the portfolio with a gain/loss column and the new entry/exit signals. The sidebar makes it easy to compare the current ranking with the prior week’s ranking. This page includes a complete ranking table with sortable columns, sector identifiers and rank values.

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System Trader Signals

Rotation Trader S&P 500 – Portfolio, Signals and Rank Table (Premium)

This page covers signals for the Rotation Trader Strategy for S&P 500 stocks (RO-Trader-SPX). We first cover the SPX Breadth Model for timing. A table then shows the portfolio with a gain/loss column and the new entry/exit signals. The sidebar makes it easy to compare the current ranking with the prior week’s ranking. This page includes a complete ranking table with sortable columns, sector identifiers and rank values.

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System Trader Signals

Rotation Investor Nasdaq 100 – Portfolio, Signals and Rank Table (Premium)

This page covers signals for the Rotation Investor Strategy for Nasdaq 100 stocks (RO-Investor-NDX). We first cover the NDX Breadth Model for timing. A table then shows the portfolio with a gain/loss column and the new entry/exit signals. The sidebar makes it easy to compare the current ranking with the prior week’s ranking. This page includes a complete ranking table with sortable columns, sector identifiers and rank values.

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System Trader Signals

Rotation Investor S&P 500 – Portfolio, Signals and Rank Table (Premium)

This page covers signals for the Rotation Investor Strategy S&P 500 stocks (RO-Investor-SPX). We first cover the SPX Breadth Model for timing. A table then shows the portfolio with a gain/loss column and the new entry/exit signals. The sidebar makes it easy to compare the current ranking with the prior week’s ranking. This page includes a complete ranking table with sortable columns, sector identifiers and rank values.

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System Trader ETF Signals

ETF-Signals: Trend Momo Profit Target Strategy for Stock ETFs (Premium)

This page covers signals for the ETF Trend Momentum & Profit Target strategy trading 74 stock-based ETFs. We first cover the Composite Breadth Model for timing. A table then shows the portfolio with a gain/loss column, profit targets and new entry/exit signals. A sidebar shows the current ETF ranking and there is a separate table for closed positions. This page includes a complete ranking table with indicators and sortable columns.

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System Trader ETF Signals

ETF-Signals: Trend & StochClose Strategy for All Weather ETFs (Premium)

Using a 270 ETF universe, this page covers Trend Composite signals for trend and StochClose values for ranking. Users can identify new trend signals, track existing signals and see the percentage change. Sortable columns make it easy to filter for uptrends and then sort by StochClose to rank trend strength. The table includes links to a StockCharts chart with corresponding indicators.

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System Trader Free

Stock-Signals: S&P 500 Trend Composite Signals

This page shows Trend Composite signals for stocks in the S&P 500. The Trend Composite aggregate trend signals in five trend-following indicators. Recent signals appear at the top of the table. Users can also sort by different columns and single out specific sectors using the search function. Stocks in uptrends are color coded green for quick identification. This table includes the signal date, gain/loss since the signal and a chart link.

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Chart Trader Premium

SPY/QQQ Hold Up, MDY/IWM Draw Battle Lines, 6 Short-term Breakouts, 4 Pullback Setups, Breakouts in Semis

Report with video. The weight of the evidence remains bullish, but there are some sizable pockets of weakness within the market. SPY and QQQ are holding up, but RSP and IWM have yet to recover since their December declines. We draw the battle lines. The Industrials SPDR and Finance SPDR are in pullback mode and near Bullish Setup Zone. We also highlight several ETFs with short-term breakouts and bullish setups.

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System Trader ETF Strategies

ETF Trend Momo Profit Target Strategy – Performance Updates

This report shows performance metrics for the ETF Trend, Momentum and Profit Target strategy trades 74 stock-based ETFs. Trading on a weekly basis, this strategy outperforms buy-and-hold for the S&P 500 with much lower drawdowns. The Composite Breadth Model kept drawdowns in check with timely exits ahead of bear markets. A strong Win Rate and solid gain/loss ratio produced a Profit Factor well above 2.

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System Trader Market Timing

SPX and NDX Breadth Models – Chart Signals, Performance Metrics and Methodology

This report covers the SPX Breadth Model and NDX Breadth Model. As the names suggest, they provide market timing signals for their respective rotation strategies. We show recent signals on the charts, analyze the long-term performance metrics and provide a signal breakdown. This page concludes with an explanation of the models and several chart examples with breadth indicators.

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System Trader Market Timing

Composite Breadth Model – Chart Signals, Performance Metrics and Methodology

Market timing is an integral part of any strategy that trades or invests in stocks. The Composite Breadth Model uses breadth indicator based on small-caps, mid-caps and large-caps. It is a broad-based breadth model that extends beyond large-caps and tech stocks. We start with the chart signals and then show the performance metrics. This page concludes with an explanation of the model and several chart examples.

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Chart Trader Premium

Levels to Watch for Breadth Thrusts, Small-caps Fail at Breakout Attempt, Semiconductor ETFs Break Out

Today’s report will show the deterioration in long-term breadth and the key levels to watch for short-term breadth. We will then review the breakout in the 10-yr Yield and breakdown in the Home Construction ETF. Attention then turns to the key levels for SPY, QQQ and a number of important ETFs. We close with the breakouts in the semiconductor ETFs (SMH and SOXX).

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System Trader Strategies

Rotation Investor Nasdaq 100 – Performance Updates

The table below shows performance metrics for the Rotation Investor Nasdaq 100 Strategy (RO-Investor-NDX) and $NDX buy-and-hold. The strategy handily outperforms buy-and-hold (+19.93% vs 14.67%), and the strategy’s Maximum Drawdown (-20.83%) is less than half that of buy-and-hold (-53.60%). The Average Drawdown was also significantly lower (-20.28% vs -31.5%).

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System Trader Strategies

Rotation Investor S&P 500 – Performance Updates

The table below shows performance metrics for the S&P 500 Rotation Trader Strategy and $SPX buy-and-hold. The strategy outperformed buy-and-hold with a significantly higher Compound Annual Return (CAR): +14.57% vs +8.91% (green shading). Just as important, the strategy’s Maximum Drawdown (-18.91%) is around a third that of buy-and-hold (-56.59%) and the Average Drawdown is in the -16% range (blue shading). Clearly, risk (drawdown) is being appropriately rewarded (return).

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System Trader Strategies

Rotation Trader Nasdaq 100 – Performance Updates

Our Dual Momentum Rotation Strategies are performing well in the first five months of the year. After big gains in January-February, the market softened in March-April, especially Nasdaq 100 stocks. The Nasdaq 100 strategy went into drawdown, while the S&P 500 treaded water.

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System Trader Strategies

Rotation Trader S&P 500 – Performance Updates

The Rotation Trader strategy trading S&P 500 stocks outperforms buy-and-hold by a wide margin and does so with much lower drawdowns. This page shows performance metrics that include the Compound Annual Return, Average Drawdown, Win Rate and Profit Factor. We include charts for the equity curve, annual returns and drawdowns, as well as a breakdown of monthly returns since 2003.

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Chart Trader Free

How to Trade Erratic Uptrends – An Example and Setup using IWM

The Russell 2000 ETF managed a double digit gain in 2024, but did it the hard way with several deep pullbacks along the way. Pullbacks within uptrends are opportunities and we can find such opportunities using %B. The chart below shows the Russell 2000 ETF (IWM) with the Zigzag(8) indicator. This indicator changes direction when there is a move greater than 8%, which means it ignores price moves that are less than 8%.

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Chart Trader Premium

Video – Breadth Stays Oversold, Large-caps and Techs Lead, Small and Mids Lag, Lots of Pullbacks within Bigger Uptrends

Today’s video starts with the long-term breadth indicators to establish the market regime. Short-term breadth became oversold and remains oversold after a weak bounce. We will set the level needed for a bullish thrust. Large-caps and techs are leading, while mid-caps and small-caps feel the heat from rising rates. A rough December produced pullbacks and many ETFs are trading in bullish setup zones. We cover these and identify short-term resistance going forward.

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Chart Trader Premium

A Rough December, Pullbacks within Uptrends, Marking Setup Zones and Resistance, Gold, Bitcoin and China

Today’s report starts with average stocks (equal-weight, mid-caps and small-caps). These groups fell rather sharply in December and gave back their November gains. They have fallen and cannot get back up. Many are trading near bullish setups zones, but remain short of breakouts needed to reverse the short-term pullbacks. We will set the key levels to watch for a dozen ETFs with setups. Attention then turns to gold, Bitcoin and China.

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