Recent Posts from Chart Trader and System Trader:

ChartTrader – 240312: IBB, ON, SWK – Advance Broadens – Steep Uptrends Hold – Leading ETFs (Premium)
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

Using the ATR Trailing Stop to Manage the Trade and Define the Trend
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

ChartTrader – 240307: MRNA, ILMN – 4wk High-Low% is Bullish – Using ATR Stop to Define the Trend (Premium)
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.

ChartTrader – 240305: MDY, XLRE, XLU, TLT, KBWB, ZTS, CVS, TDY (Premium)
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.

Spotting Tradable Pullbacks after Trend Reversing Surges
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

Chart Trader – 240229: MDY, URA, CGSP, ZTS, CAH (Premium)
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

ChartTrader – SPY/QQQ Maintain ST Uptrends, Four Stocks Lead Mag7, Setups: COPX, XME, EA (Premium)
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

Finding Leaders and Bullish Signals on the Price Chart
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

ChartTrader – Palo Alto Returns to Earth, SPY and QQQ Hold Uptrends, Setups: XLRE, URA, ROBO, KBWB, TDY (Premium)
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

ChartTrader – SPY and QQQ Establish First Supports, XLK Forms Island Reversal, Support for CIBR, IGV, SMH, Setups for IBB, LHX (Premium)
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

Capturing the Momentum Phenomenon
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

ChartTrader – New Supports for SPY and QQQ, Mid-caps Partake, Follow-Up: IPAY and IOT, Symbol Setups: IBB, AMGN, VRTX, STE (Premium)
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

ChartTrader – Correction Warnings Build, Watching for the Signal, Symbol Setups: MDY, GOOGL, AAPL, AMD, BAX (Premium)
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

ChartTrader – SPY Stays Bullish, MDY Holds the Next Clue, Symbol Setups: IPAY, IBB, BLOK, CAH, CVS (Premium)
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

ChartTrader – SPY and QQQ Lead, Breadth Continues to Deteriorates, Seasonality Looms, Symbol Setups: ALGN, IOT, LHX (Premium)
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.

Generals March On, but Fewer Troops are Following (Free)
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

ChartTrader – SPX and NDX Breadth Deteriorates, Breakouts Failing, Managing the Trades with GOOGL and AAPL (Premium)
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

Gold is Making Waves Again (Free)
Gold is not the most exciting asset at the moment, but it is in a long-term uptrend and it is perhaps the strongest commodity out there. There are also signs that the January decline is ending as RSI hits a momentum support zone and a bullish continuation pattern forms.

ChartTrader – Strong and Staying Strong, Small-caps Break Out, Symbol Setups: XLB, CE, STLD, GLD, FINX, LOW (Premium)
The broad market environment remains bullish with SPY and QQQ leading the way. This bull market started with the Zweig Breadth Thrust (ZBT1500) on November 3rd (green bar) and channel breakout in SPY a few days later. SPY also moved above the upper

ChartTrader – Average Stock Not Keeping Up, Sector Leadership Narrows, Short-Term Breadth Weak, Symbols: KR (Premium)
The Technology sector, the Communication Services sector and Nasdaq 100 stocks are powering the S&P 500 SPDR higher. I am also seeing strength in the Healthcare sector. Outside

ChartTrader – Bull Market, Short-term Breadth Deteriorates, Comparing with November 2021, Symbols: WBA, DIS, HSIC, MSI, AMAT (Premium)
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ChartTrader – Biotech Stock, Weekly Breakout, Classic Retracement – Parts 1 & 2 (Premium)
This week’s analysis will stick with the multiple timeframe approach. Today we are featuring a biotech stock with a channel breakout on the weekly chart and a classic retracement on the daily chart. Moreover, a larger bullish reversal pattern could be forming on the daily chart.

A Biotech Stock with a Breakout on the Weekly Chart and a Classic Retracement on the Daily Chart – Part 1 (Free)
This week’s analysis will stick with the multiple timeframe approach. Today we are featuring a biotech stock with a channel breakout on the weekly chart and a classic retracement on the daily chart. Moreover, a larger bullish reversal pattern could be forming on the daily chart.

ChartTrader – Old Leaders and a New Leader, Breadth Weighs on Small-caps, Symbols: ADBE, EW, LYV, AMAT, EA, TTWO (Premium)
2024 marks a new year with the same leaders. Large-caps are still stronger than mid-caps and small-caps. The Technology and Communication Services sectors are still the leading sectors. There is, however, a new leading sector this year: Healthcare.