Recent Posts from Chart Trader and System Trader:
Big Banks Hold Big Breakouts and this Laggard May Play Catchup
Several finance-related ETFs and stocks broke out with big moves from early October to early November. Many of these then stalled over the last two weeks and this rest could be the pause that refreshes. Today we will look at performance for the finance-related ETFs and the bull flags taking shape in three banking stocks
There is (almost) Always Cause for Concern
The S&P 500 SPDR and Nasdaq 100 ETF recorded new all time highs this past week, while the S&P MidCap 400 SPDR hit a new 52-week high in November. Sounds bullish, but the S&P SmallCap 600 SPDR and Russell 2000 ETF are still well below their 2018 highs, even though they are very close to 52-week highs. Which index ETFs tell the real story here?
The Offense has Taken the Field:
Here are Three Signs
The character of the stock market changed over the last six to seven weeks as the market took on a more offensive tone. Stocks were already in bull mode, but we are now seeing stocks outperforming bonds. In addition, momentum and offensive sectors are leading.
New Highs Expand within Small-caps
New highs expanded in the small-cap universe over the last few weeks and this indicates that the bull market is broadening. This post will first look at the high-low pairs for the S&P indexes and then apply a 20-day SMA to show the improvement in new highs over the last few weeks.
Small-Caps Come Alive, but Microcaps Fall Short
The Russell 2000 ETF is in the nascent stages of an uptrend, but the Russell Microcap ETF is still short of a breakout. The Russell 1000 ETF left both behind over the last few months with a steady uptrend and continued leadership.
New High Parade Extends – What About the Consumer Discretionary SPDR?
The new high parade continued this week with the S&P 500 SPDR and four sector SPDRs hitting new highs. The
A Tale of Two Nasdaq Lines – The AD Line versus the AD Volume Line
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
Biotech ETF Makes a Statement
The Biotech ETF (IBB) is making a bullish statement with recent developments in momentum, volume and trend.
The Stock Market is Not Firing on All Cylinders
The market as a whole is not firing on all cylinders, but that is not really important. What, then, is
Anatomy of a Classic Bullish Continuation Pattern – And a Live Example
Bullish continuation patterns are my favorite patterns when it comes to stocks and ETFs. As the name suggests, bullish continuation
XLI and XLF Do the Zigzag and Underpin Bullish Thesis
The Industrials SPDR (XLI) and Finance SPDR (XLF) are two of the big six sectors in the S&P 500 and
Few New Highs, but Even Fewer New Lows
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.
Follow Through Day or Not?
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.
The State of the Stock Market – Key Assumptions Determine Probabilities
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.
A Hockey Stick for Fed Assets
There was a big change in the Fed balance sheet over the last few weeks that investors should know – and not fight.
The Russell 2000 is One Erratic Index
The Russell is a clumsy index prone to big swings that do not foreshadow major bull and bear markets.
Tracking Trends in Two Timeframes using New Highs and Lows
Here’s a technique to use S&P 500 High-Low Percent for long-term market timing and the High-Low Line for short-term timing.
EW Sectors Paint Different Picture
While the important market-cap weighted sector SPDRs continue to hold up well, some key equal weight sectors are not performing well.
Capturing Mean-Reversion and Trend Direction Signals with One Indicator
Mean-reversion signals provide a great way to trade in the direction of the bigger uptrend after a pullback. The trick