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Weekend Video – Short-term Breadth Wanes, QQQ Leads with New High, Clean Energy ETFs Form Bullish Setups, Copper ETFs Pull Back (Premium)

ETF Rankings, Signals and Setups Table

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The bull market remains in place, but we are seeing some short-term weakness in the breadth indicators. This weakness is reflected in small-caps, which pulled back the last two days. Pullbacks from new highs are normal and this could produce a bullish setup in the coming weeks. The bond market remains a mess as TLT bounces within a triangle and holds up well in spite of inflationary pressures. Oil and energy related shares are pulling back after advances. My eyes are on the three clean energy ETFs (ICLN, QCLN, TAN) as they form short-term bullish patterns after breakouts. The copper-related ETFs are also on the radar as they pulled back after their breakouts. All this and more in the weekend video.

Black Friday Specials

Black Friday week is perhaps the best week of the year if you are thinking of signing up to a charting service. StockCharts.com, TrendSpider and TradingView (affiliate link here) all run great promotions. These are all great platforms and the preference is largely a personal choice based on one’s needs.

Personally, I find myself using TradingView more and more because the default data is not adjusted for ordinary dividends, it is easy to add/remove names from lists, the interface is simple and fast, and you can see the earnings dates right on the chart.

Broad Market Notes

  • Composite Breadth Model Remains Bullish
  • Fed Balance Sheet Creeps to Another New High
  • Yield Spreads Edge Up, but Remain Low Overall
  • QQQ Leads with New High on Friday
  • Mid-caps Consolidate as Small-caps Pullback
  • Short-term Breadth Underwhelms
  • TLT Bounces within Narrowing Triangle
  • 10-yr Treasury Yield Remains in Rising Channel
  • Gold Pulls back as TLT Bounces
  • Dollar Extends Uptrend
  • Oil Becomes Short-term Oversold

ETF Trends, Patterns and Setups:

  • ETF Ranking and Trend Signal Table
  • Holding Near New Highs and Leading: LIT, REMX
  • New High and Leading: KRBN, PHO, DBA
  • Choppy Uptrend, Short-term Extended: CARZ, IDRV, DRIV
  • Leading, but Short-term Extended: SKYY, CIBR, IGV, SOXX
  • Flag/Pennant Breakout: XLU
  • Pulling Back after New High: XLF, KRE, KBE, URA
  • Flag/Pennant Working (Whipsaw Warning): XLV, IHI, XLRE, IYR, REZ
  • Multi-month Correction, Breakout, New High: XLI, IFRA, IYT, XLB, XRT, ITB, MOO
  • Clean Energy ETFs form Flag/Pennants after Breakouts: ICLN, QCLN, TAN
  • Medium-term Breakout, Short-term Pullback: CPER, COPX, DBB
  • Sharp Pullback after New High or Lower High*: XOP, FCG, AMLP*, XES*
  • Pullback and Failure to Bounce: XLC
  • Weak Follow Thru on Consolidation Breakout: PBJ, XME
  • Failing Breakout from Large Consolidation: ITA, UFO
  • Biotechs Continue to Underperform: IBB, XBI
  • Breaking Down ahead of Big Week: JETS, IBUY
Thanks for tuning in and have a great weekend!

Short-term Breadth Underwhelms, TLT Ignores Inflation and Holds October, Dollar Extends Uptrend, Oil is Poised to Become Oversold (Premium)

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The October run continued into November with small-caps breaking out and participation expanding. Some of the old leaders, however, are still leading with new highs in QQQ, XLK and some tech-related ETFs. The setups and breakouts from early-mid October are bearing fruit and ETFs with big runs the last four to five weeks are in the trend-monitoring phase.

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