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Today’s article will show how Normalized ROC performs in a rotational trading strategy. This rotational strategy builds on the prior strategy by using the same indicators (Trend Composite, eSlope, Normalized ROC). I will use ETFs in today’s article, but the next articles
Recent research reveals that an ATR-based ranking indicator works better than Volatility-Adjusted ROC. This indicator is called “Normalized ROC” and is part of the TIP Indicator Edge Plugin for StockCharts ACP. Today’s article will introduce the indicator
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This table is for the Trend & Normalized ROC strategy that trades 74 stock-based ETFs. It tracks the Composite Breadth Model, Trend Composite, eSlope and Normalized ROC.
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This table tracks signals and momentum for stock-based ETFs that are part of the ETF Trend Momentum Strategy. This table qualifies ETFs that meet three requirements: CBM is positive, Trend Composite is positive
Large-cap techs are powering QQQ and the Technology sector, which in turn is powering SPY higher. The situation outside of large-cap tech is different because the S&P 500 EW ETF is actually down for the month. Despite underlying weakness in some breadth
This page shows the current Market Regime using the Composite Breadth Model and the situation in the credit markets with yield spreads. These indicators are very different, but they go hand in hand when assessing the state of the financial markets.
The S&P 500 and SPY exceeded their early February highs with surges last week, but breadth failed to confirm and remains a concern. Namely, we are watching the percentage of stocks above the 200, 50 and 20 day SMAs. Large-cap semis
Even though the Composite Breadth Model is bullish, the market is as split as ever. The Trend Composite is positive for SPY and QQQ, but negative for the S&P 500 EW ETF, S&P MidCap 400 SPDR and Russell 2000 ETF. Within the S&P 500, large-cap techs are leading and keeping SPY afloat. I am wary because
We are making progress. After a big hiccup on Thursday, I reworked the strategy and will cover the basics in this article. Here are some of the changes. First, the strategy trades stocks in the Russell 1000 to capture more beta. Second, I tightened the volatility filter by requiring the standard deviation to be below 50%. Third, I added price,
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Traders use relative performance to find stocks that are outperforming the broader market. Relative performance is also important for evaluating trading strategies. A strategy with a relatively high drawdown should deliver
The Composite Breadth Model is bullish, but there are some serious pockets of weakness within the market. Namely, small-caps, high-beta ETFs and tech-related ETFs. Selling pressure increased on Tuesday and many ETFs broke their early April lows to reverse their upswings
The weight of the evidence is largely bullish for stocks, but it is clearly a tale of two markets. Large-caps and high-quality stocks are holding up better than small-caps and high-beta stocks. We are also seeing money move into defensive groups with leadership coming from healthcare,
ETFs give traders a chance to trade baskets of stocks and spread the risk. This sounds like a positive, but ETF strategies suffered disproportionately in 2022 and 2023 is starting out the same. We should be rewarded for risk and the reward should
The Composite Breadth Model is bullish, but the market is quite split and I am focused on the swings of late. In particular, the upswing since mid March. Large-caps and high-quality
The weight of the evidence remains bullish for stocks. Large-caps are leading with the S&P 500 SPDR nearing its early February high. Small-caps are still lagging because the Russell 2000 ETF remains well below this high. Despite relative
Today’s report starts with analysis using the McClellan Oscillator. We will look at three different periods to see how the signals work in different market environments. Most recently, this indicator became overbought two weeks ago.
The Composite Breadth Model is bullish at +5, but there are splits when looking at the percentage of stocks above the 200-day SMA for the different indexes and yield spreads. Small-caps are underperforming and the CCC spread shows stress at the low end of the bond market.
Stocks surged from mid March to early April and this created short-term overbought conditions for SPY, XLK and QQQ. Large-cap tech and high-quality stocks led the rally. Small-caps and high-beta stocks lagged the market during this advance, but