The next report will be on Tuesday, March 11th.
The stock market is looking shaky after stocks were hit with broad selling pressure the last two weeks. Even though the weight of the evidence remains bullish, we are seeing new lows in housing, retail and semis. Small-caps and mid-caps triggered bearish trend signals, new lows expanded within the S&P 1500, S&P 500 breadth is split and the Technology SPDR broke its 200-day SMA. The long-term breadth indicators are still net bullish, but another down swing or two would likely trigger a bear market signal.
The trading environment was extremely tough in February because many bullish breakouts failed. Furthermore, volatility remains above average and the news cycle is in overdrive. The seas are treacherous, trade accordingly. Consider higher cash levels, smaller positions or even a trading stop to focus on research for when conditions improve.
There are five new setups today and some updates to prior setups. We start with three stocks from the defense industry because the Aerospace & Defense ETF (ITA) is one of the leading industry group ETFs. I am also featuring a pharma stock (BMY) because the Healthcare SPDR (XLV) is showing relative strength here in 2025. And finally, we have an off-price retailer (TJX). Even though it is part of the Consumer Discretionary sector, its off-price nature makes it more like a Consumer Staple.
Chart Setups and Updates
- 2025-03-06: KTOS Reverses off Bullish Setup Zone
- 2025-03-06: DRS Firms at Bullish Setup Zone
- 2025-03-06: TDG Breaks Out and Leads the Market
- 2025-03-06: BMY Challenges Resistance as Price-relative Hits New High
- 2025-03-06: TJX Consolidates after Wedge Breakout
- 2025-03-06: FAST Sets up with Second Test of Bullish Setup Zone
- 2025-03-06: BNTX Holds Breakout Zone and Leads
- 2025-02-27: LNG Bounces off Support and Breaks Out of Wedge
- 2025-02-27: AME Breaks Triangle Line as Price-relative Turns Up
- 2025-02-20: GEN Firms Above Rising 200-day SMA
- 2025-02-20: EQIX Corrects and Firms at Bullish Setup Zone
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Use CRTL and the Plus or Minus keys (+ -) to zoom. 125% works best for me.
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Working with PDF Files
Why the shift to PDF? Working with ChartLists at StockCharts and PDF files is an effective and efficient manner to track and analyze a chart group (ETFs, stocks, Market Regime). It saves an enormous amount of “posting” time, which is the time required to copy/paste the text and charts for each section. With a ChartList, I simply print the charts and analysis to one PDF. This also serves as a good archive.
The charts in the PDF files are linked to a corresponding SharpChart at StockCharts. There are two ways to open the PDF file: through your browser or through an application like Adobe Acrobat. When viewing the PDF through your browser, the best way to open a chart is to right click on the image and choose open in new tab/window. When viewing the PDF through Acrobat, you can open a chart in your default browser by simply clicking on the image.
The example below is a screen shot from the PDF.
Send feedback to support(at)trendinvestorpro.com or use the contact form. [2]