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About this blog: is our free newsletter for individuals interested in technical trading and chart analysis. It is sent out twice a month via email. This blog contains early-access, preview versions of the articles that later appear in the official newsletter.

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ChartWatchers

Banking on Bitcoin

by David Keller

Yesterday, I had a great roundtable with Tom Bowley and Erin Swenlin on MarketWatchers Live, where Erin and I discussed comparisons between gold and Bitcoin. Now, at first glance, that might seem like a bit of a spurious comparison. Gold has been around forever, while Bitcoin and other cryptocurrencies are just a couple years old. They couldn't be more different! Not so fast. You see, both have fanatical supporters. Both are polarizing topics; investors seem to either love them or hate them. Both have a Read More 

ChartWatchers

Relative Strength Or Diversification? You Better Choose Carefully

by Tom Bowley

I'm going to say that you need elements of both, although you're going to want a much bigger helping of relative strength.  Too much diversification can be extremely unhealthy, there needs to be a balance.  Let me give you a quote about diversification from one of the best investors of all-time: "Diversification is a protection against ignorance.  It makes very little sense for those who know what they're doing." - Warren Buffett Mr. Buffett, I completely agree with you.  Conventional wisdom says to diversify Read More 

ChartWatchers

3 Tasty Restaurant Stocks to Sink Your Teeth Into

by Mary Ellen McGonagle

By all accounts, people enjoy eating out, with the National Restaurant Association projecting a record high in U.S. restaurant sales at $863 billion this year, up 3.6% from last year. From global expansion plans to technological advances, many restaurants are catering to consumer’s changing tastes while easing the delivery process. All of this has boosted same-store restaurant sales to levels not seen since 2015, with 4 successive quarters of improvement. Below is a chart of the Dow Jones US Restaurants & Bars Index, which is comprised of larger, better-known companies. As Read More 

ChartWatchers

Long-Term Picture Shows Gold Close to a Breakout

by Martin Pring

Editor's Note: This article was originally published in Martin Pring's Market Roundup on Tuesday, June 4th at 2:57pm ET. From a long-term aspect, Gold looks as though it is in the process of duplicating its action at the turn of the century by forming a huge base. Of course, it will only a base once it has completed with a decisive move above the $1350 area, an event that looks close to happening but has not done so yet. Chart 1 What has occurred is that the price oscillator (bottom window of Chart 2) has re-enforced its recent bullish signal by Read More 

ChartWatchers

Can I Have A Coke (KO) With My Big Mac (MCD) Please?

by Julius de Kempenaer

While browsing through the stocks in the DJ Industrials index, my attention was grabbed by the tails on KO and MCD, both in a positive way. KO is making a wide rotation through lagging into improving and is now very close to crossing over into the leading quadrant. MCD, meanwhile, is already inside that leading quadrant, having completed a rotation through weakening without hitting the lagging quadrant. When you toggle* through the tails on the RRG of the Dow 30 stocks against $INDU, you can easily notice these two tails as being of potential Read More 

ChartWatchers

Dissecting the Dow - New IT Price Momentum Oscillator SELL Signal

by Erin Swenlin

This week, all four of the Scoreboard indexes (SPX, OEX, NDX, Dow) switched to IT Trend Model Neutral signals. This is just added insult to injury, given the ST Neutral and SELL signals that posted earlier this month. Today, the Dow lost its IT Price Momentum Oscillator (PMO) BUY signal. This occurs when the PMO crosses below its signal line on the weekly chart, as seen below. Here's a look at the DP Scoreboards. Carl wrote about the new IT Trend Model Neutral signal for the SPY in his Friday DP Weekly Wrap article. Be sure to read it Read More 

ChartWatchers

Gold - Something To Love?

by Greg Schnell

As I have mentioned in the last three Market Roundup shows (which you can find here on the StockCharts YouTube channel), the Gold-related charts have been setting up for weeks now. Friday's price action to close out the month looks like an initiation move that has more room to run. While that is hard to call on the first few days, the move was a very significant one at an important zone on the charts.  Focusing in on price, Gold has been able to hold above the 40-week moving average since the December move where price originally crossed up Read More 

ChartWatchers

Strong Earnings can Fuel a Portfolio

by John Hopkins

The market has been under fire for some time now as uncertainty abounds. Even a lot of stocks that had earlier reported strong earnings haven't been able to escape the recent market turmoil. However, there are also many stocks that have held up quite well, outperforming the market and reminding us that strong earnings DO matter. As an example, we recently conducted a webinar that included unveiling 30 stocks we felt could outperform the market. These included 10 aggressive stocks, 10 "Model portfolio" stocks and 10 income/dividend stocks. 8 trading days later, the Read More 

ChartWatchers

Key Moving Average Rolls Over for S&P 500

by Arthur Hill

The 200-day moving averages for the S&P Mid-Cap 400 and the S&P Small-Cap 600 are already trending lower and this key moving average for the S&P 500 turned lower over the past week. This puts all three indexes below their falling 200-day SMAs and in potential downtrends. Chartists can use moving averages to determine the trend in at least two ways. First, the trend is up when price is above the moving average and down when price is below the moving average. The chart below shows $SML breaking its 200-day SMA on May 7th. $MID followed suit with a move below on May 22nd and $SPX Read More 

ChartWatchers

There's a Reason Why Banks and Energy Stocks are Falling Together - And That Reason May be Falling Oil Prices

by John Murphy

Editor's Note: This article was originally published in John Murphy's Market Message on Friday, May 31st at 11:14am ET. Energy stocks are one of the weakest parts of the market. So are bank stocks. There may be a reason why. The black bars in Chart 7 shows the Energy SPDR (XLE) trading at the lowest level in five months. The green bars show the KBW Bank Index trading below both moving average lines, and nearing a test of its March low. There may be a reason why both groups have been doing worse than the rest of the market over the last month. And that has to do with low Read More 

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