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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

Russell 2000 Is Now Retesting Its 200-Day Average

by John Murphy

Editor's Note: This article was originally published in John Murphy's Market Message on Friday, October 5th at 2:02pm ET. Tuesday's message showed the Russell 2000 Small Cap Index being the first of the major market indexes to fall below its 50-day line, and warned that the selloff in small cap stocks might be a warning that the stock uptrend is losing momentum. Small caps continue to lead large cap stocks lower. Chart 5 shows the RUT falling today to its lowest level in four months and sitting right on its 200-day average. That's an important test for small cap stocks, and possibly for Read More 

ChartWatchers

A Warm Welcome To Our Newest Contributing Author, David Keller, CMT

by Grayson Roze

Okay, I’ll admit, this was just about the worst-kept secret of the year. That said, it doesn’t detract from the good news. Last week, we launched an expanded partnership with David Keller and officially introduced his new blog, The Mindful Investor. As many of you know, David was one of our new faces at ChartCon 2018. His presentation was a tremendous hit, and after a flood of positive responses, it was clear that we needed to bring more of his commentary onto the site. David's passion for the markets and his extensive industry experience will allow him to Read More 

ChartWatchers

Health Care Has Become the New Market Leader

by John Murphy

Editor's Note: This article was originally published in John Murphy's Market Message on Friday, September 28th at 12:29pm ET. The three strongest sector leaders since the start of this year have been consumer cyclicals, technology, and healthcare (in that order). But those numbers don't reflect the fact that healthcare has become the strongest market sector over the past three and six month periods. In other words, healthcare is the new market leader. The three relative strength lines in Chart 1 represent consumer cyclicals (blue line), technology (red line), and healthcare (green line) Read More 

ChartWatchers

Aerospace Starts A Launch Sequence

by Greg Schnell

With another SpaceX launch and more news this week about delivering multiple cargos on one delivery rocket, the Aerospace industry continues to accelerate. This week, the group of public aerospace companies all sported nice chart setups heading into the fourth quarter. I have circled the SCTR rankings. I did a review of UTX on a Don't Ignore This Chart article titled United Technologies UTX Pushed The Penthouse Button. Let's look at a few more below. TransDigm is flying. While Boeing gets all the love, this chart has just had a nice reset and looks ready to make Read More 

ChartWatchers

Three Great Stocks And An Offer To Download My Strong Earnings ChartList

by Tom Bowley

Special Offer If you would like a copy of my Strong Earnings ChartList, simply follow these steps and I'll send it to you: 1.  You MUST be a paid Extra or Pro member of StockCharts.com as that's the only way you can download my ChartList.  If you're unsure of your account service level, click on the "Your Account" tab in the upper right hand corner when you're on the SC.com home page.  At the very top of the Your Account page under Membership Details, you'll find your service level.  That must say either Extra or Pro.  If it says Basic, you will need to Read More 

ChartWatchers

XLE Gains PMO BUY Signal - Still Too Many Negatives in Intermediate Term

by Erin Swenlin

If you look at our DecisionPoint Sector Scoreboard below you'll see that the Energy is the only sector carrying an Intermediate-Term Trend Model Neutral signal. All other sectors have BUY signals in both the intermediate term and long term. While Energy did log a new Price Momentum Oscillator (PMO) BUY signal today, the negatives on the daily and weekly charts outweigh the positives. I've annotated the new PMO BUY signal on the daily chart below. Energy hasn't been performing well since peaking in May. It spent most of the summer months traveling sideways within a trading channel Read More 

ChartWatchers

Equities (SPY) is the only asset class inside the leading quadrant AND it is at a positive RRG Heading

by Julius de Kempenaer

The Relative Rotation Graph shows the relative positions of various asset classes (ETFs) against VBINX, a Vanguard balanced index fund, as the benchmark. The long tails for Real Estate and Commodities stand out, as well as the cluster of fixed income related asset classes inside the red oval. The strongest clue, on this RRG chart, however, is coming from SPY which is the only asset class inside the leading quadrant AND the only asset class moving at a positive RRG-Heading. The weak rotation for the US dollar index theoretically suggests that Read More 

ChartWatchers

The Single Best Thing a Stock Can Do

by Arthur Hill

There are lots of indicators out there, but one metric stands head and shoulders above the rest. No, it is not a head-and-shoulders pattern. There are hundreds, if not zillions, of ways to measure the trend and identify trend reversals. Over the years, I have found trend reversals to be more the exception rather than the norm. Trends show a tendency to persist and this means we are better off staying with the trend instead of looking for reversals. The single best thing a stock can do is record a new 52-week high. A stock that hits a new high is in an uptrend and is a Read More 

ChartWatchers

Traders Still Attracted to Strong Earnings

by John Hopkins

The bulls have remained in charge for a long time now in large part due to continuing, strong earnings. Even with the constant daily noise surrounding the market it almost always comes down to the bottom line. Thus when traders are looking for high reward to risk trades it makes a lot of sense to zero in on those companies that handily beat earnings expectation. As an example, take a look at the chart below on SWIR, a company that reported its earnings at the beginning of August and easily beat both top and bottom line expectations. You can see that the stock moved up sharply on Read More 

ChartWatchers

Can Banks Rally For The Fourth Quarter?

by Greg Schnell

At one of the CMT Association meetings in NYC, I was given an interesting tip about the markets. The tip was that bank charts hold clues because bankers see everyone else's business success from the financial side. From this, it's never a bad idea to keep track of what the banks are doing. The reason I want to write about the bank charts this week is that multiple charts are at an important inflection point. This suggests the view is broader than one bank. We also have a Fed meeting in a couple of weeks which is widely expected to raise rates one more time. If the banks Read More 

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