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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

Third Tariff Threat Sinks Market

by John Murphy

Editor's Note: This article was originally published in John Murphy's Market Message on Saturday, April 7th at 7:55am ET Just when it looked like the stock market was about to recover from the first two rounds of tariff threats, stocks were hit with a third and bigger $100 billion tariff threat after the close on Thursday. As a result, stock market indexes fell more than 2% on Friday with all market sectors in the red. That pushed all three major stock indexes back into the red for the week. Foreign stocks also fell sharply. After Read More 

ChartWatchers

Making Money on Earnings Reports

by John Hopkins

Earnings season is about to get underway with thousands of companies scheduled to report their Q1 numbers. It's an exciting time each quarter when companies are  rewarded or punished depending on their results. It's always interesting to watch how traders react to a specific earnings report since there's really no way of telling what the reaction will be. For example, a company might beat earnings expectations but the stock might sell off. Or a company might miss earnings expectations and garner a positive response. And it's because of this unpredictability that it's dangerous to Read More 

ChartWatchers

Identifying Solid Reward To Risk Trades For A Big Pre-Earnings Advance

by Tom Bowley

The start of every quarter represents a big opportunity to me and the reason is simple.  Historically, the odds favor a bullish move into earnings season.  Before we consider which individual stocks might be poised for a solid advance, let's take a look at history and the Volatility Index ($VIX). History is fact and indisputable.  It doesn't guarantee future results, but it does provide us a seasonal roadmap.  We know that earnings are a key factor in the direction of stock prices and we know that earnings tend to rise over time.  We also know, or should know Read More 

ChartWatchers

Rocky Indexes Frustrate Bulls And Bears

by Greg Schnell

A wild week for the indexes concluded with a slam on Friday. As we head into earnings, we continue to see the market oscillate between the bulls and the bears. I continue to see a couple of nice things in the wild swings. The upcoming week should tell us which way this is going. Here is a two week view of the $SPX with 60-minute bars.  If Friday is the low or near the low: We have a head shoulders base Left and right shoulders are equal here The improving momentum matches a head/shoulders base Read More 

ChartWatchers

The 800-pound Gorilla Continues to Struggle

by Arthur Hill

The percentage of stocks above the 50-day EMA is a breadth indicator that measures internal performance. Chartists can compare this indicator across indexes to identify the leaders and laggards. The Nasdaq 100 is the weakest of the major indexes and weighing on the broader market.  The chart below shows %Above 50-day EMA for the S&P 500, S&P Mid-Cap 400, S&P Small-Cap 600 and Nasdaq 100. First, notice that this indicator did not dip below 30% in 2017 for the S&P 500 and Nasdaq 100. This was a strong year for large-caps and large-cap techs.  Read More 

ChartWatchers

Defensive Sectors Performing - Utilities Only IT Trend Model BUY Signal

by Erin Swenlin

If you've been reading the DecisionPoint Blog lately or watching the MarketWatchers LIVE show on StockCharts TV, you know that I have been expressing concern over the sector rotation over the past few weeks and month. Over the past month, the worst performer is the Technology sector, followed by Financials which also took a hit. The highest performers by far have come in the more defensive areas of the market. If rallies come on the back of the defensive areas of the market, that is a sign of a bear market in the making. This week, we lost Read More 

ChartWatchers

Dow Industrials May Be Forming a Triangle of Their Own

by John Murphy

Editor's Note: This article was originally published in John Murphy's Market Message on Thursday, March 15th at 12:34pm ET The two converging trendlines in the chart below show the Dow Industrials forming a potential "symmetrical triangle" (which has one trendline falling and the other rising). The falling trendline on top is drawn over its January/February peaks. The rising trendline is drawn under its February/March lows. This is also a continuation pattern which favors an eventual upside breakout. The key to the resolution of the pattern is which of the two trendlines is broken Read More 

ChartWatchers

Regional Banks Fill The New Highs Page

by Greg Schnell

Regional Banks had a great week. Lots of them are testing big breakout levels and making new highs. Some examples are:  Brookline Bancorp: In the small cap SCTR ranking. Independent Bank Corp (IBCP) is starting to move. It is also increasing the dividend consistently. Live Oak Bankshares (LOB) IPO'd three years ago. After consolidating all of 2017 it looks to be on the move again. There are lots of interesting new highs showing up. If you look through the Predefined Scan results on the right hand side of the Free Charts tab, you will Read More 

ChartWatchers

Here Are Two Seasonal Winners In The NASDAQ 100 For April And May

by Tom Bowley

The NASDAQ Composite and NASDAQ 100 became the first two key indices to break to fresh all-time highs and their 2018 relative strength can be underscored by this chart: The NASDAQ 100 is seeing money rotate its way in 2018 so it's prudent to focus on this index for specific trading ideas.  And this brings me to my February 3, 2018 ChartWatchers article, "The NASDAQ 100 And Its Best Seasonal Candidates in February".  In that article, I proposed two seasonal trading candidates - Adobe Systems (ADBE) and Booking Holdings (BKNG, formerly priceline.com, or PCLN).  Since the Read More 

ChartWatchers

Dow Industrials Coils Up as Breakout Nears

by Arthur Hill

The Dow Industrials is in the midst of a narrowing consolidation and chartists should watch the March range for the next directional clue.  The 2018 range extends from the January high (26,617) to the February low (23,360), which is 3257 points or around 13% of the current close. The range narrowed as the Dow formed lower highs and a higher low. As such, a large symmetrical triangle formed over the last few months.  I am using closing levels to mark the first support and resistance levels to watch for a break. The March 2nd close marks resistance at 25335 Read More 

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