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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

Some Sector Rotation Is Starting To Appear

by Greg Schnell

With most of the large caps finished reporting, it's a good time to take a look and see what is working. Over the last two weeks, Health Care, Utilities, Financials and Real Estate have outperformed the big growth sectors of Communications and Technology. While that can happen from time to time, it surprises me that it is happening just as Apple announces a $75 Billion buyback, Facebook and Microsoft both posted great numbers and Amazon makes a run at $2000. More concerning is the fact that these fabulous earnings are struggling to pull the broader market up Read More 

ChartWatchers

Improving the Best Six Months Strategy by Adding Months and Timing

by Arthur Hill

The "Best Six Months" strategy suggests that the best time to own stocks is from November to April, and the worst time is from May to October. Testing over the last 25 years confirms the performance differences between these two periods, but this strategy still leaves money on the table. This article will show that a "Best Eight Months" strategy outperforms the Best Six Months strategy. Furthermore, this strategy can be improved with market timing and switching to the 20+ YR T-Bond ETF (TLT) during the worst four months. Yale Hirsch developed the Best Six Months Read More 

ChartWatchers

3 Reasons Why Semiconductors Are Poised To Lead

by Tom Bowley

Okay, let's start with the short-term reason.  Throughout much of this bull market, the month of May has been kind to semiconductors ($DJUSSC).  In fact, the DJUSSC has advanced in each of the last 7 years during May.  Check out this seasonal pattern: Not only have semiconductors moved higher during May, but they have scorched higher!  Their average May return of 7.1% over these past 7 years more than doubles any other calendar month.  Go away in May?  I think not! Next, consider what drives the stock market higher.  I'd be Read More 

ChartWatchers

Successfully Trading Stocks After They Report Earnings

by Mary Ellen McGonagle

In my ChartWatchers article from two weeks ago, I provided insights into signals that your stock may be poised to report earnings above Wall Street estimates. Given that the markets are currently rewarding positively reporting companies with an average 2.1%+ boost in price* (and in many cases, much more), you may want to review my article here. That said, there’ve been enough major earnings-related blowups this week that could easily temper your appetite for buying stocks right before earnings.  These include Irobot Corp (IRBT) which has plummeted over 23% since reporting, as well as Read More 

ChartWatchers

Five Trendlines You Should Be Watching

by David Keller

My process is built around simplicity. I am of the firm belief that investors, as well as the financial industry as a whole, tend to unnecessarily complicate things. As a result, we are led to believe that we need to track an endless number of data points to have a proper situational awareness for the markets. In reality, we need to work smarter, not harder. A small number of selectively prioritized and appropriately meaningful data points are all a savvy investor needs to get a fairly accurate read on what’s happening out there. When a chart is in Read More 

ChartWatchers

The SPY/EFA Ratio Completes an Inverse Head-and-Shoulders

by Martin Pring

Editor's Note: This article was originally published in Martin Pring's Market Roundup on Wednesday, April 24th at 7:03pm ET. Yesterday’s all-time new high in the S&P was well documented by the media, but what did not receive any attention was the fact that the SPY also reached a new high-water mark relative to the MSCI Europe Australia Far East ETF, a.k.a. the rest of the world. You can see that from Chart 1, where the ratio has broken out from a consolidation reverse head-and-shoulders. The RSI looks a little overstretched, but that does not necessarily translate into weakness Read More 

ChartWatchers

All Eyes On The Mighty Greenback! This Is How It Looks On A Relative Rotation Graph

by Julius de Kempenaer

A lot of eyeballs are watching the USD these days. Not surprisingly, as a lot (or most) people pay attention to the chart of the USD index ($USD), which compares the USD to a basket of other currencies. That chart now seems to be breaking out - to the UPside, that is. The reason for watching the "Dollar Index" is that there is no such thing as the price of "the USD," just like there is no price for the British Pound or the Euro. Currencies are always expressed "in another currency," meaning the price of the USD expressed in Pounds is different than the price of Read More 

ChartWatchers

Insurance Companies Are Popping To New Highs

by Greg Schnell

Across the broad spectrum of insurance companies, the life insurance industry group has a group of names huddled at or around 52-week highs. With nice strong dividends, these stocks look set to surge. A good example to look at is Manulife Financial (MFC). MFC currently has its highest SCTR ranking in over a year, while its PPO, which shows momentum, has moved into positive territory. This move started just recently in March and has continued into April. The Full Stochastic continues to reside in the strong area above 50. Notice the drop downs on the price chart Read More 

ChartWatchers

Five 5G Technology Stocks to Ponder

by Erin Swenlin

5G is the next generation of mobile broadband and will eventually replace (or augment) your 4G LTE connection. With 5G, we should see exponentially faster download and upload speeds. All eyes are now turning toward the companies that will help launch the advent of this exciting technology. I picked out five stocks that looked interesting in this new space. Corning Inc (GLW): I decided to go through these five on a short-term and intermediate-term basis. GLW has been struggling with overhead resistance, but, with the new PMO BUY signal, it Read More 

ChartWatchers

Profiting from Companies that Beat Earnings Expectations

by John Hopkins

Earnings season is off and running and already some companies that beat expectations could set up as high reward-to-risk trades. JP Morgan (JPM) is a perfect example of a company that reported stronger than expected numbers; you can see below the positive response from the market below. In the week since JPM reported its numbers, the stock has risen by 8.7% and has moved closer to testing the September 20-21, 2018 highs. It could still get there, but it's now technically overbought and this is certainly not a good time to chase. Instead, for those who are patient it makes more sense Read More 

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