Don't Ignore This Chart

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About this blog: The blog contains daily articles with intriguing or unusual charts selected by one of our Senior Technical Analysts, along with a short explanation of what exactly caught their attention and why they believe the chart is worth noting.

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Don't Ignore This Chart

Where Is The Volume?

by Julius de Kempenaer

My last article in the RRG blog looks at sector rotation for US sectors and how there are some disconnects between groups of sectors on both the daily and the weekly time frames. My conclusion from that article was that the current rotational patterns are sending mixed signals which makes it difficult to get a clear picture for the market in general, i.e SPY. When things are unclear, I have learned to step back and try to get a better view of the big picture. Very often that also means going back to the basics Read More 

Don't Ignore This Chart

Pfizer Bids to End Correction

by Arthur Hill

When sitting down to a chart, or even standing, establishing the direction of the bigger trend is the first task. The direction of this trend establishes my trading bias and tells me where to focus. My trading bias is bullish when the trend is up and this means I focus on bullish setups. Among other things, this includes pullbacks within the uptrend (wedges), bullish continuation patterns (flags) or upturns in momentum (PPO). Pfizer shows a classic case-in-point. The stock is in a long-term uptrend because it recorded a 52-week high in November and remains above the rising 40-week SMA Read More 

Don't Ignore This Chart

Gold Surges And Carries The Miners Higher

by Greg Schnell

Gold and gold minings stocks surged to start the trading week.  What makes this so important is this is the first 52-week high in the gold mining stocks since the 2016 spring surge. Pay attention to the industry group as well as the industrial metals. They both look ready to run here. Good trading, Greg Schnell, CMT, MFTA Read More 

Don't Ignore This Chart

This Marathon Stock Has Had Marathon Buying

by Greg Schnell

Marathon Oil (MRO) has had two marathon buying days with massive volume. While Day One didn't see any price movement on large volume, Day Two sure did. The price has just moved out of a short 2-month base and looks set to accelerate from there. The stock is meaningfully off the October highs, but it is showing all the right signs for a break from the downtrend. The SCTR is surging from below 10 to above 30. This suggests some strong price action relative to the other large caps. The down trend in relative strength (in purple) is breaking the down trend as well. With a little more Read More 

Don't Ignore This Chart

JP Morgan deteriorates further on Relative Rotation Graph

by Julius de Kempenaer

One of the choices in the drop-down selection on the Relative Rotation Graphs page is the DJ-industrials (Dow 30 Industrials). This RRG shows the rotation of all 30 Dow stocks against the $INDU. The RRG above shows the daily rotation and highlights the rotation of JP Morgan Chase & Co. (JPM), a heavyweight in the financials sector. This rotation caught my attention as it is moving strongly lower on the JK RS-Ratio scale and pushing further into the lagging quadrant. The reason for bringing up the Read More 

Don't Ignore This Chart

DR Horton Builds A Base To Stair Out Of (DHI)

by Greg Schnell

D.R. Horton (DHI) has been in a year-long down trend. Yesterday, on the back of a broad move by the indexes higher, DHI broke above a long downtrend line. It's early in the week, but this would be the first close above the trend line in a year if we can stay at these levels through Friday. A couple of promising signs are starting to show up on the chart. Starting at the bottom, the Percentage Price Oscillator (PPO) displays momentum and has broken the down trend, suggesting this breakout was going to occur. The Full Stochastics are surging above 80%, which is very bullish Read More 

Don't Ignore This Chart

CBOE Holdings Fails to Bounce

by Arthur Hill

We are 29 trading days into 2019 and the S&P 500 is up a very respectable 9.49%. Furthermore, some 465 stocks in the S&P 500 are up year-to-date, which means 35 are down year-to-date. CBOE Holdings (CBOE) is one of these stocks (-3.91% year-to-date) and a bearish continuation pattern is taking shape on the price chart. The chart shows CBOE breaking out with a surge in late October and outperforming the market in early November. This breakout did not hold as the stock fell back below the breakout zone in early December and back below the falling 200-day SMA. Even though the stock Read More 

Don't Ignore This Chart

Microsoft Bids for a Momentum Shift

by Arthur Hill

Microsoft is battling the rising 200-day moving average and making a bid to shift momentum back to the bulls. The chart shows MSFT falling along with the market from October to December and then rebounding sharply in January. The stock is currently consolidating around the 200-day SMA with a pennant, which is a short-term bullish continuation pattern. This pattern represents a consolidation (rest) after an advance and a breakout at 108 would signal a continuation higher. The indicator window shows 14-day RSI shifting from a bullish range to a bearish range in October. Notice how RSI Read More 

Don't Ignore This Chart

Germany Suffers A Setback Worth Watching

by Greg Schnell

This rally has been great, lifting portfolios around the world. With lots of optimism helping the market here, there are some worldwide charts that I reviewed on the Weekly Market Roundup show. There is a link to the video further down in this article. Back in October (see the red arrows on the chart below), I mentioned that the German stock market was breaking down in a pattern that we have seen before. This breakdown coincided with USA charts breaking down in October 2018, with the first bar breaking below support on the $DAX and the US market breaking the Read More 

Don't Ignore This Chart

Save This Chart To Keep Track Of The Yield Curve Interaction With The Economic Cycle

by Julius de Kempenaer

The chart that I want to share with you today is part of a (bigger) research project that I am doing with regard to the various phases in economic cycles and their relation to the (shape of) yield curve. The chart above shows the S&P Index in the main panel. The panel below shows the difference between 10yr and 2yr yields on US treasuries. This 10-2 relationship is generally used to indicate a normal, 10yr > 2yr, or inverted, 10yr < 2yr, shape. The overlaid, red and green, dashed vertical lines indicate the start of periods of Expansion Read More 

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