The financial sector has chronically under-performed the broader market over an extended period of time. That dynamic may be in the early stages of a transformation. Last week the S&P 500 Index returned to its high of the year. This week it has made incrementally new all-time highs. By contrast the financial sector, as represented… Read More »
(Back from a long vacation.) The price of Bitcoin has rallied right along with the stock market over the last several months. But Bitcoin has been engaged in a much more significant process over the last ten months. It has been forming a strong foundational base. The recent breakout from that base could propel the… Read More »
Reverse engineering a chart pattern is a simple but unique way to upgrade your scanning methodology, and it can prevent highway-like chart hypnosis.
Here are six stocks with solid chart patterns, improving price momentum and money flow and they have large outstanding short positions. The implication is that if there are bullish chart pattern breakouts, the shorts will be forced to cover their positions. This would initiate short covering rallies in the stocks. Remember though, often times the… Read More »
The Dow Jones Industrial Average ($DJIA) dropped below its 200 day moving average in early June. It’s been trading just below the horizontally trending 200 day average and more recently above a rising 50 day average. Over time this the area between the two averages compressed along with the Dow’s average true range and Bollinger… Read More »
Interest rates have been moving lower and for a long time. If you were on a fixed income like a pension during this period you’re a happy person. The low interest rate environment produced little or no inflation. This preserved the buying power of your income over time. If, on the other hand, you bought… Read More »
"There is no S&P index anymore. It's just a few names." @CarterBWorth takes to the charts to explain the market's major bifurcation. pic.twitter.com/PYykZ6Z4lP — CNBC's Fast Money (@CNBCFastMoney) July 6, 2020 “Chart Master” Carter Worth checks out the concentration of capital issue in the S&P 500 index. This overweighting problem is why, when traders finally… Read More »
Yesterday we took a look at the Dow Jones Industrial Average chart. The primary focus was on the trend line resistance level situated in the 26,426 area which is being reinforced by the horizontally tracking 200 day moving average. A strong open suggested that the Dow was set to break above resistance and potentially move… Read More »
How will the trading landscape present itself today and later into the week?
The NASDAQ Composite Index made an all time record high last week. At the same time the S&P 500 Index is about 10% off its February 2020 high and the and the Dow Jones Industrial Average is about 15% off its high this year. But take a look at the Relative Strength Index on the… Read More »