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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

Combining Strong Technicals And Fundamentals To Wildly Outperform The S&P 500

by Tom Bowley

Everybody wants the secret formula.  You know, the one where you never lose money.  Well, I haven't found THAT one yet, but trading companies that have recently beaten Wall Street revenue and EPS estimates is a fairly solid runner-up strategy.  A company that produces results in excess of analysts' expectations often has a management team trusted by Wall Street.  Before I discuss the best of the best, let me remind you of an article I wrote in my Trading Places blog on July 27, 2018.  It was titled "Key S&P 500 Support To Watch And Why I Wouldn't TOUCH Read More 

ChartWatchers

Healthcare Sector Bullish in All Three Timeframes

by Erin Swenlin

In my Thursday article in the DecisionPoint blog, I discussed the new PMO BUY signals on the DP Scoreboards, finishing off the article with a chart of the Healthcare Sector ETF (XLV) after I received a new Intermediate-Term Trend Model BUY signal (a positive 20/50-EMA crossover on the daily chart). I decided to research further because today's daily chart for XLV looked particularly bullish. I thus wasn't completely surprised to see healthy (pun not intended) weekly and monthly charts. This reminds me very much of the set-ups I've written about in past articles on the Natural Gas Read More 

ChartWatchers

Multiple Big Name Pharma Stocks Help Remedy The Pain

by Greg Schnell

Pharmaceutical stocks were a standout in November. The big global names had an exceptional month. While they are categorized as defensive stocks, these heavyweights have very powerful biotechnology investments. The pharmaceutical stocks listed below all hit new highs within November. While the $SPX was up about 2% for the month, all of lifting to get positive for the month happened over the last three to five days. The stocks listed below have way more exciting charts than the $SPX! The biggest loser on this list is Amarin but one look at the chart tells an entirely Read More 

ChartWatchers

Confirming Moving Average Signals in the S&P 500

by Arthur Hill

The S&P 500 is the most widely used benchmark for U.S. stocks and the 200-day SMA is the most widely used moving average. Together, chartists can use the S&P 500 and the 200-day SMA to determine the broad trend for the stock market. The S&P 500, however, does not tell the entire story. Note that the top 50 stocks (10% of the total) account for 50% of the index weightings. Chartists interested in the other 450 stocks can consider using the S&P 500 Equal-Weight Index ($SPXEW) to confirm signals in its big brother. As its name suggests, the S&P 500 Equal-Weight Index Read More 

ChartWatchers

Sticking With Companies That Report Strong Earnings

by John Hopkins

The market finally found its legs last week after the Fed signaled they might slow down their interest rate-raising campaign. In fact, after being technically wounded for some time, all of the major indexes closed back above their respective 20-day moving averages, with the Dow clearing its 200 day as well. The move higher was most welcomed by the bulls, who have been behind the eight ball since the market peaked in early October and as the bears have been in charge. But even as the market was getting hammered over the past two months, some stocks that came up big when they reported Read More 

ChartWatchers

Short-Term Trend is Improving

by John Murphy

Editor's Note: This article was originally published in John Murphy's Market Message on Friday, November 30th at 2:36pm ET. There are lots of way to determine the trend of the stock market. The placement of moving average lines is one of them. Bollinger bands (invented by John Bollinger) are another. Chart 1 applies both techniques to a daily chart of the S&P 500. The chart shows the SPX bouncing off previous support at its late October low which is positive short-term development. And it's now moving up to test its 200- and 50- day moving averages (red and blue lines). The 14-day Read More 

ChartWatchers

Plotting breadth indicators on Relative Rotation Graphs - Part II

by Julius de Kempenaer

After finishing the previous article on plotting breadth indicators on Relative Rotation Graphs I have spent hours and hours on studying probably a couple of thousand different RRGs holding various groups of sectors in combination with their breadth equivalents. And although I did not find the perfect prediction tool or the ideal leading indicator I do think using these alternative data series on RRGs can function as a piece of the puzzle that we are trying to solve. What have I learned so far? For this experiment I Read More 

ChartWatchers

You Must Master These Two Things To Trade Successfully

by Tom Bowley

Trading is difficult, emotional and can be quite lonely.  We have seen volatility ($VIX) shoot higher, rising from an 11.61 close on October 3rd to a high of 28.84 on October 11th.  Since then, we've remained above the key 16-17 support level that typically holds during bear markets.  I don't believe we're in a bear market, I'm just pointing out that the last two bear markets saw VIX declines down to 16-17, no further.  Bear markets require a certain level of fear to thrive in.  So far, the VIX is cooperating.  A VIX break below 16 would be a bullish Read More 

ChartWatchers

Taking the Temperature of the Stock Market

by Arthur Hill

The Momentum Factor iShares (MTUM) and the Minimum Volatility iShares (USMV) represent opposing sides of the market. High flying stocks can be found in the momentum ETF, while the more boring issues dominate the minimum volatility ETF. Using these two ETFs, chartists can quickly take the temperature of the stock market and adjust their strategy. The market is running hot and then risk appetite is strong when momentum stocks outperform (risk on). Conversely, the market is running cold and the risk appetite is weak when low volatility stocks outperform momentum stocks (risk off). Read More 

ChartWatchers

You Really CAN Make Money in a Rough Market Environment

by John Hopkins

The quarter beginning 10-1-18 has been challenging for a lot of traders. The NASDAQ has lost almost 10% while the S&P has lost 6%, both well off the quarter's low. Volatility has reigned with the VIX at elevated levels for most of the quarter. It has been challenging for us at EarningsBeats as well, though you might not know it from our results even though, of the 29 trade alerts we issued to our members since October 1, 18 stocks came off with losses. But on a risk adjusted basis - assuming an equal amount of money invested in all 29 stocks - so far we've seen a net gain of over 2.5% Read More 

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