ChartWatchers Newsletter logo

StockCharts.com Icon
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.

Latest Posts

ChartWatchers

Is Santa Claus Really Coming to Town for Small Caps?

by Erin Swenlin

I haven't talked Small Caps in quite awhile and I think there are some interesting points that need to be made--good and bad. First, the technicals on the S&P 600 are not looking good at all. However, Tom Bowley, my co-host on MarketWatchers LIVE and fellow blogger showed us the seasonality of the small caps is very bullish for the end of December. So the question isWill Santa Claus deliver a rally in the small caps? My indicators are making the case that we won't see Santa for IJR (SP600 ETF) or he'll be running late. The daily chart looks Read More 

ChartWatchers

Here's The Only ChartList You'll Ever Need And The Five Keys To Trading Success

by John Hopkins

'Tis the season and I'd first like to wish everyone a happy holiday season.  To health, happiness and prosperity! Feel free to sing along. "We've made our (Chart)List  we've checked it twice but we won't buy stocks  at any ole price market makers will bring the price down" That's the tune we hum every day at EarningsBeats.com and it's how we post our impressive results day in and day out.  Here are the five principles that we live by: 1.  Do Your Homework Ok, well we'll do the homework for you.  It starts with Read More 

ChartWatchers

Energy Shares Are Bouncing on Optimism Over OPEC Agreement

by John Murphy

Energy shares are finally showing some bounce. The daily bars in the chart below shows the Energy Sector SPDR (XLE) climbing above its 50-day average today. The XLE is bouncing off chart support along its late October low and its 200-day moving average. Those are logical chart points for the XLE to start moving higher. [The 50-day average remains higher than its 200-day line which is also a positive sign]. The gray area (which plots a ratio of the XLE divided by the S&P 500) has been slipping over the last two months. But it's rising today with energy being one of the day's strongest Read More 

ChartWatchers

Here Are Two Stocks To Consider In December...And One To Avoid

by Tom Bowley

I love to combine bullish seasonality with strong or strengthening technical conditions.  As we move into December, it's important to realize that there has been no better month for the S&P 500 since 1950 than December, which has produced annualized returns of +19.51%.  Also, December has resulted in rising S&P 500 prices 50 of the last 67 years, easily the best such month of the year.  So we know that history is on our side to look for long trades. So which individual stocks also perform well in December and beyond?  Well, I examined all 500 Read More 

ChartWatchers

Metals - The Calm Before The Storm

by Greg Schnell

One of key principals of a global bull market is the major moves in the sectors as the market expands. As we head into 2018, there are a significant number of charts that suggest we could be on the platform for a significant move in commodities. The Commodities Countdown blog tries to show some of the major themes, including oil off the July lows. One of the major setups now is the metals. The chart of the steel ETF has been consolidating for months. Copper has had a great run this year, and with the love of electric vehicles (EV), looks set for many great years ahead. Along with copper Read More 

ChartWatchers

Financials and Industrials Lead New High Expansion

by Arthur Hill

Chartists can plot High-Low Percent for the nine sectors to identify areas of strength within the stock market. The chart below shows the High-Low Percent ranked by this week's highest value. The finance, industrials and consumer discretionary sectors stand out this week because their High-Low Percent indicators hit the highest levels of the year. High-Low Percent for the finance and industrials exceeded +50%. Assuming virtually no new lows this week, this suggests that more than 50% of the stocks in these sectors hit new highs. XLY High-Low% ($XLYHLP) exceeded 20% the last three days and Read More 

ChartWatchers

Energy ETFs Triggering Bullish Signals

by Erin Swenlin

The energy sector has been on a bit of a rollercoaster the three months, moving from deep lows in August to a new trading range of large percentage highs and lows. I'm starting to see signs that the trading range is going to be history as price now is butting up against overhead resistance at the top of the trading range. On XLE, the Energy SPDR, we had a hint that the rally that started at the beginning of September would continue on. The 20-EMA crossed above the 50-EMA which triggered an IT Trend Model BUY Signal. Back in October an all-important LT Trend Model BUY signal appeared Read More 

ChartWatchers

High Yield Bond ETF is Bouncing Sharply Off Support, Telecom Weakest Sector

by John Murphy

The recent selloff in high yield junk bonds has attracted a lot of attention in the financial media. My Tuesday message showed the iBoxx High Yield Corporate Bond iShares (HYG) headed down for a test of chart support at its August low and its 200-day moving average. Chart 1 shows the HYG scoring an upside reversal day yesterday after touching its 200-day average (green circle). That positive action is being followed by a gap higher today. Those are encouraging signs that the selloff in high yield bonds may have run its course. The 14-day RSI line (top of chart) also shows that the HYG had Read More 

ChartWatchers

Focusing on Solid Earnings can Boost your Risk Adjusted Returns

by John Hopkins

One by-product of focusing on stocks that beat earnings handily is the opportunity to boost overall returns. I know this for a fact as we studied the performance of almost 40 stocks that were trade alerts to EarningsBeats members over the past six months and found that on a risk adjusted basis, returns were almost 5 times that of the S&P. For example, when we issue a trade alert to our members we provide them with entry prices, price target and stop loss levels. If a stock hits a price target or stop loss it is moved out of the active category and we can then calculate how it has Read More 

ChartWatchers

Here Are Five S&P 500 Stocks Poised To Rise Through December

by Tom Bowley

I'm a big historian and a fan of the "history repeats itself" theory.  But I'm a bigger fan of technical analysis where price action simply doesn't lie.  You can listen to all the CNBC "hype" if you'd like, where their "experts" provide their favorite picks.  I look at the charts of some of these "can't-miss" trades, shake my head and change the channel. Call me crazy, but I like to trade stocks where I can minimize my risk and maximize my return potential.  I like to own stocks that appear to be under accumulation - prices rising with strong volume trends Read More 

Subscribe to ChartWatchers to be notified whenever a new post is added to this blog!