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The first two pages contain charts that measure perceptions of the overall markets. The main equity indexes (S&P500/ Dow Industrials/ Nasdaq) and key measures of bond markets, the TED Spread, Gold, Currencies, and special ratio charts in the special 'Ace way' that makes things clear and simple to see.
The 10 major Sector SPDR ETFs are tracked with Ace's favorite trend indicators and oscillators! If one understands the trends and cycles of these charts, then they will have a very good grasp of the major rotations of the smart money traders. These charts show up on Page 19 of my Chart List and their symbols begin with the letter 'X'.
The second new feature is a hand-picked selection of the IBD 50 stocks. I use many of my favored indicators on these DAILY charts, including the dynamic 13. 50, 100 and 200 MA lines. (IBD usually shows WEEKLY charts-- you can see DAILY here!) I show the proper bases on these charts as base theory is critical in the IBD 50 stock selection and CANSLIM systems. Of course, IBD 50 and CANSLIM are successful trading systems developed by Investor's Business Daily. These charts start on Page 10. I am not associated or affiliated with the IBD in any way and my charts are strictly my interpretations, Please visit their website to learn more at www.investors.com .
Finally, I have added a section known as 'the Internet of Things.' These are the 13 wonders identified by many investors as the key stocks leading the internet revolution as we enter the middle years of the 21st century. Now, track these stocks with me beginning on Page 12.
* IBD 50 and SPDR Select are trade-mark names; I claim no association with the vendors of these products. My chart interpretations are strictly one person's opinion of publicly traded stocks.
Update October 23, 2015: Despite many pundits attempts to label gold as a lousy investment, it continues to sit near record levels vs. the commodity complex that it trades in. If gold is 'only a commodity,' well, it sure is out-performing all of its commodity brethren! More importantly, gold's value seems to be providing a much safer investment compared to almost any commodity or basic materials investment.
Gold can also be compared to all other commodities by using the CRB Index. Using this ratio, we can see that gold is NOT trading as a commodity! NO!!! It's trading mostly as an alternative currency to paper money. If it were trading like most commodities, then this ratio would be under 2.5 where it stood for many, many years. Mike.
Update on 7/7/2014-- From Bloomberg News: 'In the relative calm that is the market for U.S. Treasuries, a sense of unease over a vital cog in the financial system?s plumbing is beginning to rise.
The Federal Reserve's bond purchases combined with demand from banks to meet tightened regulatory requirements is making it harder for traders to easily borrow and lend certain desired securities in the $1.6 trillion-a-day market for repurchase agreements. That?s causing such trades to go uncompleted at some of the highest rates since the financial crisis.'
See the complete story at this link:
The TED SPREAD is used by financial analysts and market pros working for the big trading houses. It is a comparison between interest rates on US dollars in the US versus US dollars trading in Europe using the 3 month money market rates. In general, since the 2008 Financial Crisis, when the TEDDY is falling, this is favorable to European markets and possibly (though not always) unfavorable to US markets. Vice versa, when the TEDDY is rising, it can translate into troubles in the European markets (though not always). This is a weekly chart graphed with historical news events.
NUGT tracks a group of Major Gold Mining stocks at a 3x levered ratio on a daily basis. It is a popular ETF among traders who like to ride a fast momentum trading vehicle.
UPDATE: May 24, 2016. GLD is in a short tail-spin...losing the 50 day support, but still well within its forming base. Also, notice that the major red candle drop on May 24th leaves GLD outside its standard deviation on the Bollinger Bands. This suggests that GLD is short -term oversold. I expect the US $ rally to end near 96,which should come in early June. At that time, i would expect that GLD will rebound.
UPDATE: July 25, 2015. The GLD daily chart fell out of a descending triangle in mid-July and gapped down more than one day. The gaps occurred on selling in the overnight Asian markets. On Friday, July 24, 2015, the price reversed and finished solidly higher on strong volume-- a possible bottom--if not a final bottom, it at least seems to mark an interim bottom. Keep in mind that triangle breakdown projections point toward a low of under $1,000, but rapid selling on gaps down can sometimes signal a bottom before the longer projected targets are reached. Watch for confirmation in the following week ahead.
UPDATE on Jan. 14, 2017: The 10s-2s Ratio continues to slide as the S&P continues to hang high. This wide divergence suggests that either the bond market or the stock market has it wrong regarding the future. Most economists and market pros believe that a falling yield spread (similar to this ratio) is contractionary for the economy. In most set-ups like this, the market veteran should favor the signal given by the 10s-2s ratio rather than the signal given by the over-exuberant stock market. Could Trump's inauguration day (Jan.20th) mark the top for the S&P 500?
The 10-2 Yield Spread is very similar to the Yield Curve. The Yield Curve is a component of the Leading Economic Indicators, a US government forecasting tool. The Yield Spread often foretells where the US stock market is headed. If the spread line is rising, that's considered bullish...and falling is bearish. This chart includes a line to measure the direction of the S&P 500 ($SPX).
I use www.StockCharts.com because I find they have the best on-line chart software, and their data feeds from the exchanges are always up to date. No need for maintaining difficult software on my computer hard-drive! I have been a loyal customer for over 8 years.
UPDATE: As of April 11, 2016, the down-trend line has been penetrated and the Dow is now moving into a very bullish position.A bullish 10-40 up-cross has occurred. However, the long-term 10-80 up-cross has yet to occur, and in that sense, the Bear is still lurking. Expect more market gains in April, but the 10-80 resistance may still lead to 'Sell in May...and Go Away!'
UPDATE: As of February 16, 2016, the Dow Weekly Chart continues to show a pattern very similar to the one that led to the 2008 crash (and financial crisis). Though the popular market pundits continue to tell us not to worry about a repeat or something similar in scope to 2008, this chart continues to tell us WE should all be at least somewhat concerned. -Mike
Often overlooked by most amateur chartists is the powerful support and resistance at extremes by the 80 week moving average line. The 80 week line is 2x greater in duration than the more traditional 40 week line on a weekly chart.
GBTC is an investment fund invested in BITCOIN
Love it or hate it? Regardless of how one feels about BITCOIN or the Crypto-currencies, one thing is certain. There is very strong interest in trading them. On Sunday evening, December 10, 2017, the CBOE will become the first major exchange to trade BitCoin futures. I hope my BitCoin charts can give viewers a sense of direction for the various stock symbols that are 'associated' with BitCoin.
I also find TRIN very useful for intra-day entry and exit points, but that chart is not shown here. This is a daily view chart.
Comments from Ace's 'Forum: Talking Stocks' on June 18, 2014:
The world's two top reserve currencies are the US dollar and the Euro....the Euro has been the favored currency among Fx traders because short term ECB interest rates were a safe haven from the near zero rates in the US dollar and Japanese Yen which is the 3rd reserve currency and for this reason this is why the Euro has stayed above the 1.30 level...
But about 10 days ago, the ECB went to charging its member banks NEGATIVE INTEREST RATES which means the Euro overnight bonds have a yield lower than gold and silver. In other words, none of the world's reserve currencies provide any appreciably better yield than precious metals...for the last couple years, one thing the gold haters kept pointing out is that gold does not provide an interest rate yield and this is why it was not favored by many investors...that is no longer true when compared to the so-called 'safe haven' of bonds!
This might also explain why some gold miners like AEM are moving higher because some quality miners pay out a nice dividend....fundamentally, the game has changed for gold and silver miners and we may soon see the charts reflecting much stronger interest in the quality precious metals miners...imho.
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