ACE: View my IBD 50/ SPYDER Sector charts. Just added: BITCOIN stock symbols!

Mike Carlton

Three (3) new features of my Chart List are my favorite hand-picked IBD 50 Stocks, the Spyder Sector ETFs and the 13 Wonders known as the Internet of Things stocks!

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.

-0.4 aaa Sprott Physical Silver Trust ETF (PSLV)

-0.7 aa Copper Futures - COMEX (EOD)/Gold - Continuous Contract (EOD) ($COPPER:$GOLD)

UPDATE: November 20, 2015. The Au-Cu Ratio snaps a 4 Year solid support line. Yet, the large divergence to the S&P 500 continues. Prior to the Fed's QE policies, the S&P tracked closely to this ratio. Perhaps with the Fed attempting to raise interest rates by 2016, the divergence could come to an end?

UPDATE: January 13, 2015., THE COPPER-GOLD RATIO CONTINUES TO PLUMMET SUGGESTING A SLOW DOWN IN THE WORLD ECONOMY IS REAL. The CU-Au Ratio has proven quite accurate in the past, and this divergence from the rising US equities market suggests that US stock investors may be in for a rude surprise soon!

-0.7a- XLV - Spyders ETF for HealthCare Sector

The Healthcare Sector ETF (XLV) broke out of a cup-n-handle base on Friday, June 20th. PLEASE CLICK ON PAGE 9 TO VIEW THE OTHER 8 MAJOR SECTOR ETFs IN THE SPYDERS SERIES.

One of the best looking opportunities in this sector are the HMO stocks such as Cigna (NYSE:CI) which also shows a cup-n-handle breakout on the same day. Another decent set up is United Healthcare (NYSE: UNH) which is getting close to a breakout, but not yet confirmed. Traders can also chase after hot runners in this space such as Wellpoint (NYSE: WLP) and Aetna (NYSE: AET), but keep in mind that such momentum stocks can turn on a dime if your timing is not correct. (Updated June 21, 2014)

-03- NYSE - Short-Term Trading Arms Index (TRIN) ($TRIN)

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.

-05a- Agnico Eagle Mines Ltd. (AEM)-daily

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.

-06a- Dow Jones Industrial Average ($INDU)-The Devil's Pre-cursor

The Devil's pre-cursor attempts to anticipate a Devil's Cross by several days. The pre-cursor is set to a 13 EMA on the fast line and a 85 SMA on the slow line. The Devil's Cross itself is often defined when the 20 EMA down-crosses the 100 SMA line. Why is the Devil's Cross important? Well, in past bear markets, the Devil's Cross preceded the bear market that many investors did not realize was coming. The Devil's Cross appeared just days or weeks before the 1987 Crash, the 2000 Tech Bubble collapse and the 2008 Financial meltdown....so, though not every Devil's Cross can spell doom for the stock market, it is something that should be heeded when it occurs.

-07- Gold Fields Ltd. (GFI)

Gold Fields is an example of a deeply oversold gold miner. Though it is clear that the stock shows little evidence of a recovery, one has to watch for certain signals and valuation metrics to determine when is an ideal time to begin a SPECULATIVE position for a possible recovery. GFI may be presenting such a situation now, though the exact time of the recovery is not discernible, the odds seem to have shifted per the comments on the chart. (June 29, 2013)

-09- iShares MSCI Emerging Markets (EEM)

The MSCI Emerging Markets ETF is the most popular vehicle for investing into foreign emerging markets. On June 9, 2015, the MSCI index committee is to make a decision as to whether to include China's A-shares which trade in Shanghai and Schenzen.

-10c- Historical S&P 500 Chart ($SPX)-Anatomy of a Market Top

Historical chart from the Financial Crisis shows some elements that occurred on the S&P chart in years 2007-2009.

-14- NYSE New Highs-New Lows (EOD) ($NYHL)

Often overlooked by investors, the New Highs-New Lows List is an important barometer for market sentiment. When the index is positive, then investors tend to be bullish and the market tends to go higher. When the index goes negative, then the market tends to go bearish. If you are an investor who wants just one simple sign to tell you whether you should have your money in the market or out, I recommend the $NYHL as the simplest, at-a-glance indicator.

As of May 31st, 2013, the index finished at a positive 255. It has been as high as +878 in 2013 as the NYSE (and other US indexes) have rallied hard and made lots of money for the bullish investors. However, on May 29th, a HIndenburg Omen signal was issued by this index. This is a rather archaic formula that has called the 1987, 2000 and 2008 market crashes. However, the index has made a few false warnings over the years too. Suffice to say, it's crash signal should at least put investors on heightened awareness over the next 40 days after the signal (and up to 120 after, though the greatest likelihood of a deep sell-off should occur within the first 40 days.

Though I believe the formula for the Hindenburg Omen is rather convoluted and archaic, its main intent makes sense to me: that is, it measures extremes on the New Highs-New Lows list and sets off a signal if two days rather close to each other prove to be very volatile in hitting news highs and lows.

Also, of immediate interest to me is that the MACD signal just went under zero on May 31st on the $NYHL. This negative divergence signal often portends a sharp drop in the $NYHL within a short amount of time. In other words, investors should be taking some profits by now and bracing for greater market volatility in the summer months.

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