So the first Fed rate cut is behind us, and we are no longer in a “higher for longer” period, but in a new rate cut cycle which will most likely last well into 2025. So that’s good news for stocks, right? Well, not necessarily. The reality is that rate cut cycles do not happen very often. On average, there’s one rate cut cycle about every ten years. This is because the Fed raises and lowers rates in...

In this StockCharts TV video, Mary Ellen reviews the broader markets after last week’s rate-cut induced rally. She also shares stocks that are breaking out of bases and poised to trade higher. The “nuclear renaissance” is also discussed, as well as stocks that will benefit the most. This video originally premiered September 20, 2024. You can watch it on our dedicated page for Mary Ellen on StockCharts TV. New videos from Mary Ellen premiere weekly on Fridays. You can...

The Federal Reserve’s interest rate cut decision on Wednesday was like receiving a gift from a wish list. When the rate cut was announced, the market initially rose, acting surprised by the decision. But the excitement fizzled off as the market closed lower on that day. The next day, buyers were back, but Friday’s action had more selling than buying. You have to cut it some slack, though, given it was triple witching Friday—the expiration...

First of all, I apologize for my absence this week. I caught something that looked like Covid, and felt like Covid, but it did not identify (pun intended) as Covid. Apart from feeling lousy, also my voice was gone, so making a video was not a good idea. I am getting back into the trenches now (not 100% yet), at least with this short article, after an eventful week marked by a historic interest rate...

Sentiment indicators are contrarian, meaning that when the majority of investors are bullish on the a market, it is bearish for that market. Most investors are aware of several sentiment indicators that relate to the stock market, but they may not be aware that there is a sentiment indicator for gold. It is derived from the closed-end fund, Sprott Physical Gold Trust (PHYS). Let’s quickly review how mutual funds work. An open-end fund processes contributions...

On August 5, we featured Carvana (CVNA), which at the time took the top StockCharts Technical Rank (SCTR) spot for the Large Cap Top 10. The stock has pulled back since then, but is now gaining traction. Perhaps the Fed’s decision to cut interest rates by half a percentage point added some fuel to the stock. With lower interest rates, people may be more inclined to get auto loans. On Thursday, CVNA secured a third-place...

If you logged into the CNBC website on Thursday morning, you might have seen the headline, “Wells Fargo says don’t buy this rally, fundamentals don’t support it.“ Investors relying solely on fundamentals and not knowing how to read market technicals may be at a disadvantage when market analysts issue such warnings. It makes you wonder when they might finally give the green light if the market remains bullish. Wells Fargo issued a similar warning back...

The stock market got what it wanted from the Federal Reserve—a 50 basis point interest rate cut. Stocks rose initially, but the broader stock indexes—Dow Jones Industrial Average ($INDU), S&P 500 ($SPX), and Nasdaq Composite ($COMPQ)—closed lower. Small- and mid-cap indexes followed the broader indexes and closed slightly higher, with the S&P 600 Small Cap Index ($SML) rising by 0.09%. All S&P sectors except Energy closed lower. It was a case of “buy the rumor,...

In this exclusive StockCharts TV video, Joe shows how to use RSI in multiple timeframes to identify the next buying opportunity in the SPY. Joe thinks this rally is important; he uses the ADX to distinguish between the strength in different indices. Joe demonstrates how he moves quickly around ACP, discussing some valuable sector action in the process. Finally, he goes through the symbol requests that came through this week, including NVDA, PYPL, and more....

Shopify (SHOP) continues to show strong potential for growth, which is supported by fundamentals and technicals. As the broader e-commerce market expands, SHOP is well-positioned to capture additional market share from rivals such as Amazon.com (AMZN), thanks to its competitive suite of solutions for businesses of all sizes. SHOP has continued outperforming its peers in earnings and revenue growth, which supports its future growth. Recently, SHOP’s stock price broke out above its trading range and...