Numerous companies are making strides within their respective sectors, but, unless you follow the sector closely, you might not be aware of them. That’s what makes StockCharts Technical Rank (SCTR) reports so helpful. If you’ve checked your SCTR reports regularly, you might have noticed Insmed (INSM) appear at or near the top over the last three months. FIGURE 1. DAILY SCTR REPORTS SHOW INSM IN THE OF THE TOP-UP, LARGE-CAP STOCKS.Image source: StockCharts.com. For educational...
It was a massive turnaround day in the market on Wednesday—stocks sold off after the Consumer Price Index (CPI) data was released, but, after a couple of hours, rallied back to make up the losses and continue higher. The broader stock market indexes closed higher. The Nasdaq Composite ($COMPQ), S&P 500 ($SPX), and Dow Jones Industrial Average ($INDU) had a very wide range day, with the Nasdaq ahead of the pack closing higher by 2.17%....
In this exclusive StockCharts TV video, Joe discusses why he is a bottom-up technical analyst. He explains the difference between top-down and bottom-up analysis and uses this to show the strongest sectors rotating to the upside right now; this approach will help give advance notice of which areas to focus on before they become obvious to the masses. He also discusses market volatility and why it is looking rather concerning. Finally, he goes through the...
In this video from StockCharts TV, Julius takes a look at rotations in an asset allocation RRG. He compares fixed-income-related asset classes, commodities, the US dollar, Bitcoin and stocks to a balanced portfolio of 60% stocks/40% bonds. The long-lasting outperformance of stocks seems to be coming to an end. This assessment of asset allocation is then followed by a look at S&P 500 sector rotation using Relative Rotation Graphs broken down into three groups —...
The Real Estate sector took the lead in Tuesday’s trading, probably because interest rate cuts are approaching. Technology and Consumer Discretionary took second and third place, respectively. Overall, it was a pretty quiet trading day except for the energy sector, which showed the biggest decline. The Energy Select Sector SPDR Fund (XLE), the StockCharts proxy for the Energy sector, declined 1.75%. FIGURE 1. SEPTEMBER 10, 2024 MARKETCARPET. Real Estate was the leading sector, followed by...
Perhaps no other industry in the world is more synonymous with risk and emergent (R&D) developments like biotechnology. While the information technology sector has been a dominant driver on Wall Street since the big tech revolution in the 2000s, biotech, a subset of the healthcare sector, took a sharp nosedive during the pandemic in 2020. By 2020, 80% of all biotech companies were losing money. Near-zero interest rates made it easy for biotech companies to...
The recent decline last week revealed that the artificial intelligence bubble is deflating. Magnificent Seven stocks are unwinding in response to investors losing confidence in the AI trade in general. Carl gives us a complete picture of the Magnificent Seven in the short and intermediate terms. It doesn’t look very good. Carl also gives us insight on the condition of Intel (INTC) which has been discussed as a good reversal candidate. Carl gives us his...
Good morning and welcome to this week’s Flight Path. Equities flashed an uncertain “Go Fish” bar at the end of the week as the markets became even more unsettled. Treasury bond prices remained in a “Go” trend and saw that trend was strong for almost all of last week. U.S. commodity index remained in a “NoGo” painting strong purple bars the entire week and it was no picnic for the dollar either. The greenback saw the...
Any strategy that trades stocks needs some sort of market timing mechanism to identify bull and bear markets. Typically, stock strategies are fully invested during bull markets because risk is acceptable. Strategies move to cash during bear markets because risk is above average. Preserving capital during bear markets is important to long-term outperformance (see SystemTrader). Here is a simple idea for a market timing mechanism. First, use the S&P 500 SPDR (SPY) to represent the...
Much like the southeastern portion of the U.S. frets over the potential of devastating hurricanes, stock traders and investors brace for their own financial hurricane this time of year. Last week, we saw the NASDAQ 100 ($NDX) tumble, dropping nearly 6% during a holiday-shortened trading week. This isn’t unusual. The NDX has lost ground during September in 9 of the past 12 years: Look at those average monthly returns for each calendar month over the...