That’s a great question right now as many folks still remain quite nervous. The Volatility Index ($VIX), for example, gained more than 10% today, despite a minimal decline in the S&P 500. It’s a signal that the stock market likely won’t handle bad news very well. Next week, we have the September nonfarm payrolls. And earnings season is set to kick off in just a couple weeks, when the banks begin reporting. Could we see...
There’s one trading day left for the month of September. Unless something drastic happens over the weekend, the stock market looks like it has bucked the September seasonality pattern of being the worst trading month for equities. That’s not to say seasonality doesn’t work; in the early part of the month, after all, there was a dramatic pullback. But the stock market has recovered and is now moving higher. A handful of data this week...
As we near the end of what has been a fairly solid Q3 for the equity markets, we are left with the eternal question for investors: “What’s next?” We now have the Fed’s first rate cut in the rearview mirror, with multiple rate cuts expected into early 2025. We also have a highly contested election season, a rapidly escalating situation in the Middle East, and earnings season which is only a couple weeks away. The...
On Friday mornings in our DP Diamonds subscriber-only trading room, the DecisionPoint Diamond Mine, I like to look for a “Sector to Watch” and an “Industry Group to Watch” within. These are for your watchlist and not necessarily ready for immediate investment. In the case of this week’s Sector and Industry Group to Watch, we will need to take our cue from Monday’s trading to know if this area of the market will thrive. I...
A few weeks back, two gold mining ETFs made it to the top 10 of the StockCharts Technical Rank (SCTR) Report, and they’re still holding strong. Given the low trading volume in these ETFs, a more tradable alternative is the VanEck Vectors Gold Miners ETF (GDX), which still has a high SCTR (pronounced “scooter”) score. As of this writing, it’s at 98. Looking back, how did GDX perform? It helps to revisit the article, which...
Despite a backdrop of conflicting market signals, there are still sectors within the S&P 500 that are showing promising movements and potential opportunities for investors. Today, I’d like to highlight two sectors in the S&P 500 that are worth a closer look: Industrials and Materials. The market’s mixed signals The S&P 500 has recently broken above its resistance, a move that has been met with some skepticism due to the negative divergence observed between the...
China’s injection of additional fiscal stimulus into its economy injected more optimism into equity markets. This sent share prices of Chinese stocks exploding to the upside once again. So it shouldn’t be surprising that the iShares China Large-Cap ETF (FXI) made it to second position in the StockCharts Technical Rank (SCTR) Report US ETFs Top 10 category. In addition, US equities, commodities, and cryptocurrencies soared, similar to the price action of the last couple of...
In this exclusive StockCharts TV video, Joe presents an introduction to the Average Directional Index (ADX), sharing how it is calculated and how to use it. He highlights some of the strengths, and weaknesses, of this powerful indicator. He then analyzes Bitcoin, NVDA, and AVGO, and finishes up the show with a number of symbol requests from viewers. This video was originally published on September 25, 2024. Click this link to watch on StockCharts TV....
Tuesday’s news from China pushed stocks, commodities, and crypto prices higher. China’s central bank, the People’s Bank of China (PBOC), took steps to revive its economy and increase consumer demand. These steps include plans to cut interest rates, lower reserve requirements for banks to support lending, provide special funds to allow companies to buy stocks, lower interest rates on existing mortgages, and reduce the downpayment for second homes. This is a big move by the...
In this video from StockCharts TV, Julius assesses current rotations in asset classes and US sectors using Relative Rotation Graphs, finding a lot of contradictory behavior. Taking a step back, he focuses on the weekly timeframe to find some more meaningful trends and shy away from day-to-day noise. He then compares the current rotations and setups in price charts with those that occurred at the end of 2021 and moving into 2022, noting some strong...
