- Posted by JC Parets on March 25th, 2015 at 10:55 am
Okay, so maybe the whole world isn’t watching the New York Stock Exchange Composite Index. But they should be. While everyone is busy arguing about rate hikes and greece and at Nasdaq 5000, the real breakout we should be discussing is what is likely to occur in the good ol’ NYSE Composite. You see, this is a market-cap weighted index, meaning that the largest companies represent a larger percentage of the components in the index. While many of the popular indexes are similarly weighted, more than half of the biggest 100 companies in this particular index are based outside of the United States.
The global implications of a breakout in the NYSE Composite Index could be massive. We’re not just talking about a breakout in U.S. small-caps or mid-caps, we are talking about a much more international index with companies based all over. Here is what the chart looks like:
The way I see it, the more times that a level is tested, the higher the likelihood that it breaks. It’s like if you punch someone enough times, maybe the first few times they can take it, but if you keep hitting them, eventually they will fall. It works the same way in the markets. We are patiently waiting for an upside resolution here. If we are to break out above all of this overhead supply, globally it would make it hard to be bearish bigger picture.
So maybe the whole world isn’t watching this. But perhaps they should be.
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Crude Oil To $70 In the Second Quarter?
Posted by JC Parets on March 20th, 2015 at 12:03 pm
Since the oil crash first began last summer, I have constantly been asked how low I think Crude Oil prices could go, and especially so […]
Fox Business: Social Media Stocks Break Out
Posted by JC Parets on March 20th, 2015 at 9:00 am
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CNN Money MarketMadness Stock Challenge
Posted by JC Parets on March 19th, 2015 at 12:14 pm
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Posted by JC Parets on March 19th, 2015 at 11:46 am
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Posted by JC Parets on March 17th, 2015 at 1:56 pm
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Posted by JC Parets on March 12th, 2015 at 11:20 am
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Posted by JC Parets on March 10th, 2015 at 1:58 pm
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Taking The Time And Avoiding Shortcuts
Posted by JC Parets on March 6th, 2015 at 6:30 am
Over the years I’ve been fortunate enough to be asked to speak and different events and conventions. One of the themes that I’ve been noticing […]
Is Twitter Stock About to Break Out?
Posted by JC Parets on March 3rd, 2015 at 11:05 am
Since the initial peak after its IPO in 2013, shares of Twitter have been trending lower, well-defined by a series of lower highs. Over the […]
J.C. Parets is the Founder & President of Eagle Bay Capital, LLC. He is a 10-year veteran and Market Technician who actively manages money incorporating Technical Analysis and Behavioral Finance into his practice. JC’s work has been featured regularly on CNBC, Fox Business, Bloomberg, Business News Network, Wall Street Journal and Yahoo Finance among many other financial media outlets. More...
- The Chart The Whole World Is Watching
- Crude Oil To $70 In the Second Quarter?
- Fox Business: Social Media Stocks Break Out
- CNN Money MarketMadness Stock Challenge
- Social Media Stocks Are On Fire
- About That Outperformance From The Dow Jones Transportation Average
- Some Thoughts On The US Dollar
- Small-Caps Could Be Emerging As New Leaders
- Taking The Time And Avoiding Shortcuts
- Is Twitter Stock About to Break Out?
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