The mean reversion we outlined a few weeks ago has been playing out, but now the major indices are running into sellers at very logical levels.
With that said, one area looks particularly vulnerable at current levels, Pharma.
Expert technical analysis of financial markets by JC Parets
by Tom Bruni
The mean reversion we outlined a few weeks ago has been playing out, but now the major indices are running into sellers at very logical levels.
With that said, one area looks particularly vulnerable at current levels, Pharma.
by Tom Bruni
From the desk of Tom Bruni @BruniCharting
We look at a lot of charts every week, so it’s not surprising that we often come across charts that look “too simple.”
A setup we’ve seen thousands of times or a trend that’s reaffirmed itself time and time again, yet I always find myself being skeptical of a chart that looks textbook in nature.
Today I want to take a look at one of those charts.
by Tom Bruni
From the desk of Tom Bruni @BruniCharting
There are a lot of messy charts out there, but we’ve been discussing the importance of having a global perspective and using weekly/monthly charts to stay focused on structural trends as opposed to the day to day noise/chop we’ve been experiencing.
Today we want to look at an area showing relative strength that’s still offering opportunities for those who need to put cash to work.
[Read more…]
by JC
When I go through my charts, I see all kinds of different trends, patterns and consolidations around the world. It really depends on what I’m looking at. However, one area that has been a consistent outperformer is in Medical Device stocks. The way I see it, these are just Tech stocks stuck in the bodies of Healthcare names. So our theme of “bullish tech” makes sense, even though on paper they’re Healthcare stocks. [Read more…]
by Tom Bruni
The major indices in India are stuck in “no man’s land” right now, making it a tough trading environment for many.
In this post, we’re going to take a quick look at what that means and how we’re approaching it.
by Tom Bruni
From the desk of Tom Bruni @BruniCharting
This week I’ve seen a chart of High Yield relative to Investment Grade Bonds floating around with various conclusions, but I wanted to use this to highlight some things to consider when using Bond ETFs as a proxy for what’s happening in the market it’s meant to track.
[Read more…]
by JC
Assets in the strongest uptrends not only do well on an absolute basis, they tend to outperform relative to their alternatives as well. In the case of the S&P500, with new all-time highs last month, we’ve just seen lower highs relative to both Gold and US Treasury Bonds. This is NOT evidence of a strong uptrend.
The question today seems clear to me: Is the underperformance of stocks relative to other assets “The Divergence” that we’ll point to in the future as the heads up that something was changing? Or will we get relative rotation back into equities and this was just a temporary blip while stocks consolidated their massive 2016-2017 gains? [Read more…]
by Tom Bruni
One of the most important concepts we talk about in Technical Analysis is confirmation.
Whatever thesis we have, we need price to confirm it before we can act…and if it doesn’t then we need to respect that and get out of the way.
Risk management is our main priority and two simple charts do a great job of highlighting why we wait for confirmation.