We often hear about Japanese Candlesticks? But what’s the difference between a hollow candle and a filled one? What do these colors represent?
This explanation is taken directly from Lesson 1 from the Allstarcharts Charting School: [Read more…]
Expert technical analysis of financial markets by JC Parets
by JC
We often hear about Japanese Candlesticks? But what’s the difference between a hollow candle and a filled one? What do these colors represent?
This explanation is taken directly from Lesson 1 from the Allstarcharts Charting School: [Read more…]
by JC
Why does Technical Analysis work? Because markets trend. No one can argue that. I don’t care who you are. And what do we do as technicians? We look for trends!
I was recently a guest on the Trends With Benefits show. It’s the perfect name for a podcast about the stock market, especially when you invite someone like myself, who is constantly looking to benefit from underlying trends in the market.
In this conversation, we talk about our Top/Down approach to the stock market. Ed asks me about why we were selling stocks and buying bonds weeks before the stock market crashed. So I tried to explain the things we saw, both from a breadth deterioration standpoint and all the intermarket relationships that had been pointing to buying bonds, raising cash and selling stocks coming into February.
In the second half of the show, I’m asked about a few more personal things like wine, my experiences traveling overseas and some of the biggest trends I’m seeing around the world.
I really enjoyed this conversation. Give it a listen. It’s a short one, but I think we hit on a bunch of good points! [Read more…]
From the desk of Steve Strazza @Sstrazza
For the week ended Friday, May 15, 2020:
Every weekend we publish performance tables for a variety of different asset classes and categories along with commentary on each.
This week’s main theme is that the strong continue to get stronger and vice versa, which we’ll highlight in our Industry and Sector ETF tables, below.
by Tom Bruni
Earlier this month we outlined the “Five Bull Market Barometers” we’re watching to identify the beginning of a new bull market in stocks.
In this post, we’ll update those charts without going into as much detail as to why they’re important. So if you haven’t read our initial post linked above, we’d encourage you to check it out.
With that said, let’s jump in and see how these charts have developed since.
by Tom Bruni
This is our monthly conference call for All Star Charts India Premium Members where we discuss ongoing themes throughout the Indian Stock Market. We employ a top-down approach and consider the global behavior of the four primary asset classes: Fixed Income, Currencies, Commodities, Equities, before moving into Indian stocks.
From a stock market perspective, we begin by analyzing all of the Nifty Major and Sector/Thematic Indexes, as well as some of our own custom indexes that help us understand how the average Nifty 500 stock is performing. After identifying the clearest trends at the index level, we outline which stocks are best positioned to take advantage of those trends.
By focusing on the core tenets of momentum, relative strength, and market trend, we put the probabilities of success increase on our side. We’ll do our best to lay out our weight of the evidence conclusions and walk you through the steps of how we got there!
This month’s Conference Call will be held on Tuesday, May 19th at 7:00 PM IST. If you can’t make it live, the video of the call will be archived in the member’s section to re-watch any time and a PDF of the charts will be made available as well.
Here are the Registration Details: [Read more…]
From the desk of Steve Strazza @Sstrazza
This week’s Mystery Chart was a simple yet pivotal one… it was a ratio chart of Stocks vs Treasury Bonds.
With stocks struggling at resistance this week and Treasuries meandering beneath all-time highs, both appear to be at key inflection points.
Making things even more interesting is that the S&P 500 (SPY) relative to 20+ Year Treasury Bonds (TLT) ratio is also at a key level of interest. It is make-or-break time for these two asset classes so let’s dive in and see what’s going on.
From the desk of Steve Strazza @Sstrazza
Breadth divergences from earlier this year took a while to confirm, but once they did we saw considerable downside.
My Chart Summit Presentation was on how I use statistics and scans to visualize market internals for insight on breadth and relative strength. I used tables from our Weekly Momentum Reports in January and February to illustrate the clear deterioration in participation taking place at the time despite the major indexes grinding to new highs.
In this post, we’ll do a similar exercise and use stats to analyze whether breadth has been improving or deteriorating in Global Equity Markets over the past month.
by Tom Bruni
Vedanta Ltd. has begun the process of a voluntary delisting of its shares from the public exchange, with the promoter group planning to buy out the remaining ~49% of non-promoter shares it doesn’t currently own.
We spoke about Vedanta Ltd. in our Chart Summit India presentation last month as a stock setup we liked on the long side, so given this news, we wanted to revisit that setup and see what lessons could be taken away and applied in future situations like this one.