If the worst is over for the stock market, then definitely one of the areas we want to be getting long is the medical devices sector. There are a lot of stocks here that have shown relative strength and are at or near all-time highs. If US stocks go...
You know what is not a characteristic of a downtrend? All-time highs!
Friday afternoon, the Medical Equipment Index went out at new all-time weekly closing highs relative to the S&P500. We look to relative strength as a leading or...
There is a reason why Medical Equipment stocks look like Tech stocks and not the rest of Healthcare. They're essentially tech stocks trapped in the body of a healthcare stock. Although they are indeed in the Healthcare space, we need to recognize how...
We're about five weeks out from the start of Carnival in Rio de Janeiro, but the Brazilian stock market ETF $EWZ looks like it wants to get a head start on the party. And its one of the few places in the Western hemisphere pricing in muted...
Tuesday I posted a mystery chart and asked you all to let me know what you would do. Buy, sell, or do nothing. Many said that it looked like the long-term downtrend...
When you hear people talking about Dow Theory, it usually revolves around what the Dow Industrials and Transports are doing and whether they are diverging or confirming one another. I want to be perfectly clear that while this is certainly one of...
Tuesday was only one day but it felt like it may have offered us a clue. The major indices — S&P 500, NASDAQ, Dow, Russell 2000 — all experienced notable pullbacks. Perhaps the first notable pullbacks we’ve seen in at least two weeks....
There are many ways to gauge the strength or weakness of the U.S. Stock Market. For us, there isn't a single "best way" to do it. The advantage we have is that we just analyze all of them. There are over 50 charts in my...
We’ve had quite a bounce in US equities since the beginning of the year. And the longer this bounce holds, the more appealing the long side gets. However, it still doesn’t alleviate the very real risk that we might be in what could best be described...
Picking tops and bottoms in the market is really hard. Some people claim they can do it and we'll let them. It's those types of people who help create the arbitrage between the aware and the unaware.
Tuesday I posted a mystery chart and asked you all to let me know what you would do. Buy, sell, or do nothing. Many said that it looked like a downtrend and that a neutral/...
While I'm still not convinced we've seen "the" low in the recent correction/bear market, the recent daily price action of the indices sure is doing its best to chisel away at my resolve. And it at least has me considering adding some long exposure to...
When it comes to stock market bellwethers, I can think of very few that are as important as J.P. Morgan Chase. If you look at a chart of the S&P500 going back decades and a chart of the JP Morgan, they look exactly the same. This brings me to our...
One of my favorite exercises in our process is the use of "mystery charts." Essentially, we take out the x and y-axes and and all labels to eliminate any biases. The chart can be any security...
