JC’s Chartbook

US Stock Market Indexes

This workbook of charts includes all of the major US Stock Market Indexes as well as some lesser followed Averages worth watching. In here you will find everything from the S&P500 and Dow Jones Industrial Average to the Russell2000 Small-cap Index and Value Line Arithmetic Index. The purpose of this workbook is to regularly analyze the entire list of important indexes representing US Stocks of all kinds.

US Sectors & Industry Groups

The Sectors Workbook is designed to go through all of the different industries throughout the stock market for a variety of reasons. First, in order to get a weight-of-the-evidence view of the market, you actually need to weigh all of that evidence. Going through every single sector lets you do that. This includes Financials, Energy, Biotechnology, Railroads and even sub-industry groups like Medical Device stocks or Casino & Gaming. From a relative strength standpoint, this workbook really helps us see where the strength is and which areas are weaker.

US Sectors Relative to S&P500

This is our Relative Strength Workbook. It’s very simple, but extremely helpful in the trend identification process. We take all of the sectors in the S&P500 and compare them with the overall market. It is done on multiple timeframes – weekly and daily charts – so it gives us both longer-term and short-term perspective on the relative strength or weakness in each sector of the stock market. You will find Financials relative to the S&P500 and Technology relative to the S&P500 until we go through all of them.

Dow Jones Industrial Average

This is one of the most underrated group of stocks in the world. If you want to know in which direction the US Stock Market is heading, look no further than its 30 components. In this workbook we go through each of the 30 stocks in the Dow Jones Industrial Average on both weekly and daily timeframes. This serves multiple purposes. First, if there are more good ones than bad ones, the Dow is probably not going lower. If there are more bad ones than good ones, it’s tough for the Dow to go up. It’s a weight-of-the-evidence tool. In addition, going through this group of stocks also helps us identify which sectors are showing strength and which ones are weaker, as these stocks tend to represent their peer groups.

Dow Jones Transportation Average

We include this workbook in our process for the same reasons mentioned in the Dow Jones Industrial Average workbook explanation. It’s the same concept, but just 20 Transportation stocks instead of the 30 in the Industrial Average. Both of these indexes tend to move together and when one diverges from the other, we are likely closer to a turning point. Making sure we stay on top of both the 30 stocks in the DJIA and the 20 stocks in this workbook representing the Dow Jones Transportation Average is one of the most important jobs as a stock market participant. Remember it’s a weight-of-the-evidence approach that we’re looking for.

Other Stocks of Interest

This workbook is designed to keep all of the most important stocks we want to follow that are not already included in the other workbooks we have like the Dow Jones Industrial Average, Dow Jones Transportation Average and Nasdaq 30. This includes things like $BABA $BAC $HON $MS $DB and others.

Market Internals

This workbook tracks the “market of stocks” that make up the major US Stock Market Indexes. We use a variety of custom indicators like “Breadth of Momentum”, as well as more traditional indicators like the Advance-Decline Line, New 52-Week Highs and Lows, and several others to determine the underlying strength or weakness of the current market trends.

Currencies

This workbook is specifically for all of the most important currency crosses in the world. Here you will find the ones in the US Dollar Index – Yen, Euro, Pound, Aussie, Canadian Dollar and Swiss Franc. In this workbook we also include a lot of these crosses against each other like Euro/Yen and Euro/Pound. Many of the important emerging market currencies like Brazilian Real and Indian Rupee are in this group of charts.

Commodities

The commodities workbook includes all of the Energy Futures, Precious Metals, Base Metals and Agricultural commodities. Here you will find Crude Oil, Gold, Silver, Corn, Soybeans, Lumber and Copper. The fact that we use multiple timeframes to get both longer-term perspective as well as a more short-term outlook gives us great opportunities on both the long and short side. It is great for diversification and uncorrelated positions. The unique advantages of the futures market also makes this group of charts very attractive from a risk vs reward proposition.

Bonds & Interest Rates

The Bonds Market is as big as it gets. To get an understanding of where money is flowing and why, we need to look at interest rates and the bond market. This workbook includes the U.S. 10-year yield, 30-year yield, all of the most important yield curves and the ETFs and futures contracts that correspond to each of these maturities. In addition to government bonds, we look at Corporate Bond Funds, Junk Bond Funds and the relationships between all of them. This workbook also includes foreign interest rates like Japanese, German and UK 10s.

International Indexes

The US Stock Market does not go up or down because of what happens in the United States. US Stocks and Stocks all over the world tend to move in unison, to a certain extent. No matter where you live in the world, I think it’s important to constantly be evaluating the entire list of stock market indexes from every country on the planet. That’s what this workbook is for. It is personally one of my favorite workbooks of the list. Few workbooks on this list offer as much insight as to what is actually happening in the market than this list. You will find everything from London, Brazil and China to South Africa, India, Poland and Germany.

Global ETFs

The Global ETF Workbook is a supplement to the International Indexes Workbook. There are some ETFs representing countries denominated in different currencies. Important ETFs like $EFA and $EEM are included in this group. But we also dive into many of the individual ones like South Korea $EWY, Brazil $EWZ and China $FXI. This group of charts gives us additional perspective to include as part of our international work.

Intermarket Analysis

This workbook is designed to keep together all of the most important intermarket relationships all over the world. The ratio charts included here compare asset classes, country stock markets and a variety of different sectors to one another. Here you will find anything from the Stocks vs Gold Ratio, to Consumer Discretionary vs Consumer Staples, Large-cap vs Small-cap, Growth vs Value and High Beta vs Low Volatility. We use this workbook to get a better idea of where money is flowing. By keeping this workbook up to date, we know in which assets or sectors the strength lies and where the weakness might be. It is great for asset allocation, portfolio management and overall gathering of the weight-of-the-evidence.

Gold Charts

This workbook has over 150 charts of the precious metals market. It includes the Futures like Gold, Silver and Platinum, but also the Gold Bugs Index and many of the ETFs that represent Gold stocks. There is a lot of intermarket analysis in this one, including pricing Gold in a variety of currencies including Euro, Yen, Zar, Pounds and Canadian Dollars. In this workbook you will also find all of the Gold and Silver Mining stocks from the major Mining Indexes like Silver Wheaton, Newmont Mining and Agnico Eagle.

Monthly Charts

The most valuable 30 minutes of my entire month is updating my list of monthly candlestick charts. There is no doubt in my mind. It is easy to get caught up in the day to day drama that they call the market, but this group of charts keeps us honest about the direction of the underlying trend. At the end of each month (and only at the end), do we look at the completed candlestick chart of all of the major Stock Market Indexes, Sectors and Stocks. We also include many important commodities and currencies in this list like Gold, Oil and EURUSD. When you spend 30 minutes each month (that is 12 times per year = 6 hours per year), you will quickly see how important it is do go through this process and how irresponsible it would be not to.

Investor’s Business Daily IBD50

This is a list of the IBD50 stocks, which are showing characteristics such as positive momentum and relative strength, among others. It is a great way to generate trading ideas in the strongest stocks in the United States, regardless of market capitalization. This is an amazing list and will be edited to include all changes in the IBD50 List.

Marijuana Industry

This workbook includes the charts of micro, small, mid, and large-cap stocks listed in Canada, the United States, and several overseas markets. Our universe consists of the constituents of the US-listed Alternative Harvest ETF (MJ), which seeks to provide exposure to the performance of a basket of securities involved either directly or indirectly in the Marijuana industry.

Canadian Stock Market & Sector Indexes

This workbook of charts includes all of the major Canadian Stock Market Indexes as well as some lesser followed Averages worth watching. In here you will find everything from the TSX Composite and TSX 60 Capped Index to the Equal-Weight TSX Composite and thematic indexes like The Equal-Weight Global Gold Index. The purpose of this workbook is to regularly analyze the entire list of important indexes representing the most liquid Canadian Stocks.

TSX 60 – All Stocks

Like the Dow Jones Industrial Average in the US, the TSX 60 is underrated in Canada. If you want to know in which direction the Canadian Stock Market is heading, look no further than its 60 components. In this workbook we go through each component on both weekly and daily timeframes. This serves multiple purposes. First, if there are more good ones than bad ones, the TSX 60 is probably not going lower. If there are more bad ones than good ones, it’s tough for the index to go up. It’s a weight-of-the-evidence tool. In addition, going through this group of stocks also helps us identify which sectors are showing strength and which ones are weaker, as these stocks tend to represent their peer groups.

Nasdaq 30 (coming soon)

The Nasdaq 30 is an index that I created where I equally-weighted the largest 30 components of the Nasdaq Composite. When you add up all of the market caps from this list, the Nasdaq30 alone represents over 50% of the entire Nasdaq Composite. So if you want to know which way this market is heading, these 30 stocks will give you a good idea of its direction. The approach we take with the Dow Jones Industrial Average as a weight-of-the-evidence tool is the same way we want to use this group of 30 Nasdaq stocks. There are only a few of them that overlap with a 30 Dow Jones Industrial Average stocks so it’s a nice addition to that list.

Equally-weighted (coming soon)

This workbook includes of all the most important equally-weighted indexes. We go through each of the indexes in both the U.S. and around the world on longer-term and shorter-term time horizons. This workbooks includes the Equally-weighted S&P500, Equally-weighted Nasdaq100, US Sectors, Canada, etc.