Wow what a weekend! Thank you all so much for your support.
We had 10,000 people register for Chart Summit, our Live Virtual Technical Analysis Conference. There were over 30 presentations and we raised over $50,000, just on the first day, to help fight COVID-19. You can still donate here.
We made it really easy to access the videos and organized them so you can go back and watch whenever you want. Just go to Chartsummit.com and click Watch The Videos and you're on your way!
There's been an ag-gravating pattern of behavior torturing bulls in the Agricultural Commodity space, so this educational piece will highlight the conditions that got us here and also outline a new trade idea.
Relative strength is one of our primary tools as Technicians, but we're not talking about the Relative Strength Index.
Instead, we're talking about the relative performance of one security relative to another. By identifying those assets that are outperforming or underperforming, we know which have institutional support and which do not. Institutions are looking for relative strength and momentum
Much like the Relative Strength Index, we utilize this tool as a confirmation tool for price. When relative strength diverges from price, we can identify potential turning points in the trend.
With over 5,000 ETFs trading globally, there have never been more vehicles out there for a market participant to choose from, each with their own spin on a traditional asset.
Today I want to take a look at two WisdomTree ETFs that put what's becoming an ever-more popular spin on the vanilla Emerging Market and China indexes out there.
Although I'll briefly discuss the goal/methodology of these vehicles, our primary goal is to look at them from a Technician's perspective. What does this ETF's construction mean for the underlying holdings and exposure it's providing, and more importantly, its effect on price action?
We often get questions about what levels we're watching or what our stop is, but in truth every market participant has different timeframes, objectives, and plans for how they'll manage their portfolios. It's impossible to answer properly without knowing all of that information.
With that being said, any market participant can identify various levels at which the dynamics of the asset they're trading have changed.
Today I want to walk through an example using the Japan ETF (EWJ) showing how we'd go about identifying those changes through price action and momentum.
This week I saw two different charts floating around that I thought deserved a second look based on how they were presented and what their ultimate conclusion was.
The first has to deal with the underperformance of the Equal-Weighted S&P 500 Index, while the second looks at High Dividend Factor ETFs that have gone off the beaten path.
I can't believe I'm publishing the 100th Episode of this podcast that I started in the summer of 2017. My first guest ever was Ralph Acampora! I mean, how could it not be right? Since then I've had the privilege of interviewing Portfolio Managers, Traders, Analysts, Best Selling Authors and even a World Series of Poker Champion! People all over the world have approached me how much they've learned from listening to the podcasts. It's been an amazing experience for me all around.
There are a lot of people out there who would rather fight trends than take advantage of the ones that are already in place. The idea is they are always looking for the reversion to the mean. And while some think prices always come back to the mean, it's often forgotten that the mean can also catch up (or down) to price. I learned this lesson the hard way in 2013 and it has served me well ever since. This episode is short and sweet but I think adds a tremendous amount of value.
When I asked Phil to comment on the subject, he said, "Give me someone who can adapt, someone who is flexible over someone who is a rocket scientist any day because I can teach him to ignore that voice inside his head telling him that breakouts must revert.
