JC, Author at All Star Charts Page

Brazil Is Breaking Out Above Key Resistance

April 14, 2016 by JC

Once a week I do my Global Macro review where I annotate and take notes on every country’s index around the world. This analysis is on multiple timeframes so we focus on both the weekly timeframe going back 7-10 years and the daily timeframe over the past 6-12 months. The weekly charts are designed to get structural perspective while the daily timeframes are more for short-term to intermediate-term execution.

In this week’s analysis, Brazil stands out as it gets back above the late 2008 lows. Over the short-term, Brazil has been a favorite long of ours since it first got back above the September lows. There was a major theme among global stock indexes, particularly in Latin America, where prices were getting back above previous lows in late January and early February. We saw a monster move higher in Brazil since then, as we did in Peru, Chile, Colombia, Mexico, etc: [Read more…]

[Premium] Monthly Conference Call Video Recording April 2016

April 13, 2016 by JC

Here is the video recording of the April 2016 Monthly Conference Call for Members Only

In the call we discuss:

When Do We Get Short The U.S. Stock Market?
Will Emerging Markets Continue to Outperform the U.S.?
What is the Trade in Ags? $DBA Coffee, Cotton, Soybeans, Corn, etc
How Do We Profit In Precious Metals? Gold, Silver or Both?
Trades: $AAPL $TWTR $GPRO $FB $GDX $XBI $UA $DIS $GE
How Low Can Interest Rates Go? Do We Buy Bonds? [Read more…]

Why I Use Japanese Candlestick Charts

April 13, 2016 by JC

There’s an old Japanese proverb that says,

If you wish to know the road, inquire of those who have traveled it

Technical Analysis is relatively new to us in the Western world. Charlie Dow originally wrote down his principles towards the end of the 1800s. But technical analysis can be traced all the way back to early 18th Century Japan when the Dōjima Rice Exchange began to issue and accept rice warehouse receipts. These rice receipts were essentially the first futures contracts ever traded. My man Munehisa Homma originally started trading at his local rice exchange in the port city of Sakata. This is why you frequently come across the “Sakata Rules” regarding Japanese Candlesticks. After Homma dominated his local markets, he went to trade in what today we call Tokyo. In order to learn about the psychology of investors, Homma analyzed prices on the rice exchanges going back to the 1600s. [Read more…]

BNN Appearance: It’s Not About Being Right, It’s About Making Money

April 12, 2016 by JC

This week I was over at the Nasdaq in Times Square discussing the current market environment with Frances Horodelski on Canada’s Business News Network. The weight of the evidence is suggesting a cautious stance up here after all of our upside targets have been hit in recent weeks. Remember, we’ve been bullish stocks, globally since late January, and in the U.S. since early February. When our upside objectives are hit, it’s time to reevaluate. That’s what we’re doing now. [Read more…]

[Premium] Members-Only Conference Call Wednesday April 13 at 7PM ET

April 11, 2016 by JC

Every month I host a conference call for All Star Charts Members where we discuss ongoing themes throughout the global marketplace as well as changes in trends where new positions would be most appropriate. This includes U.S. Stocks & Sectors, International Stock Indexes, Commodities, Currencies and Interest Rate Markets.

This month’s Conference Call will be held on Wednesday April 13, 2016 at 7PM ET.

In this month’s premium members conference call, we will discuss the following topics: [Read more…]

[Chart Of The Week] The Best Market Neutral Trade In the U.S.

April 8, 2016 by JC

We’ve had a heck of a rally in stocks over since late January, led by emerging markets, energy and metal stocks. Starting in mid-February the U.S. and other developed nations got the memo and started to play catch-up. We couldn’t be happier with the performance of the stock market since then. But over the past couple of weeks all of our upside targets have been hit; all of the U.S. Indexes and sectors and about 90% of global indexes. So I’ve therefore been pretty neutral towards stocks since late last month, but I finally turned more bearish earlier this week.

Here is a market neutral trade that I think is definitely worth paying attention to. Whether you’re bullish or bearish, this breakout is not something we should ignore:

[Read more…]

[Premium] Weekly Open Letter About The Current Market Environment

April 7, 2016 by JC

In this week’s members-only letter we discuss the following topics:

At What Levels Do We Want To Be Short The U.S. Stock Market?
Gold vs S&P500 – What Side Are You On?
The Trade In Financials And Technology
How Low Can U.S. Interest Rates Go?
The Best Way To Profit From A Rising U.S. Dollar
How Will This Yen Rally Impact Global Equities?
Where Do We Take Profits In Biotechnology?

[Read more…]

Here’s Why General Electric Is A Short

April 5, 2016 by JC

I think there is a nice shorting opportunity in General Electric that we can take advantage of this month. There’s nothing better than making money when a stock is falling. The reason is because stocks tend to move a lot faster on the way down, than on their way up. It’s the old, Escalator Up & Elevator Down behavior.

The way I see it, $GE hit our upside target of $31 last November, so there’s been no reason to own it. This target is based on the 161.8% Fibonacci extension of the massive consolidation throughout 2013-2015. Here is a weekly chart showing prices getting up there, pulling back in December and January, and now more recently rallying back up towards that $31 level and beyond: [Read more…]