Expert technical analysis of financial markets by JC Parets
From the desk of Tom Bruni @BruniCharting
Thank you to everyone who responded to this week’s mystery chart.
A lot of mixed responses on this depending on their timeframe. Some were shorting the failed move and seeing how it developed, while others were patiently waiting for another breakout attempt to get long.
With that as our backdrop, let’s take a look at this week’s chart. [Read more…]
I had a great day in New York City Wednesday. Good meetings, good eats and good people.
BNN Bloomberg was nice enough to invite me on their network to talk charts.
Catherine and I discussed some of my favorite sectors and industry groups. We went over the macro picture and beginning of this new bull market for stocks.
Most importantly, in my opinion, we went over what it would take for us to get more defensive, at least in the near term.
Here’s the interview in full: [Read more…]
So we’ve been keeping an eye of the Broker/Dealers space, and one of the names we have a close eye on has triggered our entry. Here’s Bruni:
Intercontinental Exchange ($ICE) is consolidating tightly since August and now pressing up against all-time highs. A breakout above 95.50 would signal the continuation of its long-term uptrend and target 103.50 over the next 3-6 months.
Today, we’re getting that breakout above 95.50: [Read more…]
Join me Thursday, January 16th at 8:00 PM EST for a free LIVE online presentation. I’ll walk you through my stock selection process and share some of my favorite trade ideas for the new year. Click this link to register before spots run out!
From the desk of Tom Bruni @BruniCharting
New Mystery Chart!
For those new to the exercise, we take a chart of interest and remove the x/y-axes and any other labels that would help identify it. The chart can be any security in any asset class on any timeframe on an absolute or relative basis. Maybe it’s a custom index or inverted, who knows!
We do all this to put aside the biases we have associated with this specific security/the market and come to a conclusion based solely on price.
You can guess what it is if you must, but the real value comes from sharing what you would do right now. Buy, Sell, or Do Nothing?
From the desk of Tom Bruni @BruniCharting
This week’s talk of the town is how Financials, particularly Regional Banks, are rolling over relative to the rest of the market at a faster rate than the Yield Curve is rolling over.
While that’s certainly something worth noting, Financials as a group don’t really become that interesting until they break out to new all-time highs.
The XLF is close, but not there yet.
Instead, I think the focus should be on the Broker-Dealers & Exchanges ETF (IAI) as it presses up against all-time highs of its own.
Let’s take a look at what’s happening.
From the desk of Tom Bruni @BruniCharting
The dash to trash is a big theme in the first two weeks of 2020, with names like Beyond Meat (BYND) and other beaten-down IPOs from the last year catching a bid and working their way higher.
We’ve been focusing a lot on the Marijuana sector over the last month because the ETF and many individual names are at levels where it would be logical for a reversal higher to begin.
Today we want to reiterate that potential and highlight two of the largest stocks in the space that are both liquid and offering a skewed reward/risk at current levels.
Sometimes the greatest things in the world are right there in front of you.
Of all the charts I look at and indicators that we include in our process, Consumer Staples relative to the S&P500 has to be one of the most valuable. And for that matter, one of the more simpler tools to use.
Consumer Staples are the things we’re theoretically going to buy even if there’s a recession or the economy is doing poorly. No matter how bad things get, we’re still going to drink beer, smoke cigarettes, brush our teeth, wash our dishes and so forth. Those stocks tend to outperform when the rest of the stock market is falling. Some of the top holdings of the S&P Consumer Staples Index include Colgate-Palmolive, Philip Morris, Procter & Gamble, Coca-Cola and Pepsi.
These stocks represent consumer staples and tend to pay higher dividends and are less volatile than the overall market. We call that “lower beta”, because it makes us sound smarter.
Anyway, you can see in this chart how helpful the relative strength in staples has been in identifying trends and turning points: [Read more…]
