Multiple Time Frames and Overextended Amazon
Last week on The Final Bar, one of our Mailbag questions related to Amazon.com (AMZN) and how far it has reached above its 200-day moving average. This phenomenon speaks to the long-term strength of AMZN’s price movements, the short-term overreaching of the price since the March market low and the high likelihood of further upside for the stock.
Bearish Divergences Abound in Nasdaq 100 Index
Today’s chart is the Nasdaq 100 index, and the focus is on bearish divergences. A bearish divergence is when you have higher highs in price and lower peaks in momentum, in this case in the form of RSI.
Key Breadth Measure Not Bullish Yet
The essence of market breadth is to see how the stocks that comprise a benchmark are performing relative to the benchmark itself.
Three Stocks That Tell You Everything
I've often said that by looking at individual stocks, you can get a deeper level of understanding of what's moving the overall equity markets.
Consumer Ratio Says Offense in Play
I love to use the Consumer Discretionary vs Consumer Staples ratio as a way of gauging offense vs defense in the equity markets. The top panel shows the ratio of the XLY (Consumer Discretionary Sector SPDR) versus the XLP (Consumer Staples).
Market Breadth Begins to Turn Negative
Market breadth at a high level essentially means market participation, so when the market is on the move, it tells you how many stocks are participating in the trend.
One Chart: Small Caps
I love to ask interviewees if they had one chart to get a good read on the overall market environment, what would it be and why? My One Chart for today is IWM, the small cap ETF.
One Chart: Health Care
The chart of Health Care (XLV) is interesting first and foremost because it is a sector that has been remarkably resilient.
A Failure of Imagination
Crude oil went below zero dollars yesterday and eventually reached -$40 a barrel. I wanted to focus not necessarily on what this means for investors, but on what it means psychologically when something goes beyond a barrier you think is unbreachable.
Overcoming the Endowment Effect
Given the uncertainty in the world right now both in the markets and with life in general, I seem to be getting more questions than usual submitted to the mailbag for The Final Bar on StockCharts TV. We run a mailbag segment twice a week, and it’s really a great opportunity for me to help people along in their journey of navigating the markets.
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“Those who can not remember the past are condemned to repeat it.”