Growth vs Value Rotation, the pendulum swings again Relative Rotation Graphs (RRG) are not only good for visualizing sector rotation, but they are also valuable tools for visualizing other market dynamics. For example, the relationships between Growth and Value stocks or Large-cap vs. mid- and Small-cap stocks and the combination of these two breakdowns of the market. The pure growth-value ...
Industrials (XLI) benefited greatly from the “Trump Trade”, but fell back to digest the gap up rally. It rallied again but failed after overcoming overhead resistance at the prior November top. Now it is pulling back once again and that has formed a bearish double top formation. The bearish double top’s minimum downside target would bring price down to the ...
The secret sauce of 1-2-3 investing is quite simple: don’t skip Step 2. Far too many investors who’ve succeeded in creating wealth are anxious to rush forward with “all gas, no brakes” to embrace the excitement of Step 3 – Asset Growth. Only in retrospect do they so often discover the hard way that the essential connective tissue between asset creation and ...
Could we see a short-term shift towards defensive sectors? Real estate? Utilities? I haven’t uttered these words in awhile. And why should I as our major indices have forged into new all-time record high territory? Well, I’m only talking about very near-term, maybe the next 1-3 weeks? I wouldn’t change a thing as a long-term investor, I’d simply stay the ...
My recent discussions on the Market Misbehavior podcast have often included some comments on the interest rate environment, particularly the shape of the yield curve. We’ve had an inverted yield curve since late 2022, and so the yield curve taking on a more normal shape could mean a huge tailwind to certain sectors and groups. When the Yield Curve is ...
The broader stock market indexes sold off slightly ahead of the November Non-Farm Payrolls data, which will be released Friday morning. Depending on which way the data goes, the market could sell off further or continue its bullish ride. If the market sells off, which stocks are flashing buy signals? To help me identify stocks to watch, I ran my StockCharts ...
As part of your daily trading routine, you likely start the day by checking the news and stock prices to identify potential market opportunities. However, as you already know, news and price performance can only give you a snapshot context—a starting point for a much more thorough analysis. Financial media often highlights the price performance of notable stocks, but understanding ...
In this exclusive StockCharts video, Joe uses long-term views of the S&P 500 to explain how the market is positioned as we move into 2025. He uses Yearly and Quarterly Candles and describes why there is a risk of a pullback next year, and he also covers the recent strength in some of the Mag7 stocks. He presents some attractive ...
When it comes to the stock market, each day is unique. As a result, it’s easy to get distracted and look from one area to another based on whims, which can leave you confused and unable to make any decisions — thus putting you in the dreaded state of analysis paralysis. And while going down that rabbit hole, you’d have ...
When going through your morning trading routine, you’re likely to tune into the news for unfolding events, run technical scans, check sentiment and breadth indicators, and utilize any other tool that can provide a snapshot of what’s going on “now” before or during the market’s opening hours. After all, each day presents something new. But what if a stock makes ...