Charting Stocks

When we wrote “Inflating a Bull Market,” we mentioned the inverse relationship between the US dollar and stock prices. In March, the US dollar peaked from overbought levels and began to decline. At the same time stocks bottomed from oversold levels and began to move up. The reason is simple – Stocks are priced [...]

We’ve written about the relationship between US equities and the US dollar. Stocks bottomed in March and began to move up as the US Dollar topped during the same time and began to move down. Todays market selloff came as an oversold dollar (short term) found buyers.
If the dollar continues this advance, US equities should [...]

Much has been made over the recent stock market rally. The advance from the bottom has, indeed, been historic and has caught many of us by surprise. Though the market was extremely oversold and due for an upward correction, we continue to be  amazed at its strength and longevity.  A closer examination, however, reveals that [...]

It was only a month ago when Citigroup CEO Vikram Pandit assured the public that his troubled bank was “Profitable” for the first 2 months of 2009. The news sparked an immediate rally which lifted the oversold stock market from its March lows. We, at Charting Stocks, did not share in the new found optimism [...]

“Sell in may and walk away” is an old saying on Wall St. The stock market tends to experience periods of relative under and out performance based on seasonality. From 1897-2008, for example, the average return of the DJIA is 4.6% between November to April, while only averaging 2.5% (Almost half) between the months of [...]

Much has been made (mostly by the mainstream media) over the recent rally in the Dow Jones Industrial Average. Many of the usual suspects, including those that have been wrong for the past 3 years, have been quick to call a bottom. We, as technicians, tend to pay little attention to CNBC, Fox Business, etc. [...]

The once over-sold stock market has rallied for the past couple of weeks. This rally, though fresh in all of our minds, is not much different in time, or magnitude, than the previous upward corrections throughout this bear market.

The Dow Jones Industrial Average rose almost 240 points (3.5%) today. As mentioned in a previous post, large daily percentage gains are more consistent with bear markets than bulls. Todays rally was led by banks and REIT’s,  two of the most beaten up and oversold sectors – also consistent with a bear market correction.
Below is [...]

In this 2006 interview with Jim Cramer, the Mad Money host admits to market manipulation while running his hedge fund. He calls it “a fun game, and it’s a lucrative game,” while suggesting that other hedge fund managers should do the same. He goes on to say that “No one else in the world would [...]