Charting Stocks

Both the Dow Jones Industrial Average and S&P 500 Index are trading below their 200-day moving average.  NASDAQ bucked the trend bouncing back above it 200-day MA.
Many analysts in the technical community were unsure if the ‘flash trade’ lows were actual prices which should be included in their analysis, or merely a ‘machine’ blip which [...]

Chart of the Dow Jones Industrial Average priced in ounces of gold since 1968. The data set used divides the DJIA annual closing price by that years average gold price. Because this is annual data, some of the extreme monthly readings are smoothed out.
The bottom, in our example, occurred in 1980 when the ratio was [...]

There have been a few bright spots in the current selloff. Short (Inverse) ETF’s, which move in the opposite direction of the underlying index, bottomed in April and have been rising since. Volatility, Treasuries and the US Dollar have also been moving higher. The Dollar, however, is overbought as discussed in this previous post.
Proshares Short [...]

There are some seasonal factors which tend to repeat themselves in the stock market. One of which is the sell off which normally begins during the month of May. We wrote about the May factor last year and, as with most seasonality factors (May effect, Jan. Barometer)  in 2009, it didn’t work. May 2009 ended [...]

Touted by Cramer and other mainstream media pundits as the “Hottest IPO of the Year,” A123 systems made its public debut in September 2009.  We, at ChartingStocks didn’t share in the hyped up optimism and suggested that our readers steer clear from this issue for reasons you can read about here.
GE subsidiary CNBC, tried awful [...]

Novell (NOVL) may be in the early stages of a strong multi-year move as the stock broke above a 6-year downtrend line on record volume. Momentum indicators appear to be turning up as well.
In early March, Novell stock surged on news that hedge fund Elliott Associates offered to acquire the business-software maker for $1 billion [...]

Any Questions?

In a letter to Braney Frank, New York Attorney General Andrew Cuomo has accused Merrill Lynch executives of corporate irresponsibility by secretly and prematurely awarding $3.6 billion in bonuses as taxpayers were bailing out the industry.

Cuomo says that instead of disclosing its bonus plan in a transparent manner designed to assure the payments were warranted, [...]

2009 will be a year of complete destruction for the US economy. 5 Million will lose their jobs. The Dow Jones Industrial average will break below 6,000. Municipalities will fail. Insurers will fail. The unemployed and foreclosed American population will take to the streets and begin rioting. The Greatest Depression is upon us.
Sound far fetched? [...]

I noticed a couple of comments (OK just one) regarding inflation/deflation and how to know which is dominant. To get the answer I like to use a simple inflation/deflation indicator that I first learned about by reading John Murphy’s Intermarket Analysis book. I highly recommend reading this book to anyone who’s interested in charting stocks [...]