Author Archive for kimblechartingsolutions

Basic Materials Stocks Suggesting Economic Growth/Inflation Is At Hand?

Courtesy of Chris Kimble

Are Basic Materials stocks about to suggest that the economy is about to grow/inflate? An important price test is in play for them that will go a long way to answering this question!

The chart looks at Basic Materials ETF (XLB) from Marketsmith.com. 

The chart highlights that XLB has spent the majority of the past 5-years inside of the trading range (1). XLB hit the bottom of the range in March of this year, where support held and bullish reversal patterns took place.

Currently, XLB is now testing its 2017 highs and the top of its trading range at (2).

Is XLB creating a double top while at the 2017 highs or is it about to breakout and suggest that economic growth/inflation is about to pick up speed?

If a breakout is successful, look for stocks and commodities to perform well to the upside.

If XLB peaks again, they would be suggesting inflation has run its course and commodities are peaking.

The Power of the Pattern suggests what XLB does at (2), will send a rather important message about the health of the overall economy.

To become a member of Kimble Charting Solutions, click here.





Stock Market Bulls Hope These Dow Jones Indices Aren’t Topping!

Courtesy of Chris Kimble

Investors tend to follow the Dow Jones Industrial Average and Dow Jones Transportation Average to gauge the economy and the popular stock market signal, “Dow Theory”.

Though laggards this year, both indices remain important and may be nearing a crossroads.

In today’s 2-pack, you can see that these popular stock averages have rallied back to test their respective highs at each (1).

In fact, the Dow Transports are testing dual resistance (prior highs and 261.8 Fibonacci extension level).

As well, the Dow Industrials have been susceptible to past “monthly” reversals from this price area.

So a reversal this month would raise the prospect for “double top” patterns. Let’s just say that stock bulls are hoping these Dow Indices are not double topping!!

This article was first written for See It Markets.com. To see the original post CLICK HERE.

To become a member of Kimble Charting Solutions, click here.





Important Tech Indicator Looks To Be Double Topping, Says Joe Friday!

Courtesy of Chris Kimble

Is an important Tech stock indicator double topping and about to send the first bearish message in months?

Joe Friday suggests it is possible!

This chart looks at the Nasdaq 100/S&P ratio on a weekly basis. The trend has been strongly higher for months, reflecting tech’s impressive strength when compared to the S&P 500.

It is possible over the past 9-weeks that the ratio has been creating a double top at (1), while momentum has been reflecting that a bearish divergence, creating lower highs at (2).

Joe Friday Just The Facts Ma’am; A break of support at (3), would send a negative message to tech stocks and the S&P 500!

 

To become a member of Kimble Charting Solutions, click here.

 





Is The Dow Double Topping At 90-Year Resistance?

Courtesy of Chris Kimble

Is the Dow facing an important long-term price test? This chart would suggest yes!

This chart looks at the Dow Jones Industrials Index on a monthly basis over the past 100-years.

The Dow has spent a good deal of the past 90-years inside of bullish rising channel (1). This channel is a reminder that the long-term trend is up.

The Dow hit the top of the channel to start out the year and then it experienced a large decline.

The rally off the March lows has the Dow testing the highs of earlier this year, as it nears the underside of its long-term channel at (2).

This chart reminds me of the low odds/high impact idea.

 The odds are low the Dow is double topping currently. However, If it is, the impact on the Dow could be rather large!

To become a member of Kimble Charting Solutions, click here.





Stock Market Worries Rise Only If These Patterns Play Out!

Courtesy of Chris Kimble

Investors have been fixated on the Nasdaq and tech stocks this year. And rightfully so.

The Nasdaq has been the market leader, with stocks like Apple, Tesla, Facebook, and Amazon flying higher.

But another important index may be flashing caution: The NYSE Composite.   

This broad-based index has been lagging behind the Nasdaq and S&P 500. And it’s narrowing pattern looks to resolve itself soon.

As you can see in today’s chart 2-pack, the NYSE may be on the verge of breaking down at the same time that the VIX Volatility Index is on the verge of breaking higher.

Both narrowing patterns are sure to resolve themselves soon, so it seems wise to keep an eye on them.

Should the VIX Volatility Index break out at the same time that the NYSE Composite breaks down, a short-term caution message will be sent to investors and the broader stock market.

Stock market bulls would receive a very positive message if the lagging NYSE index breaks to the upside and the VIX breaks down!

This article was first written for See It Market.com. To see the original post CLICK HERE.

To become a member of Kimble Charting Solutions, click here.





Muni Bonds Could Be Double Topping, Despite Fed Intervention

Courtesy of Chris Kimble

In March, after a 15% decline in Muni bond prices and as part of its response to COVID-19, the Federal Reserve announced it would for the first time in its history enter the municipal bond market.

Following the announcement of the Feds purchasing plans, Muni bonds experienced a very strong rally, taking them back to the highs that took place earlier this year.

This chart looks at Muni Bond ETF (MUB) on a weekly basis.

The rally off the March lows came back to test the highs of earlier this year, where MUB may have created a double top at (1).

Weakness in MUB of late has it breaking below support at (2).

If MUB has double topped, it could well be suggesting that the long-term bull market in bonds could be coming to an end, despite the Fed pumping historical amounts into this market!

To become a member of Kimble Charting Solutions, click here.





Is Inflation On The Horizon? This Chart Could Answer The Question!

Courtesy of Chris Kimble

Recently Federal Reserve Chair Jay Powell said he is targeting inflation.

Perhaps the market is seeing something similar. This prompts today’s question (and chart):

Are the markets about to send a new message regarding inflation?

Today’s chart “2-pack” highlights a couple of key inflation indicators: The Equal Weight Commodity Index and the 10-Year US Treasury Bond Yield.

As you can see, commodities and yields have been in a downtrend for several years – the Commodity Index is marked by each (1).

But both have recently perked up.

If commodities and yields breakout at each point (2) and (3), odds increase a new round of inflation is about to start. Stay tuned!

This chart was first written for See It Markets.com. To see the original post CLICK HERE.

To become a member of Kimble Charting Solutions, click here.





Who Is Telling The Truth, Doc Copper Or The Bond Market???

Courtesy of Chris Kimble

A good deal of the time, Doc Copper and Yields tend to move in the same direction. Of late, something strange is taking place!

This chart looks at Doc Copper (Green) and the Yield on the 10-year note (Red).

Both headed sharply lower and bottomed together in March of this year. Since then, Doc Copper has experienced a very sharp rally (up over 40% off the lows) and yet yields are near all-time lows.

This price action has created one of the largest spreads in years over the past 5-months.

Who is telling the truth?

Is ole Doc Copper suggesting that the economies around the world are improving and the likelihood of inflation is increasing?

Are flat to falling yields suggesting that the economy will not improve and inflation should be of no concern to the Fed?

The takeaway from this chart; One asset is likely to be very misleading/not telling the truth currently and a giant game of “catch-up” will take place. This mispricing in time will lead to a wonderful trading opportunity in my humble opinion.

To become a member of Kimble Charting Solutions, click here.





Leading Tech Indicator Breaking Above 20-year Resistance!

Courtesy of Chris Kimble

This year has definitely accelerated the trend in utilizing technology in the way we work (remotely) and live.

And it’s showing up in the stock market.

Today’s chart looks at the ratio of the Nasdaq 100 Index (large-cap tech stocks) to the S&P 500 Index (broader-based large-cap stocks).

As you can see, the Nasdaq 100 has been out-performing the S&P 500 for the past 15 years, steadily rising within a bullish price channel.

This tech ratio is now working on a dual breakout attempt as it surpasses the 2000 highs AND breaks above its upper channel resistance at (1).

Large-cap tech is the clear leader. And a successful breakout attempt at (1) would only further emphasize this important stock market trend.

This article was first written for See It Market.com. To see the original post, CLICK HERE.

To become a member of Kimble Charting Solutions, click here.





Silver / Gold Ratio Records Biggest Rally In 13-Years! Now What?

Courtesy of Chris Kimble

Precious metals have been a red-hot investment in 2020. Gold briefly broke $2000 this month, while Silver touched up near $30.

But it’s been the rally in Silver prices that has been eye-popping. And perhaps a big reason for the extra momentum we saw this summer in precious metals.

Typically, when silver outperforms gold, it adds “beta” and leads to good things for precious metals.

In today’s chart, we capture this with via the Silver (SLV) to Gold (GLD) ratio.

While the ratio has been in a downtrend for the past 9 years – see (1) and (2) – the ratio has rallied sharply over the past 4 months. In fact, the ratio posted its largest 16-week rally in 13 years.

So what do we make of this?

First off, it’s testing resistance so it shouldn’t be surprising to see precious metals take a breather here. That said, if/when we see a breakout over the downtrend line, it will be very bullish. Stay tuned!

This article was first published for See It Markets.com. To see the original article CLICK HERE.

To become a member of Kimble Charting Solutions, click here.





 
 
 

Kimble Charting Solutions

Key Inflation Indicators Facing Big Test In September!

Courtesy of Chris Kimble

Inflation has long been a word that the Federal Reserve uses but the general markets have forgotten about.

Why? Well because it’s been virtually non-existent for years. Key indicators like commodities (i.e. copper) have been in a down-trends and the Materials Sector (XLB) has lagged… until this year.

In today’s chart 3-pack, we take a look at the Equal Weight Commodity Index, ...



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Phil's Favorites

The PhilStockWorld.com Weekly Webinar - 09-23-2020

For LIVE access on Wednesday afternoons, join us at PSW!

 

Major Topics

00:02:57 - Checking on the Market
00:09:49 - Futures
00:19:50 - STP
00:22:52 - TQQQ | SQQQ 
00:26:45 - SDS | CMG
00:27:16 - UNG
00:30:02 - LTP
00:38:10 - BRK-B
00:41:51 - AAPL
00:43:45 - Trading Technique
00:48:25 - INTC
00:51:01 - COVID-19 Update
01:07:14 - More Trading Techniques
01:13:19 - Current News
01:16:41 - STP
01:17:09 - CMG | TSLA
01:19:36 - IMAX

 

Phil's Weekly Trading Webinars provide a great opportunity to learn what we do at PSW. For LIVE access to PSW's Weekly We...



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ValueWalk

How Leading From The Heart Can Propel Business Executives To Greatness

By Kimberly Roush. Originally published at ValueWalk.

A healthy ego can be a good thing, allowing someone to take pride in who they are and what they do.

Q2 2020 hedge fund letters, conferences and more

But when business executives allow an unhealthy ego to drive them, enormous problems are certain to follow, says Kimberly Roush, founder of All-Star Executive Coaching and co-author of Who Are You… When You Are Big?

“A big ego can...



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Zero Hedge

Sweden Dominates Drug-Deaths In Europe

Courtesy of ZeroHedge View original post here.

As highlighted by the latest edition of the European Drug Report, Sweden is the country with the most drug-induced deaths per million of the population in Europe.

In 2018, 81 people died per million inhabitants, ahead of the United Kingdom's 76 drug-induced deaths per million. Finland and Ireland jointly had the third-highest death rate with 72 deaths per million.

You will find more infographics ...



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Politics

'Colossal Backdoor Bailout': Outrage as Pentagon Funnels Hundreds of Millions Meant for Covid Supplies to Private Defense Contractors

 

'Colossal Backdoor Bailout': Outrage as Pentagon Funnels Hundreds of Millions Meant for Covid Supplies to Private Defense Contractors

"If you can't get a Covid test or find an N95, it’s because these contractors stole from the American people to make faster jets and fancy uniforms."

By Jake Johnson

Secretary of Defense Mark Esper and Chairman of the Joint Chiefs of Staff Army Gen. Mark Milley hold an end of year press conference at the Pentagon on December 20, 2019 in Arlington, Virginia. (Photo: Drew Angerer/Getty Images)

Instead of adhering to congressional inten...



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Biotech/COVID-19

How and when will we know that a COVID-19 vaccine is safe and effective?

 

How and when will we know that a COVID-19 vaccine is safe and effective?

How much longer must society wait for a vaccine? ANDRZEJ WOJCICKI/Getty Images

By William Petri, University of Virginia

With COVID-19 vaccines currently in the final phase of study, you’ve probably been wondering how the FDA will decide if a vaccine is safe and effective.

Based on the status of the Phase 3 trials currently underway, it i...



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Chart School

Stocks are not done yet - Update

Courtesy of Read the Ticker

There are a few times in history when a third party said this US paper (stocks, funds or bonds) is worthless.

Here is two.

1) 1965 Nixon Shock - The French said to US we do not want your paper dollars please pay us in gold. This of course led to the US going off the gold standard.

2) 2007 Bear Stern Fund Collapse - Investors said their funds collateral was worth much less than stated. This of course was the beginning of the great america housing bust of 2008.


In both cases it was stated .."look the Emperor is naked!"... (The Empe...

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Digital Currencies

Cryptocurrencies Rarely Used To Launder Money, Fiat Preferred

Courtesy of ZeroHedge View original post here.

Authored by Shaurya Malwa via Decrypt.io,

Traditional channels continue to dominate the estimated $2 trillion global money laundering racket instead of cryptocurrencies, a report says.

In brief
  • Money laundering via cryptocurrencies is not a preferred tool for criminals, a report said...



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The Technical Traders

Adaptive Fibonacci Price Modeling System Suggests Market Peak May Be Near

Courtesy of Technical Traders

Our Adaptive Fibonacci Price Modeling system is suggesting a moderate price peak may be already setting up in the NASDAQ while the Dow Jones, S&P500, and Transportation Index continue to rally beyond the projected Fibonacci Price Expansion Levels.  This indicates that capital may be shifting away from the already lofty Technology sector and into Basic Materials, Financials, Energy, Consumer Staples, Utilities, as well as other sectors.

This type of a structural market shift indicates a move away from speculation and towards Blue Chip returns. It suggests traders and investors are expecting the US consumer to come back strong (or at least hold up the market at...



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Lee's Free Thinking

Texas, Florida, Arizona, Georgia - The Branch COVIDIANS Are Still Burning Down the House

 

Texas, Florida, Arizona, Georgia – The Branch COVIDIANS Are Still Burning Down the House

Courtesy of Lee Adler, WallStreetExaminer 

The numbers of new cases in some of the hardest hit COVID19 states have started to plateau, or even decline, over the past few days. A few pundits have noted it and concluded that it was a hopeful sign. 

Is it real or is something else going on? Like a restriction in the numbers of tests, or simply the inability to test enough, or are some people simply giving up on getting tested? Because as we all know from our dear leader, the less testing, the less...



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Insider Scoop

Economic Data Scheduled For Friday

Courtesy of Benzinga

  • Data on nonfarm payrolls and unemployment rate for March will be released at 8:30 a.m. ET.
  • US Services Purchasing Managers' Index for March is scheduled for release at 9:45 a.m. ET.
  • The ISM's non-manufacturing index for March will be released at 10:00 a.m. ET.
  • The Baker Hughes North American rig count report for the latest week is scheduled for release at 1:00 p.m. ET.
...

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Promotions

Free, Live Webinar on Stocks, Options and Trading Strategies

TODAY's LIVE webinar on stocks, options and trading strategy is open to all!

Feb. 26, 1pm EST

Click HERE to join the PSW weekly webinar at 1 pm EST.

Phil will discuss positions, COVID-19, market volatility -- the selloff -- and more! 

This week, we also have a special presentation from Mike Anton of TradeExchange.com. It's a new service that we're excited to be a part of! 

Mike will show off the TradeExchange's new platform which you can try for free.  

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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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Ilene is editor and affiliate program coordinator for PSW. Contact Ilene to learn about our affiliate and content sharing programs.