We’ve begun seeing a bit of sector rotation lately, with leading stocks and sectors cooling off and formerly lagging industries seeing a bit of buying interest. Institutional sector rotation is common in bull markets, and the rotation of funds from one industry to another enables broad-based uptrends to remain intact, even when certain sectors are […]
Have you ever prepared to buy a momentum-driven breakout on a stock that formed a great chart pattern (such as a cup and handle), but for whatever reason you missed the entry point on the day the stock breaks out? If you are like most swing traders (including ourselves), that has probably happened to you […]
Have you ever sold a stock as it was nearing your protective stop loss price, thinking you would save a bit of money by getting out early, only to painfully watch the stock reverse in the right direction shortly thereafter? I was guilty of that all the time when I was a new trader back […]
After the October 17 breakouts to new highs in the S&P 500 and NASDAQ Composite, I got to thinking about bull markets. I was pondering over how much traders and investors must be loving and profiting from this powerful rally stocks have had in 2013. But then a worrying thought popped into my head. It […]
On July 2 of this year, we bought Guggenheim Solar Energy ETF ($TAN) in The Wagner Daily newsletter. Three months later, we sold those shares of $TAN for a cool price gain of 44.3%. In this trading strategy article, we detail the top 4 technical tips that prompted us to buy $TAN when we did. Then, […]
After suffering a nasty, two-day decline on October 8 and 9, the stock market ripped higher on October 10, closing the day with massive gains of more than 2% across the board. Feeling a bit of whiplash lately? While the big gains with bullish closing action on October 10 were a positive sign for the […]
Yesterday’s (October 8) selloff was broad-based and ugly, with just about every industry sector getting hit hard (utilities were an exception). The NASDAQ Composite ($COMP) and small-cap Russell 2000 Index ($RUT), the leading market averages in recent months, were hit the hardest with losses of -2.0% and -1.7% respectively. The NASDAQ is now the only […]
Over the past few months, PowerShares Aerospace & Defense ($PPA) has shown great relative strength to the benchmark S&P 500 Index. On the daily chart below, notice that $PPA has broken out twice over the past few months, setting higher highs and higher lows along the way. During that same period, the S&P 500 SPDR […]
Over the past several weeks, we’ve been discussing the increasing relative strength in small-cap stocks, compared to the rest of the broad market, and that bullish divergence continues to widen. Despite the blue-chip Dow Jones Industrial Average ($DJI) falling 0.8% and closing well below key support of its 50-day moving average yesterday (September 30), the […]
If you heard or read any financial news over the past few days, you inevitably found the talking heads rambling about the various implications of a potential U.S. government shutdown. As usual, the media is once again playing on the powerful human emotion of Fear, one of the 4 Most Dangerous Emotions For Traders. This […]
