The normal relationship between the Volatility Index ($VIX) and the S&P 500 is an inverse one. The easiest way to illustrate this is to pull up a chart showing both and their correlation coefficient: The red arrows mark bottoms in the S&P 500 and they generally coincide almost perfectly with tops in the Volatility Index....
There are plenty of reversing patterns in technical analysis, but my personal favorite is the combination of a weekly positive divergence and a bottoming head & shoulders pattern. The positive divergence captures the slowing downside momentum and the head & shoulders provides confirmation that prices are indeed turning up. Keep in mind that a downtrend...
Cintas Corp (CTAS) is just 1 of 83 companies that have qualified to be on our most powerful ChartList, our Bullish Trifecta ChartList. In order to make it, it must be on our (1) Strong Earnings ChartList (SECL – tracks companies that beat quarterly revenue and EPS estimates), (2) Strong AD ChartList (SADCL – requires...
Okay, first when I say “it’s easy”, I’m not saying it’s easy to call tops and bottoms. Instead, I’m say that answering that rhetorical question is easy. If you can call a top, you can exit equities with your capital completely intact. And if you can also time a bottom, you can reinvest at a...
The following was a special educational Daily Market Report that I sent to our EB.com members last week…. I always refer to EarningsBeats.com as a “Research, Guidance, and Education Platform”, because that’s truly what we strive to be. HERE IS WHAT WE ARE NOT – REGISTERED INVESTMENT ADVISORS. I’d love to try to help everyone...
Ultimately, breaking out above the August 2022 high represents the key level to reverse the downtrend that began in early-January 2022. I like to use longer-term charts to determine whether we’re currently trending higher or lower, and right now the downtrend is firmly in place: The numbers on the above chart identify the lower highs...
We are provided constant reminders that important company information is reflected in the absolute and relative performance of the company’s stock price. That may go against common sense in a few instances, especially when it comes to earnings. After all, the company is supposed to be delivering fresh new information for the stock market to...
Our research at EarningsBeats.com includes extensive seasonal studies, working off the seasonality tool here at StockCharts.com. We’ve recently ended the best historical period of the year, which runs from the close on October 27th through the close on January 18th. But the bullishness doesn’t come to an end, it simply slows down. If you’re looking...
I have been preaching Wall Street manipulation for years. And Wall Street took manipulation to a completely new level in 2022, accumulating shares of panicked retail traders after the distribution period from January through May 2022 ended. Sure, we had two more price lows – one the very next month in June 2022 and then...
Monthly options expiration creates a whole new set of headaches for retail traders. As if trading wasn’t already hard enough, throw in the short-term financial incentive for market makers to “manipulate” prices and cash in big time at options expiration, and you have a recipe for significant volatility. So, let’s combine options expiration and the...