From the desk of Tom Bruni @BruniCharting

My presentation at Chart Summit 2019 focused on market breadth and how we like to keep our process of looking at the subject pretty simple.

While that presentation covered a number of our methods of measuring the market's internals, in this post I want to share some stats we pulled this weekend that help provide some valuable context around the market's rally from the December 24th lows.

The table below outlines the major US Indexes we cover with performance stats from important inflection points: The January 2018 highs, the September 2018 peak, and the December 24th low.

We also have some additional stats listed like percentage below 52-week high and above 52-week low, days since those events occurred, whether the daily RSI reading is in a bullish or bearish range, and whether prices are above their 200-day moving average.

The columns we want to pay attention to for now are the first three.

Click on table to enlarge view.

From the desk of Tom Bruni @BruniCharting

Throughout the week we've been raising some caution flags about the short-term direction of Equities (here, here, and here).

Now that we're seeing some downside follow-through for the first time since December, I wanted to outline a few more potential short setups on an absolute and relative basis.

First let's start with why I'm looking at these sub-sectors to begin with.

The S&P Midcap 400 Consumer Discretionary is one of the cleanest charts I see out there on an absolute basis, with well-defined risk and reward/risk clearly skewed in favor of the bulls. Since there's no ETF to trade this, I had to look through some of the individual components to see how we can best express this thesis in the market.

Click on chart to enlarge view.

With a new month comes a fresh batch of Monthly Candlesticks. As you are all well aware, I find this exercise to be incredibly valuable. It forces us to identify the direction of the primary trend.

From the desk of Tom Bruni @BruniCharting

Finding things to short on an absolute basis has been tough since December, however, Shipping stocks appear to be presenting an attractive reward/risk for those looking to express a bearish thesis in the market.

From the desk of Tom Bruni @BruniCharting

As part of my preparation for my Chart Summit presentation on market breadth, I'm looking at a lot of charts this week. In this post I'll share a bunch of them to provide some perspective on where US markets currently sit from a participation perspective.

From the desk of Tom Bruni @BruniCharting

This week's Mystery Chart Reveal was focused on Japan's breakdown to new lows versus the S&P 500. This one chart is part of a much larger theme, so in this post we're going to discuss the best reward/risk pair trades present in this space.

From the desk of Tom Bruni @BruniCharting

The US Dollar Index is approaching its Q4 highs once again, however, the real story lies underneath the surface in three unrepresented currency pairs that are offering a solid reward/risk opportunity at current levels.

These are the registration details for the monthly conference call held for Premium Members of All Star Charts. In this call we will discuss the global market environment and how to profit from it. As always, this will include Stocks, Interest Rates, Commodities and Currencies. The video of the call will be archived in the members section to re-watch any time and the PDF of the charts will be made available as well.

This month’s Conference Call will be held on Tuesday February 19th at 7PM ET. Here are the details for the call:

From the desk of Tom Bruni @BruniCharting

Today's chart of the week outlines a breakout in the Cybersecurity ETF HACK relative to the S&P 500. In this post we'll discuss which indiivudal names are offering the best reward/risk opportunity.

From the desk of Tom Bruni @BruniCharting

The iShares Real Estate ETF IYR is up more than 17% from its Christmas Eve lows and sitting just off all-time highs. Can this rally continue and if so, what are the names we want to be buying to take advantage of this theme?

We'll provide our perspective on those questions in this post.

You guys who know me already know that this is my favorite exercise of them all. We only do this 12 times a year. Let's just say that it takes you an hour, if you really want to take your time, that's 12 hours of your entire year. Think about the amount of time you spend each year performing other analysis. As far as I'm concerned, it's not even close. These 6 hours (for me it's 6) are easily the most valuable 6 hours I spend all year analyzing markets.

This process allows us to take a step back, which forces us to identify the direction of the primary trend. It's impossible not to, especially when you're seeing similar themes across Indexes, sectors and asset classes.

Here's what stands out from this month's review: