All Archives - All Star Charts India

This Is What The Monthly Charts Are Saying

September 1, 2017 by JC

The monthly charts aren’t saying anything. Charts can’t speak remember? It’s up to us to take the behavior of the market and come up with our own interpretations of what is going on. There is no easy way to do this, just a lot of wrong ways. To help us continue to stay on the right side of the market, we always need to reevaluate the circumstances and come at it from all sorts of different angles. Usually we try and do that by incorporating International Indexes and Intermarket relationships into our process. Time, however, is probably the best tool we have in order to accomplish this. Using multiple timeframes throughout my process is the best way I know how to identify the direction of the primary trend. It’s hard to miss it when you’re consistently using Daily, Weekly and in this case, Monthly charts in your approach.

I have a lot of Monthly charts, as you can imagine. But the truth is that for this particular segment I try and focus on the message of the charts as a group. This exercise also really helps point out certain trends that you may have missed had you only gone back 5-10 years. These monthly candlesticks also tend to tell a story. So there are a lot of benefits in reviewing monthly charts at least once a, well month, because those are the only times they change. Even if you’re not a professional, going through monthly candles once a quarter is probably a good idea. I encourage everyone to incorporate this somehow into their process.

Here are some of the things that stand out to me in the this Monthly Candlestick Review: [Read more…]

Stocks Hitting All-time Highs is Characteristic of an Uptrend

August 29, 2017 by JC

You can data-mine all you want. Tell me the world is ending, the U.S. President is crazy, nuclear war is around the corner, the N.Y. Jets don’t have a quarterback…..Whatever it is that you’re using to justify your heavy cash positions or short exposure the past 18 months, just remember this: Stocks are hitting all-time highs. Let’s go over this again: Stocks are not just hitting multi-month highs, or even 52-week highs. Stocks that are driven by supply and demand dynamics of investors all over the world are at the highest levels in the history of stocks.

So how do we define stocks? That’s the tricky part. Is it the S&P500? Although it’s only 1.4% away from an all-time high, and clearly in a strong uptrend defined by higher highs and higher lows, I would argue that it’s only part of the equation. What about the Russell3000, which represents approximately 98% of all investable assets in the U.S. equities market? Although just 1.7% from its all-time high, it is still just representing 1 country. There has to be a better way. [Read more…]

The Two Most Important Charts In The World Right Now

August 16, 2017 by JC

Every market environment is different. It’s changing every day. What might give us insight into what’s happening during one period of time in the market doesn’t guarantee that it will help in the future, or ever again for that matter. Back in 2008-2009, correlations spiked all over the world and the US Dollar was moving in the exact opposite direction as the S&P500. Watching the Euro and more specifically the Euro/Yen was a huge advantage back them. I remember it like it was yesterday. But in today’s environment, those negative correlations are no longer valid. It’s a different market environment now. It’s always different.

So while the EUR/JPY and the US Dollar Index were great tells for the direction of US Stocks in 2008, today we’re looking at different indicators. Two that I’m particularly focused on right now are Germany and London. First of all, these are 2 of the most important indexes in the world. Top 3? Top 5? Either way, both of them are on the Mount Rushmore of Stock Market Indexes. [Read more…]

[Premium] JC’s Playbook To Profit in Q3

July 5, 2017 by

This is JC’s Playbook to Profit In Q3: [Read more…]

[Premium] Technical Analysis On Monthly Candlesticks

June 1, 2017 by JC

It’s the end of the month so you know what that means: Brand new freshly completed monthly candlesticks for us to review. While I normally use weekly charts to get structural perspective on markets and then daily charts for tactical purposes, the monthly chart review is done at the end of each month to help identify the primary trends around the market. This is for us who want to avoid the day to day noise surrounding politics or the Fed or whatever news story is being sensationalized this week.

[Read more…]

What Are Stocks Around The World Suggesting?

May 28, 2017 by JC

This is a global market environment. The S&P500 goes up and down based on the collective money flow from investors all over the world, not just within the borders of the United States. There are some people still fighting the civil war who simply don’t understand this concept. US Stocks don’t move up and down based on what is happening in America. What happens in the United States politically, economically, tax-wise, etc is just a tiny tiny piece of a humongous puzzle. This is a global market environment and the sooner you recognize that the bigger the advantage you will have over others who have not yet accepted this concept.

Even if you only trade US Stocks, or stocks local to where you live, understanding what is happening globally is essential to recognizing the direction of the underlying trend for the asset. And this trend identification is step 1 to market analysis. Today I went through every stock market index in the world to see if there is more good or more bad out there. Here are a few stand outs:

(click charts to zoom in)
[Read more…]

A Friendly Reminder: Stocks Are In An Uptrend

May 10, 2017 by JC

When we talk about “stocks”, it can be in reference to many things. Most people like using something like the S&P500 or Dow Jones Industrial Average as a gauge because those are the popular United States indexes which contain many of the world’s largest companies. That’s fair. Depending on what country you live in, your interests are likely to be on your local indexes while you also keep an eye on maybe the United States and/or European Averages. I think it’s important to understand that while these indexes are made up of companies based in local economies, the investors that own those stocks come from all over the world. We live in a global marketplace and I think it would be irresponsible of me as an investor to ignore that.

There are a lot of tools I use to measure the strength or weakness of the overall stock market environment. One of my favorites is a global index I created where I equally weight the largest 10 stock markets in the world. Each country represents 10% of the Allstarcharts Equally-weighted Top 10 Global Index $GLOBE. It includes both Emerging and Developed Markets. So you’ll get Japan, London, Europe, Canada, US but also Brazil and India for example. The entire list is on the chart below: [Read more…]

[Premium] Open Letter About The Current Market Environment

May 7, 2017 by JC

In this week’s members-only letter we discuss the following topics:

This Was A Bullish Week For US Stock Market Indexes
Why I Love This Crash In Silver!
Bitcoin Continues To Laugh At All The Gold Bugs
A List Of Bullish and Bearish Characteristics for the Market
Cyber Security Stocks Break Out
Apple and Google Still Have Room To The Upside
Which Transportation Stocks Do We Need To Own?
Industrials Like 3M and CAT Can Still Go A lot Higher