A little less than a week ago, I wrote an article about inflation and how it’s nothing more than a pipe dream in Fed Chief Jay Powell’s head. Let me expand on that article, maybe from a slightly different approach this time. The inflation rhetoric just won’t let up. Apparently, it makes no difference that the annual rate of core inflation has fallen from 6.7% to 3.3% and that the Fed sees this same core rate achieving its 2% target in 2027. The Fed still wants to talk about. So let’s let ’em talk. I follow the charts and what Wall Street is saying through these charts. I’m now to the point where I’m simply ignoring Fed Chief Powell and his waffling group of naysayers. Wall Street is speaking and THEIR voice is quite clear, unlike the constant Fed waffling that we’ve witnessed for 3+ years and counting.

A few things happen when inflation is considered problematic. First, money rotates into hedges like gold, other commodities, and/or real estate. Second, you sell the dollar as the currency will be negatively impacted by inflation. Finally, you sell growth stocks like CRAZY! Inflation eats away at the future earnings of growth companies and valuations are typically crushed as a result. I’m going to skip gold/commodities as I discussed both in my last article, but let’s take a look at a few charts to see if Wall Street believes inflation is a problem.

Real Estate

Certain areas of real estate, especially REITs, are a nice hedge against inflation as rents will typically be increased during inflationary periods. So this renewed inflation talk by the Fed is surely sending investors into real estate (XLRE), on a relative basis, correct? You be the judge.

Wow, look at that money pour into real estate! <sarcasm>

The U.S. Dollar (UUP)

Next, it’s time to confirm that everyone is selling the dollar, because you don’t want to get caught holding that bag, when the Fed’s worries about inflation prove true, right? Welllllll……

Yep, Wall Street cannot stand the thought of owning the greenback.

Growth Stocks

Holding growth stocks as inflation surges might be the worst possible investment of all. Growth stock valuations get HAMMERED during inflationary periods. We only have to look back at the 2022 cyclical bear market. Do you remember NVDA losing two-thirds of its market cap in less than 11 months? Even AAPL lost nearly 30% in 2022, before rallying strong as inflation peaked. These types of growth stocks will normally be pounded into the ground given rising inflationary expectations. So let’s see how growth (IWF) is faring vs. the benchmark S&P 500 as inflation gets set to rise again (Fed worry):

Once again, you can say how incredibly nervous Wall Street is about the inflation predicament we’re in. <more sarcasm>

MarketVision 2025

I don’t listen to the Fed when Wall Street says not to. I’ll let the media have its fun with the inflation problem we’re up against (ha ha). Over the years, it’s not about what you hear. It’s always about what you SEE (in the charts). Ignore everything else!

On Saturday, January 4th at 10am ET, MarketVision 2025 will begin and I’m planning to lay out 2025 for you in a way that everyone can understand. This is our 6th MarketVision event and I’ve nailed each of the last 5, in terms of market direction, and I’m confident I’ll nail this one too. I’m not a perma-bull. During MarketVision 2022, I suggested the S&P 500 could drop 20-25% before it happened. If I believe we’re going lower, I’ll say it. Unlike the Fed, I have conviction. I also have a very bold call for you this Saturday. Want to join me? We’re making this as easy as possible for you to join. To register for MarketVision 2025 and to gather more information, please CLICK HERE. One more thing. We’re adding a sweet bonus for all current non-members of EarningsBeats.com that register for Saturday’s event. It’s 1 year of EarningsBeats.com membership at no additional cost, a $997 value. Pay for the Saturday event and get a year of membership FREE. It won’t get any better than this.

Happy New Year to ALL! On behalf of EarningsBeats.com, I wish you all a healthy and prosperous 2025 ahead!

Happy trading!

Tom

In this exclusive StockCharts video, Joe shares a specific ADX pattern that’s signaling potential exhaustion in the momentum right now. Joe analyzes three other market periods that displayed this pattern and the resulting correction which followed. He then discusses some of the most attractive looking cryptos, as well as QQQ and IWM. Finally, he goes through the symbol requests that came through this week.

This video was originally published on January 2, 2025. Click this link to watch on Joe’s dedicated page.

Archived videos from Joe are available at this link. Send symbol requests to stocktalk@stockcharts.com; you can also submit a request in the comments section below the video on YouTube. Symbol Requests can be sent in throughout the week prior to the next show.

The Santa Claus Rally may be iffy, but a 23.31% gain in the S&P 500 ($SPX) for the year isn’t too shabby. It was a stellar year in the stock market, especially for the top 10 weighted stocks in the S&P 500, and that’s worth making a toast as we close out 2024.

In terms of the performance of S&P 500 stocks, Palantir Technologies (PLTR), Vistra Corp (VST), and NVIDIA (NVDA) took the top 3 spots. But performance is just one measure, and there are several other benchmarks. One that’s worth considering is strength, and, as the year winds down, let’s look at which S&P 500 stocks ended the year as the technically strongest ones.

In the Sample Scan Library, if you run the S&P 500 Stocks under Predefined Groups and sort the results by the StockCharts Technical Rank (SCTR, pronounced S-C-O-O-T-E-R) from highest to lowest, PLTR takes the crown, followed by United Airlines Holdings Inc. (UAL) and then Tesla Inc. (TSLA). Let’s look at each of these stocks more closely.

PLTR Stock’s Ride to the Top

When PLTR’s stock went public in 2020, it was volatile — there was a lot of chatter about the stock in the media. But in 2022, the stock went through a slump. In 2023, it started showing signs of resurfacing, gaining strength, getting clobbered, and reviving itself before making its way to the top of the performance and strength category.

The daily chart below shows that PLTR’s stock price has had a SCTR score above 76 since early June 2024. During that time, the stock price stayed above its 50-day simple moving average (SMA), except for in August when it dipped below it for two trading days.

FIGURE 1. PLTR STOCK ENDED THE YEAR WITH THE HIGHEST SCTR SCORE. The stock has been in an uptrend since mid-2024.Chart source: StockCharts.com. For educational purposes.

PLTR stock was up 340.59% for the year and ended the year with a SCTR score of 99.7.

UAL Stock Takes Off

Airline stocks, in general, were hit hard by COVID-19, and the recovery has been slow. However, the resumption of travel by US consumers in 2024 helped many airline stocks, especially UAL.

After trading relatively sideways from 2020 to mid-2024, UAL’s stock price started a steep ascent in mid-September 2024. It crossed above its 50-day SMA and has remained above it for the year, hitting its altitude and now cruising at that level with some turbulence (see daily chart of UAL).

FIGURE 2. DAILY CHART OF UAL STOCK PRICE. Since September 2024, UAL has ascended steeply and hit cruising altitude.Chart source: StockCharts.com. For educational purposes.

 The SCTR score has remained above 76 since September 16. UAL stock gained 134.34% in 2024 and ended the year with a SCTR score of 99.1.

TSLA Stock’s Wild Ride

TSLA is a stock that has been front and center in investors’ minds and is one of the most actively traded stocks in the S&P 500. The price gained traction towards the end of 2019 and, even though it had a rough 2022 and a pretty choppy 2023, TSLA’s stock has shown its might towards the second half of 2024 (see daily chart of TSLA).

FIGURE 3. TSLA STOCK’S A LITTLE CHOPPY. Although it has had its ups and downs, the stock rallied during the last quarter of the year.Chart source: StockCharts.com. For educational purposes.

Since the end of October, TSLA’s SCTR score has remained above 76 and the stock price has remained above its 50-day SMA. TSLA’s stock price gained 62.52% in 2024 and ended the year with a 98.4 SCTR score.

The Bottom Line

Will these three stocks — PLTR, TSLA, and UAL — remain strong in 2025? Be sure to add them to your ChartLists so you can keep an eye on their performance.

If the SCTR score remains high, consider adding positions when price pulls back and reverses with a follow-through. If the stocks show signs of weakening, it’s time to reevaluate. Identify which stocks are taking their place, analyze each one, and determine if adding the strong ones can add muscle to your portfolio.

Scanning for S&P 500 stocks with high SCTR scores is relatively simple to do in StockCharts. There are many other scans to explore in the Sample Scan Library. The nice thing is the scans are already built for you — coding skills are not necessary! It’s something to consider for 2025.

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

It’s an interesting market day with the market moving lower despite positive seasonality. Natural Gas (UNG) broke out in a big way up over 15% at the time of writing. Is it ready to continue its big run higher?

Carl took the day off so Erin gave us the review of the signal tables and market charts. She then gave us her perspective on the Natural Gas (UNG) chart. As of writing, we have determined that the big move is due to geopolitical tensions over the expiration of LNG exports with Russia for Europe. This could mean more exports and demand for US Natural Gas.

Erin then covered Sector Rotation and walked us through all of the sector charts “under the hood”. No sectors currently have rising momentum. All Price Momentum Oscillators (PMOs) are in decline setting up for a very difficult January.

Try out any of the DP products for two weeks for free using Coupon Code: DPTRIAL2.

01:40 DP Signal Tables

04:38 Market Overview (including Bitcoin, Yields, Dollar, Gold and more)

24:40 Questions

26:52 Natural Gas (UNG)

33:04 Sector Rotation Overview

35:02 Magnificent Seven

41:37 Sector Chart Review Under the Hood

50:13 Symbol Requests

Join us LIVE in the trading room on Mondays at Noon ET by registering once to attend: https://zoom.us/webinar/register/WN_D6iAp-C1S6SebVpQIYcC6g#/registration

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Technical Analysis is a windsock, not a crystal ball. –Carl Swenlin

(c) Copyright 2024 DecisionPoint.com

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.

DecisionPoint is not a registered investment advisor. Investment and trading decisions are solely your responsibility. DecisionPoint newsletters, blogs or website materials should NOT be interpreted as a recommendation or solicitation to buy or sell any security or to take any specific action.

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Trend Models

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On Balance Volume

Swenlin Trading Oscillators (STO-B and STO-V)

ITBM and ITVM

SCTR Ranking

Bear Market Rules

There are a number of effective swing trading systems being used today. Let’s explore one that is popular among Wyckoffians. It uses two inputs: Point and Figure charts and volume. Let’s review this system with a case study of Charles Schwab Corp. (SCHW).

As markets are fractal, Accumulation and Distribution structures form in daily, weekly and monthly timeframes. Swing trading structures typically form on daily charts that can be identified with 1-box Point & Figure charts and daily vertical bar charts.

Charles Schwab Corp. forms a Swing Trading Accumulation structure between July and October. In July climactic selling (SC) volume ends the decline, and an Automatic Rally (AR) sets the support and resistance of a range-bound condition to follow. Subsequent volume on rallies and reactions tells the tale of latent Accumulation. This chart is rich with Wyckoffian principles, and it has been marked up for your study and evaluation. Let’s turn our attention to the PnF chart to demonstrate how much useful information is present for Swing Trading.

Charles Schwab Corp. (SCHW) Vertical Chart Study

Swing PnF Case Study

Charles Schwab Corp. Swing Trading Case Study. 1-Box PnF

A 1-box PnF chart, properly constructed, will characterize the essential elements of the vertical chart. Note how the PnF strips out much of the noise and highlights the critical chart features. I often hear that traders find volume easier to read and interpret on the PnF chart therefore it is suggested that all PnF charts be plotted with volume. A key feature of PnF charts is the estimation of the price objective determined by the size and structure of the Accumulation. There is no other technique for estimating price objectives as effectively as horizontal PnF counting. PnF is a centuries old, tried and true approach to evaluating and trading financial instruments.

For swing trading purposes, a 1-box reversal PnF is generated using ‘Traditional Scaling’. The up and down swings are clearly revealed with this method. With 1-box PnF the horizontal structure is well defined and the volume patterns are illuminating.

Chart Notes:

• Selling Climax (SC) exceeds the Distribution count and finds support at $61. An Automatic Rally (AR) immediately follows and demonstrates emerging demand. A Secondary Test (ST) back to $61, which holds, and confirms this level to be the Composite Operator’s ‘Value Zone’. Volume declines on each reaction back to $61 ST level (support).
• Volume expands on each rally (column of X’s) as the Accumulation matures to conclusion. Lower volume on declines and higher volume on the rally columns reveal that supply is diminishing and absorption has occurred. Higher volume on the rising columns is evidence of new demand by institutions. Accumulation is nearly complete.
• The pullback to the LPS / BU (see vertical chart) produces a higher low. The turn off that low can be bought with a stop below support. The next entry level is the jump above $65 resistance with a stop below the LPS.
• The price objective generated by the horizontal Accumulation is estimated by the PnF. There are 17 columns of count producing $17 of upside price objective (17 columns x $1-scale x 1-point reversal = $17). The percent potential of this swing trade is $17 from the $64 count line ($17/$64 = 26.6%). The price objective range is estimated by adding $17 to the $61 low of the Accumulation and the $64 count line. Producing a count range of $78 / $81.
• The Buying Climax is reached at $82. Thereafter $83 is resistance and a Swing Distribution forms in this price zone. When the Swing PnF count objective is attained, profits are taken. In this example the local Buying Climax surge produces an ideal selling zone.

Campaign PnF Case Study

Charles Schwab Corp. Campaign PnF Case Study. 3-Box Method

Stepping out to the larger timeframe is essential. Please study this 3-box reversal PnF. It reaches back into 2022. A Campaign PnF Count Accumulation has potential objectives of up to $101 / $105. Also, the prior high is $83 which happens to be in the area of the Swing PnF price objective and natural resistance. Be on the alert for the generation of a new Swing PnF count structure in the months ahead. Often these Swing counts will coincide with the higher Campaign PnF counts. We will be watching.

All the Best,

Bruce

@rdwyckoff

A Very Happy and Prosperous 2025 to You and Yours!

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional. 

Announcement

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Generally, there are 3 key hedges against inflation – gold ($GOLD), commodities ($XRB), and real estate (XLRE). While the Fed has taken a renewed interest in the short-term rising inflationary picture, which, by the way, is in direct contrast to what Fed Chief Powell said in late August and September, Wall Street simply isn’t seeing the same picture. Talk is cheap. When it comes to the stock market, the true statement being delivered is reflected in the price chart, not on CNBC.

Everyone now seems to be taking a different trading stance too. Bonds have been sold, sending yields soaring again. Bond investors will sell bonds when inflation is center stage for one simple reason. Bond yields aren’t high enough, given the prospects of inflation, and bond investors demand a higher yield to take on the additional inflation risk. After all, do you want to hold a 4% 10-year treasury if you believe inflation might move to 6%? I’d hope not. That’s clearly a losing proposition. Personally, I think the recent selloff in bonds is completely unwarranted and that yields will ultimately drop as investors fail to see meaningfully-higher inflation materialize.

The Fed has stated that it wants to continue watching inflation data and that its target rate of 2% will more likely be achieved in 2027 vs. 2026. While they’ve indicated that interest rate cuts will occur just two times in 2025 vs. the previously-announced 4 rate cuts, one question that should continue to be asked is…..why would interest rates be cut AT ALL if you’re truly worried about inflation. And why would the Fed have already cut the fed funds rate by 100 basis points over the past 3 Fed meetings? Honestly, I think this nonsense is nothing more than the Fed Chief hedging and waffling.

Is the stock market concerned about inflation? Ummm, I don’t think so. Let’s get back to those inflation “hedges” and see how they’ve been performing recently vs. the S&P 500. After all, when inflation, or the threat of inflation, is REAL, the hedges should work and outperform the benchmark S&P 500, right? Take a look at this current RRG chart (I’ve included silver as well):

Does this look like Wall Street is rotating into these hedges to you?

To compare, let’s go back to 2022 and check out when inflation was an obvious problem:

A 6.5% annual rate of inflation is a problem and that was certainly one big reason why we followed that up with a cyclical bear market in stocks (which I called at our MarketVision 2022 event in early January of that year). Now let’s check out the movement in the fed funds rate in 2022 and, more recently, in 2024:

When inflation is truly a problem, you RAISE the fed funds rate, you don’t cut it. 2022 saw the fed funds raised incredibly fast and the total increases were significant. The Fed was increasing rates to slow demand and curb inflationary pressures, which they did. But if we fast forward to late 2024, the Fed is CUTTING rates and is looking ahead and saying more rate cuts are coming. This DOES NOT happen when inflation is a true threat.

Now, scroll up and take a look at the current RRG chart that shows money rotating AWAY FROM inflation hedges. It’s quite a different look than when inflation is a REAL problem. Check out this RRG chart, which shows rotation in February 2022 as inflation establishes its first annual rate of change peak:

Quite a different look, wouldn’t you say?

So my last question…….Does Wall Street truly believe inflation is a major threat? I say no.

MarketVision 2025

Well it’s time and we’re only one week away. How will 2025 unfold? I have a solid track record at these prior MarketVision events. This is year #6. In the previous 5, I’ve provided bullish outlooks for 2020, 2021, 2023, and 2024, which were all bullish. The only year I was cautious was heading into 2022 and it was due to a number of factors, including inflation. But the biggest question right now is…..Where are our major indices heading in 2025? Which sectors and industry groups are likely to be in favor? What about the dollar and commodities? Interest rates and the yield curve? Sentiment? International stocks? I have the answers and I’ll be sharing them with our EarningsBeats.com members next Saturday, January 4, 2025 at 10:00am ET. For more information and to register for MarketVision 2025, CLICK HERE! We’ll provide you ONE YEAR of EarningsBeats.com membership FOR FREE when you sign up for the event!

4 Trading Tips for 2025

I want to open up a new year with 4 important trading tips to help make 2025 a more successful and profitable year. for you. You can SIGN UP for these tips and they will be delivered to your email, beginning on Monday, December 30th. I hope you enjoy them as a THANK YOU for your loyalty and support in 2024!

On behalf of the entire EarningsBeats.com team, I want to wish everyone a happy, healthy, and prosperous 2025!

Happy trading!

Tom

After suffering a brutal selloff in the week before this one, the Nifty spent the truncated week struggling to stay afloat just below the key resistance levels. With just four working days, the Nifty resisted each day to the 200-DMA and failed to close above that point. The trading range got much narrower, and the Nifty oscillated in just 291.65 points before closing with a minor gain. The volatility also cooled off as compared to the previous seek. Against the surge of 15.48%, this week saw India VIX declining by 12.17% to 13.24. Following strong consolidation, the headline index closed with a modest weekly gain of 225.90 points (+0.96%).

From a technical perspective, we are now at a very crucial juncture. On the one hand, the Nifty has closed below the 200-DMA placed at 23861. On the other hand, the Index is just above the 50-week MA at 23568. Rounding off, this puts Nifty in a very fragile range of 23860-23500. The Nifty will have to stay above the 23500 level; any violation of this level will instill prolonged weakness in the markets and push them into intermediate corrective trends. It also needs to be noted that the technical rebound would be sustained only if Nifty is able to cross and close above its 200-DMA. The longer the Nifty stays below 200-DMA, the more vulnerable it will be to testing the 50-week MA again.

Given the holiday season, no major moves are expected globally. The Indian markets are likely to start on a quiet note. The levels of 24000 and 24150 are likely to act as resistance points. The supports come in at 23600 and 23450.

The weekly RSI is 43.74; it stays neutral and does not show any divergence against the price. The weekly MACD is bearish and stays below the signal line. A Spinning Top occurred on the candles, depicting the market participants’ indecisive mindset.

The pattern analysis shows that the Nifty has retested the 50-week MA placed at 23568 again. While the Nifty has closed above this level following a modest rebound, it remains below the crucial 200-DMA. This means that so long as the Nifty is within the 23860-23500 zone, it is unlikely to adopt any sustainable directional bias. A trending move would occur only if the Nifty takes out 23860 on the upside or ends up violating 23500 levels.

Overall, it is important to observe that the markets are not totally out of the woods yet. So long as they are trading below the 200-DMA, they remain vulnerable to a retest of the 50-week MA. A violation of this level would mean a prolonged period of incremental weakness for the markets. It is recommended that all fresh buying must be kept defensive while keeping leveraged exposures at modest levels. For a rebound to sustain, it is immensely important for the markets to cross and close above 200-DMA. Until this happens, we need to approach the markets on a cautious and highly selective basis.

Sector Analysis for the coming week

In our look at Relative Rotation Graphs®, we compared various sectors against CNX500 (NIFTY 500 Index), which represents over 95% of the free float market cap of all the stocks listed.

Relative Rotation Graphs (RRG) continue to show Nifty IT, Banknifty, Services Sector, and Financial Services indices inside the leading quadrant. Although these groups are showing some slowdown in their relative momentum, they will likely continue outperforming the broader markets relatively.

The Midcap 100 index shows sharp improvement in its relative momentum while staying inside the weakening quadrant. The Nifty Pharma index is also inside this quadrant.

The Nifty PSE, Media, Infrastructure, Energy, Auto, Commodities, FMCG, and Consumption sectors are inside the lagging quadrant. They are likely to underperform the broader markets relatively.

The Nifty Metal index is inside the improving quadrant; however, it is rapidly seen giving up on its relative momentum. Besides this, the Realty and the PSU Bank indices are also inside the improving quadrant. They are expected to continue improving their relative performance against the broader markets.

Important Note: RRG™ charts show the relative strength and momentum of a group of stocks. In the above Chart, they show relative performance against NIFTY500 Index (Broader Markets) and should not be used directly as buy or sell signals.  

Milan Vaishnav, CMT, MSTA

Consulting Technical Analyst

www.EquityResearch.asia | www.ChartWizard.ae

In this video, Mary Ellen highlights whether to buy last week’s pullback. She discusses the rise in interest rates and why, as well as which areas are being most impacted. Last up, she reviews potential winners with new Trump policy, how to spot a downtrend reversal, and the signals that you should use to exit a stock.

This video originally premiered December 27, 2024. You can watch it on our dedicated page for Mary Ellen on StockCharts TV.

New videos from Mary Ellen premiere weekly on Fridays. You can view all previously recorded episodes at this link.

If you’re looking for stocks to invest in, be sure to check out the MEM Edge Report! This report gives you detailed information on the top sectors, industries and stocks so you can make informed investment decisions.

Are you ready to make 2025 a financially healthy year?

The beginning of a new year is the perfect time to set intentions and make positive changes to your portfolio. These five New Year’s resolutions can make you a proactive investor so you can better control your financial portfolio in 2025.

2024 was a good year for the stock market. It had its volatile moments, which may have led you to sell positions too soon or miss out on big, bullish moves. But now it’s time to leave behind the challenges of 2024 and embrace what’s ahead. The stock market’s future price action rests on uncertainty; the best way to prepare is to take charge of your financial destiny, and to be open to participating and embracing investment opportunities that arise.

Resolution #1: Think Long-Term

With an incoming US president and administration, there will likely be broad changes across the economic landscape. Volatility could be high at times, especially when the impact of changes may be uncertain. Unless short-term day trading is your thing, it’s best not to get hung up on short-term changes.

A massive selloff in one day shouldn’t lead you to make panic selling decisions. Instead, look at a longer-term chart, such as a monthly or weekly one, to get a picture of the overall trend. If an uptrend is still intact, there’s no need to panic sell. Monitor key support levels closely. A downside breakout should be an alert to reevaluate your investments and determine if the reason behind your investment decision is still valid.

The weekly chart of the S&P 500 ($SPX) below shows the uptrend in the index is still going strong. Add your support levels to the chart, add it to one of your ChartLists, and monitor it closely.

FIGURE 1. WEEKLY CHART OF THE S&P 500. The index is trading above its 50-day moving average and the moving averages—50-, 100-, and 200-day—are sloping upward.Chart source: StockCharts.com. For educational purposes.

Resolution #2: Adapt to Changes

With policy changes in Washington, certain sectors and asset classes will outperform others. There’s a lot of talk about tariffs, tax cuts, and geopolitical tensions, but it’s about what policies are implemented and tensions that flare up that will make a difference.

The stock market is overextended and could remain that way during most of 2025 with bouts of volatility. Keep an eye on the chart of the Cboe Volatility Index ($VIX). A rising VIX implies investors are getting nervous, which should alert you to become weary. Keep an eye on other sentiment indicators such as the American Association of Individual Investors Bull and Bear indicators (!AAIIBULL and !AAIIBEAR) and the National Association of Active Investment Managers Exposure Index (!NAAIM). Monitoring sentiment indicators will give you a pulse of the market.

Resolution #3: Review Your Portfolio

Your portfolio is an asset like your home or car. Every so often, it needs a maintenance check, so set up some time to review your investment portfolio. It could be monthly, bi-monthly, or quarterly.

Start with a bird’s-eye view of your portfolio. Is it heavily weighted in some sectors? Are your holdings diversified across different asset classes? Which stocks are your strongest performers? Which ones are your weakest? Are there asset classes you’re not participating in that you should consider? There are several moving parts, which is why it’s important to set up your StockCharts Dashboard panels in a way that helps you monitor the overall market and your portfolio holdings.

It’s also worth broadening your horizons and learning about different trading instruments, such as options. StockCharts has introduced the OptionsPlay Add-On which allows you to select optimum options strategies for stocks. If you’re an options trader, you’ll want to explore this tool.

Resolution #4: Get Organized

Some extra leg work on the front end can save you a lot of time when reviewing your portfolio. Build your ChartLists with all your portfolio holdings. Make different lists if you have more than one investment account. For example, if you have more than one retirement account, create one ChartList for your 401(k), another for your IRA, and another for your Roth IRA.

Once you’ve built your ChartLists you can view them in different ways — Summary (view holdings in a tabular format), ChartList View (stacks all charts so you can scroll vertically to view), and Performance (tabular view of the performances of all stocks and ETFs in your list) — to name a few. Explore the different ways to view your ChartLists and select one that works for you. Think of how much time you can save when you’re more organized.

Resolution #5: Keep a Trading Journal

Making investment decisions can be complicated. Investing involves continuous learning and understanding yourself. Let’s face it — most of your investment decisions stem from emotions and often you forget your reasons for investing in a security. Noting down the thought processes that go through your mind when making investment decisions helps you understand yourself better and makes you a smarter investor.

Reviewing your notes helps you identify which investment decisions were well thought out and which were based on emotions. While StockCharts doesn’t offer a trading journal, you can add comments to your charts. In SharpCharts, under Saved Charts (left-hand menu), click on Chart Comments and add whatever thoughts go through your mind when you view a chart. When you have time to focus on your journal, you can add your comments and other important details.

The bottom line: The stock market is full of opportunities. Have an open mind as we step forward into 2025.

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

Qubits, quantum advantage, gate speed — these terms could one day be as ubiquitous as AI or large language model (LLM). Quantum computing could become the next big thing in the technology space and, as an investor, it’s something you don’t want to ignore. Some companies, Alphabet Inc. (GOOGL) and Amazon.com, Inc. (AMZN) to name a few, have already dipped their toes in the quantum computing world.

While it may be many years before quantum computing is adopted into the mainstream, investors should take notice now. Some quantum computing stocks and exchange-traded funds (ETFs) are seeing their prices rise and, at their current price levels, it’s worth paying attention to their charts.

When reviewing the StockCharts Technical Rank (SCTR) Reports Dashboard panel on Thursday, December 26, we can see that at least four quantum computing stocks made it to the Small Cap, Top 10 category. This makes it worth analyzing their charts.

FIGURE 1. QUANTUM COMPUTING STOCKS ARE GETTING STRONG. The Small-Cap, Top 10 displayed four quantum computing stocks with high SCTR scores.Image source: StockCharts.com. For educational purposes.

All four stocks — Quantum Computing (QUBT), Rigetti Computing, Inc. (RGTI), Quantum Corp. (QMCO), and D-Wave Quantum Inc. (QBTS) displayed upside momentum in October/November (see chart below). The SCTR score for all four stocks is close to 100, their 21-day exponential moving average (EMA) and 50-day SMA are trending higher, and the 200-day SMA is flat to slightly higher.

FIGURE 2. QUANTUM COMPUTING STOCKS. All four stocks are displaying similar price action. They’re all trending higher, have strong SCTR scores, and display bullish momentum.Image source: StockChartsACP. For educational purposes.

Overall, these stocks look ripe for a bull run and the price levels are attractive. The percentage price oscillator (PPO) in the lower panel shows momentum favors the bulls. Quantum Computing Inc. (QUBT) has pulled back slightly, whereas Rigetti Computing, Inc. (RGTI), Quantum Corp. (QMCO), and D-Wave Quantum, Inc. (QBTS) are at all-time highs.

If you want to gain broader exposure to the quantum computing segment, the Defiance Quantum ETF (QTUM) invests in quantum computing and technology companies. The Symbol Summary page provides more details about the ETF.

The daily chart of QTUM below is similar to the charts of the individual stocks above.

FIGURE 3. DAILY CHART OF DEFIANCE QUANTUM ETF (QTUM). This chart is similar to the individual quantum computing stocks in Fig 2. The advantage of investing in the ETF is it gives you exposure to more than one stock and other cutting-edge technology stocks.Chart source: StockCharts.com. For educational purposes.

The Game Plan

Watch for a pullback toward the 21-day EMA or the most recent low, whichever is higher. A reversal from a support level with follow-through would be an opportune time to enter a long position. It’s worth creating a ChartList of quantum computing stocks so you can revisit these charts frequently.

So at your New Year’s Eve party, if someone mentions the words qubit and gate speed, at least you’ll know they’re talking about quantum computing.

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.