Savvy Stochastic

Savvy Stochastic

  A stochastic indicator is an important technical tool that we use to gauge the stock market’s strength. Unlike some other indicators that use inputs like corporate profits or economic data, a stochastic looks at just the price movement of the stock market...
Baltic Dry Index

Baltic Dry Index

  The Baltic Dry Index (BDI) is a financial index that measures the average cost to ship various dry bulk materials—such as coal and steel—around the world. Because it reflects the supply and demand for important materials used in manufacturing, the BDI is...
Nasdaq vs. NYSE Volume

Nasdaq vs. NYSE Volume

  This week’s indicator uses the ratio of total Nasdaq volume to total NYSE volume to gauge sentiment in the stock market. The key takeaway is that the ratio is falling, a sign of increasing pessimism—which, from a contrarian perspective, could be a bullish...
The Highs and the Lows

The Highs and the Lows

  This week’s featured indicator focuses on breadth, or participation, in global financial markets. On the top half of the graph, we have the MSCI All-Country World Index, a benchmark index for the global stock market performance. On the bottom half of the graph,...
Yield Reversals

Yield Reversals

  This week’s featured indicator is based on the concept that reversals in bond yields (interest rates) often call the tune of the stock market. Why? Because bond yields compete with stock dividends for investors’ money. Additionally, interest rates affect the...