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Tuesday, May 12, 2009

The Chart Store

In my series to cover various good web sites for information, today I'll cover The Chart Store.

The chart store is new to me, and so I don't have any history for how the charts help me trade. The chart store has over 5,000 different charts, many dating back to before the 1930's. For information dating back that far, you would need to pay 1,000's per month for such a service.

As a huge plus, Ron of the Chart store puts together a weekly blog entry where he uses his vast arsenal of charts and highlights from his perspective, what is going on in the markets. This "premium" service is crucial, since who has the time to look at 5,000 charts weekly? :)

Ron gave me permission to print two charts from his blog entry for this past Sunday. You are allowed to quote his normal charts, not from his blog, if done sparingly and appropriately. Basically, don't abuse his site!

When I registered Ron called me out on printing a falsehood, that this recent rally wasn't the second greatest rally of all time. To the right is a list of the top greatest stock market rallies of all time. I'll correct my post, this past rally is the greatest rally of all time since the 30's, that has occurred in such a short period of time. Notice in the chart, I added the red circles highlighting each top rally that occurred under 75 days. Notice NONE occurred since the 30's except the current one.

The 30's involved the last Great Depression. This is NOT a good sign for this rally!

The caption for the chart states "The table has a listing of all S&P Composite swings up of greater than 10% without a corresponding down swing of at least 10% where the up swing was at least 30%. "

The second chart shows % of stocks in the S&P500 are over the 50 day moving average, notice that when % gets very high, the market usually declines afterwards. This last rise has been a very strong, with a significant bell curve shape in the current % of companies above 50 day moving average.

From WebSurfinMurf's Financial Blog

The Chart Store blog entry highlighted about 45 charts, with notation, making it a quick breeze to review.

So click here to see the charts "the chart store" has to offer. (click orange bar for more charts) I particularly like the charts inflation adjusted, to give a more accurate view of natural resource valuation. See below for CRB (Commodity index) charts one without adjusting for PPI , the other with. Quite a different view of commodity valuation compared to history with PPI adjusted.

So Click here to see the cost to join. One trade can easily pay for the costs. Looking at these charts can give you the confidence to make a trade you normally wouldn't do, so how much is that worth?

From WebSurfinMurf's Financial Blog

From WebSurfinMurf's Financial Blog

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