Stocks

DP Trading Room: Why the PMO is Better Than the MACD!

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Today Carl explains the benefits of using the Price Momentum Oscillator versus the MACD. They are not the same!

Carl then gives us his insights on the market in general as well as Bitcoin news, Magnificent 7 overview, as well as Crude Oil and Interest Rates.

Erin gives us an in depth look at where the S&P Sectors are showing strength. One sector should be avoided based on the PMO.

Some highlights:

– The PMO is a better momentum indicator than MACD because it normalizes readings to allow for better comparisons over time. 

– Many of the “Magnificent Seven” tech stocks like Apple, Google, and Microsoft are showing signs of topping out based on technical indicators. 

– Consumer staples and real estate sectors look strong and may benefit if the broader market corrects. 

– Comm services sector is showing weakness based on declining PMO readings. 

– Home Depot still looks technically healthy despite a bearish momentum divergence. 

– IGV tech ETF looks interesting but tech weakness could pose risks. 

– ARM Holdings has more upside potential but requires a tight stop due to parabolic rise. 

– Gold miners like MTA still have downside risk given weakness in gold prices and technical indicators.

Watch the latest episode of the DecisionPointTrading Room on DP’s YouTube channel here!

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

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Helpful DecisionPoint Links:

Trend Models

Price Momentum Oscillator (PMO)

On Balance Volume

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

ITBM and ITVM

SCTR Ranking

Bear Market Rules