This is a podcast about Technical Analysis and its practitioners. I think we've done a good job of bringing in some of the top technicians in the business, and in some cases, some of the best that ever did it. My goal when I first started this was to talk to people who bring different perspectives on the subject and on the markets in general. We've had Portfolio Managers, Analysts, Traders, Authors and Psychologists come on regularly over the past few years. Today I am thrilled to invite Riley Rosenberger to the podcast to get his point of view on Technical Analysis and what it feels like to start a career as a trader. Riley interned for us last year after spending some time training with SMB Capital in New York City. "Riley The Intern", as he's known in some circles, brings a unique perspective that we haven't heard on this podcast before. When he first decided that he wanted to learn about trading, his High School teacher in Colorado told him to think about doing something else. She said he didn't have the pedigree for that. I love that he ignored her and I...

From the desk of Tom Bruni @BruniCharting

Tuesday's Mystery Chart is one of my favorite charts right now, so thank you everyone for your feedback and participation.

I received a lot of answers, but most of you were buyers and the rest were split between doing nothing and selling.

With that as our backdrop, let's get into it.

From the desk of Tom Bruni @BruniCharting

We've been watching some of the Energy ETFs we track most of this year for potential mean-reversion opportunities on the long side.

We recently discussed for our Institutional Clients an opportunity in the Small-Cap Energy ETF (PSCE), which rallied 17.50% from its 2018 lows before reversing back to those levels again.

The main issue in Energy remains that there appears to be an attractive mean reversion opportunity at the ETF level, but when we drill down into individual stocks there aren't many clean setups...making it difficult to identify what the main drivers of this move higher would be.

Let's take a look.

For the purpose of this exercise, we're going to look at Oil Services ETF (OIH) because its risk management level is the cleanest of the Energy subsectors.

In December prices retested their 2001 lows near 14.00 as momentum got deeply oversold, leading us to believe that a retest of that level with a bullish divergence would occur and create a sustainable bottom in the space. Here we are seven months later and we've gotten just that, except we're not seeing the upside...

From the desk of Tom Bruni @BruniCharting

JC and I are generally on the same page about a lot of things, but this week our brains seem to be very in sync as we're writing about the same topics with a slightly different spin on each subject.

Yesterday JC spoke about how US Equities can do just fine, actually really well, during periods of Small-Cap underperformance.

Today I want to take a more granular look at the Russell 2000 and see what its recent price action has in common with the Euro Stoxx 50.

With U.S. Large-cap Indexes breaking out to new all-time highs, many are wondering when, and if, the Small-caps are ever going to catch up. The Dow Jones Industrial Average, S&P500 and Nasdaq100 have all taken out former highs and are currently in uncharted territory. The Mid-caps, Small-caps and Micro-caps, however, are still all well below their 2018 highs.

While we like to pride ourselves in looking at more charts per week than almost anyone on earth, I get a lot of value from regularly speaking to clients and colleagues. Tuesday was one of those days that I found myself on the phone speaking with people around the world. One theme that came up multiple times was the underperformance in Small-cap stocks throughout the late 90s. It's something we've seen before. U.S. Large-cap stocks can do very very well even with small-caps underperforming, like they have since last year.

From the desk of Tom Bruni @BruniCharting

New Mystery Chart!

For those new to the exercise, we take a chart of interest and remove the x/y-axes and any other labels that would help identify it. The chart can be any security in any asset class on any timeframe on an absolute or relative basis. Maybe it's a custom index or inverted, who knows!

We do all this to put aside the biases we have associated with this specific security/the market and come to a conclusion based solely on price.

You can guess what it is if you must, but the real value comes from sharing what you would do right now. Buy, Sell, or Do Nothing?

Financials are a big focus of ours right now. We can make a strong case that this is the most important sector in America. Traditionally, Industrials are the most positively correlated with the S&P500 and Technology is the largest sector by market cap. But we don't have bull markets without bank stocks. That's the way this works.

In this episode of The Money Game, Phil and I talk about the Availability Heuristic and why we are more likely to invest in certain types of companies depending on where we live. This is a really interesting phenomenon that makes a lot of sense. I'm lucky that I get to avoid this bias more than others simply because of the process I use to perform my analysis. It's a solution to a problem I didn't even know I had! This is a short one that I think is worth a listen just to learn a little bit more about yourself.

Remember last year, and the year before that, and the year before that, when Amazon would just rip higher all the time? That uptrend came to an abrupt halt last Fall, and $AMZN came tumbling down like many other stocks around the globe. After almost a year of consolidation, it appears as though Amazon shares are ready to get going again.

Remember when Outrage Twitter was running wild with conspiracy theories about Chipotle poisoning its customers and the business was doomed? That was fun. You know who had more fun? Long term investors who turned off the "news" and stayed the course.

Earnings are coming up that may serve as a catalyst to launch the next leg higher in shares of $CMG.

There is potential for a 10-to-1 payout if we nail it and $CMG has a monster gap along the way to get us to and through our price target. But our aims are a bit more modest. We're simply looking to capture some of the barbacoa in the middle.

From the desk of Tom Bruni @BruniCharting

Last week I posted the mystery chart pictured below to see what people were thinking once they removed the biases of knowing the security name, timeframe, or etc. and had only price to rely on.

Most people were on the same page as I am, thinking this is a structural trend change that we want to be buying, not selling. A few people were hesitant and wanted to see more before getting involved, but very few, if any, were sellers.