At the beginning of each week, we publish performance tables for a variety of different asset classes and categories along with commentary on each.
Looking at the past helps put the future into context. In this post, we review the relative strength trends at play and preview some of the things we're watching in order to profit in the current market environment.
These are the registration details for our Live Monthly Candlestick Strategy Session for Premium Members of All Star Charts.
This month’s Video Conference Call will be held on Wednesday September 2nd @ 6PM ET. As always, if you cannot make the call live, the video and slides will be archived and published here along with every other live call since 2015.
Welcome to this week's edition of "Under The Hood."
What we do is analyze the most popular stocks over the trailing week and find opportunities to either join in and ride these momentum names higher, or fade the crowd and bet against them.
We are using a variety of new sources to generate the list of most popular names, which we'll explain more each week as we add new data sets. There are so many new data sources available that all we need to do is organize and curate them in a way that shows us exactly what we want: A list of stocks that are seeing an unusual increase in investor interest.
Last week, we added some stocks from a list of large institutional purchases we track, and this week we've added some names that experienced unusual options activity.
As we continue to include new sources, the number of potential trade opportunities we can choose from increases and gives us a larger universe of favorable setups to take advantage of.
Thanks to everyone for the feedback on this week's Mystery Chart. We had a lot of good answers this week. Many respondents were cautious of the waning momentum but on balance, most of you were buyers. We are too.
It was a chart of the iShares MSCI Netherlands ETF $EWN which just broke out of a 13-year base to fresh all-time highs (shown below).
But it's not just the Netherlands making new record highs, the All-Country World Index $ACWI just made new all-time highs as well. There aren't many things more bullish than World Equity Indexes trading at their highest levels in history.
In this post, we'll highlight the positive breadth characteristics we're seeing within Global Equity Markets and outline trade setups in some of the strongest countries around the world- including the Netherlands, as a way to express our bullish thesis.
But first, here's why we're so bullish on International Equities in the first place. Check out these new highs for ACWI.
That's how I learned it. You'll hear my friend Ralph Acampora say that all the time!
"You Never Want To Fight Papa Dow"
My interpretation is that there is wisdom in the Dow Components. If you want to know which way the market is headed, focus on those 30 stocks.
I'm not going to get into the discussion about whether the Dow is the best index or not. I've made my case before and stand by it today more than ever. If you have a problem with Dow Jones or Standard & Poors, stop complaining about it and just go build a better index. It's not that hard. We do it every day.
The Dow Jones Industrial Average, however, is a perfectly good index and gauge of stock market strength or weakness. One of the best parts is that there are only 30 components!
Hellooo??? Do you want to go through 500 stocks? Or 3000 in the case of the Russell3000?
At the beginning of each week, we publish performance tables for a variety of different asset classes and categories along with commentary on each.
Looking at the past helps put the future into context. In this post, we review the relative strength trends at play and preview some of the things we're watching in order to profit in the current market environment.
This week, we're going to highlight a number of critical Stock Market Indexes and Sectors, as well as assets in the FICC Markets that are approaching logical levels of overhead supply and pose the question... "Are risk assets due for some corrective action or consolidation?"
Welcome to this week's edition of "Under The Hood."
What we do is analyze the most popular stocks over the trailing week and find opportunities to either join in and ride these momentum names higher, or fade the crowd and bet against them.
We have some new additions coming for how we generate the list of most popular names, which we'll explain more each week as we add new data sets. There are so many new data sources popping up that all we need to do is organize them in a way that shows us exactly what we want: A list of stocks that are seeing an unusual increase in investor interest.
The S&P 500 finally achieved new highs this week. The market is clicking on all cylinders as breadth and participation continues to broaden, and favorable risk/reward setups are popping up all over the place. Let's dive into the most popular tickers this week and see what's going on "under the hood" in these hot names.
Thanks to everyone who responded to this week's Mystery Chart. Responses were somewhat mixed. It was a daily chart of the iShares Medical Devices ETF $IHI.
What we really wanted to know is whether or not investors are buying these kinds of bullish continuation patterns right now. Many alluded to the underlying trend being higher but still wanted to wait for the flag pattern to resolve before taking action.
This is a prudent approach and we're looking at the chart in a similar light. With that said, we're also viewing setups like this within the context of what is going on in other areas of the market. In other words, as more and more of these patterns resolve to the upside, which they are, the higher the likelihood is that others will follow their course.
In this post, we'll walk through our top-down approach to highlight why we like Medical Devices right now and then drill into some of our favorite setups as a way to express our bullish thesis.
At the beginning of each week, we publish performance tables for a variety of different asset classes and categories along with commentary on each.
Looking at the past helps put the future into context. In this post, we review the relative strength trends at play and preview some of the things we're watching in order to profit in the current market environment.
This week, we're going to highlight the continued outperformance from offensive assets as well as the weakness we're starting to see from many defensive assets. This kind of action continues to suggest increasing risk-appetite and is supportive of higher prices within Equity and Commodity Markets.
Welcome to this week's edition of "Under The Hood." You can read more about the column here.
What we do is analyze the most popular Robinhood stocks over the trailing week and find opportunities to either join in and ride these momentum names higher, or fade the crowd and bet against them.
We have some new additions coming for how we generate the list of most popular names, which we'll explain more each week as we add new data sets. This is a really exciting time for us. There are so many new data sources popping up so it's really just our responsibility to organize it to where it only tells us exactly what we want: An unusual increased level of interest for an asset.
Last night we held a Happy Hour With Traders and discussed market internals and breadth with some of the best Technicians in the business. We focused mainly on the more popular aggregate breadth indicators such as the percentage of new highs and lows, the percentage of stocks above the 200-day, and so on.
We also talked a bit about our process for analyzing breadth on a more granular level, which is simply by looking at our universe of indexes, sectors, industry groups, and individual stocks each week. When we run our scans and look at the individual charts themselves, we continue to see a higher number of new highs and bullish momentum characteristics.
This is evidence of improving breadth.
This week's Mystery Chart was one of the latest Industry Groups we noticed making fresh all-time highs. In this post, we'll discuss the chart and offer some trade ideas in some of the groups' strongest components.