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JC published a bullish piece on Japan today. He's been pounding the table on the potential for a massive base breakout for some time. He's so exited about it, we even traveled to Tokyo last year to see what's going for ourselves!!
One of the names he mentioned in the post stood out to me and I'm willing to step in and take a position.
2008-2009 was a dark period for the banking industry. The "Financial Crisis" nearly brought the whole system to its knees. Stocks in household name banks became penny stocks (Citibank!), Warren Buffet had to rescue Goldman Sachs, and a few had to put themselves up for sale (Merrill Lynch), or even became extinct (Bear Stearns, Lehman Brothers).
For some long-term investors (and former employees in this sector), this is still a fresh wound.
But charts in this sector are starting to tell a different story.
One thing you'll read between the lines in nearly everything we do here at All Star Options and allstarcharts.com: We stick with winners. We ride trends. We get long relative strength and we get short relative weakness. We don't overcomplicate things. We don't need to be the Hero who shorts a parabolic stock at its zenith, or buys the oversold stock at its generational bottom. Those trades make for sexy stories, but that graveyard is a mile wide and 50 feet deep.
With this in mind, here's an undeniable leader that is setting up again:
As Steve Strazza was putting together the latest "2-to-100" report, he and I were chatting about his latest great stock idea. He is pretty excited about this one, and who am I to not join him?
Interest in stocks with direct and indirect exposure to the "vaccine trade" is through the roof. And with this interest comes some wild price action in both directions.
Today's play is in one of those names, but we like it more for its chart action than anything else. (It's kinda what we do here) ;)
I own a 2015 model vehicle and I plan on driving this car until it crawls. I'm not interested in being in the rat-race of always having the sexy latest model car with the equally unsexy monthly car payments. Been there, done that. No longer interests me. I'd rather just keep my current ride on the road as long as I can.
It appears I'm not alone in this as companies that sell spare car parts are seeing their stocks perform very well.
The ASC research time has been hitting the bong for some deep thinking and far out trade ideas. Tom Bruni published this piece on opportunities hidden behind a cloud of smoke in the marijuana stocks space.
One pretty speculative idea stood out to me which we'll be taking a hit off today.
Wow! What an open for stocks today. The votes are in and investors have decided the winner is: STOCKS. Of course, I'm told there's some positive vaccines news which may be accounting for the run up we're seeing today. Either way, all the major stock indices are printing new all-time highs today --- something you don't see in bear markets.
Our latest Under the Hood report is out and there's a bevy of opportunities to choose from. And given the week we've just had, my favorite idea supports something I think we all could use a little more of -- rest.
I don't think there's any doubt that we'll be seeing a surge in healthcare spending in the coming months and years. And while that makes for a good story, the charts in the healthcare sector offer a more compelling narrative.
Breaking away from custom here, we'll be taking a shot in a laggard in this sector that offers us a pretty clear risk management level and an affordable opportunity for us to buy time for the catch up to commence.