In this episode I am thrilled to have Mark Newton, Founder of Newton Advisors. Mark is one of those Technical Analysts that I have followed for many many years. His intermarket perspective and top/down approach is one of the best on The Street. He does great work on relative strength and ratio charts to really gauge the flow of money from one asset to another. His experience on both the Buy Side and Sell Side gives him a unique perspective and I’ve always found it helpful to pick his brain whenever I get the chance. In our conversation we discussed U.S. Stock market breadth, keeping an open mind to future outcomes, Interest Rates, Oil and Gold and how he approaches the market day in and day out. I really enjoyed recording this episode and I think you’ll quickly see why. This was a good one! [Read more…]
Over the past decade, I’ve been fortunate enough to do business with most of the largest financial institutions in the world. Banks, Hedge Funds, Family Offices, RIAs and other big buyers have counted on me, and now us as team, to help them allocate assets more successfully.
Our idea flow comes within the context of a global macro perspective. Individual stock trades are ultimately derived from both cross-asset analysis and risk vs reward, which we are always trying to skew in our favor. Many of our customers come just for the risk management strategies. They are fundamentally focused but want to better understand what the technicals are reflecting in terms of risk. Others come for the trade idea generation looking to add alpha, knowing the team is constantly reevaluating the current market conditions
While we have already been doing work with private clients over the past few years, we will now be officially opening it up to the public as a stand alone business. You can apply for an Allstarcharts Institutional Account here.
We’ve been around. We understand that the business has changed. It is not like the old days where Traders and Advisors had a team of analysts to help them with decision making. Wall Street firms can’t exchange research for trading commissions anymore, under the new laws changing. Even if they could, the spreads aren’t what they used to be anyway and the business has been flawed with the improvements in electronic access and trading. The lawmakers have just sped up the process and are helping them finally go extinct. A void has been left and we’ve been selected by all of you to fill it. So thank you for that.
We have built a team capable of providing excellent research and customer service. So far in 2018, we have already made two key acquisitions to our team. We have added Tom Bruni, formerly of Ernst & Young, to provide technical analysis in both the U.S. and foreign markets. Additionally, Sean McLaughlin joined the team in Q2 as our Chief Options Strategist, helping our clients better express their views in the derivatives markets.
With this new Institutional offering, the firm has hired Jonathan Bloom, who brings 20 years of experience on the Sell Side, as the new Head of Institutional Sales:
I’m beyond thrilled to be joining such a high caliber team of Technical Analysts led by JC Parets. I’ve known and consumed JC’s work since inception. Therefore, I understand why buy-side accounts have asked Allstarcharts to provide their trusted expertise. Business models have changed so much over the last 5 years. Clients want the best fit for their specific objectives these days, and this is the team to do it.”
The firm’s new offering has been formulated in tandem with buy-side clients wanting higher touch analyst interaction and responsive customer service for today’s dynamic environment. Each client will always have unique needs respective to their process. Allstarcharts’ new platform has been built with that in mind.
It really is a pleasure being in this business. Our clients are the smartest in the market. I learn so much from these regular interactions that I can then put back into my analysis. I would be a fool not to do it. So I encourage you, if you’re looking for more access and a higher touch point product, fill out an application and our Head of Institutional Sales Jonathan Bloom will get back to you right away.
Thanks again for all the support!
There are a lot of interesting developments working through the markets these days. Whether it’s the relentless sector rotation underneath the surface or the divergences between small and large-cap stocks, there is no shortage of topics to discuss about the current environment. I have been in the camp that a breakdown in Bonds to new multi-year lows would likely be accompanied by a lower yen and higher stock and commodities prices. Through last week that strategy has worked really well.
Moving forward, however, how does this face-ripper in rates impact U.S. stocks? Is the relative strength in financials this week a positive sign for equities? Or are they just getting a sympathy bid because of rates? Are Semiconductors finally going to break out above their epic 2000 highs, which they’ve been flirting with all year? What about Gold and Crude Oil? How do they fit in?
There is a lot of noise being made this week about potential divergences in U.S. Stock markets. The one thing that gets lost in the shuffle is that just because asset A is rising and asset B is not keeping up, that asset A needs to correct and come down to meet asset B. Rarely does it get mentioned that asset B can just get some rotation and catch up to the relative strength that asset A is showing. In fact, during bull markets (which we’re in, not sure if you heard) the latter is a perfectly normal occurrence.
Today we’re going to take a look at a more macro correlation that I think we need to be watching. We’re talking specifically about the long-term behavior patterns of the S&P500 in America and the DAX in Germany. Going back many decades, these two indexes really move in sync. [Read more…]
This is the video recording of the October 2018 Conference Call for Members of All Star Options [Read more…]
I have to give credit to our Intermarket Analysis work for a lot of our success over the years. This “Cross-Asset” perspective is incredibly valuable, particularly when it comes to identifying and staying with important trends. As a supplement to our Technical work in U.S. Stocks and Indexes, we incorporate a variety of Intermarket relationships to help us formulate a thesis. These include Bonds, Commodities and Currencies.
When it comes to safety, I don’t care what people believe is a safe haven, I only care how the market reacts when it needs to go safe. When markets stressed and volatility rises, stocks fall in price and US Treasury Bonds and Japanese Yen reap the benefits. When did Yen and Bonds get strong? Summer of 2015 just as the S&P500 was topping out. When did Yen and Bonds peak? When stocks got going several months before the 2016 elections. Both of these are near their 52-week lows, which makes perfect sense with Stocks at all-time highs.
So, the way I see it, we’re most likely going to see Yen and Bond strength if stocks really sell off this quarter. The other side of that argument is that stocks are likely to do well in an environment where these “safe haven” assets are selling off. Here is a chart of both U.S. Treasury Bonds and Japanese Yen close to major breakdowns. If this is indeed the case, and both of these assets do break, I would bet that stocks are ripping in that environment: [Read more…]
The one thing we do know is that stocks are not in a downtrend. New all-time highs are consistent with a stock market environment where prices are rising. We saw new all-time monthly closing highs in most of the major U.S. Stock Indexes last week. The question is more about whether or not we’re starting to see this trend change or deteriorate in any way. The short answer is no. We do not see enough evidence to support a bearish approach towards equities, quite the opposite in fact.
Here’s what I’m seeing: [Read more…]
Kim Sokoloff is a trader’s trader. Whenever I see her she is always telling me about her trading day, what she was buying and what she was selling. I have a huge appreciation for the passion she brings to the markets on a daily basis. We all have different time horizons, some longer-term and some shorter-term. Kim is concerned with what stocks are doing over a a few days. For her, “long-term” is only a couple of weeks. In this episode, Kim walks us through her morning routine and thought process throughout the trading day. We’ve had analysts, money managers and traders on the podcast, but in this conversation we really dive deep into what it’s like trading every day from an apartment in lower Manhattan. I really enjoyed this discussion with a very active swing trader and practicing technician. [Read more…]