What do you guys think? Is it over for Facebook?
I think we’re about to find out.
Here’s how’s I see it: [Read more…]
Expert technical analysis of financial markets by JC Parets
by JC
What do you guys think? Is it over for Facebook?
I think we’re about to find out.
Here’s how’s I see it: [Read more…]
by JC
I like buying stocks that are going up. If there is anything that the market has taught us over the past hundred years is that market prices trend. The major averages, individual sectors, stocks, commodities, currencies, interest rates, they all trend. Sometimes these are uptrends that last years or even decades, sometimes they’re downtrends, and sometimes there is no trend and it’s just a sideways mess. Remember, recognizing a lack of trend is just as important as the first two. What I like even more is while a stock is going up the sell side likes it less and less. It’s completely counter intuitive to us who specifically look for trends to follow. They don’t think like us as market participants because they have different motivations. [Read more…]
by JC
I’ve been a full time technician for well over a decade. During this time, I’ve been lucky enough to meet and become close friends with some of the best and brightest technicians in the world. I regularly discuss the markets with them over email as well as the various conferences and speaking engagements that we all attend. We have spirited debates over what the market is going to do next, who has the better process for identifying opportunities and who nailed or missed the most recent big move. Without fail, I learn something new every time I have these types of discussions. So it got me thinking, and I realized that other traders and investors around the world would love to be a fly on the wall for these conversations and learn some new things too. It’s been my goal for the past year to make this a reality, and that day has finally come. [Read more…]
by JC
I love technical analysis. I really do. There’s no question that finding a nice chart brings a great amount of joy to my life. Today I want to share with you what I think is one of the most important developments to occur over the past couple of months. Interest rates have been ripping higher, yes we know this. But to me it’s what is happening in Banks and Real Estate Investment Trusts that continues to grab my attention. These groups of stocks are doing the exact opposite today that they were doing at the beginning of 2016, when I was pounding the table about rates going a lot lower.
Interest rates have exploded higher into year-end from a low near 1.37% on the 10-year yield up to over 2.6%. But one of the big reasons that had me so bullish rates since July was that while the 10-year was making lower lows into the summer, the ratio between Regional Banks and REITs held the early 2015 low and started to rally: [Read more…]
by JC
One of the more impressive moves that we’ve seen in 2016 is in the Industrial space. While we came into the year near multi-year lows on a relative basis (XLI/SPY), we entered December hitting new all-time highs relative to the S&P500. You want to talk about a dramatic change in relative strength? This is something we take very seriously, and definitely not something to ignore. We also want to keep in mind is that this relative strength started well before any election, US or otherwise. This got going in January.
Today we’re taking a look at the largest component in the Industrial sector: General Electric $GE, a stock that broke out earlier this year above a downtrend line from the all-time highs in 2000 and is still 30% below the 2007 highs. I think this is where we want to be looking: [Read more…]
by JC
Here is the video recording of the December 2016 Monthly Conference Call for Members Only
In the call we discuss:
by JC
Most of us are here to try and make money in the market. Some others are just here to make noise and create content they think will help them drive traffic to sell ads. The importance of the Dow Jones Industrial Average hitting 20,000 is one of the biggest lies of the year. I’m lucky to be good friends with some of the smartest traders and analysts in the world. We email each other all the time privately to share ideas and discuss some of the things we’re seeing out there. If there is something worth watching, I’m likely to get an email about it, or at least be included in an email discussion on the topic. So far, zero mention of this arbitrary 20,000 level, but double digit emails from media asking me what I think. See the difference? [Read more…]
by JC
In this week’s members-only letter we discuss the following topics: