It was a slow day, and the market just drifted lower.
We’ll see what happens tomorrow after the FOMC announcement.
Expert technical analysis of financial markets by JC Parets
by David
From the Desk of Kimmy Sokoloff
It was a slow day, and the market just drifted lower.
We’ll see what happens tomorrow after the FOMC announcement.
by Ian Culley
From the Desk of Ian Culley @IanCulley
Sellers beware!
The US Dollar Index $DXY is kicking ass and taking names.
The dollar has ripped higher ever since the July failed breakdown.
It’s now challenging fresh six-month highs and a critical former resistance area.
An upside resolution for King Dollar will undoubtedly pressure risk assets – not the ideal scenario for stock market bulls.
And the dollar rally has plenty of room to run if the DXY is a reliable indicator…
by David
From the Desk of Kimmy Sokoloff
The indices are stuck under their respective moving averages.
This is making it harder to find opportunities to trade.
by JC
Is this the world’s most important trend that no one is talking about?
How many people do you know would tell you that stocks are already in their 4th year of a downtrend relative to commodities?
In other words, how many people do you know that would argue we are now in year 4 of a Commodities Supercycle?
Here’s what this looks like: [Read more…]
by JC
This is the video recording of the September 2023 Mid-month Conference Call.
by Ian Culley
From the Desk of Ian Culley @IanCulley
Precious metals represent an opportunity cost.
The entire complex – gold, silver, platinum, and palladium – has gone nowhere for the past few years.
Yet I can’t overlook the resilience of gold and silver as interest rates and the US dollar rise – two significant headwinds for these shiny rocks.
Perhaps they deserve the benefit of the doubt.
I believe they do.
But extending these lackluster metals with a favorable outlook does not equate to taking a long position.
It’s far from it.
Price must prove buying precious metals offers a rewarding proposition.
The following two intermarket ratios will undoubtedly rise if and when it does.
From the Desk of Steve Strazza @Sstrazza.
Welcome back to Under the Hood, where we’ll cover all the action for the week ended September 15, 2023. This report is published bi-weekly and rotated with The Minor Leaguers.
What we do here is analyze the most popular stocks during the week and find opportunities to either join in and ride these momentum names higher, or fade the crowd and bet against them.
We use a variety of sources to generate the list of most popular names.
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.
Click here for a behind-the-scenes look at our process.
Whether we’re measuring increasing interest based on large institutional purchases, unusual options activity, or simply our proprietary lists of trending tickers, there’s a lot of overlap.
From the Desk of Steve Strazza @sstrazza and Alfonso Depablos @Alfcharts
This is one of our favorite bottom-up scans: Follow the Flow.
In this note, we simply create a universe of stocks that experienced the most unusual options activity — either bullish or bearish, but not both.
We utilize options experts, both internally and through our partnership with The TradeXchange. Then, we dig through the level 2 details and do all the work upfront for our clients.
Our goal is to isolate only those options market splashes that represent levered and high-conviction, directional bets.
We also weed out hedging activity and ensure there are no offsetting trades that either neutralize or cap the risk on these unusual options trades.
What remains is a list of stocks that large financial institutions are putting big money behind.
And they’re doing so for one reason only: because they think the stock is about to move in their direction and make them a pretty penny.
Then we flip through our list of stocks flashing unusual activity and pick the best setups using many of the same technical filters we do for our other scans.
And, just like that, we’ll follow the money flow and fatten our own pockets along with some of the world’s most powerful financial institutions.