From the Desk of Kimmy Sokoloff
Moody’s hampered the mood of the market by downgrading a few of the banks’ credit ratings.
Late in the day yesterday, $QQQ started to lift higher, but that’s a no-go this morning.
Expert technical analysis of financial markets by JC Parets
by David
From the Desk of Kimmy Sokoloff
Moody’s hampered the mood of the market by downgrading a few of the banks’ credit ratings.
Late in the day yesterday, $QQQ started to lift higher, but that’s a no-go this morning.
From the Desk of Steve Strazza @Sstrazza.
Welcome back to Under the Hood, where we’ll cover all the action for the week ended August 4, 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.
by David
From the Desk of Kimmy Sokoloff
We have a little bit of a give and take here.
The indices are below their respective resistance levels and, as of now, they’re unable to get above them.
by Ian Culley
From the Desk of Ian Culley @IanCulley
The stars have not aligned for gold bugs.
Rates and the US dollar are both catching higher – the opposite of what would likely ignite a precious metals rally.
Yet gold continues to hold above its former 2011 highs!
Despite these setbacks, my bias remains bullish for gold.
But my desire to own the strongest assets is shifting actionable trade setups toward more profitable opportunities…
by JC
Remember in the back half of last year, when virtually everything was working EXCEPT for Tech stocks?
Well a funny thing happened early in 2023, money rotated into Tech and other Large-cap Growth.
These Tech stocks did so well, that people who are bad at math convinced themselves, and others around them, that it was only 5 or 7 stocks going up.
That was hilarious.
And while it definitely wasn’t just 7 stocks, but thousands of stocks ripping in your face all year, Technology was certainly the leader along the way, particularly on a market-cap weighted basis.
But that relative strength has been rolling over the past few months as momentum has also diverged negatively.
Doesn’t that make perfect sense during a regime change?
Take a look at a chart of Technology relative to the S&P500 already making new multi-month lows: [Read more…]
by David
From the Desk of Kimmy Sokoloff
Well, late in the afternoon on Friday the markets took a nosedive.
We’ll see how we close this week and whether we stay below resistance levels on the indices.
This is the weekly post that aggregates all the charts we put together throughout the week and organizes them all into one, easy to flip through deck.