From the Desk of Kimmy Sokoloff
CPI data for April will be released at 8:30 a.m. ET.
I’ll hold off on ideas until I see how the market reacts.
Expert technical analysis of financial markets by JC Parets
by David
From the Desk of Kimmy Sokoloff
CPI data for April will be released at 8:30 a.m. ET.
I’ll hold off on ideas until I see how the market reacts.
I make quick decisions.
Is that because I’m a trader? Or am I a trader because I make quick decisions?
Over time, I think I’ve come to the conclusion that being a trader has instilled in me a knack and preference for quick decision-making. I wasn’t always like this. 25 years of trading has taught me to work with only 75% of the information I might want, and that is good enough to take action.
The phrase “invest, then investigate,” as Stanley Druckenmiller said, comes to mind.
Outside of trading, this can also affect my day-to-day decision-making. I think it frustrates my wife when I make decisions so quickly. In her mind, she probably thinks I’m being irrational, emotional, or acting on impulse. She, in contrast, is very deliberate. Cautious. Analyzes every detail…
In my mind, I do take my time. I quietly gather information as it comes to me until I feel I’m about 75% of the way there. I’m exercising the same muscles used when evaluating risk vs. reward in my trades. If/when the potential reward is significantly higher than the risk (or significantly more likely to work out favorably versus the risk of “loss”), I strike confidently with little to no delay.
If I’m not finding opportunities to exercise these skills outside of trading, I think it’s important to do so. [Read more…]
by David
From the Desk of Kimmy Sokoloff
The market was in a standstill today, awaiting the CPI print on Wednesday.
The indices held on.
Tomorrow might give a clearer picture near term.
by Ian Culley
From the Desk of Ian Culley @IanCulley
Dollar bulls hold the line.
The US Dollar Index $DXY is clinging to the 100 level, refusing to let go despite new 52-week highs for the British pound and a steady rise in the euro.
I’ve laid out numerous ways to play the dollar in recent months and what will confirm a DXY breakdown. None of that has changed.
But one chart caught my eye.
I was struck over the weekend by the resemblance between the commercial position in gold and DXY.
Check it out…
by JC
The weakness in Small-caps has been well documented by now.
Look at the performance since the beginning of 2022.
While the Dow, S&P500 and other major indexes are pushing up near 52-week highs, the Russell2000 is down near 52-week lows. [Read more…]
by David
From the Desk of Kimmy Sokoloff
$QQQ hit a fresh high yesterday, and this morning we’re pulling back.
We could be in a standstill until tomorrow’s CPI data.
by Ian Culley
From the Desk of Ian Culley @IanCulley
There’s a mountain of bullish evidence supporting an upside resolution in gold.
But gold hasn’t broken out. Not yet!
Gold has been running this race for months… at least, that’s how it feels.
Perhaps it’s simply making its way to the starting line…
I believe that’s the best way to view gold and precious metals at this stage of the game. Before I get ahead of myself – marking a series of upside objectives – I want to highlight a key level that defines my intermediate- and near-term risks…
From the Desk of Steve Strazza @Sstrazza
Welcome to our latest Minor Leaguers report.
We’ve had some great trades come out of this small-cap-focused column since we launched it back in 2020 and started rotating it with our flagship bottom-up scan, Under the Hood.
For the first year or so, we focused only on Russell 2000 stocks with a market cap between $1 and $2B.
That was fun, but we wanted to branch out a bit and allow some new stocks to find their way onto our list.
We expanded our universe to include some mid-caps.
To make the cut for our Minor Leaguers list, a company must have a market cap between $1 and $4B.
And it doesn’t have to be a Russell component — it can be any US-listed equity. With participation expanding around the globe, we want all those ADRs in our universe.
The same price and liquidity filters are applied. Then, as always, we sort by proximity to new highs in order to focus on the best players.
But, instead of all-time highs, we’re sorting by 52-week highs these days, as we don’t want to discriminate against energy or other cyclical stocks.
The goal is still to catch the strongest names while they’re small and have serious upside potential. If any of these stocks ever climb the ranks to the big leagues, the returns could be huge.
We’re looking at up to 10x moves just to break into large-cap land!
Let’s dive into this week’s report and see what’s happening in some of the hottest stocks in the Minor Leagues.