From the Desk of Kimmy Sokoloff
We’ve got the Fed today, and let’s say we sell off.
Even so, it would be a much needed consolidation.
Expert technical analysis of financial markets by JC Parets
by David
From the Desk of Kimmy Sokoloff
We’ve got the Fed today, and let’s say we sell off.
Even so, it would be a much needed consolidation.
by JC
How’s the Bull Market treating you so far?
Can you believe it’s been a year already since the new 52-week lows list peaked?
Remember, the first thing stocks need to do before they can start to go up in price, is to stop going down!
That happened 1-year ago.
Since then Technology, Communications, Consumer Discretionary and Industrials are all up over 20%. Tech is up almost 40%.
Meanwhile, Healthcare and Financials are each up 10% during this period.
And then some of the more defensive sectors, like Staples and Utilities, are up, but very much underperforming the more offensive sectors.
This is all perfectly normal behavior in bull markets, so we’re not surprised at all. No one should be.
Here’s a chart of each sector’s performance since the start of this bull market – exactly one year ago! [Read more…]
by JC
They’ve been telling me for almost a year that this is just a bear market rally.
If you’re one of those people, I would ask your therapist about it.
The New Lows list peaked last June.
It’s been steady improvement and sector rotation ever since.
This month is just the latest example. We now started to get rotation into Small-caps.
See: Bullish Risk Reversal In Small-caps (May 2023)
I’m convinced the world needs more bubble charts. There just aren’t enough.
So here at Allstarcharts we’re just doing our part. [Read more…]
by David
From the Desk of Kimmy Sokoloff
The market was happy with the CPI numbers.
No rest for the weary…
by Ian Culley
From the Desk of Ian Culley @IanCulley
Markets are bracing for tomorrow’s FOMC decision – including the dollar.
That’s right – we have more indecisive action on tap. Let’s call it the knee-jerk before the knee-jerk, with a little help from today’s May CPI print.
Interest rates, the US Dollar Index $DXY, and gold have yet to make a decisive directional move.
To be fair, most markets are trading within their respective year-to-date ranges (except the S&P 500 and Nasdaq 100, of course).
But if we turn to emerging market currencies, we don’t see any sign of hesitation…
by David
From the Desk of Kimmy Sokoloff
We have CPI for May coming out at 8:30 a.m. ET.
I’ll hold off on ideas until I see how the market absorbs the data.
From the Desk of Steve Strazza @Sstrazza.
Welcome back to Under the Hood, where we’ll cover all the action for the week ended June 9, 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.
Under the Hood is a value-add for investors of all kinds, as we can express our views through a variety of different types of stocks.
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.