From the Desk of Ian Culley @IanCulley
The talking heads are about to call the top in commodities.
It’s coming, so we might as well prepare.
In fact, it’ll only get louder if the US dollar follows crude’s lead…
Expert technical analysis of financial markets by JC Parets
by Ian Culley
From the Desk of Ian Culley @IanCulley
The talking heads are about to call the top in commodities.
It’s coming, so we might as well prepare.
In fact, it’ll only get louder if the US dollar follows crude’s lead…
by Ian Culley
From the Desk of Ian Culley @IanCulley
So far, the dollar-yen is playing its part with a little help from Tokyo.
Falling dollar, falling rates, falling dollar-yen…
That’s the mantra reverberating throughout the market.
But will interest rates get on board?
There’s been a lot of “bad” news thrown in Tesla’s direction this year. And it’s played out in the stock’s price. But here’s the thing — bad news is often the worst at the bottom.
And zooming out on a longer time frame, it looks like $TSLA shares may be beginning to turn the corner. [Read more…]
The dramatic decrease in volatility ($VIX is a good proxy for this) across the board over the past ten or so trading days is taking the starch out of my inclination for looking at delta-neutral options credit spreads. It’s getting harder to find good candidates. They are still out there, but I need to be more selective.
That said, I am open to getting long select names here. But the types of setups we’re more likely to find are ones where stocks come off nicely formed bases, rather than breaking out through key levels of resistance or all-time highs.
It doesn’t mean these setups are any more or less likely to work, it just requires a different mindset and tools.
Luckily the options market gives us a lot of tools.
I discuss this in today’s Options Jam Session, as well as a teachable lesson in a trade that got away from us: [Read more…]
by JC
Last night was my favorite thing that we do around here.
We had our LIVE Monthly Charts Strategy Session for Premium Members of ASC.
This hour-long, 150-chart Monthly ritual allows us to take a step back, zoom out, and identify the most important primary trends across markets.
There is nothing we do here that adds as much value to my process than preparing for this call.
Premium Members can watch the replay here and download all the slides.
If you’re not a Premium Member yet, you can fix that here quickly.
The bottom line is this:
Markets are a mess. They’ve been a mess. And this year is very different than last year.
Look at the Equally-weighted S&P500 and Nasdaq100.
While these are certainly good overall gauges for the health of the US Stock market, always, in this particular environment they are even more representative of what’s going on out there.
These indexes look an awful lot like many other stocks and indexes across the market. [Read more…]
by JC
This is the video recording of our May 1st Monthly Charts Live Strategy Session
From the Desk of Steve Strazza @Sstrazza
When investing in the stock market, we always want to approach it as “a market of stocks.”
Regardless of the environment, there are always stocks showing leadership and trending higher.
We may have to look harder to identify them depending on current market conditions. But there are always stocks that are going up.
The same can be said for weak stocks. Regardless of the environment, there are always stocks that are going down, too.
We already have multiple scans focusing on stocks making all-time highs, such as Hall of Famers, Minor Leaguers, and the 2 to 100 Club.
We filter these universes for stocks that are exhibiting the best momentum and relative strength characteristics.
Clearly, we spend a lot of time identifying and writing about leading stocks every week, via multiple reports.
Now, we’re also highlighting lagging stocks on a recurring basis.
by Ian Culley
From the Desk of Ian Culley @IanCulley
The Japanese government isn’t playing games.
Currency crisis or not, Tokyo is willing to defend the yen in the open market. It’s proven this multiple times over the past three years, and today’s FOMC-related volatility will likely test its resolve.
Considering previous yen-buying interventions, the dollar, interest rates, and the dollar-yen pair could be headed lower in the coming months.