The January CPI data came in a bit warmer than expected, and the market went every which way.
We also had a few Fed speakers today, so that added to the volatility.
Expert technical analysis of financial markets by JC Parets
by David
From the Desk of Kimmy Sokoloff
The January CPI data came in a bit warmer than expected, and the market went every which way.
We also had a few Fed speakers today, so that added to the volatility.
by Ian Culley
From the Desk of Ian Culley @IanCulley
It’s messy out there.
The CPI data came in a little warmer than expected today. And currency markets aren’t quite sure what to make of it.
Despite the overarching range-bound action and intraday indecision, I continue to find trade setups with well-defined risks.
Today, I’ll outline another vehicle to short a potential falling dollar – the Swiss franc.
by David
From the Desk of Kimmy Sokoloff
Happy Valentine’s Day!
We have the CPI print at 8:30 a.m. ET, and the futures are full speed ahead as I write this.
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.
by Ian Culley
It’s the weekly Gold Rush!
This week Strazza and I dig into the COT profile for Gold and Silver, revealing the sentiment behind the smart money.
Check it out… [Read more…]
by Ian Culley
From the Desk of Ian Culley @IanCulley
What will ignite a precious metal rally to new all-time highs?
We often discuss the dollar and real yields as critical catalysts for a sustained uptrend for gold and silver. It’s simple: These shiny rocks will struggle if the dollar and rates continue to rise.
But there’s more.
I want to share another crucial piece of the puzzle – commercial positioning.
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
$SPY broke above its eight-day moving average and trended higher pretty much all day.
It feels like the market wants to head higher tomorrow. But that could change on a dime with the CPI report.