The market consolidated most of the day.
$SPY tested its 200-day moving average a few times down at 396.90 and managed to hold.
Expert technical analysis of financial markets by JC Parets
by David
From the Desk of Kimmy Sokoloff
The market consolidated most of the day.
$SPY tested its 200-day moving average a few times down at 396.90 and managed to hold.
by Ian Culley
From the Desk of Ian Culley @IanCulley
Perhaps you’ve noticed that I don’t use moving averages.
For starters, I don’t like the way they look.
They muddy the pristine waters of price. And if I can’t pick up on the underlying trend by looking at price action, then god help me.
Regardless, I do my best to stay open-minded. Everyone has their own process. Mine works for me, but that doesn’t make it superior by any stretch.
So, when Grant @GrantHawkridge dropped a US Dollar Index $DXY moving average crossover study in our analyst Slack chat last weekend, I couldn’t resist.
It wasn’t because it highlighted the “death cross” (when a 50-day moving average falls below a longer-term 200-day average), which always stirs a great deal of excitement.
Nor was it what his study suggests for the dollar in the coming weeks and quarters.
Rather, it’s what it implies for US stocks.
Look, I get it.
Maybe you have some long-term holdings showing significant gains that you don’t want to pay taxes on. But you want to squeeze some additional income out of these positions because either you’re greedy (fine) or you want to practice responsible risk management (a better reason).
That’s fine. Go ahead and continue selling covered calls from your yacht. You do you.
This post is aimed at the rest of you knuckleheads who seem to think entering covered call trades as tactical short-term plays is a productive use of your time and capital.
Yes, you! You know who you are.
Let me show you two pictures. [Read more…]
by David
From the Desk of Kimmy Sokoloff
The $SPX closed above its 200-day moving average on Friday.
The indices might need consolidation if the market’s going to trend higher.
by Ian Culley
It’s the weekly Gold Rush!
As gold futures approach a significant area of overhead supply, we cover the most important charts in the space.
Check it out…
[Read more…]
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 Ian Culley
From the Desk of Ian Culley @IanCulley
The NYSE might be closed today, but futures markets are open.
And while the volume remains low during US trading hours, it hasn’t stopped Gold futures from revisiting a critical level.
Gold currently challenges a price level engrained in goldbugs’ minds worldwide…
The prior commodity supercycle peak!
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.