What a day.
The market pulled in from this morning’s economic data, plus news out on semiconductors didn’t help, either.
Expert technical analysis of financial markets by JC Parets
by David
From the Desk of Kimmy Sokoloff
What a day.
The market pulled in from this morning’s economic data, plus news out on semiconductors didn’t help, either.
So we were talking about a guy who’s apparently subsisting only on McDonald’s patties for the next 30 days. Just the patty — no bun, no condiments, no lettuce. He’s trying to prove some kind of point that it’s not McDonald’s burgers that are unhealthy, it’s everything else in a typical American’s McDonald’s order at the drive-thru window.
Ok. Whatever.
But all this “healthy McDonald’s” talk got us thinking about the even healthier looking chart of its stock $MCD in recent weeks: [Read more…]
I talk about “control” a lot in these letters – our want for it, and the harsh reality of the situations we face as traders.
To succeed long-term, I need to be ready for anything and accept whatever happens.
This is good advice for almost anything (but not everything) in life. And it is absolutely great advice for all my trading!
With proper planning, strategizing, execution, and risk management, I can put myself in a position to win, get lucky, or not lose too badly. These are the things I can control.
I cannot control what the markets actually do. Therefore, assuming I took care of everything above, I need to be accepting of whatever comes.
Accept it. It is what it is. My wanting it to be something else won’t change it – whatever it is.
Once I start personalizing everything, making it a referendum on my amazing intellect or my incredible stupidity, then I’ve lost all objectivity and any hope of rational decision-making goes out the window. When that is lost, it’s only a matter of time before the loss of capital follows.
If I put enough effort into controlling what I can control and putting myself in positions to get lucky once in a while (creating my own luck!), then I live a much happier trading existence.
That’s when trading is fun. And when trading is fun, I’m doing it right.
by Louis Sykes
From the Desk of Louis Sykes
The collapse of the FTX exchange has been a significant catalyst for market participants to utilize one of Bitcoin’s greatest value propositions — self-custody.
Self-custody is when only you have possession of your digital funds because you control the private key. There’s no question; there’s no alternative to holding your crypto other than in private cold storage.
Owning your Bitcoin keys voids the necessity for a financial intermediary, completely removing any and all counterparty risk. This is especially important given that crypto exchanges hold a shaky history of being responsible stewards of clients’ funds.
When you hold your crypto in hot wallets managed by intermediaries like exchanges, they have all the control. They can freeze your transactions, block withdrawals, set limits on the amount you can transact — and, in the case of FTX, use your funds for their private self-interest.
We’re seeing a massive migration where market participants are waking to the value of self-custody.
by David
From the Desk of Kimmy Sokoloff
Looks like we’re heading for a flat open for the market as I write this morning.
We’re still hovering near the $SPX 4,000 level. Resistance is at 4,037, then 4,062.
by Ian Culley
From the Desk of Ian Culley @IanCulley
The dollar experienced significant volatility last week, posting its largest single-day loss since 2015.
As far as we’re concerned, the dollar is done. The weight of the evidence strongly suggests its best days are behind it. But that doesn’t mean it’s straight down from here for the US Dollar Index $DXY.
Instead, we expect plenty more volatility in the coming weeks and months. And when we look beneath the surface of the DXY, we’re at a logical level for the dollar to catch a breather.
by Ian Culley
From the Desk of Steve Strazza @Sstrazza.
Welcome back to Under the Hood, where we’ll cover all the action for the week ended November 14, 2022. This report is published bi-weekly and rotated with our 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.
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.
by David
From the Desk of Kimmy Sokoloff
The market was holding steady until a news report took the $SPX down to roughly 3,950.
That news report was later negated, and now we’re back to where we started the day near the 4,000 level.