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…]
Expert technical analysis of financial markets by JC Parets
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.
by JC
Yesterday we talked about how early the Phlx Gold & Silver Index was in this cycle.
This index of 30 precious metal mining companies was the first of the Gold related stock indexes to break out. This was about a month after Gold Futures confirmed a buy signal for us in early October.
But of the “stock” related indexes, we look to the Phlx Gold & Silver Index as a leader. It certainly acts like one.
And do you know how I know it’s not a downtrend?
Look at its components. Each column represents a different moving average ranging from the 5-day all the way to the 250-day. The further to the right the column sits, the longer the smoothing mechanism we used.
Green cells represent when the price of the stocks are above that particular moving average, and each of the 30 stocks are listed on the left side of the table:
by JC
Back in the late 1800s Charles H. Dow wrote down all of his Tenets about the market in the Wall Street Journal.
These articles ultimately became known as Dow Theory.
One of the basic tenets that many are familiar with is the confirmation of the Dow Jones Industrial Average and the Dow Jones Transportation Average (which was simply known as the Railroad Average when Charlie was around).
If one of the two indexes is making new highs and the other is rolling over, something is wrong, and the trend is likely changing.
Now, if one of the two indexes is making new lows within an ongoing downtrend, and the other is already putting in higher lows, that bullish divergence is evidence of a change in trend. [Read more…]
by JC
In the 4th quarter we saw the Phlx Gold & Silver Index ($XAU) break out above its key level, invalidating any bearish thesis that one could possibly have for Precious Metals.
You see all that resistance in the $XAU in 2013 and 2016, right around $110-113?
Well once we got back above that in November, it was time to start buying Gold & Silver stocks.
But where was the most popular ETF $GDX?
It was still below that overhead supply, as you can see in this chart below.
Until now… [Read more…]
by JC
This is the weekly post that aggregates all the charts we put together throughout the week and organizes them all into one, easy to flip through deck.