From the Desk of Ian Culley @IanCulley
The US dollar Index $DXY is running into support at a shelf of former highs.
How it reacts will influence how stocks fare heading into the year-end.
Let’s check out three charts and three levels to monitor.
Expert technical analysis of financial markets by JC Parets
by Ian Culley
From the Desk of Ian Culley @IanCulley
The US dollar Index $DXY is running into support at a shelf of former highs.
How it reacts will influence how stocks fare heading into the year-end.
Let’s check out three charts and three levels to monitor.
by David
From the Desk of Kimmy Sokoloff
The market took another hit today. We broke below last week’s lows and plowed through support levels.
The $SPX has support at 3,900, then 3,860. Resistance is at 3,959.
by JC
Focusing our attention on buying stocks over the past 5-6 months has paid very well. This is especially true in the stocks that have been showing the most relative strength this year.
The laggards remain laggards. The losers are mostly still losers.
The breadth improvement, however, remains in place.
Rotation overseas continues to broaden.
It’s gotten harder and harder to make money from the short side since this Summer. [Read more…]
by David
From the Desk of Kimmy Sokoloff
As of early this morning, futures are flat. The $SPX rejected the 200-day moving average yesterday and dropped right into support.
I’ll be watching to see if SPX 3,962 is held throughout the day. Otherwise, we can see 3,932.
by JC
This is the video recording of our December 5th Monthly Charts Live Strategy Session
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.
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
What a wipeout in the indices. We’ve almost retraced all of last week’s move.
The $SPX broke below 4,050, and it was downhill all day.