It’s like Thursday never happened.
I was looking for a consolidation, with a possibility of $SPY 364 to hold roughly.
That was not the case.
Expert technical analysis of financial markets by JC Parets
by David
From the Desk of Kimmy Sokoloff
It’s like Thursday never happened.
I was looking for a consolidation, with a possibility of $SPY 364 to hold roughly.
That was not the case.
While this certainly is not the market environment to be taking aggressive long bets in, there are some stocks that are displaying tremendous relative strength that we can play with strictly defined-risk positions to protect ourselves.
Our Young Aristocrats Report shows us stocks that aren’t just paying dividends but are doing so while they’re going up and thus paying us via price appreciation as well.
And this week’s report serves up a great opportunity.
by JC
There are a lot of trends in markets that are worth paying attention to.
Remember, asset prices trend. They’re not random.
We have the data.
So one major trend we want to make sure we’re not ignoring is in Energy stocks relative to Technology.
Look at the ratio between them making new multi-year highs, yet the S&P500 weighting in energy is still less than 5% of the entire index. But Technology is still almost 25% of the index.
Is that weighting sustainable? [Read more…]
by David
From the Desk of Kimmy Sokoloff
Happy Friday.
That was a nice reversal yesterday in the indices. I wouldn’t mind a little consolidation today.
by Ian Culley
From the Desk of Ian Culley @Ianculley
Don’t catch falling knives!
It sounds simple enough. But in reality, traders continue to lose fingers as they reach for downtrending assets.
Diving after downtrends isn’t one of my many afflictions. But I do have a theory…
Traders and investors don’t realize they’re catching a falling knife in the moment. They believe they’re bargain-hunting.
So if you’re one of the many investors out there mending fresh wounds this week, I want to make one thing clear…
Bonds are a falling knife.
by David
From the Desk of Kimmy Sokoloff
What a day.
We went from SPX lows at 3,491 to a close at 3,669. It was nice to be up over 2% versus being down 2% for a change.
From the desk of Steve Strazza @Sstrazza
Dividend Aristocrats are easily some of the most desirable investments on Wall Street. These are the names that have increased dividends for at least 25 years, providing steadily increasing income to long-term-minded shareholders.
As you can imagine, the companies making up this prestigious list are some of the most recognizable brands in the world. Coca-Cola, Walmart, and Johnson & Johnson are just a few of the household names making the cut.
Here at All Star Charts, we like to stay ahead of the curve. That’s why we’re turning our attention to the future aristocrats. In an effort to seek out the next generation of the cream-of-the-crop dividend plays, we’re curating a list of stocks that have raised their payouts every year for five to nine years.
We call them the Young Aristocrats, and the idea is that these are “stocks that pay you to make money.” Imagine if years of consistent dividend growth and high momentum and relative strength had a baby, leaving you with the best of the emerging dividend giants that are outperforming the averages.
By adding our technical analysis to the mix, the Young Aristocrat setups give you the opportunity to own the best of the market’s future blue-chip winners before they become must-own household names.
Oftentimes, the strongest performers in this universe and even the Aristocrats themselves pay relatively small dividends. This is usually because the stock appreciation makes it tough to keep up with the payout — even for companies that consistently grow their yield in the double-digits! For this reason, we don’t have a minimum threshold for the dividend. What we’re really doing here is creating a list of quality stocks based on their ability to persistently grow their shareholder return.
And maybe the best part? This list is not just designed for long-term investors. Any kind of investor or trader can use this list as it helps generate ideas across all timeframes, even the short term. Remember, some of the most important filters we use for this list are momentum, relative strength, and proximity to new highs.
by David
From the Desk of Kimmy Sokoloff
As I write this morning, the futures are trading higher, with the SPX at 3,600 ahead of the release of September CPI data.
I’d like to see the SPX hold onto 3,600 and trend higher from here, but time will tell.
The levels to watch on the $SPY are support at 355.71, then 354.15. Resistance is is 360, then 364.