What a day.
The S&P 500 and the Nasdaq Composite were both up more than 5%. The market liked the October CPI data and also what Fed speakers had to say.
Expert technical analysis of financial markets by JC Parets
by David
From the Desk of Kimmy Sokoloff
What a day.
The S&P 500 and the Nasdaq Composite were both up more than 5%. The market liked the October CPI data and also what Fed speakers had to say.
by JC
In early October I was invited on to BNN Bloomberg where I was very clear in saying just how AGGRESSIVELY we wanted to be buying stocks.
See here: Buying Stocks & Fading Dollars (10-4-22)
That worked out well for us, and anyone else who was smart enough to follow along.
On Wednesday of this week I was invited back on to follow up on some of those comments.
Why was I so bullish?
Why was I ignoring all the noisemakers?
Because I’m a grown adult.
I don’t need bedtime stories to go to sleep.
The Fed means nothing to my life. And it shouldn’t impact yours either.
Here’s what we’re doing now:
From the desk of Steve Strazza @Sstrazza
We held our November Monthly Strategy Session Monday night. Premium Members can access and rewatch it here.
Non-members can get a quick recap of the call simply by reading this post each month.
By focusing on long-term, monthly charts, the idea is to take a step back and put things into the context of their structural trends. This is easily one of our most valuable exercises as it forces us to put aside the day-to-day noise and simply examine markets from a “big-picture” point of view.
With that as our backdrop, let’s dive right in and discuss three of the most important charts and/or themes from this month’s call.
by Louis Sykes
Guys, this is Technical Analysis 101.
You don’t buy an asset that’s just broken a level of support. If you do, you’re only asking for trouble.
As technicians, we keep things simple, and we tell it like it is. We’re not afraid to call something a piece of shit if that’s what the data tells us.
I find a level of beauty in this process.
It doesn’t matter how elegant your theory or big your I.Q. If the market is below a certain level, it’s all wrong.
by David
From the Desk of Kimmy Sokoloff
CPI data for September was released on October 13 — the turning point for the market. We trended higher the rest of the month after that news.
Will today’s release of CPI data for October (8:30 a.m. ET) be a turning point where we trend lower? Do we bounce, even temporarily? It’s anybody’s guess.
Welcome to the 2 to 100 Club.
We use various bottom-up tools and scans internally to complement our top-down approach.
One way we’re doing this is by identifying the strongest growth stocks as they climb the market-cap ladder from small- to mid- to large- and, ultimately, to mega-cap status (over $200B).
Once they graduate from small-cap to mid-cap status (over $2B), they come on our radar. Likewise, when they surpass the roughly $30B mark, they roll off our list.
But the scan doesn’t just end there.
We are only interested in the strongest growth industries in the market, as that is typically where these potential 50-baggers come from.
Some of the best performers in recent decades – stocks like Priceline, Amazon, Netflix, Salesforce, and myriad others – would have been on this list at some point during their journey to becoming the market behemoths they are today.
When you look at the stocks in our table, you’ll notice we’re only focused on Technology and Growth industry groups such as Software, Semiconductors, Online Retail, Solar, etc.
Then, like any good technician, we filter the list down to those closest to new highs.
This allows the cream of these secular growth industries to rise to the top and helps streamline our mission to identify technical breakouts in the top-performing stocks.
by David
From the Desk of Kimmy Sokoloff
It was a rough one for the market today.
Tomorrow’s release of CPI data for October (8:30 a.m. ET) is dragging on things.
“Why do you rob banks?” authorities asked notorious bank thief Willie Sutton.
His response: “Because that’s where the money is.”
We’re not planning on robbing anybody, but if today’s trade plays out like we think it can, it might feel like we’re stealing. Only, we won’t need to worry about the authorities coming after us, nor will we need to feel bad about it.
Our Analyst Willie Delwiche says that a basic requirement for many bullish ideas right now is that any stock or ETF in question needs to be above August highs. Anything below August highs is subject to a rude reversal. I’m on board with this line of thinking.
So, today’s trade is in an American bank that is above its August high and showing signs of wanting more.