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.
Expert technical analysis of financial markets by JC Parets
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.
by JC
In bear markets you tend to get more and more stocks making new lows.
We haven’t seen that.
In bull markets you tend to get more and more stocks making new highs.
We haven’t seen that either.
So are we going to finally get that expansion in the new lows list?
Or are these meaningful divergences? [Read more…]
From the desk of Steve Strazza @Sstrazza
Welcome to the 2 to 100 Club.
As many of you know, something we’ve been working on internally is using various bottom-up tools and scans to complement our top-down approach. It’s really been working for us!
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 only want to look at 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 a myriad of 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 strong groups 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 very uneventful day, even though we had the Fed minutes out at 2:00 p.m. ET.
The $SPY stayed below 360 and held onto the lows at 355.71.
Look, we’re not going to sugarcoat it: it’s hard out there right now.
Regardless of your timeframe, if you’re trying to make aggressive long or short bets in this tape, you’re getting chopped up. So are we.
These types of markets grind us out and wear us out. It is what it is. We can’t choose the market we’re given, we can only control how we react to it.
This much we know — forcing directional bets right now feels like a fool’s errand.
But with options premiums elevated across the board, there are opportunities to put on delta-neutral short premium trades where charts suggest some consolidation may be taking place. However, we need to be careful not to sell premium on stocks that have earnings releases coming up soon. So to avoid that all together, we’re going to limit our universe to index and sector ETFs. [Read more…]
by Louis Sykes
It’s no secret.
Crypto and legacy markets have traded together for some time now. Apart from the recent lack of volatility in the former, it’s all been one market.
We don’t need to overcomplicate this.
Just look at the ratio of the High Beta ETF $SPHB against the Low Volatility ETF $SPLV overlaid with Bitcoin since the onset of the pandemic. They look pretty similar, right?