That was a nice reversal for the indices today.
They held support where they needed to and then trended higher.
Expert technical analysis of financial markets by JC Parets
by David
From the Desk of Kimmy Sokoloff
That was a nice reversal for the indices today.
They held support where they needed to and then trended higher.
Even though stocks have broadly advanced on the first two trading days of October and Q4, today’s market action reminds players that stocks are still risky here and the options market continues to price in this fear in the form of higher than normal options premiums.
As such, the odds favor net premium sellers in these conditions — so that’s what we’re on the hunt for.
Ideal setups are ones in which a nearby support level has revealed itself so we can lean against it for risk management purposes.
One such setup can be found in Brookfield Asset Management, $BAM: [Read more…]
by JC
Stocks have been under pressure consistently since Q1 last year. That was 20 months ago.
That’s precisely when the United States Dollar stopped falling and started to rise.
And this wasn’t just against the Euro, which represents 58% of the Dollar Index, we saw Dollar strength across currencies from all over the world.
The US Dollar was the only safe haven asset this year. It wasn’t US Treasury Bonds, it wasn’t Japanese Yen and it certainly was not Gold.
The only safe haven was the US Dollar. [Read more…]
by David
From the Desk of Kimmy Sokoloff
We’re seeing a nice pullback in the indices this morning, which is actually healthy after the two-day rally we just had.
For today, I’m watching $SPY support at 372 and $QQQ support at 277.
by Ian Culley
From the Desk of Ian Culley @IanCulley
The US dollar has been under pressure for the past five days, and investors are dancing in the streets.
I get it. A weaker dollar sits at the top of every stock market bull’s wish list. When the dollar goes down, stocks tend to go up. But don’t forget – betting against the dollar has only brought pain this year.
So, instead of joining the celebrations, I nailed down a clear-cut strategy for selling dollar weakness.
Spoiler Alert: Early sell signals are already starting to fire!
by David
From the Desk of Kimmy Sokoloff
The market continued to rally all day. It was nice to see.
Now, hopefully we do get follow through.
by JC
I thought last night’s call went well.
Sorry it went a little long and had 200 charts.
I get carried away sometimes 😉
But I tried to hit on the most important points.
ASC Premium Members can watch the replay here and download the slides.
And speaking of important points, isn’t this the exact point in time to be buying stocks?
From a seasonal perspective, the time is now: [Read more…]
by JC
From a seasonality standpoint, this is where you buy stocks.
Sentiment is near wash out levels. Who was left to sell?
Today on BNN Bloomberg I was asked about why we were buying stocks.
I think it adds some value to talk about the risk management procedures as well. And also which stocks we want to be buying.
Here’s the full clip: