This market is not for the faint of heart. It’ll whipsaw you around, so you must be diligent. Failing that, it’s best not to trade.
Just because I’m taking a trade doesn’t mean you have to.
Expert technical analysis of financial markets by JC Parets
by David
From the Desk of Kimmy Sokoloff
This market is not for the faint of heart. It’ll whipsaw you around, so you must be diligent. Failing that, it’s best not to trade.
Just because I’m taking a trade doesn’t mean you have to.
Here’s a snippet that sums up a conversation I had with my Head Technical Analyst Steve Strazza this morning:
Me: Any trade ideas have you excited this morning?
Steve: Nothing. New lows everywhere today.
Me: I know. It’s ugly.
Steve: I can give you a handful of nice charts that are breaking out, but they are all going to fail. Can’t buy breakouts in this market.
Yep. That’s where we’re at. Putting on directional bets in either direction feels like a high risk proposition. Long breakouts are likely to fail, while short breakdowns are likely to get caught offsides in a wicked bear market dead cat bounce.
But this doesn’t mean we’re out of options to earn some profits. Options premiums remain elevated across the board, and we’ve got some areas with clean levels of support we can use as guiderails to sell some delta-neutral premium with higher-than-normal chances of success. [Read more…]
by JC
In bear markets you’ll find that the majority of stocks are making lower lows and lower highs in price.
With basic arithmetic, we can call those downtrends.
Using that same math, in order for stocks to be in uptrends, they first need to stop making lower lows.
“They need to stop going down before they can start to go up”, is how I learned it.
Going through my charts this weekend, I found this chart right here pretty interesting.
The last time Mid-caps, Small-caps and even Micro-caps made lower lows was almost 4 months ago: [Read more…]
by David
From the Desk of Kimmy Sokoloff
We have the Consumer Price Index data for September coming out on Thursday morning, and we have more Fed speakers this week as as well. Expect more tough talk about inflation.
Should the $SPY break down below 360.94, we can potentially head to the lows of 357.04.
I’m monitoring the $QQQ as well to see if it touches the lows at 267.01.
by JC
A funny thing tends to happen near the end of important trends.
The journalists finally catch on.
It’s never at the beginning of trends. That’s not when they get excited.
It’s when everyone has finally agreed that a trend is in place, which by definition, is late in the cycle.
You see, the journalist community does an amazing job of aggregating consumer & investor sentiment. I find they are the very best at this. [Read more…]
by JC
This is the weekly post that aggregates all the charts we put together throughout the week and organizes them all into one, easy to flip through deck.
by JC
Is it a bear market or a bull market, JC?
Are you bullish or bearish, JC?
These are the wrong questions to ask, in my opinion.
They’re the ones I get most often, but I think it defeats the point of what we’re trying to do here.
The question I find myself asking is whether we should be spending more of our time looking for stocks to buy, spending more of our time looking for stocks to sell, or should we be on vacation doing nothing in this market?
Those are 3 real options we have as investors.
For me, I think it’s worth spending our time looking for stocks to buy. [Read more…]
by Ian Culley
From the desk of Steve Strazza @Sstrazza and Alfonso Depablos @AlfCharts
Our Hall of Famers list is composed of the 150 largest US-based stocks.
These stocks range from the mega-cap growth behemoths like Apple and Microsoft – with market caps in excess of $2T – to some of the new-age large-cap disruptors such as Moderna, Square, and Snap.
It has all the big names and more.
It doesn’t include ADRs or any stock not domiciled in the US. But don’t worry; we developed a separate universe for that. You can click here to check it out.
The Hall of Famers is simple.
We take our list of 150 names and then apply our technical filters so the strongest stocks with the most momentum rise to the top.
Let’s dive right in and check out what these big boys are up to.