Here we are back to the June lows in both the S&P500 and Nasdaq100.
Support held for a few days this week at the same prices that it held 3 months ago: [Read more…]
Expert technical analysis of financial markets by JC Parets
by JC
Here we are back to the June lows in both the S&P500 and Nasdaq100.
Support held for a few days this week at the same prices that it held 3 months ago: [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 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 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
What a day, gains of more than 1% for the major indices across the board.
Yesterday, at around 2:45 p.m. ET, I alerted Swing Trader Pro Members in Rangefinder that I bought the $SPY at 363.80. My target was 368. We hit over 372.
Nice move!
…Berkshire “B” shares, to be precise.
One of JC’s favorite trades when volatility is spiking and bearish sentiment seems a little overdone on the downside is to either buy stock in Berkshire Hathaway $BRK.B or even better — sell some naked puts to fade the fear.
During our morning meeting today, JC was feeling that the time was right to pull the trigger on this idea again.
Selling naked puts is the move for us today, but we have to be aware that earnings are on the horizon in early November — which may be accounting for some of the extra premium in November monthly expiration options.
As you can see from this chart, $BRK.B has undercut a significant level ever so slightly, but if this move is false, the whipsaw back up should be swift: [Read more…]
by Louis Sykes
From the Desk of Louis Sykes @haumicharts
There’s a lot that we can learn from Warren Buffett, who many consider to be one of the greatest investors of all time.
One of the most important lessons of all of them is that there are no called strikes on Wall Street. In other words, in liquid markets, you’re not penalized for “missing” a trade.
The market doesn’t guarantee traders much. But we can be certain there will always be future opportunities. We’re not venture capitalists running rounds on private companies where a single deal can make or break our year.
Instead, we operate in public markets, where there will always be a multitude of setups.
In other words, we’re not penalized for not swinging like we are in baseball.
by JC
With Bonds getting destroyed this year, it’s put pressure on growth stocks, because of their long-duration characteristics.
As rates rise, it puts a lot of pressure on growth stocks. That’s why historically the more Value oriented stocks and sectors tend to outperform when rates are rising.
When rates are falling that’s when growth stocks usually thrive the most.
We all know this. The data is free.
BUT, a funny thing has happened over the last few months.
With bonds continuing to collapse and breaking those summer lows, the Nasdaq has been outperforming the S&P500.
What does the stock market know that we don’t? [Read more…]
by David
From the Desk of Kimmy Sokoloff
We hit the June lows in the S&P 500 but not the Nasdaq.
We did bounce off the lows, but last night $AAPL signaled trouble ahead and is cutting back production. The futures dropped on that news.
by Ian Culley
From the Desk of Ian Culley @IanCulley
The calls for a dollar top are growing louder as analysts claim the advance is overextended.
They’re right. But pushing further into overbought territory is exactly what parabolic rallies do. And many of the technical tools supporting the thesis that the dollar is topping do not apply.
In practice, mean reversion tools such as oversold/overbought conditions, price exceeding the upper bounds of a Bollinger Band, or the percentage gain above the moving average du jour are best used in trendless markets.
Does the dollar look trendless? Absolutely not!
Don’t let these data points distract you. Let’s instead put the current DXY advance into perspective by focusing on historical price action.