A funny thing can happen when you don’t have any exposure to Technology stocks….
And that’s precisely what’s taking place in the United Kingdom.
How many countries around the world are pushing up against new all-time highs? [Read more…]
Expert technical analysis of financial markets by JC Parets
by JC
A funny thing can happen when you don’t have any exposure to Technology stocks….
And that’s precisely what’s taking place in the United Kingdom.
How many countries around the world are pushing up against new all-time highs? [Read more…]
From the desk of Steve Strazza @Sstrazza
When investing in the stock market, we always want to approach it as a market of stocks.
Regardless of the environment, there are always stocks showing leadership and trending higher.
We may have to look harder to identify them depending on current market conditions… but there are always stocks that are going up.
The same can be said for weak stocks. Regardless of the environment, there are always stocks that are going down, too.
We already have multiple scans focusing on stocks making all-time highs, such as Hall of Famers, Minor Leaguers, and the 2 to 100 Club. We filter these universes for stocks that are exhibiting the best momentum and relative strength characteristics.
Clearly, we spend a lot of time identifying and writing about leading stocks every week, via multiple reports. Now, we’re also highlighting lagging stocks on a recurring basis.
We play with the cards we are dealt. There is nothing else we can do. We cannot employ willpower to create market conditions into being the way we’d prefer them to be. They are what they are, it is what it is. So we work with what we’ve got.
And what we’ve got right now are a bunch of badly beaten up stocks. Many still off 60%+ from their recent highs.
Dumpster diving isn’t my favorite way to find new ideas to trade. But my man Strazza enjoys the exercise from time to time and recently, he’s uncovered some notable insider buying and unusual options activity in some former highflyers, most notably Zoom $ZM.
But first, let’s survey the damage. This probably isn’t new to many of you, but look how far ZM has fallen from its recent perch atop Momentum Mountain: [Read more…]
by Ian Culley
From the desk of Steven Strazza @Sstrazza and Ian Culley @IanCulley
The US dollar is on the ropes as global currencies bounce back.
After failing to hold its breakout earlier in the month, the USD looks vulnerable against a growing number of currencies.
The pound and euro are catching higher. The Swiss franc is rebounding off its recent lows. And the commodity-centric Australian and Canadian dollars remain resilient.
We can add the Mexican peso to this list, as the USD/MXN cross broke down to fresh 52-week lows yesterday. This breakdown supports the near-term bearish argument for the dollar.
And it also offers a great trade setup.
Let’s take a look.
by JC
These are the registration details for our Live Monthly Candlestick Strategy Session for Premium Members of All Star Charts.
This month’s Video Conference Call will be held on Thursday June 2nd @ 6PM ET. As always, if you cannot make the call live, the video and slides will be archived and published here along with every other live call since 2015.
Here are the details for Thursday evening: [Read more…]
by JC
The magazine cover on the left, describing how Bitcoin was “Storming Wall Street” came just a few weeks before Bitcoin put in a historic top in late 2017. Immediately after this cover story, Bitcoin went on to have one of the most epic crashes of all time.
Investors got wiped out right after the one on the left.
And now here we are after Bitcoin got cut in half, and many of the altcoins are down 70-80% if not more. [Read more…]
From the desk of Steve Strazza @Sstrazza.
Welcome back to our latest Under the Hood column, where we’ll cover all the action for the week ended May 27, 2022. This report is published bi-weekly and rotated with our Minor Leaguers column.
What we do here is analyze the most popular stocks during the week and find opportunities to either join in and ride these momentum names higher, or fade the crowd and bet against them.
We use a variety of sources to generate the list of most popular names.
There are so many new data sources available that all we need to do is organize and curate them in a way that shows us exactly what we want: a list of stocks that are seeing an unusual increase in investor interest.
Watch this video for a behind-the-scenes look at our process.
Whether we’re measuring increasing interest based on large institutional purchases, unusual options activity, or simply our proprietary lists of trending tickers, there’s a lot of overlap.
From the desk of Steve Strazza @sstrazza
This is one of our favorite bottom-up scans: Follow the Flow. In this note, we simply create a universe of stocks that experienced the most unusual options activity — either bullish or bearish, but NOT both.
We utilize options experts, both internally and through our partnership with The TradeXchange. Then, we dig through the level 2 details and do all the work upfront for our clients.
Our goal is to isolate only those options market splashes that represent levered and high-conviction, directional bets.
We also weed out hedging activity and ensure there are no offsetting trades that either neutralize or cap the risk on these unusual options trades.
What remains is a list of stocks that large financial institutions are putting big money behind.
They’re doing so for one reason only: because they think the stock is about to move in their direction and make them a pretty penny.
Then we flip through our list of stocks flashing unusual activity and pick the best setups using many of the same technical filters we do for our other scans.
And, just like that, we’ll follow the money flow and fatten our own pockets along with some of the world’s most powerful financial institutions.