This is our ASC Research Q2 2022 Playbook.
- Stocks (International & U.S.)
- U.S. Sectors & Industries
- Market Breadth & Sentiment
- Commodities
- Currencies
- Intermarket Analysis
- Cryptocurrencies
- New Trade Ideas
- Overall Strategy
Expert technical analysis of financial markets by JC Parets
This is our ASC Research Q2 2022 Playbook.
With the current market environment giving us many mixed messages, what better time to dive in and see what’s happening underneath the surface?
by Louis Sykes
From the desk of Louis Sykes @haumicharts
If you’ve ever been deep in the trenches slinging cryptocurrencies, chances are you’re well aware of the infamous liquidation cascade.
For some traders, the thought will send shivers down their backs.
To others, it represents one of the most profitable asymmetries in supply and demand.
The Chicago Mercantile Exchange (CME) is the largest and most sophisticated derivatives exchange for several traditional financial instruments and Bitcoin futures contracts. But there are stringent rules bounding these contracts:
These rules are essentially a risk-mitigation strategy.
In the case of liquidations, if the account reaches negative equity before the liquidation is finished, the trader is liable for the negative amount.
Further, failure to pay this would result in a bankruptcy proceeding, which the broker has to cover if that isn’t paid.
by Ian Culley
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.
by JC
For this week’s trade, buying $XLI January 130 calls for 35 cents or cheaper.
Get the full details, risk management procedures and targets for this trade here:
Investor sentiment is bad. Historically bad.
Don’t take my word for it. Check it out for yourself.
Sentiment has only been this bearish four times over the last 40 years: Coming out of rampant 1970’s inflation, the Savings & Loan crisis of the early 90’s, the Great Financial Crisis of 2008-09, and the “Fiscal Cliff” circa 2012.
Do you remember those times?
And you see what happened in the S&P 500 after, right?
Is history going to repeat itself? And if so, how do we protect ourselves and our portfolios from the “risk” of being underinvested if that happens? [Read more…]
by Ian Culley
From the desk of Steven Strazza @Sstrazza and Ian Culley @IanCulley
The US Dollar Index $DXY resumes its relentless march higher.
But the full story surrounding the dollar’s dominance is a bit more complicated.
Lately, we’ve been pounding the table about the narrow scope of the DXY, as 83% of its weightings come from just three currencies – the yen, the pound, and the euro.
All three continue to lose ground versus the dollar, and this is exactly what’s driving the rally at the index level.
On the other hand, the USD has not performed as well against other currencies – especially emerging markets and commodity-centric ones.
While this remains the case, we’re starting to see USD strength expand beyond the major components of the DXY. We’re also seeing some nice long-term patterns materialize that favor the US dollar.
A great example is the rounding bottom in the US dollar-Korean won cross – USD/KRW.
by JC
This is the video recording of the April 2022 Mid-month Conference Call.
We discussed:
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 April 15, 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.