The US Dollar is back up to its 2016 and 2020 highs.
On both of those occasions, the Dollar sold off and risk assets went on to do very well.
Is this time different?
Here’s what it looks like: [Read more…]
Expert technical analysis of financial markets by JC Parets
by JC
The US Dollar is back up to its 2016 and 2020 highs.
On both of those occasions, the Dollar sold off and risk assets went on to do very well.
Is this time different?
Here’s what it looks like: [Read more…]
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.
And 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.
From the desk of Steve Strazza @Sstrazza
Welcome to our latest Minor Leaguers report.
We’ve had some great trades come out of this small-cap-focused column since we launched it back in 2020 and started rotating it with our flagship bottom-up scan, Under the Hood.
We recently decided to expand our universe to include some mid-caps…
For the first year or so, we focused only on Russell 2000 stocks with a market cap between $1 and $2B.
That was fun, but we wanted to branch out a bit and allow some new stocks to find their way onto our list.
The way we did this is simple…
To make the cut for our new Minor Leaguers list, a company must have a market cap between $1 and $4B.
And it doesn’t have to be a Russell component. It can be any US-listed equity. With participation expanding around the globe, we want all those ADRs in our universe.
The same price and liquidity filters are applied. Then, as always, we sort by proximity to new highs in order to focus on the best players.
But instead of all-time highs, we’re sorting by 52-week highs these days. We don’t want to discriminate against energy or other cyclical stocks.
The goal is still to catch the strongest names while they’re small and have serious upside potential. If any of these stocks ever climb the ranks to the big leagues, the returns could be huge.
We’re looking at up to 10x moves just to break into large-cap land!
Let’s dive into this week’s report and see what’s happening in some of the hottest stocks in the Minor Leagues.
Another week and more elevated fears in the marketplace. The Nasdaq QQQ’s breached the 300 level intraday today and that’s got everyone chirping — and for good reason.
Of course, the contrarian bird sitting on my shoulder has been uttering the phrase: “the wider the rubber band is stretched, the harder the snap back!”
Now, I’m not going out on a limb and declaring that the bottom for stocks is in and we rally from here. But I do like the odds of a viscous snap back rally materializing at some point this week. And if something like that were to come to pass, I want to be in names that have held up the best in this tape.
Today’s trade is one such name. [Read more…]
by JC
I was talking to some people this morning about how you can technically say that Bitcoin is still in a structural bull market.
It really depends on your time horizon.
Because when you zoom out, the past year has been really messy. It looks like a big giant consolidation.
This can either be massive distribution and a major top, or it can be a consolidation within an ongoing uptrend.
Here’s how I see it. [Read more…]
by JC
It’s easy to get lost in the day to day noise of the market.
We’re human.
Don’t be too hard on yourself.
Understand that it’s who we are.
Now, accepting that as a natural fault that we all have is step #1 to recovery.
There are steps we can put into place to help us overcome these emotions. [Read more…]
by JC
We get to talk to a lot of traders and investors every single day. I like to listen.
In the first chart, we have what seems to be the consensus view. Investors fear that we’re going to complete this top in the S&P500 sending prices down even lower.
Do you agree? We break 4100 and down we go?
Or could it be like the second chart, and all this support holds? [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.