Whether it’s shopping or trading, sometimes you have to go big.
And there’s a retail name that is heavily shorted which is showing signs of getting ready for a possibly big short squeeze.
Expert technical analysis of financial markets by JC Parets
Whether it’s shopping or trading, sometimes you have to go big.
And there’s a retail name that is heavily shorted which is showing signs of getting ready for a possibly big short squeeze.
by JC
Some of us are old enough to remember a time when Value stocks were the place to be. The kids these days look at me like I’m nuts when I talk to them about banks and energy stocks!
There’s a whole world of companies that used to do great. In fact, early in my career these were the names to be in: BTU, WLT, LEH, MER, BSC….. Good times!
Tech and all that other stuff came much later and has been the big driver in the U.S. over the past decade. But the rest of the world has suffered, without that exposure to Tech and Growth, and instead loaded with banks and natural resources, the worse places on earth for some time now.
Fast forward to today and we continue to get more and more evidence suggesting that it’s changing.
It’s no longer US over International and EM. It’s been EM and International over US. It used to be Growth over value for so long.
That’s just no longer the case: [Read more…]
From the desk of Steve Strazza @Sstrazza
Welcome to the 2 to 100 Club.
Something we’ve been working on internally this year is using various bottoms-up tools and scans to complement our top-down approach. One way we’re doing this is by identifying 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, and Salesforce, to a myriad of others… all 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 will notice we are 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 that are closest to new 52-week highs. This allows the cream of these strongest groups to rise to the top and makes our job easier to identify technical breakouts in the top-performing stocks.
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 Monday March 1st @ 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 Monday evening: [Read more…]
by JC
I’ve been incredibly fortunate to travel and learn from other cultures over the years. The tools and strategies I’ve picked up during my experiences in Singapore, Hong Kong, London, Tokyo, Taipei, Dublin and many other cities around the world have really helped shape the way I approach markets.
After so many conversations with smart folks, from all kinds of different backgrounds, for so many years, it makes it almost impossible not to learn a few tricks along the way.
Today I want to share on of my favorite gauges of risk appetite:
This is the one we want to watch, more specifically the NIFTY Smallcap 100 Index relative to the NIFTY 50 index. The latter represents 50 of the largest Indian companies on the National Stock Exchange.
It’s the ratio between the two that we want to focus on: [Read more…]
Our album is #1!
Oh wait, not that kind of platinum. We’re talking about the metal. The guys on the ASC team are starting to get pretty geeked out about the metals space — with good reason. Prices. Are. Breaking. Out. Sometimes it’s just this simple.
From the desk of Steve Strazza @sstrazza
Check out our latest Mystery Chart!
What we do here is take a chart that’s captured our attention and remove the x/y-axes as well as any other other labels that’d help identify it. This chart can be any security of any asset of any timeframe – on absolute or relative basis.
Maybe it’s a ratio, a custom index, or maybe price is inverted. It could be all three!
The point is, when we aren’t able to recognize what’s in front of us, we put aside any biases we may have and scrutinize it objectively.
While you can try to guess the chart, the point is to make a decision…
So let us know what it is… Buy, Sell, or Do Nothing?
by Peter
From the desk of Willie Delwiche.
Key takeaway: Optimism remains elevated when looking at investor positioning (equity ETFs have seen a quarter trillion dollars of inflows since the end of Q3) and demand for call options (up 60%+ over the past year). But sentiment concerns become more acute (and stocks more vulnerable) when optimism shows evidence of meaningfully unwinding. This week’s featured sentiment chart (ratio between HYG and LQD) suggests that rather than pushing back from the buffet and beginning to tighten their belts, investors continue to have a robust risk appetite. That doesn’t preclude an uptick in market volatility, but it reduces the risk of sustained weakness at this point.
Sentiment Chart of the Week: HYG/LQD Ratio and S&P 500
Stretched optimism becomes more problematic once risk appetites reverse & the HYG/LQD ratio suggests this is not yet the case. In fact, this ratio is more consistent with the healthy commencement of a new uptrend.