Here’s another idea from the semiconductor space. And why not? Semis are leading the way right now.
There’s nothing wrong with playing “follow-the-leaders” in the investing world. We’d rather ride the wave than fight the current. [Read more…]
Expert technical analysis of financial markets by JC Parets
Here’s another idea from the semiconductor space. And why not? Semis are leading the way right now.
There’s nothing wrong with playing “follow-the-leaders” in the investing world. We’d rather ride the wave than fight the current. [Read more…]
by JC
If Semi’s are leading, how bad could things be for the stock market?
As you can see in this chart below, not only are Semiconductors outperforming the broader markets, but they are also breaking out relative to Technology stocks as a group.
This is the definition of Relative Strength: [Read more…]
From the desk of Steve Strazza @Sstrazza.
Welcome to our “Under The Hood” column for the week ending November 20, 2020.
What we do 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.
Whether we’re measuring increasing interest based on large institutional purchases, unusual options activity, or simply our proprietary lists of trending tickers… there is a lot of overlap.
The bottom line is there are a million ways to skin this cat. Relying on our entire arsenal of data makes us confident that we’re producing the best list each week and gives us more optionality in terms of finding the most favorable trade setups for our clients.
by JC
Here’s the thing about bitcoin that I think a lot of people don’t understand…
You can be long bitcoin and expect higher prices and not have to make up conspiracy theories about the stuff. There’s no need to be a one-trick pony.
Owning bitcoin is no different than buying a stock or ETF: It’s just letters and math. Everybody thinks there’s some secret sauce to the cryptocurrencies, but overthinking it can be incredibly dangerous.
Why? Because if you over-think it – if you grant it more prestige or mystery than it’s worth – then you become part of a cult . . . and you lose the ability to think clearly about your investments. It becomes a religion. And what happens then is that you throw risk management out the window. That’s the scary part!
Bitcoin should be treated no differently than any other assets: Identify the risk and take profits when your targets are achieved.
We’re thrilled Bitcoin has done so well. We’ve been as bullish as anyone else. The difference is that we weren’t the bag holders throughout 2018 & 2019 like the bitcoin cult leaders. That’s because we’re not part of the religion. The truth is, I don’t care whether bitcoin goes to $1,000,000 or if it goes to zero.
I couldn’t care less.
It’s not my problem.
But we’ve been long for the last 80%. One for the good guys! But it’s no different than the $PTON or $SNAP trades we put on. It’s just a trade. Not a lifestyle.
If you find yourself following people who failed at other endeavors and are now clinging on to the hopes and dreams of higher bitcoin prices, shut them off. They’re the most dangerous people of them all because they have nothing to lose. They’ve been wrong about everything else, they’re on tilt, and now they’re going all in on the crypto.
Don’t be that guy.
Try to be the opposite actually.
Premium Members can always find my updated price targets and crypto strategy on our Trade Ideas list.
Let me know what you think!
JC
by JC
Remember when small and mid-Caps were the laggards?
Yea good times right?
Well, no mas my friends!
In this chart you can see the Large-cap growth stocks grouped to the upper left while the Small, Mids & Micro-caps are to the lower right.
[Read more…]
The race for a cure is on!
Interest in stocks with direct and indirect exposure to the “vaccine trade” is through the roof. And with this interest comes some wild price action in both directions.
Today’s play is in one of those names, but we like it more for its chart action than anything else. (It’s kinda what we do here) 😉 [Read more…]
No, not those semis! Semiconductors!
We’re seeing more and more long-term breakouts from monster bases and increasing relative strength across the entire sector.
Case in point, here’s a chart of KLA Corp $KLAC: [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.