Welcome back to Under the Hood, where we'll cover all the action for the two weeks ended April 12, 2024. This report is published bi-weekly, in rotation with The Minor Leaguers.
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.
Click here for a behind-the-scenes look at our process.
Whether we’re measuring increasing interest based on large institutional purchases, unusual...
Readers often ask how long it will take for an open trade to reach our target.
I wish I knew.
Only the market can answer that question, as Gold did last Friday…
Six weeks!
It was only a matter of weeks — not months, not quarters — before gold futures hit our first objective:
What a face-ripper!
If this isn’t a clear indication of a new secular bull run for precious metals, what else do you need to see?
Luckily for anyone thinking about adding to positions or locking in profits, the extension level at approximately 2,450 marks a logical area for the rally to take a breather.
It doesn’t mean it will. Nevertheless, it’s still a good idea to take some profits here.
Once buyers drive gold above 2,465, we can add to existing long positions (or open new ones) with a rough target of 3,300.
Meanwhile, Platinum and Palladium are looking juicy…
These low-profile precious metals offer excellent opportunities as gold digests its gains.
I highlighted Platinum last week as it challenges a critical breakout level. And our...
In today's Flow Show, me and Steve Strazza took a look at some potential directional bets, but we both agreed that the right trade for today is one that would benefit from some sideways trading action.
With the broader markets looking a bit indecisive here, making a strong directional bet (in either direction) feels like a high-risk proposition. But there's a big cap name currently stuck in a range that is offering us nice options premiums to bet on further sideways action. We'll likely have to hold through an earnings event to earn our profit, but with a defined risk and a large margin for error, I like our chances.
There is a big theme going on right now - and that's the inability for important indexes to get above their 2021 highs.
You're seeing it at the individual stock level, you're seeing it across specific sectors and industry groups, and you're definitely seeing it in the S&P500 and Nasdaq100 Equally-weighted.
These indexes below eliminate the excessive weightings in certain stocks and sectors and equally-weight all of its components.
Look at both of them still stuck below their 2021 highs:
Cryptocurrency markets experienced a downturn this weekend due to geopolitical tension.
I believe there's no advantage in reacting to such headlines; if anything, they provoke emotional decision-making and obscure our capacity to rely on market trends. Remember, it's the flow of money that generates profit, not rumors and narratives.
Undoubtedly, geopolitical tensions have affected cryptocurrency markets, reinforcing my view of a "chopsolidation." Nevertheless, I'm also positioning myself for a short-term rally.
Every week, we create a Power Rankings table that lists the market-cap rank of the top 20 cryptocurrencies. This allows us to see the winners and losers as they climb the market-cap ladder.
We've built a proprietary scan that notifies us whenever a cryptocurrency exceeds a certain market-cap threshold for the first time. When there's an up and coming cryptocurrency, we're the first one to know about it.
This scan flags breakthrough cryptocurrencies, allowing us to capitalize on lucrative opportunities before they become mainstream.