Volatility is not done with us yet. It ain't going down without a fight! At the time I'm writing this, $VIX is +15% on the day and +31% since Monday's close.
This has me back on the hunt for some premium selling opportunities.
And an ETF on our radar that checks the boxes of elevated premium, potential rangebound trading action, and a good fade opportunity is the $XLI Industrials ETF.
From the desk of Steven Strazza @Sstrazza and Ian Culley @IanCulley
King dollar is sitting perched upon its throne. But the floor beneath it is beginning to crumble.
The rally in the US dollar index $DXY isn’t as strong as today's fresh highs would suggest. In fact, when we dig beneath the surface, the dollar is only trending higher against a few currencies over shorter timeframes, while underperforming the vast majority.
Conveniently, the handful of currencies the USD continues to best are the most heavily weighted components of the US dollar index.
This lack of internal strength can be seen pretty much anywhere outside of the chart of DXY itself. Whether we're looking at our USD trend summary table, our custom USD advance-decline line, or the individual crosses themselves, it all suggests the current trend in the dollar lacks support.
Let’s take a look.
Our USD trend summary table illustrates both the broad weakness as well as those critical areas of strength that are driving the current uptrend in the DXY:
This All Star Charts +Plus Monthly Playbook breaks down the investment universe into a series of largely binary decisions and tactical calls. Paired with our Weight of the Evidence Dashboard, this piece is designed to help active asset allocators follow trends, pursue opportunities, and manage risk.
We had a feeling this one would be fun to watch unfold...
After just 24 hours of speculation and buzz about Elon Musk becoming the largest shareholder of Twitter, we already have some important follow-up news.
In an 8-K filed around 8:30 a.m. ET today, Twitter reported that Musk has been appointed to a board seat.
The only significant information in the filing is that Musk is restricted from becoming a beneficial owner of more than 14.9% of outstanding shares during the time he serves as a director (and 90 days thereafter).
Whether he already owns the 14.9% now or not is unknown. We should find out soon in a 13D and/or a Form 4 filing in the coming days.
Stay tuned. There’s going to be more to come on this one.
We retired our "Five Bull Market Barometers" in 2020 to make room for a new weekly post that's focused on the three most important charts for the week ahead.
This is that post, so let's jump into this week's edition.
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.
Welcome back to our latest Under the Hood column, where we'll cover all the action for the week ended April 1, 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.
