From the desk of Steven Strazza @Sstrazza and Grant Hawkridge @granthawkridge
Everything's falling into place for the bulls.
Mid-caps and small-caps finally joined their large-cap peers at new record highs earlier this month. A bullish expansion in breadth is confirming these breakouts at the index level.
We're also seeing strong confirmation in the form of other risk assets resolving above key levels of interest.
As suspected, our risk checklist has moved up to its highest level since we began tracking it this summer. This list does an excellent job summarizing the global landscape.
Well, once again we saw a little downside action this week and the noise-makers on the twitter and the teevee got all revved up. Cool. Whatever drives clicks, you maniacs.
Meanwhile, those of us who keep our heads about us while others are going insane are looking for opportunities to sell some premium into the somewhat elevated volatility premiums we see in options during times like this.
So, I did my periodic scan across the ETF landscape to see which sectors were sporting the highest relative implied volatilities while also showing the potential for rangebound activity over the next several weeks.
After my daughter’s flight landed in Minneapolis, she had to hurry through the terminal to catch a bus for the ride that would complete the final leg of her trip back to college. She did a great job of navigating uncertainties and asking for directions. She went where she was told and saw people, but no bus. "Just wait here," she was told, "the bus shows up, you get on, and it leaves right away."
A couple of buses came, some people got on, the buses left. Meanwhile, her ride was still a no-show.
But people who appeared to be in-the-know said she was in the right spot.
These are the registration details for our live mid-month conference call for Premium Members of All Star Charts.
Our next Live Call will be held on Tuesday November 16th at 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.
In the morning, the uptick in the CPI pushed Bitcoin immediately higher.
Throughout this short period, open interest spiked higher as longs jumped into late positions. This combined with FTX going offline contributed to a perfect storm for a minor shakeout of over-leveraged longs.
From the desk of Steven Strazza @Sstrazza and Ian Culley @IanCulley
Last week, we touched on the weakness that’s been developing further out on the yield curve.
The long end simply hasn’t kept pace with shorter-term yields. This is understandable given the magnitude of the move in the 30-year since summer 2020. At some point, the shorter end of the curve needs to play catch up. And it’s done just that these past couple months.
Now it’s time to focus on longer-term rates, as further downside pressure will eventually put the current economic recovery into question.
Let’s put the recent action in rates into perspective as we head into year’s end.
As many of you know, something we've been working on internally is using various bottom-up tools and scans to complement our top-down approach. It's really been working for us!
One way we're doing this is by identifying the strongest growth 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.
