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International Hall of Famers (11-12-2021)

November 12, 2021

From the desk of Steve Strazza @Sstrazza

Our International Hall of Famers list is composed of the 50 largest US-listed international stocks, or ADRs. We’ve also sprinkled in some of the largest ADRs from countries that did not make the market cap cut. 

These stocks range from some well-known mega-cap multinationals such as Toyota Motor and Royal Dutch Shell to some large-cap global disruptors such as Sea Ltd and Shopify.

It’s got all the big names and more -- but only those that are based outside the US. You can find all the largest US stocks on our original Hall of Famers list.

The beauty of these scans is really in their simplicity.

We take the 50 largest names each week and then apply technical filters in a way that the strongest stocks with the most momentum rise to the top.

Let’s dive in and take a look at some of the most important stocks from around the world.

Here’s this week’s list:

...

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Playing a Post-Harvest Rally

November 12, 2021

From the desk of Steven Strazza @Sstrazza and Ian Culley @Ianculley

Commodities are streaking higher, providing plenty of alpha across the entire space to anyone who can pry their eyes away from their altcoin charts.

Cotton and coffee continue to rip. Crude oil and the energy space are grinding higher. Live cattle are breaking out. Even precious metals are starting to catch a bid.

But what about the grain market? Last week, we pointed out that our Minneapolis Wheat position had hit our target and that it was time to feed the ducks.

Today, we’re going to highlight a couple of grain contracts we want to keep on our radar for buying opportunities in the coming weeks and months.

Let’s dive in!

First up is the March 2022 corn contract:

Like many other cyclical assets, corn futures peaked in May and have since been chopping sideways in a broad range. As the consolidation continues to develop, price has repeatedly found...

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Risk Checklist Review

November 12, 2021

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.

Here’s a look at where things stand presently:

What we’ve done here is pinpoint critical levels in some of the most risk-on markets and relative ratios in order to gauge the current level of risk appetite.

Whether these charts are above or below our levels is...

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[Options Premium] Fading the Vol in Consumer Discretionary Stocks

November 12, 2021

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.

And I like what turned up...

Gold Hits New 52-week Highs?

November 12, 2021

Yes you read that right.

New 52-week highs in Gold, but only when priced in Japanese Yen.

Regardless, the worst investment you could have possibly made in the summer of 2020 could now be the best investment you can make for 2022.

But really? Is Gold in Yen terms making new 52-week highs enough to get bullish precious metals?

Wall Street’s Greatest Lie

November 12, 2021

Someone somewhere a long time ago, before I came around, started telling people that to be a successful investor you should "Buy low and sell high."

The nerve of some people to have such an ego to think they can consistently buy low and sell high....

Are you kidding me?

Markets trend!

A Holler to the Dollar

November 12, 2021

Is it a million-dollar question? Or a billion-dollar question?

Actually, it's just a Dollar question. The millions and billions will come later.

The Dollar Index has been doing something that's worth noticing and we're here to discuss just that.

So what do we know of the Dollar index?

We know that it's a risk-off indicator.

We know that it has an inverse relationship with stocks and commodities (for the most part).

We know that a breakout/breakdown can be crucial in any market condition.

So what is it really that the Dollar Index is doing?

Breadth Thrusts & Bread Crusts: Stillness Can Be the Riskiest Decision

November 11, 2021

From the desk of Willie Delwiche.

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. 

So she waited.

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The Weak Hands Shakeout

November 11, 2021

Yesterday, there was plenty of action.

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.

Despite this choppy action yesterday, this doesn't sway our bullish thesis.