My colleague Sean shared a quote on Twitter recently about reading books and the discipline of not necessarily finishing one just because you started it.
There is a tension there. Working through a challenging read can be great. Trying to get through a book that isn't worth your time or is inaccessible to you is not a virtue. Discerning when to persist and when to give in is a skill.
I look at this situation through a slightly different lens. A book worth finishing is worth multiple reads. For me, this means going over it enough that I can remember, access, and share the perspective. Too often we treat books as trophies on a shelf. Owning a book doesn’t mean we have ownership of what the book says. If we are not going to take ownership of the content, why own the book?
We don't want to clutter up our charts with meaningless indicators, so why would we clutter up our shelves with books that are outside our grasp?
No matter how many charts we analyze, the market ultimately gets the final word, not us.
We're simply here to position ourselves where the risk vs. reward is exponentially in our favor. Unfortunately for trend-followers, there's not a whole lot of opportunities floating around right now.
Until we get a move in either direction from this near-term range, longs are likely getting chopped up, and shorts probably aren't working either.
As we've mentioned repeatedly, 30k is the level to watch on the downside for Bitcoin, while 41,000 and eventually 48,000 is the upper level of this range.
The Financial Services sector has been displaying resilience. Within this universe, there are certain stocks that are showing strength and moving past their resistance.
Let's see what the charts have to say!
With the breakout in Nifty 50, several indices have resumed their trend on the upside. Financials is another sector that has been hinting at the same.
In this post, we're also going to take a look at some of the lesser discussed stocks in Financials.
Here are some stocks at crucial levels.
First up, we have Cholamandalam Financial Holdings. The stock has moved past its resistance of 620 and is on the way to the target! After halting at the overhead supply zone for quite some time, the price broke out along with the indicator moving into bullish momentum territory.
We are positive above the level of 620, with a target near 780.
Something we’ve been working on internally is using various 'bottoms-up' tools and scans to complement our top-down approach.
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 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.
The Outperformers is our newest scan that pinpoints the very best stocks in the market. It’s the fastest, easiest way to find quality names that are primed for major moves.
The goal is that as the market rally progresses, the sector rotation within the market will reflect in this scan. So while our Top/Down Analysis helps us with the broader view of the market, this Bottom/Up scan makes sure that we catch the slightest change in sentiment.
Welcome to our latest RPP Report, where we publish return tables for a variety of different asset classes and categories along with commentary on each.
Looking at the past helps put the future into context. In this post, we review the absolute and relative trends at play and preview some of the things we’re watching to profit in the weeks and months ahead.
We consider this our weekly state of the union address as we break down and reiterate both our tactical and structural outlook on various asset classes and discuss the most important themes and developments currently playing out in markets all around the world.
Dynamic allocation emphasizes what you own as well as when you buy it
Shifting leadership trends could force portfolio decisions
The active-passive debate has never been really well framed. It's been oversimplified to the point of being meaningless. For example, the shift from actively-managed mutual funds to passive ETF's would seem like a victory for passive proponents. But if investors have moved from buying-and-holding those mutual funds to moving in and out of ETF's, is this really a shift from active to passive?
Seems there has been a lot of talk about the stock market "pausing" or being "due for a correction."
While I see the same things the bears are seeing, I'm also seeing price action in a variety of corners of the market still telling a bullish story. And as we like to say around here: "Only Price Pays" (h/t @alphatrends).
We're also seeing bullish options flow from several "motivated" and "aggressive" traders in a variety of names. Case in point: a software storage name in our most recent Follow the Flow report caught my attention.
In that environment, not only are Cryptocurrencies themselves likely getting slammed across the board, but crypto-related stocks are also going to come under pressure.
Unlike some other crypto and blockchain funds, the Amplify Data Sharing ETF $BLOK does a great job of finding stocks with direct or indirect ties to this still-niche industry.
Back then, we were already leaning toward "NO." Fast forward to today, and it's more like a "NO WAY."
The reason for this is simple. In that post, we explained the line in the sand for our USD/BRICS Index was ~19.
In the few weeks since, this critical level has been violated. The market has spoken, and it's saying we're in for a lower US Dollar relative to BRIC-country currencies.
