Mark Dow has been a guest on this podcast more times than anyone else for a good reason. Selfishly I always enjoy chatting with him. His perspective is fascinating to me because he does such brilliant job of combining price behavior with sentiment analysis and the global macro intermarket backdrop.
Mark worked for the U.S. Treasury Department in charge of Emerging Markets in the early 90s before ultimately running money for a Global Macro Hedge Fund in New York City. So he has a lot of opinions on economics and politics, but he's great at not letting those things get in the way of his price behavior and sentiment analysis. He's figured out how to separate them but also use his expertise to his advantage. That's not any task.
It's been a slow "ideas" week here at All Star Options for obvious reasons: the markets are getting destabilized ahead of the election and news flow on the Covid19 front.
As JC likes to remind us often -- there are no called strikes on Wall Street. We can sit in the batters box with the bat on our shoulders and just look at pitch after pitch without taking a swing.
In this week's RPP Report we discussed some of the major developments recently such as the increasing bid for risk-on and reflationary assets, as well as continued rotation into more cyclical areas across all asset classes.
Our report focused mainly on Financials as well as some discussion regarding the recent outperformance from Small and Mid-Caps.
To follow up on this theme, today we'll dig into some other economically sensitive areas like Mid-Cap Industrials and Materials.
We'll take a look at the charts as well as the internals in these sectors in order to illustrate our current outlook.
In this post, we want to share some research that was provided to our US Subscribers, which attempts to explain why the difference in Interest Rates in Europe and the US is causing trouble in the markets.
Everything between the horizontal lines was written for US subscribers, so keep that in mind as you're reading it. The conclusion/takeaway for India is way at the bottom in bold.
These are the registration details for our Live Monthly Candlestick Strategy Session for Premium Members of All Star Charts.
This month’s Video Conference Call will be held on Monday November 2nd @ 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.
As Market Technicians, we are in the data visualization business. We're looking to visualize the behavior of market participants by analyzing price and its derivatives via traditional charts, spreadsheets, and other methods.
Today we want to introduce a slightly different way we like to visualize market behavior as we may begin incorporating it into our analysis more often if you find it helpful.
Without further ado, let's check out some "Bubble Charts."
I've done over 115 Podcast episodes and I don't remember being this excited to interview someone. I've read all the Jack Schwager books and some of them multiple times. I know traders who regularly read these chapters as part of the mental training.
Think about it, Jack has interviewed the greatest traders in history. All of them. It's incredible. And you know what strategies he uses to trade his own personal money? Technical Analysis.
He's interviewed all of the best traders for his Market Wizards books. And he says about half of them choose their market direction using Technical Analysis. But almost all of them have some sort of Technical component for risk management. This concept of Risk Management is the one common denominator between all of the most successful Traders.
Jack also pokes fun at the Efficient Market Hypothesis, which you know always brings a smile to my face. He discusses some of the success of these traders and how their consistent returns over such long periods of time completely dismiss what he refers to as the Deficient Market Hypothesis.
For those new to the exercise, we take a chart of interest and remove the x/y-axes and any other labels that would help identify it. The chart can be any security in any asset class on any timeframe on an absolute or relative basis. Maybe it’s a custom index or inverted, who knows!
We do all this to put aside the biases we have associated with this specific security/the market and come to a conclusion based solely on price.
You can guess what it is if you must, but the real value comes from sharing what you would do right now. Buy, Sell, or Do Nothing?
The major nifty market indexes continue to chop around, creating more failed moves on the upside and downside.
Today we're going to take a look at a few failed breakouts that could serve as very tactical setups on the short side or simply further evidence of the type of choppy environment we're in.
