As a trader, I've always looked forward to Mondays. These days, I like them even more because I get to act upon some great trading ideas published in the Under the Hood report which the ASC research team puts out every weekend. There have been so many great plays coming out of the report lately. (Have you seen $PTON??? wow.)
And this most resent one has given me an idea for a "plan" today.
We retired our "Five Bull Market Barometers" in mid-July 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.
Welcome to our "Under The Hood" column for the week ended October 9, 2020.
What we do 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.
Whether we're measuring increasing interest based on large institutional purchases, unusual options activity, or simply our proprietary lists of trending tickers... there is a lot of overlap.
The bottom line is there are a million ways to skin this cat. Relying on our entire arsenal of data makes us confident that we're producing the best list each week and gives us more optionality in terms of finding the most favorable trade setups for our clients.
Energy stocks in India, the US, and other global markets have been a disaster for a long time. In fact, despite strength in stocks as an asset class, we've been finding short opportunities in the sector.
With Reliance being 33% of the Nifty Energy Index, let's take a look at what's happening in the space and how we're approaching it.
Dividend aristocrats are easily some of the most desirable investments on Wall Street. These are the names that have increased dividends for at least 25 years, providing steadily increasing income to longer-term minded shareholders.
As you can imagine, the companies making up this prestigious list are some of the most recognizable brands in the world. Coca-Cola, Walmart, and Johnson & Johnson are just a few of the household names making the cut.
Here at All Star Charts, we like to stay ahead of the curve. That’s why we're turning our attention to the future aristocrats. In an effort to seek out the next generation of the cream-of-the-crop dividend plays, we’re curating a list of stocks that have raised payouts every year for 5-9 years.
Introducing the Young Aristocrats. We like to say these are "stocks that pay you to make money". Imagine if years of consistent dividend growth and high momentum & relative strength had a baby, leaving you with the best of the emerging dividend giants that are outperforming the averages.
The All Star Charts research team is about to release a new report called the "Young Aristocrats." I've seen the preview and one of the stocks on their list is setting up nicely today for a breakout, so I'm wasting no time to get involved.
You're probably hearing a lot about SPACs these days. SPAC technically stands for "Special-Purpose Acquisition Company. So in this video I chat with Howard about these "Blank Check" vehicles. Historically they haven't exactly had the greatest reputation, but supply and demand is trying to prove otherwise.
The world is becoming SPAC crazy! Is it a good thing? It seems like it is. Let's discuss!
After 33 months of zero progress, the market is proving that it is finally time for Transportation stocks to move forward. We call these big bases. It was a well-deserved consolidation in prices after a historic run throughout 2016-2017.
This all seems perfectly normal to me. Not sure why some media outlets are telling investors about turmoil not seen since 2008. Maybe they're looking at the charts upside down? Or blindfolded perhaps?
Here is the second most important stock market index on planet earth breaking out of a long consolidation to new all-time highs:
