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Stocks Are In An Uptrend

August 8, 2020

I don't know if I've made myself clear enough. It's getting pretty obnoxious at this point isn't it?

We talk about this internally sometimes (ahem strazza), that we sound like a broken record.

My response is that we should be aware of our own behavior. The simple fact that we are recognizing, that yes, we are indeed being super annoying and just saying the same things over and over again, is information. It's really important to identify that.

Why? What does this mean? To me, it means that what's been working keeps working. And what needed to start working for those things to continue are working now too.

Exhibit A has to be the Dow Jones Transportation Average breaking out to new highs BEFORE the Dow Jones Industrial Average. Wait, What???? New phone who dis? 

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Under The Hood (08-07-2020)

August 8, 2020

From the desk of Steve Strazza @Sstrazza.

Welcome to this week's edition of "Under The Hood." You can read more about the column here.

What we do is analyze the most popular Robinhood stocks over the trailing week and find opportunities to either join in and ride these momentum names higher, or fade the crowd and bet against them.

This was another interesting week as the market continues to grind higher with zero regard for whatever bad news is thrown at it. With the S&P 500 knocking on the door of new all-time highs, let's take a look at what Robinhood investors were buying this week.

One thing I've learned very quickly through writing this column each week is that contrary to popular opinion, these Robinhood investors are more often than not on the right side of the trend.

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Playing The Natural Gas Bull Market

August 8, 2020

From the desk of Tom Bruni @BruniCharting

Precious Metals are getting all of the Commodity attention these days, but the truth is there is a lot more opportunity in the space than just Metals.

In this post, I want to outline why we think Natural Gas is in a new bull market and how we're taking advantage of it.

Here's the weekly chart of Natural Gas we've been using as a roadmap for the last few years. In March, prices approached long-term support near 1.60 and volatility began to pick up, signaling to us that a trend change was potentially underway. And on top of that, momentum failed to get oversold which suggested sellers were getting exhausted.

Click on chart to enlarge view.

Checking In On Gold & Silver

August 8, 2020

Strength in Precious Metals has been a theme we've been taking advantage of since Gold's breakout in June 2019.

Now that prices have skyrocketed over the last few weeks, many are asking, what's next for these shiny assets?

In this post, we're going to walk through our past analysis, review our targets, and outline how we're approaching these Metals going forward.

Since we received great feedback on our Reliance post format, we're going to approach this the same way.

[Video] "What The FICC?" - Bruni's New Weekly Show

August 7, 2020

From the desk of Tom Bruni @BruniCharting

The Fixed Income, Commodity, and Currency markets are near and dear to my heart. Ever since I began learning Technical Analysis, I've always loved analyzing things that are "off the beaten path." This included everything from Interest Rates to Soybeans to the Norwegian Krone. Equities are great and all, but this is the stuff that gets me up in the morning.

In addition to the blog posts we do on the site, I've wanted to explore new ways to share that passion with you all and show why even if you're not investing in these markets directly, they're worth paying attention to.

That brings us to my new weekly show, "What The FICC?"

In this weekly video series, I'll be highlighting the most important chart or theme from these three asset classes while doing my best to tie that analysis back to Equities through an intermarket signal or a trade idea.

The first two pilot episodes are linked down below. I hope you enjoy them and look forward to seeing you all back here each week for a new episode!

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[Options Premium] Oh Deere...

August 7, 2020

Oh Deere & Co, you tempt me so.

I'm on vacation and trying to stay away from the screens as much as possible this week, but you broke out on Wednesday and today you're just hanging there, baiting me into getting involved.

 

 

 

 

Cautionary Levels For Precious Metals

August 7, 2020

From the desk of Steve Strazza @Sstrazza

Thanks to everyone who participated in this week's Mystery Chart. Most of you either wanted to buy or do nothing and wait for more information.

The chart was the iShares Global Silver Miners ETF $SLVP. We're bullish metals so we agree and want to be buying this over the long-term as well.

With that said, we want to be cautious at current levels for reasons we'll outline in this post. First, let's look at the updated chart.

[Chart of The Week] Natural Gas Strength Continues

August 6, 2020

There has been a lot of opportunity in Commodities lately, particularly in Precious Metals and Base Metals, after years of nothing.

Today we want to highlight the strength in Natural Gas, a theme we've been pointing to most of this year but that's now accelerating.

Let's take a look at what's happening and how we can take advantage of it.

Here's the chart we were using as our roadmap at the beginning of the year as prices approached long-term support near 115. Additionally, we were seeing momentum stay out of oversold territory, signaling that sellers were unable to stay aggressive and take prices to new lows.

Click on chart to enlarge view. 

Podcast: Panic with Friends, Bull Market Edition

August 6, 2020

I feel like at this point if they're not on my podcast, I'm on theirs. It's pretty funny when you think about it.

The idea here is to just continue the conversation. It's been a habit of mine for decades. Whether it's over dinner, cocktails, on someone's podcast, video, doesn't matter. I've found it really helpful to talk to smart people on a regular basis.

One of the things I enjoy most is learning more about technology, particularly fintech, and what sorts of tools we're going to use in the future. This is the greatest time to be alive in human history. I'm on the edge of my seat every day waiting for what's next. In some cases, we're the ones building what's next, and that's also really cool to watch. The way I see it, if we're not investing in Technology, it's a big mistake. We know what we think will be helpful to us internally better than anyone else. So why shouldn't we just build it? (we're looking to hire 2 more engineers: Ping Me).

Nifty Metal Index Breaks Out!

August 5, 2020

We've been selectively participating in a few Steel stocks over the last few months as we waited for a signal to get more aggressive in the space.

Yesterday we got that signal as the Nifty Metal Index broke out to new recovery highs and reclaimed support on a relative basis.

In this post, we're going to outline what we're seeing in the sector and what we're buying to take advantage of this theme.

First, let's start with Base Metals (read for context), which continue to trend higher along with Precious Metals. In July when we were talking about them, we were staying very selective in the Nifty Metal space because it hadn't yet broken out despite the strength in Commodities.

[Video] Behind The Scenes at All Star Charts: Team Meeting, The Building of our Q3 Playbook

August 5, 2020

This is a behind the scenes video of our team meeting held on July 6, 2020 4PM ET.

Every quarter we put out our Playbook focusing on the most important themes around the world to take advantage of, and just as importantly, which areas to avoid. This is usually about 150 pages and really dives deep into stocks, rates, commodities, forex and the intermarket relationships between all of them.

I hope this gives you some perspective on how we approach markets using our Top/Down Approach. We've always found it helpful to understand where people are coming from and why they say certain things. I hope this can give you some of that context about us. I think it also helps you get to know our team a little better. Enjoy!