Welcome to the second edition of “Louis’ Look”, where I share the key lessons I’ve learnt over the past week through interning at All Star Charts. You can read the first post here.
As with any week working with this bunch, plenty was learnt, so let’s jump right into it.
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.
Today we have a special episode of the podcast. I think it's important to take a step back from the markets and Technical Analysis sometimes, and talk about something that is universal to us all. For this episode I invited Morgan Housel to come and talk about the importance of writing. For those of you who have been following my work for a long time, you often hear me talk about the personal benefits of putting my ideas down on paper. Sure, people all over the world get insight into what our firm is thinking, they get steady idea flow from my blog, and in some lucky cases, people might even learn something. But the truth is, my writing is an incredibly selfish endeavor. It forces me to think through the important concepts. And as Morgan talks about in this episode, the inability to express my thoughts in written form probably means my idea is stupid to begin with. The easier it is to write about, the better it will usually be received by our audience.
Morgan Housel is definitely one of my favorite financial writers in...
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?
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.
Apple $AAPL has consistently been towards the top of our list since we started tracking it. This week it was #1 with almost 80,000 net new accounts. Not only is this a quality company and not some "hot stock," but it's also up ~20% in the trailing two weeks on the...
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.
After an initial bounce in the second quarter, prices briefly undercut support at 1.60 before reversing sharply. Since then they've stabilized above support...
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!
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.
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.
This week we've seen an acceleration to the upside, pushing prices above former support to...