These are the registration details for the monthly conference call held for Premium Members of All Star Charts. In this call we will discuss the global market environment and how to profit from it. As always, this will include Stocks, Interest Rates, Commodities and Currencies. The video of the call will be archived in the members section to re-watch any time and the PDF of the charts will be made available as well.
This month’s Conference Call will be held on Tuesday January 15th at 7PM ET. Here are the details for the call:
The debate seems to be raging between Bulls and Bears as to what's happening right now. The Bulls are declaring THE bottom is in and we're going up from here. The Bears are smugly observing what they think is just another dead cat bounce on our way to lower prices. Who's right?
What if they are both wrong?
Ms. Market loves to frustrate the largest amount of participants she can, as often as she can. And it seems to me the best way to frustrate the most people right now would be for U.S. stocks to tighten up and grind sideways for a little while. With that in mind, we have a nice ETF candidate to sell some delta neutral premium in while the next market direction sorts itself out.
In the final Chart of the Week for 2018, we looked at the US Dollar reaching a key upside objective and then rolling over to finish the year on a sour note. I started out my Q1 2019 Playbook emphasizing the importance of the US Dollar Index in 2019 and I think we're already seeing the implications of a weaker Dollar. I also think this trend is likely to remain in place.
The way we saw it, if the US Dollar were to just break through these levels, without even acknowledging it, then there is most likely a severe flight to safety away from stocks and that's why the Dollar is getting bid up. The counter-argument there is that if the Dollar is weakening, stocks would most likely do well in that environment. That has been our thesis coming into the year.
So far, the Christmas Eve low in U.S. stocks is holding. Boy, wouldn't that have a nice ring to it if it sticks and stocks eventually return to new all time highs? I'm not saying it will, but that sure would be interesting.
In the past week, stocks across the board firmed up. But I'm not one to put too much weigh on the first partial week of trading activity to ring in the New Year. I think this coming week will give us a better indication of where the path of least resistance is.
So while I'm not yet convinced it is safe to buy here in the U.S., there is some tempting mean reversion happening in Latin America that has us interested.
In this post I want to highlight some of the most interesting and/or actionable relative-performance charts from our Global ETF Universe. Whether you're interested in actionable pair trades or simply looking for information about where money is flowing in the world, these charts should provide some good perspective on where various markets stand at the start of 2019.
The Public Sector Bank Sector of the Indian Stock Market has struggled since late 2017, however, there are signs that many of these stocks are in the process of changing long-term trend.
However, in this post we're focused on the current mean reversion we're seeing in stocks around the globe and how to profit from it. We'll worry about later this year later this year.
Earlier today we uploaded a post outlining the case for some mean reversion in Canadian Equities, as well as the stocks we're buying to take advantage of that thesis. The same pattern that can potentially drive those stocks higher is also present in the IBD 50 ETF FFTY, so in this post we're outlining the IBD 50 stocks with the best reward/risk.
First let's take a look at the ETF itself, which has fallen 35% since October and recently undercut support as momentum diverged. If prices are above 26.75, this failed breakdown and bullish momentum divergence setup remains intact, targeting former support near 32.
In late November we wrote about the best long and short setups in the TSX 60, and our winners offset those trades that were quickly proven incorrect. In today's environment we're seeing potential for mean reversion in several areas of Canada's stock market, so we're going to focus on the best reward/risk setups on the long side.
First let's start with the sectors and indexes to identify what areas of the market we're likely to find individual stock ideas.
At the broader-market level, the Equal-Weight TSX 60 is attempting to confirm a failed breakdown and bullish momentum divergence by closing above 135.05, which would signal potential upside toward 143.25.
USD/INR is at an important inflection point that should set the tone for this pair in 2019. Here's what we're watching for clues into its next major move.
We're headed back to our friendly neighborhood bank teller at JP Morgan Chase. She seems to like handing us cash. Twice she has been quite generous to us and the post-Christmas bounce in shares of $JPM gives us extra interest in coming back for a third helping.