During our July Members Only Conference Call we discussed a lot of the big-picture trends from around the world and in India, but we wanted to do a long post discussing what we're seeing in the mid-cap space. In this post I'll cover what we're seeing in the index itself, as well as get into some of its most actionable components.
This is the recording from the live July Conference Call for Members of the New Allstarcharts India! Before getting into individual stock ideas in India, we're going to first start with the global macro perspective. Once we identify the direction of the underlying trends from a structural and broader view, then we'll dive into the NIFTY and SENSEX Indexes on both longer-term and short-term timeframe. We want to look at Large-caps, Small-caps and everything in between before getting into the Sector and Industries themselves like Energy, Banks and Pharma.
One of the most underrated tools we have as U.S. Stock Market participants is the Dow Jones Industrial Average. I often hear how because it's price weighted, or because it only has 30 stocks, it cannot be relied upon as a gauge of market health. In the past, I've written about how I use it and why these criticisms are irresponsible. I encourage you to read through our Free Educational section to see how we use the Dow Jones Industrial Average and other various tools that we have at our disposal.
We're in the middle of a bunch of really exciting things here at All Star Charts. We're growing as a team and as a community of investors. This summer we brought on our new Chief Options Strategist Sean McLaughlin and added new Technical Analyst Tom Bruni. With this growth comes a lot more data that and analytics that we get to dive into every day. Some of the stuff we're building is so cool and beyond anything I thought was possible 10 years ago. We're living in some pretty amazing times and I'm really enjoying using and exploring the new technology.
Cryptocurrencies have enjoyed a nice few days after a long rout, meaning my timeline is now filled with Bitcoin charts and the like. To be honest I've been so busy with charts for Allstarcharts India that I hadn't checked my crypto charts in a while. Well, I'm glad I did because the chart of Ethereum is a textbook example of a core Technical Analysis concept, polarity.
I have a Google Home at my house and we ask it questions all the time. I asked: "Hey Google, do we really need to call google Alphabet?" and she responded: "Sorry, I don't understand the question."
Yeah, me neither.
In case you've been living under a rock, Google $GOOG printed a new all-time high today (Tuesday) and continues to ignore headlines like a good soldier. And with earnings on deck, scaredy-cat options market makers are bidding up prices in options ahead of July 23rd's release. This sets up a nice trade for us.
The relative weakness of the Nifty Free Float Smallcap 100 has been a theme all throughout 2018, so with today's chart of the week I want to take a look at what that potentially means for the broader market.
This past Wednesday, the founder of Sierra Alpha Research, David Keller, CMT presented to the New York Chapter meeting of the CMT Association on the topic of timeframes. He spoke about how he defines and uses three frequently referenced timeframes: short, medium, and long-term, as well as the common pitfalls he's seen people fall into over the course of his nearly 20 years as a Technical Analysis practitioner.
You see what I did there? The title of this post is a play on the stock we're about to put an options play on -- Workday $WDAY. You're welcome. I'll be here all week. Tip your bartender.
It's summer time. Sometimes during dull market action we have to keep ourselves entertained right?
Well, nothing entertains me more than profitable options trades. And with earnings on the not-to-distant horizon in $WDAY, I see a scenario setting up that can get us paid for our work.
