From the Desk of Willie Delwiche.

As the dollar was peaking in late-September, 4% of world markets were above their 50-day average and 4% were above their 200-day average. The dollar now is 8% of that peak (and below its 200-day average for the first time since June 2021). More than two-thirds of ACWI markets are now above their 200-day averages (the most in over a year) and nearly 95% are above their 50-day average (the most in nearly 2 years).  

Why It Matters: Dollar weakness may be the catalyst (or one of several catalysts), but the important development is improving global breadth. That is typically supportive of US stocks. Beyond that, dynamics in the current environment are actually pointing to a changing of the guard in terms of global leadership. The US has seen its relative strength wane while Europe and other developed markets have taken the lead. For US investors, this means abandoning home country bias and embracing global diversification.      

I'm not sure what everyone is so angry about, but I like it.

The pessimism out there is off the charts.

Investors are scared.

Risk aversion is dominating. Risk appetite is non-existent.

The next new position in our Paid-to-Play portfolio is:

This is the video recording of our December 2, 2022, All Star Charts Crypto Weekly Strategy Session.

This is the best time to buy stocks during the entire 4-year Presidential Cycle.

And guess what investors are doing?

They've been buying stocks...

The largest insider buy on today’s list is a Form 4 filing by Vishay Precision Group $VPG Director Wes Cummins.

Cummins revealed a purchase of VPG worth $802,067.

From the Desk of Kimmy Sokoloff

We have jobs data being released at 8:30 .m. ET this morning that could set the stage for the indices today.

The market based nicely yesterday. As long as the 200-day moving average on the $SPX at 4,050 holds, there's room for higher prices.

From the Desk of Steve Strazza @Sstrazza

As our Premium Members already know, we have a laundry list of scans that we run internally on an almost daily basis.

Different market environments, naturally, are more conducive to certain scans and less so to others.

We think our “Freshly Squeezed” scan is perfect for the current market. With so many individual issues in massive drawdowns as the broader market begins to turn a corner, there are going to be some serious short-covering rallies in some of the most beaten-down names.

In fact, it’s already starting to happen. Infamous meme stock, AMC Entertainment $AMC was up 25% at its highs today (not on a closing basis).

Our scan is quite simple. It is designed to identify stocks with heavy short positions. When a stock is heavily shorted, it means there are natural incremental buyers. Bulls need incremental buyers, as this is the only way price can move higher. When shorts are proven wrong, they have to buy their shares back to close out their position. 

We pair this short-interest data with short-term momentum overlays, as this is the match that is needed to spark a short squeeze...

From the Desk of Steve Strazza @Sstrazza

As our Premium Members already know, we have a laundry list of scans that we run internally on an almost daily basis.

Different market environments, naturally, are more conducive to certain scans and less so to others.

We think our “Freshly Squeezed” scan is perfect for the current market. With so many individual issues in massive drawdowns as the broader market begins to turn a corner, there are going to be some serious short-covering rallies in some of the most beaten-down names.

In fact, it’s already starting to happen. Infamous meme stock, AMC Entertainment $AMC was up 25% at its highs today (not on a closing basis).

Our scan is quite simple. It is designed to identify stocks with heavy short positions. When a stock is heavily shorted, it means there are natural incremental buyers. Bulls need incremental buyers, as this is the only way price can move higher. When shorts are proven wrong, they have to buy their shares back to close out their position. 

We pair this short-interest data with short-term momentum overlays, as this is the match that is needed to spark a short squeeze...

From the Desk of Kimmy Sokoloff

A consolidation day it sure was.

As long as the $SPX hangs on to to 4,050, we have potential to trade higher.

If we break below that level, we run the risk down to 4,034, then 4,020. 

It's the weekly bond market edition of What the FICC?

Today we're tracking European yields for insight into the next big move in US interest rates.

Check it out!

From the Desk of Ian Culley @Ianculley

The strong US dollar and higher interest rates have dominated the conversation this year.

But the direction of the US Dollar Index $DXY has changed, breaking its year-to-date trendline earlier this month. 

Will interest rates follow?

Not yet! So far, the uptrend remains intact for the five-, 10-, and 30-year yields. We have to give these trends the benefit of the doubt, for now.

Despite their persistence, it seems more a matter of when not if rates do eventually roll over.

Based on information from the US bond market and developed-market European yields, it could happen sooner than you might expect.

Let’s break it down.

First, we can’t dismiss the middle-long end of the curve holding above year-to-date trendlines.

Our outlook remains higher for these yields as long as their trend lines hold. If they...