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.
Did you see the Rare Earth Metals Index get back above its 2016 lows?
Should we even bother to acknowledge their existence? We have Tech in the US and don't have to go dumpster diving into these little tiny serial underperformers!
While that is certainly true, today I want to point to something that we haven't seen in a long long time: Rare Earth Metals NOT making new lows.
You see, this in and of itself, is a huge development. I'm pretty sure these stocks were designed to just always go down. It's like a slot machine, just keep putting money in, and you'll eventually lose it all. Rare Earth Metals stocks have kind of been like that been exactly like that.
BUT, this is no longer the case, IF we are above those 2016 lows:
These are the registration details for our Live Monthly Candlestick Strategy Session for Premium Members of All Star Charts.
This month’s Video Conference Call will be held on Tuesday August 4th @ 6PM ET. As always, if you cannot make the call live, the video and slides will be archived and published here along with every other live call since 2015.
What do we know for sure about New All-time Highs?
We know for a fact that they are NOT a characteristic of a downtrend. We've gone back and done the work, and as it turns out, New All-time Highs are normally things we see in uptrends!
With the S&P500 going out at New All-time Highs yesterday, and the Nasdaq making it now 3 months in a row of all-time highs, is the bet you want to make that we're in a downtrend for stocks?
This 10-month moving average strategy is one of the more simple, yet effective trend following systems that I know of. If the S&P500 closes the month above its 10-month moving average, we want to be long. If the S&P500 closes below its 10-month moving average, we do not.
For us, there's a lot more that goes on behind the scenes. We were not waiting for this to occur before buying stocks. There were plenty of names to buy in...
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 a busy week so let's get right into it.
It was surprising not to see Facebook $FB on this week's most popular list heading into earnings. All the other big tech names were. We'll cover this more below.
Kodak $KODK took this week's top spot with 113,000 new accounts and was a big winner from both a performance and headline perspective. The stock went from 2 to as high as 60 this week on news that it is taking a government loan to build a drug-ingredient business. Funny, because I always thought they made cameras...
There are no analysts covering the company and no targets to...
Maybe it's because I've got some leftover pizza in my fridge which is on my mind for lunch today, but I've been taking a look at a pizza play the research team discussed during the recent All Star Charts Monthly Conference Call and it's got my mouth watering.
I know it's a Technical Analysis no-no to be looking at weekly candlesticks before they're complete, but there's something happening in the Rupee that we need to be paying attention to.
One of our favorite ways of looking at a sector or industry group is by using equally-weighted charts.
A lot of "Home TV" stocks have been on the move, so we're going to take a look at what's happening and determine what's next for the group.
First, let's take a look at our equally-weighted custom index of Den Networks, Hathway Cable, Sun TV Network, TV18Broadcast, and Zee Entertainment. Prices did break down to new all-time lows during the March decline, but quickly reversed and took out the downtrend line from their 2018 highs. Now, prices are testing former support/resistance with momentum diverging negatively, suggesting a near-term pause is likely.
Click on chart to enlarge view.
Longer-term it appears this bearish to bullish trend reversal is intact. Now we want to be watching closely to identify how much of the recent...
The title of this trade plan is a modified take on a famous old floor traders saw. Basically, when experienced floor traders saw the entire pit screaming to hit the same bid or offer, the rule of thumb was to give 'em what they want. Take the other side and close your position when all those same lemmings try to hit the exits at the same time too.
It was the second easiest money on the floor (first was "trading against paper" --- which is you and me.)
The trade I'm putting on the board is a loose take on this idea. But instead of fading direction, we're going to fade the volatility premium priced into Gold options today.