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It's Called Risk Appetite

October 29, 2022

Thanks for all the great comments and emails.

I'm glad to hear how well you guys are doing in this environment.

But keep in mind that not everyone looks at the market the way you and I do.

Some people out there think the Dow Jones Industrial Average is beneath them.

Some people like to pretend to be smart and wait for computers to tell them if stocks are going up, instead of just counting.

Price weighted indexes don't seem to be good enough for some of their boujee lifestyles.

Fortunately, for us simpletons who are only here to make money, we see the Dow Jones Industrial Average rallying for a 4th consecutive week, finishing up the greatest October of all time.

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Commodities Are Set Up To Play

October 28, 2022

From the Desk of Ian Culley @IanCulley

Energy stocks refuse to lose.

We can’t deny the relative strength of the energy space, whether we’re talking about stocks or commodities. But it’s been equities over the raw materials for months now.

It doesn’t look like that will change any time soon. However, I doubt energy contracts will be left behind.

Let’s run down the most actively traded contracts for crude, gasoline, and heating oil. First, crude oil:

The December contract has chopped around a key level of former support at 85. Despite the sloppy nature of the chart, I don’t hate a long position here. But that's only if it’s above 85.

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International Hall of Famers (10-28-2022)

October 28, 2022

From the Desk of Steve Strazza @Sstrazza and Alfonso Depablos @AlfCharts

Our International Hall of Famers list is composed of the 100 largest US-listed international stocks, or ADRs. We’ve also sprinkled in some of the largest ADRs from countries that did not make the market-cap cut. 

These stocks range from some well-known mega-cap multinationals such as Toyota Motor and Royal Dutch Shell to some large-cap global disruptors such as Sea Ltd and Shopify.

It’s got all the big names and more--but only those that are based outside the US. You can find all the largest US stocks on our original Hall of Famers list.

The beauty of these scans is really in their simplicity.

We take the largest names each week and then apply technical filters in a way that the strongest stocks with the most momentum rise to the top.

Based on the market environment, we can also flip the scan on its head and filter for weakness.

Let’s dive in and take a look at some of the most important stocks from around the world.

Here’s this week’s list:

[PLUS] Weekly Observations & One Chart for the Weekend

October 28, 2022

From the Desk of Willie Delwiche.

A Market of Stocks > A Stock Market

The Chart: The S&P 500 fell 0.7% on Wednesday, despite a majority of the stocks in the index advancing on the day. Thursday was similar, with the index falling 0.6% but again more stocks were up than down.

By The Numbers: Going back to 1998, there have been 276 single day instances of the index declining on days when more stocks were up than down. That is less than 5% of the time. We’ve seen it for two days in a row only 25 times. 2022 is the first year since 2017 that we have had two in a row more than once in a single year. We’ve only seen three for three (three consecutive index-level declines accompanied by more stocks rising than falling) three times since 1998, with the most recent coming more than twenty years ago.

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[Options Premium] What's Old is New Again

October 28, 2022

"Old Economy" stocks are drawing our attention again.

Our Head Technical Analyst Steve Strazza says: "these old economy stocks are all beating earnings and taking leadership roles" and he cites companies like Caterpillar $CAT, Deere $DE, as well as energies, homebuilders, and transportation stocks.

Today's trade is an expression of the continuation of this theme, and our target stock is offering us a nice pullback to enter into.

 

Swing Trader Pro: Morning Briefing (10-28-2022)

October 28, 2022

From the Desk of Kimmy Sokoloff

It was a big earnings night last night, with $AAPL up and $AMZN down.

Futures are negative this morning. I'd like to see the $SPX hold 3,772. To continue higher, we must stay above 3,800 for a potential move to 3,820.