The Outperformers is our custom-made scan that pinpoints the very best stocks in the market. It’s the fastest, easiest way to find quality names that are primed for significant moves.
The goal is that as the market rally progresses, the sector rotation within the market will reflect in this scan. So while our Top/Down Analysis helps us with the broader view of the market, this Bottom/Up scan makes sure that we catch the slightest change in sentiment.
If you can pry your eyes from the UK gilt and Credit Suisse articles, you’ll find it’s not all doom and gloom across the bond market – especially high-yield debt in the US.
A quick warning before we continue: You probably won’t see a similar message on the financial news. It’s just too optimistic for the current environment. It wouldn't get enough clicks.
But facts are facts. And right now, high-yield bonds are hooking higher, while stocks are also rising.
Check out the dual-pane chart of the Fallen Angel High-Yield Bond ETF $ANGL and the S&P 500 $SPX:
Whether looking to speculate, hedge or collect premiums, options players are increasingly flocking to options that have fewer than 7 days to expiration. And with the proliferation of weekly options and three-times weekly expirations in popular index ETFs like $SPY, $QQQ, and $IWM, traders frequently have the opportunity to trade options expiring within 24 hours!
It is no surprise that these types of short-dated options are attractive to some players. They offer the best characteristics of options: defined risk, leverage, and affordability for even the smallest of traders.
This All Star Charts +Plus Monthly Playbook breaks down the investment universe into a series of largely binary decisions and tactical calls. Paired with our Weight of the Evidence Dashboard and our Playbook Chartbook, this piece is designed to help active asset allocators follow trends, pursue opportunities, and manage risk.
The S&P 500 just narrowly avoided finishing Q3 with the first back-to-back-to-back 3%+ weekly declines since 2009. It followed that up with the first back-to-back 2.5%+ gains since December 2008 to start Q4. Volatility isn’t showing up in the VIX but it is apparent in the daily and weekly price action.
From the desk of Steve Strazza @Sstrazza and Alfonso Depablos @AlfCharts
We held our October Monthly Strategy Session Monday night. Premium Members can access and rewatch it here.
Non-members can get a quick recap of the call simply by reading this post each month.
By focusing on long-term, monthly charts, the idea is to take a step back and put things into the context of their structural trends. This is easily one of our most valuable exercises as it forces us to put aside the day-to-day noise and simply examine markets from a “big-picture” point of view.
With that as our backdrop, let’s dive right in and discuss three of the most important charts and/or themes from this month’s call.
One of our favorite anecdotal indicators is the classic magazine cover.
Journalists do a tremendous job of aggregating consumer and investor sentiment.
By the time these magazines and other features take time to plan, develop, and eventually publish their covers, they're always going to be late to the party.
That time delay often presents a prime opportunity for investors.
Similarly, ETF providers also give us a wealth of sentiment information, particularly when it comes to ETF launches and de-listings.
ETF providers have a hilarious track record of launching funds at the complete worst time while de-listing them right before things get going.
A classic example is the coal ETF that got de-listed right before the epic bull market in coal stocks just began.
In crypto, we have yet another insightful indicator, one I like to call the "FTX indicator."
People get so angry when I tell them that Energy stocks haven't even broken out yet...
The historic outperformance in Energy over the past 2 years is just the pregame.
The real party hasn't even gotten started.
The DJ is still setting up....
We haven't even mixed the jungle juice.
Take a look at the Energy Sector Index still stuck below those 2008 highs. And its largest component Exxon Mobil (23.7% weighting) below those same levels:
