We discussed the need to look beneath the surface of the market in our Weekly Townhall and I mentioned it again on the Townhall Takeaway Livestream. This chart for the weekend hits that point one more time. When we look across the global market composites, Emerging Markets have experienced the largest drawdown from their 52-week high. When we look beneath the surface of the indexes, the median emerging market has had a smaller drawdown than the median Developed Market or the median Frontier Market. When we look at it from a country-level perspective, trends in Emerging Markets vs Developed Markets are stronger than they’ve been at any point in the past decade. That isn’t reflected in the indexes yet, but it may just be a matter of time until we see that transition. Speaking of transitions, while this chart is still looking at the distance below 52-week highs, we are starting to find ourselves thinking more about where things are relative to their 52-week lows.
The title of this post is the sound I might make if today's trade hits its profit target, helping to offset the pain I'm feeling at the pump every time I fill up my car with gas.
I was just in California this week and paid $6.00/gallon for my rental car. Ouch!!
Today's trade is in a name that has already been a strong performer this year but is showing no signs of stopping as of yet.
For this week's trade, we're putting on a $CCJ September 30/40 Bull Call Spread for an approximately $2.20 debit. This means we're long the 30 calls and short an equal amount of 40 calls for a net debit which represents the most we can lose in this trade.
Get the full details, risk management procedures and targets for this trade here:
We begin today’s discussion with a special situation that took shape this week.
At the end of the day, what we’re trying to do here is create a universe of stocks that are experiencing bullish activity from investors who have better information than the rest of us.
Typically, this information comes to us in the form of SEC filings, options flow, or through congressional reporting. But that’s not always the case!
From the desk of Steven Strazza @Sstrazza and Ian Culley @Ianculley
It finally happened…
The yield curve inverted for a brief moment as the 2-year yield rose above the 10-year earlier this week.
But whether or not it inverted yet is beside the point. It’s been flattening for a long time, and that’s the direction we’re headed in. It's only a matter of time.
While media outlets and fearmongers will spin this development as an urgent warning of an impending bear market, here's what you need to know: Throughout history, equities have done well during and after inversions.
This commonly observed leading indicator has a tendency to precede major market tops by years, not months. In other words, there's still time. The average lead time is about 18 months after prior inversions.
More importantly, when it comes to forecasting bear markets and recessions, many experts will argue that it is actually not the 2-year we should be focused on, but the 3-month yield.
We're at a point where the Adani Solar System constituents get another upgrade (well, wherever applicable).
Are you invested in the Adani group stocks? Then this would be a good post for you.
The Adani Group Solar System has been one of the most talked-about posts here at ASC and one can see why! For the most part, we keep upgrading the targets unless the trend suggests otherwise. It's true that not all stocks are outperformers, but the ones that are, are doing pretty great.
So let's take a look at where these stocks stand today.
First up, we have the ASC Adani Group Index. A quick peek at this and you see a resistance around the corner. So the move that we're witnessing now could take a break. This is an absolutely logical place for that to happen.
This year’s March Madness has been maddening indeed. Brackets were busted early and often. Three of the #1 seeds lost before they even had a chance to play for a trip to the Final Four. As challenging (and exciting) as that was, I’ve got a deeper frustration with it: It’s a passive participant’s paradise.
Let me explain.
Before the field of 64 is even set, we get deep dives on the various teams and their prospects. Stats are analyzed, stories are told. When the brackets are set, the picking begins. Though no games have yet been played, participants reason through potential matchups, from the first round all the way through to the finals. Bragging rights (and often more than that) are at stake for having properly allocated all your resources before the first whistle is blown. It’s about setting and forgetting. No feedback loops, no opportunities to adjust exposure based on changing tournament conditions.
Over the last few months, I've jumped down the rabbit hole that is Crypto Twitter (better known as CT).
As someone who's snooped around Financial Twitter (or FinTwit), a community dominated by industry professionals, CMTs, and CFAs, opening the trapdoor into CT felt similar to the culture shock I would experience moving to a new country.
Anyone that's had a presence in CT knows the culture: anon (anonymous) accounts, constant meme-ing, and shit-posting from a community of outcasts and degenerates enjoying riding the volatility of a new generation of assets.
This carnage was the perfect breeding ground for the wassie...
As many of you know, something we've been working on internally is using various bottom-up tools and scans to complement our top-down approach. It's really been working for us!
One way we're doing this is by identifying the strongest growth stocks as they climb the market-cap ladder from small- to mid- to large- and, ultimately, to mega-cap status (over $200B).
Once they graduate from small-cap to mid-cap status (over $2B), they come on our radar. Likewise, when they surpass the roughly $30B mark, they roll off our list.
But the scan doesn't just end there.
We only want to look at the strongest growth industries in the market, as that is typically where these potential 50-baggers come from.
