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[Premium] Details For August Monthly Strategy Session

August 1, 2020

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.

Here are the details for Tuesday:

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S&P500 Makes New All-time Highs

August 1, 2020

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...

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Under The Hood (07-31-2020)

July 31, 2020

From the desk of Steve Strazza @Sstrazza.

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...

Notable Breakdowns In The Rupee

July 30, 2020

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.

[Chart Of The Week] Home TV Stocks

July 29, 2020

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...

[Options] When the Ducks (Gold Bugs) Are Quackin, We Feed Them

July 29, 2020

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.

[Chart(s) Of The Week] The Small Chart With Big Implications

July 29, 2020

From the desk of Tom Bruni @BruniCharting

If you ask people what it would take for Small-Caps to begin outperforming you'll get a variety of answers. We need Financials to outperform. We need a weak US Dollar. We need a steeper yield curve. We need the moon to be in a waxing crescent. We need a miracle.

You'll have a lot of answers and a whole lot more confusion.

So in this post, we want to keep it simple and identify the two charts we're using to identify a sustainable turn in Small-Cap relative performance.

Mystery Chart (07-28-2020)

July 28, 2020

From the desk of Tom Bruni @BruniCharting

New Mystery Chart!

For those new to the exercise, we take a chart of interest and remove the x/y-axes and any other labels that would help identify it. The chart can be any security in any asset class on any timeframe on an absolute or relative basis. Maybe it’s a custom index or inverted, who knows!

We do all this to put aside the biases we have associated with this specific security/the market and come to a conclusion based solely on price.

You can guess what it is if you must, but the real value comes from sharing what you would do right now. Buy, Sell, or Do Nothing?