Is it time to just hold your nose and buy Disney down here?
Sector rotation has been working.
The laggards are catching a bid.
Is Disney the next stock that money is going to rotate into? [Read more…]
Expert technical analysis of financial markets by JC Parets
by JC
Is it time to just hold your nose and buy Disney down here?
Sector rotation has been working.
The laggards are catching a bid.
Is Disney the next stock that money is going to rotate into? [Read more…]
by Ian Culley
From the Desk of Ian Culley @IanCulley
Most emerging market currencies have been in beast mode.
The Chinese yuan is a notable exception.
In fact, most Asian currencies haven’t fared well against the dollar over the trailing three months.
Latin American and Eastern European currencies – mainly the Brazilian real and the Mexican peso – are driving these markets.
Analyzing these currencies through the Emerging Currency Fund $CEW as it makes new 52-week highs is useful.
But I’m more interested in the Chinese yuan as it slips and slides against the dollar.
Why?
China represents the world’s second-largest economy.
And, based on the charts, the yuan could provide valuable insight into the direction of US stocks…
“What are you afraid of?”
JC posed this question to me yesterday on the Morning Show.
For context, he was asking me about our upcoming 21-day trip to 8 cities in Southeast Asia.
I might have surprised myself when I quickly and confidently answered: “Nothing.”
And I meant it.
I’ve actually been thinking a lot about this topic lately.
“Fear” is such a powerful and loaded word. It toys with our emotions. While often protecting and keeping us safe, our fear-stoked emotions also can trigger us into making poor – and sometimes awful – decisions.
All our best-laid plans go out the window when fear takes over.
Franklin D. Roosevelt, the 32nd President of the United States said it best: “The only thing we have to fear is fear itself.”
This is doubly true for traders. We need to do everything in our power to keep our positions or portfolios structured so that nothing can scare us. Because when we’re scared we lose all sense of control. We lose rationality. We lose perspective. And then we either rush prematurely for the exits or worse, double down on our mistakes.
We need to fear “Fear.” [Read more…]
From the Desk of Steve Strazza @Sstrazza.
Welcome back to Under the Hood, where we’ll cover all the action for the week ended June 23, 2023.
This report is published bi-weekly and rotated with The Minor Leaguers.
What we do here is analyze the most popular stocks during the week and find opportunities to either join in and ride these momentum names higher, or fade the crowd and bet against them.
We use a variety of sources to generate the list of most popular names.
There are so many new data sources available that all we need to do is organize and curate them in a way that shows us exactly what we want: a list of stocks that are seeing an unusual increase in investor interest.
Click here for a behind-the-scenes look at our process.
Whether we’re measuring increasing interest based on large institutional purchases, unusual options activity, or simply our proprietary lists of trending tickers, there’s a lot of overlap.
From the Desk of Steve Strazza @sstrazza and Alfonso Depablos @Alfcharts
This is one of our favorite bottom-up scans: Follow the Flow.
In this note, we simply create a universe of stocks that experienced the most unusual options activity — either bullish or bearish, but not both.
We utilize options experts, both internally and through our partnership with The TradeXchange. Then, we dig through the level 2 details and do all the work upfront for our clients.
Our goal is to isolate only those options market splashes that represent levered and high-conviction, directional bets.
We also weed out hedging activity and ensure there are no offsetting trades that either neutralize or cap the risk on these unusual options trades.
What remains is a list of stocks that large financial institutions are putting big money behind.
And they’re doing so for one reason only: because they think the stock is about to move in their direction and make them a pretty penny.
Then we flip through our list of stocks flashing unusual activity and pick the best setups using many of the same technical filters we do for our other scans.
And, just like that, we’ll follow the money flow and fatten our own pockets along with some of the world’s most powerful financial institutions.
by Ian Culley
From the Desk of Ian Culley @IanCulley
Buyers are holding the line.
The former 2011 highs remain front and center for gold futures – and all precious metals.
These shiny rocks will experience increased selling if gold slips back below those former highs marking the prior commodity supercycle peak.
Silver, palladium, and the Gold Mining ETF $GDX are already printing fresh lows. And new multi-month lows for the silver/gold ratio indicate dwindling risk appetite.
These aren’t the type of developments that support a sustained uptrend.
Yet this action hasn’t deterred gold bugs.
Despite every reason to sleep in and shirk any and all responsibilities, they continue to show up right on time…
by JC
What if we don’t own enough Bitcoin?
Have you thought about that?
What if BTC is trading back above those Summer 2021 lows?
What is the risk of NOT owning enough Bitcoin?
That’s what I think about.
Here’s what the chart of BTC looks like as all that former support throughout 2021 has turned into resistance in 2023: [Read more…]
This is the weekly post that aggregates all the charts we put together throughout the week and organizes them all into one, easy to flip through deck.