The Dow Jones Industrial Average and Dow Jones Transportation Average are both hitting new 52-week highs.
These are things we see regularly in uptrends. Not so much in downtrends: [Read more…]
Expert technical analysis of financial markets by JC Parets
by JC
The Dow Jones Industrial Average and Dow Jones Transportation Average are both hitting new 52-week highs.
These are things we see regularly in uptrends. Not so much in downtrends: [Read more…]
From the Desk of Steve Strazza @Sstrazza
When investing in the stock market, we always want to approach it as “a market of stocks.”
Regardless of the environment, there are always stocks showing leadership and trending higher.
We may have to look harder to identify them depending on current market conditions. But there are always stocks that are going up.
The same can be said for weak stocks. Regardless of the environment, there are always stocks that are going down, too.
We already have multiple scans focusing on stocks making all-time highs, such as Hall of Famers, Minor Leaguers, and the 2 to 100 Club.
We filter these universes for stocks that are exhibiting the best momentum and relative strength characteristics.
Clearly, we spend a lot of time identifying and writing about leading stocks every week, via multiple reports.
Now, we’re also highlighting lagging stocks on a recurring basis.
by Ian Culley
From the Desk of Ian Culley @IanCulley
The US dollar isn’t going down without a fight.
Investors weren’t given much time to celebrate the breakdown as it quickly turned into a potential failed breakdown.
Before we get ahead of ourselves, it could simply turn into a hard retest.
It happens all the time.
So let’s check the charts…
by JC
Here’s something you don’t see every day.
European Financials hitting new 52-week highs? [Read more…]
by Ian Culley
From the Desk of Ian Culley @IanCulley
Here comes the Fed.
Another FOMC decision is upon us.
But the market has the central bank’s number this time, or so it seems.
The fed fund futures are pricing in an almost certain chance we’ll see a 25-basis-point rate hike come Wednesday.
With general consensus running at all-time highs, the focus will shift toward Jerome Powell’s words, basically the Fed’s forward guidance.
I won’t tune in to that press conference.
What I will do is monitor price.
When it comes to precious metals I’m following absolute trends, as usual, but I’m also tracking these two critical relative trends…
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 JC
Crude Oil futures are pushing up against new 3-month highs just as investors have given up on the commodities trade.
No one I speak to thinks Energy leads the way in the 2nd half of 2023.
And I speak to a lot of people who got the past year very right. Even they don’t believe…
Here’s what I see: Former resistance for Crude Oil in 2018 turning into support throughout the past year: [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 July 21, 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.