Reliance Industries is in the news this week due to an investment from Facebook in JioMart.
Regardless of the fundamental merits or impact of this deal, let’s analyze the charts and see how the market’s digesting this information.
Expert technical analysis of financial markets by JC Parets
by Tom Bruni
Reliance Industries is in the news this week due to an investment from Facebook in JioMart.
Regardless of the fundamental merits or impact of this deal, let’s analyze the charts and see how the market’s digesting this information.
by Tom Bruni
Over the last few weeks we’ve been outlining what conditions would warrant us getting more aggressive on either the long or short side, and last Wednesday we got our signal to get short again.
After the indexes pressed to new marginal highs late in the week, we’ve finally gotten some downside follow-through to confirm the weakness we were looking for.
Let’s review several key aspects of our bearish thesis and a few ways we’re taking advantage of the volatility.
by Tom Bruni
This is our monthly conference call for All Star Charts India Premium Members where we discuss ongoing themes throughout the India Share Market. We take a look at all of the NSE Indexes and Sectors as well as some of our own custom indexes. At Allstarcharts we have become known around the world for the top/down approach to stocks. After we analyze each of the indexes and sectors and have identified where the strength and weakness lies, then we break it down to individual stock opportunities. By having momentum, relative strength and market trend in our favor, the probabilities of success increase dramatically. The video of the call will be archived in the members section to re-watch any time and the PDF of the charts will be made available as well.
I’ll do my best to lay out my weight of the evidence conclusions and walk you step by step with how I got there! This month’s Conference Call will be held on Wednesday April 22nd at 7:00 PM IST.
Here are the Registration Details: [Read more…]
by Tom Bruni
Most of what you’ll hear me talk about are things I’ve learned from other people. In some cases, they were predecessors of mine and in other cases they’re buddies and colleagues. It’s funny because I try to do a good job of giving credit when I can, where I remember specifically who I learned something from. You guys who have been following me for a long time know that about me. But the truth is that sometimes I simply forget where I learned it. It’s just part of my arsenal and I always assumed it was there.
The best part about this is that sometimes, when I’m lucky, I come to realize down the road where I learned certain things. For example, I was in Chicago last year or maybe the year before that, I forget, and had lunch with Jim Bianco. Of course we can’t help ourselves but talk markets so we dive into a heavy bond market conversation (I know you must be shocked if you know Jim that he’s arguing about rates lol). Anyway, he proceeds to rip through 20-30 charts in what felt like a matter of seconds. It hit me! THAT is why I rip through so many charts when I give my presentations. I got that from watching him give a talk at Bloomberg over a decade ago!
Another time, John Roque was nice enough to invite me to lunch. He’s a member of the New York Athletic Club but I got booted out for wearing jeans (Amateur move on my part). But we went around the corner to this great Greek joint, so it was all good. Plus then I got to drink my favorite Assyrtiko from Santorini that I love so much with a branzino. The volcanic soil really brings out that acidity, but I digress. John is a big sports nut. So he makes so many references to sports in his analysis that it hit me. That’s why I do that! I was so excited. Because I’ve stolen a ton of stuff from John over so many years – he’s one of the best in the business. I got, “We’re not in a reversion to the mean business, we’re in a reversion beyond the mean business” from him. I learned from him to analyze the market caps of sectors as a % of total market cap. He was one of the early influences on me to use gold as a denominator when I was in my early 20s. I’m probably missing a bunch, but he’s been a tremendous inspiration to me.
The reason I’m telling you all these stories is because sometimes, I truly truly remember where I learned certain lessons, including what we’re going to talk about today: “The Bigger the Drop, The Longer The Need For Repair”. This is one of the many great lessons I’ve learned from my friend Louise Yamada. She is one I’m glad I listened to when I was much younger! When I emailed her about this quote wondering if she got this from the great Alan Shaw, she said yes, that she learned it from him and Ralph (Acampora).
When I look at charts like Sadhav Engineering, I can’t help but think about this quote. It’s almost like it was written for this stock: [Read more…]
by Tom Bruni
Throughout March we’ve been talking about weakness in the Rupee and the underlying trends driving it (March 3rd, 2020 and March 26, 2020).
Today we want to revisit the Rupee and talk about the pattern that’s suggesting an explosive move is ahead.
by Tom Bruni
In yesterday’s Chart Summit, we spoke a lot about the relative strength in the Nifty Pharma sector. (You can watch the full videos of all the presenters for free.)
We got a lot of follow-up questions about a specific stock, Glenmark Pharma, so let’s take a look and assess its absolute and relative trends.
by Tom Bruni
In yesterday’s Chart Summit, we presented our view on the major asset classes around the globe and noted what we need to see before getting bullish Equities again. (You can watch the full videos of all the presenters for free.)
Unfortunately, current conditions suggest continued volatility so we’re looking for short setups to take advantage of it in the coming days/weeks.
Let’s take a look at our broader thesis and what stocks and indexes we’re shorting to express it in the market.
by Tom Bruni
A question we’re getting a lot these days is when the market ultimately does bottom, do we want to be buying the stocks that have been hit the most or the ones that have held up the best during the market’s fall?
As with most things in markets and in life, the answer is it depends. In this post, we’ll explain why.