Monthly charts help us focus on the long-term trend when volatility on lower timeframes picks up.
In this environment there are a lot of messy, sideways charts out there, so we’re going to look at the clearest trends and focus on those.
Expert technical analysis of financial markets by JC Parets
by Tom Bruni
Monthly charts help us focus on the long-term trend when volatility on lower timeframes picks up.
In this environment there are a lot of messy, sideways charts out there, so we’re going to look at the clearest trends and focus on those.
by Tom Bruni
Interest Rates continue to stabilize in the US and globally, setting the stage for rotation into several beaten-down areas of the Equity market…particularly in small banks.
This was a risk to our near-term bearish thesis and suggests the major indexes could push marginally higher in the very short-term. And while we ultimately believe further weakness is ahead over the intermediate-term, we have to acknowledge and monitor this rotation under the surface to see how it develops.
Several stocks we’re watching could benefit from this “dash for trash” trading environment taking place in the market. Not only are they attractive reward/risk opportunities on their own, but more importantly, how they perform will provide important information about risk appetite and the potential for the market to extend further to the upside. It’s the same reason we were monitoring Autos and Media earlier in the month.
The idea is that if market participants are buying these very beaten-up stocks, then the world is probably not coming to an end. At least not yet.
So let’s outline the stocks we’re watching.
by Tom Bruni
The Nifty IT Index remains subdued due to weakness in its largest components, like Tata Consultancy, but under the surface, there’s been leaders like Info Edge (Naukri) trending well on an absolute or relative basis.
With that said, several charts are suggesting this leader may be transitioning into a laggard.
Let’s take a look at the chart that sparked this thesis.
by Tom Bruni
This is the recording from the live April 2020 Conference Call for Members of the Allstarcharts India! Before getting into individual stock ideas in India, we’re going to first start with the global macro perspective. Once we identify the direction of the underlying trends from a structural and broader view, then we’ll dive into the NIFTY Indexes on both longer-term and short-term timeframe. We want to look at Large-caps, Small-caps and everything in between before getting into the Sector and Industries themselves like Energy, Banks and Pharma.
This is when we finally break things down to the individual stock scenario with identified risk vs reward opportunities. That is what this is all about – aligning ourselves in the direction of the underlying trend while at the same time identifying where the risk is to make sure the potential reward is skewed exponentially in our favor. You will find that throughout this process we discuss Momentum, Fibonacci and Relative Strength. I encourage you to check out the Education Section so you know exactly where I’m coming from when you hear me mention these tools.
Here is the video in full:
by Tom Bruni
The Nifty Financial Services Index continues to show relative weakness.
In this post, we’re going to update our risk management levels, targets, and discuss the components within the index that are showing the most relative strength and weakness.
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
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 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.