This is the video recording of the June 2018 Conference Call for Premium Members of All Star Options [Read more…]
The Technology sector ETF $XLK in recent months has overtaken its previous highs set in the year 2000. For anyone that was trading during that time, you know that breaking these levels is a big deal. Do you think 18 years of reclaiming former highs is going to stall right here? I don’t.
But maybe you think this week’s stretch break higher is a little much and while you’re bullish too, perhaps you’re more cautiously so in the near term? I don’t entirely disagree. Thankfully we’ve got some well defined levels to trade against while seeking to earn some income. [Read more…]
Technology stocks continue to lead the broader markets higher, and that still keeps us at All Star Charts bullish on stocks. How can you not be when technology has such an important weight on the indexes?
JC recently drew attention to the leadership in the Payments Processing space. It seems that nearly every chart of every major company in the sector looks insanely bullish. And it’s hard to argue when you look at names like Visa ($V), Mastercard ($MA), Global Payments ($GPN), Paychex ($PAYX), and Square ($SQ).
But my attention is squarely focused on an opportunity in Paypal $PYPL and here’s why… [Read more…]
The $XLE Energy Sector ETF is currently scoring one of the highest implied volatilities relative to it’s biggest ETF peers. Sure, it’s warranted as price action has been a bit erratic of late. And we can argue about the politics and economics behind the moves and what they all mean. But I’ll leave that to another guy who doesn’t value his time. All I care about is putting myself in trades where an edge exits.
And when IV is priced high, these are often great opportunities to hunt for credit spreads. [Read more…]
I was confused too. But no, $DQ is not America’s favorite destination for shakes, malts, and blizzards. But it is sexy in it’s own way — it’s an energy company named Daqo New Energy in one of the hottest sectors we think will be leading stocks higher this year — Solar Energy. According to wikipedia, $DQ is a Chinese company “engaged in the manufacture of monocrystalline silicon, polysilicon, and silicon wafers, primarily for use in solar photovoltaic systems.” OK, sounds cool? It really doesn’t matter to us, we’re just following price, and we’re going to trade it with options in a defined risk spread. [Read more…]
It might sound like we’re beating a dead horse here, but the Russell 2000 printed another new all-time high yesterday (I know, it ended up being a red day, but that volume tho…) and there’s just no way I can view this with any bearish context. Sure, perhaps it’s extended and due for a rest (or gasp, a pullback) but it’s simply irresponsible to be spouting actively bearish broader market calls in this environment right now.
As such, the team at All Star Charts keeps digging into the sectors that are looking like candidates to lead the next leg of stock market gains higher. Today, we’ve got our eye on the Biotech sector. [Read more…]
The team here at All Star Charts is very bullish on the Oil & Gas Exploration & Production sector as discussed here (premium). Before we get into how we’re going to play it, here’s a little background to give color for our optimism for the opportunity we see, from our kid off the bench Tom Bruni:
After a long period of indecision and relative underperformance, the Oil & Gas Exploration & Production ETF $XOP is finally breaking out to the upside and confirming a new long-term uptrend. Many stocks within the sector have spent years making no progress and are now finally breaking out to the upside. Normally we focus on sectors showing relative strength and hitting new all-time highs like software (premium), but every sector has its day eventually (see retail) and it looks like these energy names are finally ready to participate in the broader market’s rally.
As Tom mentioned above, we normally like to play where relative strength and established trends work as tailwinds to help along our trades, but sometimes you gotta take a chance on situations that are showing signs of being the next market leader. Like that kid in the minor leagues that gets a call up when the team is struggling, sometimes you just have to go deeper to find the next clubhouse leader.
Here’s how we’re going to step up with the sector leader (in our opinion):