From the desk of Willie Delwiche.
[PLUS] Weekly Town Hall Meeting w/ Willie Delwiche
This is the video recording of the August 19 Town Hall Meeting w/ Willie Delwiche
08/19/21 2PM ET [Read more…]
Well-Positioned for Success
From the desk of Willie Delwiche.
It may still be August. But for some of us, it’s already time to go back to school and the old routines of drop-offs, pick-ups, and after school activities.
We have a particularly special drop off to look forward to this year as we join countless other parents in sending off a child to college for the first time.
There is a ton of excitement and plenty of uncertainty. But we’re still managing to check off those to-do lists for the big day. Maybe I’m just a proud dad, but between her honors program admittance, AP credits, and an on-campus job lined up, I feel like our soon-to-be college freshman is well-positioned for success.
But no outcome is guaranteed. The unexpected can always happen! I know this from first-hand experience. Being well-positioned for success heading into college is just part of the process. The outcome depends on what we do with risks and opportunities along the way. In my case, I’m thankful for the last-minute decision that landed me at a lower-cost public university, a patient family, and second (and third) chances to succeed.
Again, finding yourself in a successful position isn’t only about awareness of the external situation. You also need to understand how to adjust and adapt to the inevitable challenges and opportunities that are part of the journey.
As investors, we can adjust by having a good sense of our tolerance for risk (and how it is often dependent on the market environment) and time horizons when putting money to work. If we don’t have a solid grasp on those factors, what we make of the market environment matters a lot less.
Maybe we need to spend a little less time asking ourselves what the market is going to do and spend more time asking ourselves what, if anything, we are going to do about it.
Whether as investors or college students, it is not enough to be positioned for success. We need to be ready and willing to pursue it when the opportunities arise.
2 To 100 Club (08-18-2021)
From the desk of Steve Strazza @Sstrazza
Welcome to the 2 to 100 Club.
As many of you know, something we’ve been working on internally is using various bottoms-up tools and scans to complement our top-down approach. It’s really been working for us!
One way we’re doing this is by identifying the strongest growth stocks as they climb the market-cap ladder from small-, to mid-, to large-, and, ultimately to mega-cap status (over $200B).
Once they graduate from small-cap to mid-cap status (over $2B), they come on our radar. Likewise, when they surpass the roughly $30B mark, they roll off our list.
But the scan doesn’t just end there. We only want to look at the strongest growth industries in the market, as that is typically where these potential 50-baggers come from.
Some of the best performers in recent decades – stocks like Priceline, Amazon, Netflix, and Salesforce, to myriad others – would have been on this list at some point during their journey to becoming the market behemoths they are today.
When you look at the stocks in our table, you’ll notice we’re only focused on Technology and Growth industry groups such as Software, Semiconductors, Online Retail, Solar, etc.
Then, like any good technician, we filter the list down to those that are closest to new highs. This allows the cream of these strong groups to rise to the top and helps streamline our mission to identify technical breakouts in the top-performing stocks.
[Video] Options Trade of the Week w/ Sean & Strazza
On August 18th, Sean and Strazza hopped on a Twitter Live Stream to discuss a recent trade idea for All Star Charts Options Members.
Here’s the play:
“We’re buying an $AAPL December 150/170 Bull Call Spread for an approximately $6.15 debit. This means we’ll be long the 150 calls and short an equal amount of 170 calls for a combined net debit, which represents the most we can lose in this trade if we’re dead wrong.”
To learn more about the trade and the thinking behind it, click below to watch a replay of the Live Stream.
[PLUS] Weekly Sentiment Report
From the desk of Willie Delwiche.
Key takeaway: There are signs of bears beginning to stir. Pessimism on the II and AAII surveys has reached its highest level since Q1 and put/call ratios show investors turning to the options markets for insurance rather than leverage. NASDAQ trading volume continues to unwind after surging to new highs earlier this year. This evidence of growing investor/consumer concern, especially when combined with deteriorating market internals and a disappointing macro backdrop, creates an environment ripe for a sentiment unwind. Whether a full unwind comes to fruition or not, rising pessimism tends to weigh heavy on equities after a period of extreme optimism.
Sentiment Report Chart of the Week: Consumer Concern
Consumer views unexpectedly turned sour in the first half of August and the University of Michigan Sentiment index dropped to its lowest level in years. If this is evidence that bears are emerging from an extended hibernation, it could add to stock market volatility. From a contrarian perspective, it could be a good time to look for relative market leadership from the consumer services group.
If You’re Not Long, You’re Short
At this point, the data has spoken.
If you’re not long Crypto Currencies in one capacity or another, you’re essentially short the space.
There is that much alpha being left on the table if you’re not involved.
We can get into what’s happening with all these protocols and platforms, or you can just focus on price. Fortunately, the latter happens to be our area of expertise.
The bottom line is this: If the Bitcoin vs S&P500 ratio is above 7.0, you HAVE to be long. Period. [Read more…]
[Options] Quietly Gathering Momentum
The team had our weekly internal strategy session this morning where we go over things we’re seeing in the markets. What’s moving? What’s not? Where is there hidden risk? What’s the market missing or not pricing in?
One of the things I brought up is: “Is anyone paying attention to this breakout in Apple?” I hadn’t seen or heard much chatter about it and it seems to me few are aware this is happening or thinking through the implications of what this might mean for the broader indexes.
The team did highlight the move in our recent Monthly Conference call, so it’s not happening in a vacuum. But it feels that outside our walls, few are paying attention. [Read more…]
- « Previous Page
- 1
- …
- 405
- 406
- 407
- 408
- 409
- …
- 623
- Next Page »