This is the video recording of the July 8th Town Hall Meeting w/ Willie Delwiche & JC Parets
07/08/21 2PM ET [Read more…]
Expert technical analysis of financial markets by JC Parets
by Peter
This is the video recording of the July 8th Town Hall Meeting w/ Willie Delwiche & JC Parets
07/08/21 2PM ET [Read more…]
by Peter
From the desk of Willie Delwiche.
You guys need to come see this…
That’s what an excited neighbor told us after randomly knocking on our front door earlier this week.
We followed her out to our yard by the sidewalk to find a trio of scientists readying to catch and study a pair of Cooper’s Hawks that have been nesting in a tree across the street. They constructed a trap with a net stretched between a couple of poles and a distress call playing over a loudspeaker.
First, the female swooped in, followed by the male. The hawks were quickly entangled in the net and the scientists began to band and measure them.
by Peter
From the desk of Willie Delwiche.
Key takeaway: Record highs in equity indexes buoy investor sentiment that has remained optimistic without a significant challenge over the past year. Bulls ticked higher across our sentiment indicators last week, yet we still see evidence that risk appetite is turning (NAAIM Exposure Index, NASDAQ trading volume, overall levels of options activity). These new highs and levels of optimism must contend with the undercurrents of lackluster breadth measures and an absence of pessimism. Risks lie just beneath the surface. This raises the possibility of a more complete sentiment unwind when risks are realized and prices begin to falter.
One of the best ways to measure actual sentiment is to watch what investors are doing with their money. Through the first six months of the year, equity ETF inflows totaled nearly $350 billion, with inflows to bond ETFs falling shy of $100 billion. Commodity ETFs have seen outflows on a YTD basis.
The latest All Star Charts “Follow The Flow” report is out, and once again there’s a great looking opportunity there that caught my eye.
In a nutshell, the Flow report is looking at “a list of stocks that large financial institutions are putting big money behind (via options)… 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.”
The opportunity setting up now is in a stock in a sexy sector that looks like it’s ready to resume the rocketship ride it embarked on in 2020.
by JC
Here’s the rule of thumb with these things:
Just because there’s no divergence in the A/D line doesn’t mean the market can’t correct. But if there’s a divergence in the A/D line, you better pay attention.
That’s what’s happening here.
Remember, at first it was just the Nasdaq Advance-Decline line diverging. This one peaked back in early February. Notice how we had a divergence before the COVID crash as well: [Read more…]
by JC
This is the video recording of our July 6, 2021 Monthly Charts Live Strategy Session
by Ian Culley
From the desk of Steve Strazza @Sstrazza and Ian Culley @Ianculley
As US Dollar strength unfolds and US treasuries continue to catch a bid, it’s no wonder our motto around here has been bonds, cash, champagne.
It’s been working, and it continues to work!
We’ve been downright obnoxious about our tactical view of the US Dollar over the past month.
A potential bounce was developing, strength emerged, and we pointed out numerous crosses in which the dollar was poised for a push higher.
The market environment directed our focal point toward the Dollar. And now that it appears risk is coming off the table, we’re shifting our focus to the Yen.
Usually, when we talk about risk-on/risk-off behavior and the Yen, the AUD/JPY is at the center.
But let’s take it a step further to gain a broader perspective by looking at numerous Yen fx pairs.
by Peter