People tell me we’re in a bubble.
They tell me that stocks only go up.
“Too high”
“Long in the tooth” (whatever that means).
I see some of the biggest representatives of global growth making absolutely zero progress since 2007. [Read more…]
Expert technical analysis of financial markets by JC Parets
by JC
People tell me we’re in a bubble.
They tell me that stocks only go up.
“Too high”
“Long in the tooth” (whatever that means).
I see some of the biggest representatives of global growth making absolutely zero progress since 2007. [Read more…]
From the desk of Steve Strazza @Sstrazza
Welcome to the 2 to 100 club.
Something we’ve been working on internally this year is using various bottoms-up tools and scans to complement our top-down approach. One way we’re doing this is by identifying 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.
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 a myriad of others… all 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 will notice we are 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 52-week highs. This allows the cream of these strongest groups to rise to the top and makes our job easier to identify technical breakouts in the top-performing stocks.
Sometimes we traders overcomplicate things. With so many choices, so many moving parts, so many headlines, so many things vying for our attention on a minute by minute basis, it is easy to become overwhelmed.
It seems so obvious, but often the smartest — yet the simplest — thing to do is just keep investing in winners. Objects in motion tend to stay in motion, right? And if we can construct options trades that take advantage of that momentum while defining our risks in case we happen to be the last suckers to pile in before the reversal — then we should do that all day long and twice on Sundays, right?
With that in mind, today’s trade is a momentum name that is no stranger to anyone who has been paying attention to hot names this year. [Read more…]
From the desk of Steve Strazza @Sstrazza
New Mystery Chart!
For those new to the exercise, we take a chart of interest and remove the x/y-axes and any other labels that would help identify it. The chart can be any security in any asset class on any timeframe on an absolute or relative basis. Maybe it’s a custom index or inverted, who knows!
We do all this to put aside the biases we have associated with this specific security/the market and come to a conclusion based solely on price.
You can guess what it is if you must, but the real value comes from sharing what you would do right now. Buy, Sell, or Do Nothing?
by Louis Sykes
From the desk of Louis Sykes @haumicharts
Welcome to this week’s edition of Louis’ Look where I give you the inside scoop on what I’m learning as an intern at All Star Charts. Last week I wrote about having a sense of humor in the financial world with a reference to the infamous John Cena pattern in stock of Worldwide Wrestling Entertainment.
Today I thought it’d be entertaining to step back from the lessons and bring five charts you have probably never seen, thought of, or come across.
I had a lot of fun writing this one, so let’s get into it.
by JC
This is the video recording of the October 2020 Conference Call.
by Louis Sykes
From the desk of Steve Strazza @Sstrazza and Louis Sykes @Haumicharts
At the beginning of each week, we publish performance tables for a variety of different asset classes and categories along with commentary on each.
Looking at the past helps put the future into context. In this post, we review the relative strength trends at play and preview some of the things we’re watching in order to profit in the weeks and months ahead.
In recent RPP Reports, we discussed how markets had become more of a mixed bag, particularly equities as they try to recover from September’s selloff.
Although, with each passing week we’re still seeing more bullish data points than bearish ones, even if only at the margin.
by Louis Sykes
From the desk of Steve Strazza @Sstrazza.
Welcome to our “Under The Hood” column for the week ended October 16, 2020.
What we do is analyze the most popular stocks during the week and find opportunities to either join in and ride these momentum names higher, or fade the crowd and bet against them.
We use a variety of sources to generate the list of most popular names. There are so many new data sources available that all we need to do is organize and curate them in a way that shows us exactly what we want: A list of stocks that are seeing an unusual increase in investor interest.
Whether we’re measuring increasing interest based on large institutional purchases, unusual options activity, or simply our proprietary lists of trending tickers… there is a lot of overlap.
The bottom line is there are a million ways to skin this cat. Relying on our entire arsenal of data makes us confident that we’re producing the best list each week and gives us more optionality in terms of finding the most favorable trade setups for our clients.