The new 52-week highs list keeps on getting longer.
You can add the S&P500 ETF $SPY to that list now.
Here’s what that looks like: [Read more…]
Expert technical analysis of financial markets by JC Parets
by JC
The new 52-week highs list keeps on getting longer.
You can add the S&P500 ETF $SPY to that list now.
Here’s what that looks like: [Read more…]
by Ian Culley
From the Desk of Ian Culley @IanCulley
Commodities are caught in correction mode.
Copper has undercut former support. Crude oil is trading below its former cycle peak. And grain markets can’t catch a bid.
It’s not the most bullish behavior. But remember, price doesn’t travel in a straight line.
On the bright side, most commodity contracts have stopped going down.
And the future will only become brighter for commodity and stock market bulls if buyers continue to bid up this next stock…
by Ian Culley
From the Desk of Ian Culley @IanCulley
International credit spreads are contracting.
Investors are running from imminent global collapse by reaching for emerging market bonds over risk-free US Treasuries.
Wait, perhaps I heard it wrong.
It could have been a US economic collapse.
Or was it the Chinese yuan replacing the US dollar as the world’s reserve currency?
Honestly, I don’t pay much attention to the doom and gloom. (But I do find it amusing.)
I’m not the only one ignoring the bad vibes.
The markets are also disregarding the fear mongers… [Read more…]
There was an inbound question to me this week regarding adjustments I make on short strangle trades.
For reference: A Short Strangle is a delta-neutral options position that consists of selling equal amounts of out-of-the-money naked puts and calls for a net credit. If everything goes according to plan, the underlying stays in a trading range and I can realize a profit buying back the short options for cheaper than I sold them.
Of course, it doesn’t always work out that simply. Many times, we need to play defense. Defense often involves rolling short options further away from the current price action. In practice, this means buying to close the existing short option and selling a further out-of-the-money option (in the same expiration series) for a combined net debit, which reduces my total net credit in the campaign.
The reader was asking me how I choose my “take profit” limit order following a defensive adjustment. Here was my answer: [Read more…]
by JC
If this is a bull market, then what comes next?
Breadth Expansion.
More upside participation.
Sector Rotation.
The list of the 52-week highs getting longer.
We’ve been betting that this is a bull market since last year. That has worked in our favor.
But what does the market need to do to reiterate that we are still, in fact, in a strong, healthy bull market?
More new highs.
Here’s a look at the NYSE new 52-week highs list creeping higher in recent weeks. [Read more…]
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 bottom-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, Salesforce, and 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 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.
As the bull market in stocks continues, the lifeblood to keep the ball rolling is sector rotation.
We’re already seeing some of the big caps that have driven the first leg of this run start exhibiting signs of overexertion (check out $GOOG today).
It makes sense to us that stocks further down the cap scale are going to start asserting themselves and perhaps in some cases play “catch up” to their big brothers.
Today’s trade is in a cyclical name in the Logistics space. [Read more…]
by Ian Culley
From the Desk of Ian Culley @IanCulley
Petrocurrencies and crude oil futures are diverging.
The currencies that benefit most from higher oil prices refuse to roll with crude’s steady decline.
Perhaps it’s more about the US dollar than a handful of currencies tied to oil’s supply and demand dynamic.
But with OPEC up to its old tricks again – Saudi Arabia announced deeper production cuts last weekend – the question arises…