It’s the weekly currency edition of What the FICC?
So far this week, the Japanese yen has stolen the show. But where does that leave the USD/JPY heading into 2023?
Check it out!
Expert technical analysis of financial markets by JC Parets
by Ian Culley
It’s the weekly currency edition of What the FICC?
So far this week, the Japanese yen has stolen the show. But where does that leave the USD/JPY heading into 2023?
Check it out!
by Ian Culley
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.
by Ian Culley
From the Desk of Ian Culley @IanCulley
What do you do when the party gets out of hand?
You raise the roof!
That’s what the Bank of Japan (BoJ) did yesterday as its former yield curve control policies became untenable. After intervening to keep its 10-year yield below 0.25%, it shifted the ceiling to 0.50%.
Naturally, the yen responded in earnest. It posted an explosive rally following the BoJ policy shift, gaining more than 500 pips against the dollar.
But where does that leave the USD/JPY heading into 2023?
We’ve covered before how much I like buying stocks that are making new all-time highs. I like them, even more, when I can buy call options because premiums are low. And it’s a cherry on top when the stock pays a meaty and steady dividend which lends price action support over the long run!
Today’s trade checks all these boxes. [Read more…]
by JC
Thanks to everyone who joined us live last night on our Mid-month Conference Call.
We had a lot to talk about.
There are plenty of opportunities out there to profit. These are exciting times for sure.
One of the charts I discussed was the performance of different types of stocks since the market bottomed in June.
Here’s each sector’s performance since June 16th, which was the day that the NYSE new lows list peaked: [Read more…]
It’s the end of the year, a time when I often go through my mental inventory to try to catalog things I did well in the current year – and things I did badly. I then try to envision what doing more of the good and less of the bad would look like in the new year.
It sounds too simple.
And in theory, it is. Do more of what works and less of what doesn’t. Duh.
I can’t declare that this mental exercise solves all my problems and turns my trading account into an ATM that prints cash daily. But it is a muscle worth working on. That’s because the productive rabbit holes I’ll often go down will yield new ways to do the good things better. I’ll even arrive at completely new ideas to try that may lead to even better results.
Maybe one thing to think about is – what do I fear? What am I afraid to do, try, or experience? And why does this trepidation exist? Is it well-founded and based on sound reasoning? Or is the fear of the unknown? I might think it’s the fear of failure, but maybe it’s the fear of success. Sounds crazy, but the fear of success is a real thing. Success can take us out of our comfort zone and that can be scary. Maybe I like being comfortable, and it weighs on my subconscious more than I think. Maybe I need to get comfortable with being uncomfortable.
What’s on your mind as you head into the new year? If you haven’t sat down to think, perhaps set aside a quiet hour with a pen and a few clean sheets of paper and start noodling. You might surprise yourself!
Trade ’em Well,
Sean McLaughlin
Chief Options Strategist
All Star Charts, Technical Analysis Research
by JC
This is the video recording of the December 2022 Mid-month Conference Call.
We discussed:
From the Desk of Steve Strazza @Sstrazza
Dividend Aristocrats are easily some of the most desirable investments on Wall Street.
These are the names that have increased dividends for at least 25 years, providing steadily increasing income to long-term-minded shareholders.
As you can imagine, the companies making up this prestigious list are some of the most recognizable brands in the world. Coca-Cola, Walmart, and Johnson & Johnson are just a few of the household names making the cut.
Here at All Star Charts, we like to stay ahead of the curve. That’s why we’ve turned our attention to the future aristocrats.
In an effort to seek out the next generation of the cream-of-the-crop dividend plays, we curate a list of stocks that have raised their payouts every year for five to nine years.
We call them the Young Aristocrats, and the idea is that these are “stocks that pay you to make money.”
Imagine if years of consistent dividend growth and high momentum and relative strength had a baby, leaving you with the best of the emerging dividend giants that are outperforming the averages.
By adding our technical analysis to the mix, the Young Aristocrat setups give you the opportunity to own the best of the market’s future blue-chip winners before they become must-own household names.
Often, the strongest performers in this universe, and even the Dividend Aristocrats themselves, pay relatively small dividends.
This is usually because the stock appreciation makes it tough to keep up with the payout — even for companies that consistently grow their yield in the double-digits!
For this reason, we don’t have a minimum threshold for the dividend. What we’re really doing here is creating a list of quality stocks based on their ability to persistently grow their shareholder return.
And maybe the best part?
This list is not just designed for long-term investors. Any kind of investor or trader can use this list as it helps generate ideas across all timeframes, even the short term.
Remember, some of the most important filters we use for this list are momentum, relative strength, and proximity to new highs.