We closed January, the first month of the year.
And it’s a positive start for 2023.
Expert technical analysis of financial markets by JC Parets
by David
From the Desk of Kimmy Sokoloff
We closed January, the first month of the year.
And it’s a positive start for 2023.
by JC
It’s a market of stocks.
People forget that.
They choose to obsess over every tick in the S&P500 or Nasdaq instead of recognizing what’s happening among the actual components of those indexes.
As it turns out, this has become one of our competitive advantages.
If you’re wondering why we tend to be ahead of the curve on changes in major trends, I would point to this.
Most people don’t have the time (or are too lazy) to sit there and count how many stocks are going up vs how many are going down. [Read more…]
by David
The largest insider buy on today’s list is a Form 4 filing by CD&R Boulder Holdings LP.
The firm revealed a purchase of approximately $6 million worth of shares in Beacon Roofing Supply $BECN.
by David
From the Desk of Kimmy Sokoloff
The market is following through from yesterday’s action, and we’re gapping lower this morning.
I’m watching support on $SPY at 398.30.
From the desk of Steve Strazza @Sstrazza
Welcome to our latest Minor Leaguers report.
We’ve had some great trades come out of this small-cap-focused column since we launched it back in 2020 and started rotating it with our flagship bottom-up scan, Under the Hood.
For the first year or so, we focused only on Russell 2000 stocks with a market cap between $1 and $2B.
That was fun, but we wanted to branch out a bit and allow some new stocks to find their way onto our list.
We expanded our universe to include some mid-caps.
To make the cut for our Minor Leaguers list, a company must have a market cap between $1 and $4B.
And it doesn’t have to be a Russell component — it can be any US-listed equity. With participation expanding around the globe, we want all those ADRs in our universe.
The same price and liquidity filters are applied. Then, as always, we sort by proximity to new highs in order to focus on the best players.
But, instead of all-time highs, we’re sorting by 52-week highs these days, as we don’t want to discriminate against energy or other cyclical stocks.
The goal is still to catch the strongest names while they’re small and have serious upside potential. If any of these stocks ever climb the ranks to the big leagues, the returns could be huge.
We’re looking at up to 10x moves just to break into large-cap land!
Let’s dive into this week’s report and see what’s happening in some of the hottest stocks in the Minor Leagues.
From the Desk of Steve Strazza @sstrazza and Alfonso Depablos @Alfcharts
This is one of our favorite bottom-up scans: Follow the Flow.
In this note, we simply create a universe of stocks that experienced the most unusual options activity — either bullish or bearish, but not both.
We utilize options experts, both internally and through our partnership with The TradeXchange. Then, we dig through the level 2 details and do all the work upfront for our clients.
Our goal is to isolate only those options market splashes that represent levered and high-conviction, directional bets.
We also weed out hedging activity and ensure there are no offsetting trades that either neutralize or cap the risk on these unusual options trades.
What remains is a list of stocks that large financial institutions are putting big money behind.
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.
Then we flip through our list of stocks flashing unusual activity and pick the best setups using many of the same technical filters we do for our other scans.
And, just like that, we’ll follow the money flow and fatten our own pockets along with some of the world’s most powerful financial institutions.
by David
From the Desk of Kimmy Sokoloff
The market sold off most of the day, and, as of now, we’re holding at $SPX 4,015.
Should we break below the eight-day moving average, we can head to SPX 3,992.
by JC
As well as stocks all over the world have been doing over the past few months, the overhead supply in the major US Large-cap Indexes remains in place.
In other words, these large-cap, growth-heavy, market gauges still have work to do.
A couple of months ago we reiterated our more neutral positions in the Dow Jones Industrial Average and S&P500, wanting to focus more of our attention on individual stocks and sectors.
That tactical approach has worked out well.
But fast forward to today, and they’ve yet to make any progress. [Read more…]