If the world was coming to an end, would Homebuilders be breaking out of 6-month bases to new all-time highs?
I would argue no.
The Homies are one of those groups we look to for leadership in strong markets, not in weak ones. [Read more…]
Expert technical analysis of financial markets by JC Parets
by JC
If the world was coming to an end, would Homebuilders be breaking out of 6-month bases to new all-time highs?
I would argue no.
The Homies are one of those groups we look to for leadership in strong markets, not in weak ones. [Read more…]
This is the recording from the live December 2021 Conference Call for Members of the Allstarcharts India! Before getting into individual stock ideas in India, we’re going to first start with the global macro perspective. Once we identify the direction of the underlying trends from a structural and broader view, then we’ll dive into the NIFTY Indexes on both longer-term and short-term timeframe. We want to look at Large-caps, Small-caps and everything in between before getting into the Sector and Industries themselves like Energy, Banks and Pharma.
This is when we finally break things down to the individual stock scenario with identified risk vs reward opportunities. That is what this is all about – aligning ourselves in the direction of the underlying trend while at the same time identifying where the risk is to make sure the potential reward is skewed exponentially in our favor. You will find that throughout this process we discuss Momentum, Fibonacci and Relative Strength. I encourage you to check out the Education Section so you know exactly where I’m coming from when you hear me mention these tools.
Here is the video in full:
From the desk of Steven Strazza @Sstrazza and Grant Hawkridge @granthawkridge
Breakouts and breadth expansion kicked off the month of November.
But the market had other ideas…
Instead of fresh legs higher, investors were dealt a handful of downside reversals and failed moves. Last week, we went from discussing breakouts and new highs for stocks… to throwbacks and retests of old ranges. This all happened in the matter of a few trading sessions.
A lot has changed in a short period. In times like these, it’s important to take a good look under the hood to see what market internals are suggesting.
As we reviewed our breadth chartbook today, we asked ourselves the following questions:
Are we seeing a notable expansion in new lows? Is it enough that we should be worried?
Let’s take a look beneath the surface and see if we can find some answers!
by Ian Culley
From the desk of Steve Strazza @Sstrazza
We held our December Monthly Strategy Session last night. Premium Members can click here to review the recording and the accompanying slides.
Non-members can get a quick recap of the call simply by reading this post each month.
By focusing on long-term, monthly charts, the idea is to take a step back and put things into the context of their structural trends. This is a valuable exercise, as it forces us to put aside the day-to-day noise and simply examine markets from a “big picture” point of view.
With that as our backdrop, let’s dive right in and discuss three of the most important charts and/or themes from this month’s call.
by JC
We have a new Options trade up this week.
We’re selling an $IWM December 31 (weekly) Iron Condor. We’ll be short the 210 puts and 235 calls, while protecting the position $5 away in both direction with long 205 puts and 240 calls. This entire spread can be put on for about a $1.70 credit.
Check out our short video with the thought process behind these trades: [Read more…]
by JC
This is the video recording of our December 1, 2021 Monthly Charts Live Strategy Session
From the desk of Steve Strazza @Sstrazza
When investing in the stock market, we always want to approach it as a market of stocks.
Regardless of the environment, there are always stocks showing leadership and trending higher.
We may have to look harder to identify them depending on current market conditions… but there are always stocks that are going up.
The same can be said for weak stocks. Regardless of the environment, there are always stocks that are going down, too.
We already have multiple scans focusing on stocks making all-time highs, such as Hall of Famers, Minor Leaguers, and the 2 to 100 Club. We filter these universes for stocks that are exhibiting the best momentum and relative strength characteristics.
Clearly, we spend a lot of time identifying and writing about leading stocks every week, via multiple reports. Now, we’re also highlighting lagging stocks on a recurring basis.
From the desk of Steve Strazza @Sstrazza
Plenty of stocks continue to show relative strength through the recent volatility. We still want to be buying these leaders.
And plenty of stocks continue to underperform, having already violated their year-to-date ranges to the downside. Those are the names we want to be looking at to short.
But most stocks are simply in “no-man’s land” right now.
Some were rejected at their year-to-date highs. Others broke out and quickly failed. It doesn’t matter how they got there. What matters is they’re now “back in the box” and facing the very same overhead supply levels they’ve faced for much of 2021.
It looked as if markets were making progress earlier this month. But it turns out most of these new highs were — dare I say —transitory?
Let’s take a look at financials, using the group as a case study for how we want to approach all the range-bound patterns we see out there.