This week we’re looking at a long setup in the IT Sector. IT is trading at all-time highs, and displaying the strength you’d like to see at an index as well as a stock level.
Let’s take a look at the trade idea this time around.
Expert technical analysis of financial markets by JC Parets
This week we’re looking at a long setup in the IT Sector. IT is trading at all-time highs, and displaying the strength you’d like to see at an index as well as a stock level.
Let’s take a look at the trade idea this time around.
by JC
When Consumer Staples are underperforming, what type of environment are normally in?
Staples are making new multi-decade lows relative to the S&P500 and flirting with a catastrophic breakdown relative to Consumer Discretionary stocks: [Read more…]
From the desk of Steven Strazza @Sstrazza and Grant Hawkridge @granthawkridge
For the better part of 2021, we’ve been pounding the table about markets being a chop fest. And we’d seen little evidence suggesting this was likely to change any time soon–until this week, that is.
Trendless… range-bound… call it whatever you want, but the path of least resistance for stocks and many other risk assets has simply been sideways!
Alas, we’re seeing some strong bullish action this week that we simply can’t ignore. Let’s talk about it.
Before we get there, though, let’s take a step back and look at small- and micro-caps, as they provide great illustrations of this sloppy stock market story…
The FMCG sector had hit the snooze button and was in a nice slumber until recently. With the index making a new all-time high and stocks moving up above their resistances, this is a good time to take a look at FMCG.
We’ve been absolutely clear from the beginning that in a messy market environment, one has to be careful with regards to their investments.
What we also know, is that FMCG is a defensive sector and tends to lead the market when the sentiment isn’t in the most positive territory.
So let’s take a look at the stocks which are making the cut in the current market scenario. [Read more…]
From the desk of Steve Strazza @sstrazza and Grant Hawkridge @granthawkridge
Whether more stocks are going up or down these days simply depends on where you look. Some advance-decline lines are moving higher, but others are moving lower.
Weakness and divergences in these indicators are more often than not resolved over time, but the longer they persist the more concerning they become.
This hasn’t been an issue for most of the major averages, as the S&P 500 and other large-cap indexes keep making new highs with confirmation from their A/D lines.
Yet when we look beneath the surface, and particularly down the cap scale, we’re seeing a different story. Ultimately, some stocks are going up, but most are not.
You’ve probably heard already, but the current environment is an absolute mess as the weight of the evidence continues to hang in the balance. In today’s post, we’ll discuss some charts that do a great job illustrating all the mixed signals out there right now.
by JC
Seasonality of markets is something I’ve done a lot of work on throughout my career. As humans who are part of society, we behave differently depending on the seasons. We dress differently, we hang out with different people, we go to different places, all according to a calendar.
If you think those behavior changes don’t impact our decision making, then I don’t think you understand humans. And if you think those behaviors and decisions don’t affect how we participate in markets, then I think you’re just being naïve.
I encourage you to pick up a copy of the annual Stock Traders Almanac published by my pal Jeff Hirsch.
Yesterday after the close, I had a great chat with Ed Clissold, the Chief U.S. Strategist at Ned Davis Research. The podcast episode will be up shortly, so keep an eye out for it. You can subscribe to my Technical Analysis Radio Podcast here, if you haven’t already.
One of the things we discussed was the S&P500 Cycle Composite for 2021. In this chart, we’re looking at a composite of the annual seasonal cycle, the decennial cycle and the presidential cycle: [Read more…]
We debuted a new scan recently- The Outperformers.
The Outperformers is our newest scan that pinpoints the very best stocks in the market. It’s the fastest, easiest way to find quality names that are primed for major moves.
This is the recording from the live August 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 timeframes. 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: