From the Desk of Kimmy Sokoloff
To all my Floridians out there, be safe.
The indices were up over 1% yesterday.
We’ll see if we rest and pause or head straight to 453 on $SPY.
Expert technical analysis of financial markets by JC Parets
by David
From the Desk of Kimmy Sokoloff
To all my Floridians out there, be safe.
The indices were up over 1% yesterday.
We’ll see if we rest and pause or head straight to 453 on $SPY.
by JC
The big news dropped yesterday that Grayscale won their case vs the SEC apparently paving the way for a new Bitcoin ETF soon.
Whether any of this is true or not isn’t really our concern.
I couldn’t care less about Grayscale or any of their personal issues.
The “news” is not our problem. What we’re really interested in what is actually happening.
But a 5-6% ripper in Bitcoin yesterday and a near 30% rally in Marathon Digital certainly gets my attention.
First, here is a longer-term look at the structural uptrends in Bitcoin and Ethereum as they both held support from former resistance levels at their prior cycle peaks.
Notice how the buyers stepped in right near those former highs: [Read more…]
by David
From the Desk of Kimmy Sokoloff
That was a very big move for the indices today.
Once $SPY broke out of its resistance zone, this one and the others really jumped.
by David
The largest insider transaction on today’s list comes in a Form 4 filed by Ares Management Company.
The hedge fund reported a purchase of Frontier Communications Parent Inc $FYBR shares in the amount of $573,540.
by David
From the Desk of Kimmy Sokoloff
The market is really stuck, and names aren’t appealing to me at the moment.
We’ve drifted lower since early August, and now we have a slight bounce in the indices.
Now we need to see if it continues or we roll back over.
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
Tough sledding today.
The market is caught between two levels, the eight-day moving average and the 21-day.
I traded small, and I’ll do that the rest of the week.