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.
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.
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.
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.
The "news" is designed to be a distraction for investors.
Earlier in the week, Bitcoin made some noise as the price soared 10% amid rumors of the approval of BlackRock's Spot Bitcoin ETF.
At the height of this speculation, Cointelegraph apologized, stating the rumors were false, resulting in the liquidation of $65 million BTC within minutes.
When we look at the chart, Bitcoin continues to press against the same overhead supply level it’s struggled with all year. It’s really that simple.
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.
One of the relative trends we must regularly evaluate is the relationship between large-caps and small-caps.
Sometimes large-caps outperform. Other times, it’s the little guys leading the way.
This ratio tells us which ones we should be focusing on.
The chart below shows the Russell 1000 Large-Cap ETF (IWB) relative to the Russell 2000 Small-Cap ETF (IWM) breaking out of a monster-basing formation.
From the Desk of Steve Strazza @Sstrazza and Alfonso Depablos @AlfCharts
Markets have been able to stage a significant rebound off the lows from last week.
After some massive bullish engulfing candles Friday, the major averages - led by mega-cap growth stocks, have exhibited strong follow-through to start the week.
That changed a little today as markets gave back some gains as the dollar and rates ticked higher.
The bottom line is there is still work to do. While stocks appear to have found a tradable low, that doesn't tell us much about where we go from here.
If the dollar and rates hold current levels, things are likely to remain messy.
However, even under this scenario, we think there will be some big winners as we march forward to the end of the year. And all indications from the market suggest most of those winners will be from the tech and growth space.
Let's outline some of our favorites right here, right now.
The negative correlation between equities and the dollar remains intact, representing a fundamental piece of the current intermarket puzzle.
When the dollar strengthens, stocks tend to fall under selling pressure. On the flip side, stocks often enjoy strong bull runs when the dollar trends lower.
Banks are considered one of the world's most important industry groups as they provide an excellent overview of the economic environment and overall risk appetite toward markets.
After suffering a deep decline in Q1, prices carved out a tradable low, rebounded, and settled into a well-defined trading range.
However, these laggards continue to be a concern for the financial sector and the broader market as the charts look vulnerable heading into earnings season.
Here we have Money-Center Banks $KBE, Regional Banks $KRE, and Community Banks $QABA, all of which are below their AVWAPS from the May lows:
