Today we got new Monthly Candlesticks and while updating the chartbook for our Premium Members, I couldn't help but think the chart below describes the environment we're currently in quite well.
Finding things to short on an absolute basis has been tough since December, however, Shipping stocks appear to be presenting an attractive reward/risk for those looking to express a bearish thesis in the market.
Yesterday we posted a mystery chart and asked you all to let us know what you would do. Buy, sell, or do nothing?
The responses seemed pretty unanimous, suggesting selling at current levels...and one of you even guessed what it was! Maybe we're making these too easy.
Anyway, we agree with that bearish bias, but were posting to see what other viewpoints might be out there. I guess we got our answer.
Let's get into the real chart and why we feel it's relevant.
For those new to the exercise, we take a chart of interest and eliminate the x and y-axes and and all labels eliminated to minimize bias. The chart can be any security in any asset class on any timeframe on an absolute or relative basis. It can even be inverted or a custom index.
The point here is to not guess what it is, but instead to think about what you would do right now.Buy,Sell, or Do Nothing?
As part of my preparation for my Chart Summit presentation on market breadth, I'm looking at a lot of charts this week. In this post I'll share a bunch of them to provide some perspective on where US markets currently sit from a participation perspective.
Tuesday we posted a mystery chart and asked you all to let us know what you would do. Buy, sell, or do nothing?
As we expected there weren't any bearish responses, instead most of you were buyers at current levels or on a pullback. We think the evidence is clearly pointing in that direction too, which is why we put the question out there in the first place. What, if anything could we be missing?
Now that we're all on the same side of the boat, let's get into the chart and why we feel it's relevant.
This week's Mystery Chart Reveal was focused on Japan's breakdown to new lows versus the S&P 500. This one chart is part of a much larger theme, so in this post we're going to discuss the best reward/risk pair trades present in this space.
The US Dollar Index is approaching its Q4 highs once again, however, the real story lies underneath the surface in three unrepresented currency pairs that are offering a solid reward/risk opportunity at current levels.
For those new to the exercise, we take a chart of interest and eliminate the x and y-axes and and all labels eliminated to minimize bias. The chart can be any security in any asset class on any timeframe on an absolute or relative basis. It can even be inverted or a custom index.
The point here is to not guess what it is, but instead to think about what you would do right now.Buy,Sell, or Do Nothing?
Tuesday we posted a mystery chart and asked you all to let us know what you would do. Buy, sell, or do nothing?
The majority of responses had a bearish bias, however, a few suggested buying the "failed breakdown" with a tight stop, and even fewer said wait it out. Both sides could prove to be right depending on the timeframe, but it's clear the mixed signals make it tough to have conviction.
Let's get into the real chart and why we feel it's relevant.
