We've been witness to many charts, that look like today's setup, breaking out and turning into big winners in recent months. And with very few signs of this current bull market running out of steam, we think there will be many more repeats of these profitable patterns in the weeks and months ahead.
And cheap options premiums continue to make it advantageous to play these moves simply with long calls.
Strazza has been pounding the table on DraftKings for a couple weeks now and today's trading action has me convinced that the time is right to get involved.
JC posed this question to me yesterday on the Morning Show.
For context, he was asking me about our upcoming 21-day trip to 8 cities in Southeast Asia.
I might have surprised myself when I quickly and confidently answered: “Nothing.”
And I meant it.
I’ve actually been thinking a lot about this topic lately.
“Fear” is such a powerful and loaded word. It toys with our emotions. While often protecting and keeping us safe, our fear-stoked emotions also can trigger us into making poor – and sometimes awful – decisions.
All our best-laid plans go out the window when fear takes over.
Franklin D. Roosevelt, the 32nd President of the United States said it best: “The only thing we have to fear is fear itself.”
This is doubly true for traders. We need to do everything in our power to keep our positions or portfolios structured so that nothing can scare us. Because when we’re scared we lose all sense of control. We lose rationality. We lose perspective. And then we either rush prematurely for the exits or worse, double down on our mistakes.
All Star Charts is excited to announce a thrilling collaboration with the Chartered Market Technicians Association and Centerpoint Securities. Together, we aim to discover the finest trading talents in Southeast Asia.
In the company of my esteemed All Star Charts partner, Steve Strazza, I am thrilled to embark on a remarkable journey spanning eight cities across seven countries over the course of 21 exhilarating days this July.
During our travels, Steve and I will have the privilege of sharing the stage with numerous local experts. Together, we will deliver captivating presentations on the art of technical analysis and delve into the intricate realm of the trader mindset. These enlightening sessions will take place in a diverse range of venues, providing a unique opportunity to explore the fascinating world of domestic stock and futures markets through the lenses of traders from various backgrounds and perspectives. Needless to say, we cannot contain our enthusiasm for this incredible experience!
Congratulations to the 2023 NBA Champion Denver Nuggets!
I’m a total bandwagoner, having never watched a Nuggets game in the eleven years I’ve now lived in Colorado. My first Nuggets watch was the first playoff game this year. And I watched every game the rest of the way.
My timing was pretty good.
What has stood out the most to me in the interviews and press I saw and read last night and this morning following the Nuggets win is how their journey to the top required tremendous patience and a focus on their edge.
And more patience. More sharpening of the edge. And then a little more of both after that.
The Nuggets organization knew they were building a winner. But it would take time. Time for the stars to develop. Time for injuries to heal. Time for missing pieces to be added. And time for the stars to align.
From the Desk of Steve Strazza @Sstrazza and Alfonso Depablos @AlfCharts
Our International Hall of Famers list is composed of the 100 largest US-listed international stocks, or ADRs.
We’ve also sprinkled in some of the largest ADRs from countries that did not make the market cap cut.
These stocks range from some well-known mega-cap multinationals such as Toyota Motor and Royal Dutch Shell to some large-cap global disruptors such as Sea Ltd and Shopify.
It’s got all the big names and more--but only those that are based outside the US. You can find all the largest US stocks on our orignal Hall of Famers list.
The beauty of these scans is really in their simplicity.
We take the largest names each week and then apply technical filters in a way that the strongest stocks with the most momentum rise to the top.
Based on the market environment, we can also flip the scan on its head and filter for weakness.
Let’s dive in and take a look at some of the most important stocks from around the world.
There was an inbound question to me this week regarding adjustments I make on short strangle trades.
For reference: A Short Strangle is a delta-neutral options position that consists of selling equal amounts of out-of-the-money naked puts and calls for a net credit. If everything goes according to plan, the underlying stays in a trading range and I can realize a profit buying back the short options for cheaper than I sold them.
Of course, it doesn’t always work out that simply. Many times, we need to play defense. Defense often involves rolling short options further away from the current price action. In practice, this means buying to close the existing short option and selling a further out-of-the-money option (in the same expiration series) for a combined net debit, which reduces my total net credit in the campaign.
The reader was asking me how I choose my “take profit” limit order following a defensive adjustment. Here was my answer:
As the bull market in stocks continues, the lifeblood to keep the ball rolling is sector rotation.
We're already seeing some of the big caps that have driven the first leg of this run start exhibiting signs of overexertion (check out $GOOG today).
It makes sense to us that stocks further down the cap scale are going to start asserting themselves and perhaps in some cases play "catch up" to their big brothers.
Today's trade is in a cyclical name in the Logistics space.
My spidey senses are beginning to tingle with speculative fervor.
What we're seeing in the AI space as well as in the comeback in cryptocurrencies as of late has me thinking speculative players are soon to begin widening their net to capture alpha.
And some of these highly shorted equities with crypto exposure could be extremely ripe for short squeezes.
High on this list is Marathon Digital Holdings $MARA. It currently has in the neighborhood of 40% of its outstanding shares held in short positions. That is some major fuel for a short-covering rally if this stock starts ripping.
Here are a bunch of pictures illuminating why we think $MARA might be set up for a run higher. First up, the $MARA chart:
It's not going to be finished in my lifetime or in yours or my kids' or grandkids'. That's not the point. The point is to get it started.
~ Korczak Ziolkowski
Last weekend, I took a little six-hour road trip to South Dakota to spend a full day hiking in Badlands National Park. It was amazing. The landscape is stunning and challenging to describe. It’s not quite desert. It’s not quite grassland. It’s not quite mountainous. It’s remote. Some have likened it to a moonscape. But even that doesn’t quite capture it.
You just have to go and experience it for yourself. Trust me – it’s worth it.
I also took advantage of my proximity to Mt. Rushmore to arrive at 7 a.m. the next day. I was one of the only people in the park and was lucky to have Mt. Rushmore to myself for the better part of an hour.
As amazing as Mt. Rushmore is, being there alone on a bright, sunny morning – just me, the birds, and a cup of coffee – was truly surreal. If you ever get a chance to visit the Mt. Rushmore monument, it’s worth getting there early ahead of the crowds.
