Every month we get a fresh batch of Monthly Candlesticks. It only happens 12 times a year.
I promise you guys from the bottom of my heart that there is no other part of my entire process that provides as much value and information as my monthly chart review. Premium Members can access the Chartbook here. Stay tuned as we'll be adding more workbooks of charts this week to the Chartbook section.
In the meantime, my friend Josh Brown and I have been doing these short monthly videos since the summer. They're fun and I like how he pushes back against me sometimes. In other interviews they make it too easy on me. I like these!
This month we talk about the breakout in Biotech, Market-cap rotation into Small-caps, European Stocks performing well and what we're doing about Gold & Bitcoin.
Thanks to everyone for participating in this Week's Mystery Chart. Most of you were sellers but the chart was inverted, so you were actually buyers.
We'd be buying this chart too, so let's dive right in and see what it is and why we're all so bullish.
This week's chart was the Invesco Chinese Technology ETF $CQQQ.
In this post, we'll dig into the strongest Chinese technology stocks and outline some trade ideas as a way to express our bullish thesis.
We'll also discuss some intermarket implications of this ETF and its components.
We're going to take a close look at these Chinese tech giants and see if we can glean some insight into the internals of CQQQ in addition to other International Indexes.
First of all, the chart looks a good deal different than it did when we posted the Mystery Chart earlier this week.
Mark Dow has been a guest on this podcast more times than anyone else for a good reason. Selfishly I always enjoy chatting with him. His perspective is fascinating to me because he does such brilliant job of combining price behavior with sentiment analysis and the global macro intermarket backdrop.
Mark worked for the U.S. Treasury Department in charge of Emerging Markets in the early 90s before ultimately running money for a Global Macro Hedge Fund in New York City. So he has a lot of opinions on economics and politics, but he's great at not letting those things get in the way of his price behavior and sentiment analysis. He's figured out how to separate them but also use his expertise to his advantage. That's not any task.
In this post, we want to share some research that was provided to our US Subscribers, which attempts to explain why the difference in Interest Rates in Europe and the US is causing trouble in the markets.
Everything between the horizontal lines was written for US subscribers, so keep that in mind as you're reading it. The conclusion/takeaway for India is way at the bottom in bold.
We went "bottom fishing" with this week's selection, posting a mystery chart that featured a potential bottoming pattern complete with a failed breakdown, fast move higher, and a successful retest of support. These are all bullish characteristics that point to a higher likelihood of this being a true trend reversal.
As we noted earlier this week, bottom fishing is a risky game. But, if we play the bottoming process responsibly, the market could offer us some delicious rewards.