I've always wondered -- can publicly traded advisory and consulting services recommend the purchase of their own stock to their clients? There's probably a rule against this. Certainly, it would be in an ethical gray area.
That's too bad, because the ASC team recently surfaced a $20B market research and advisory group stock during their research and the chart looks like a fantastic setup.
Every so often I like to put on some delta neutral credit spreads to balance out the portfolio a bit. It's all about diversifying the books so that I'm not solely reliant on direction or volatility. We've got positions on currently that will benefit from big moves in either direction, but what if the market just grinds sideways for a bit?
This is where some delta neutral credit spreads can help out.
And my preference is to initiate these trades in liquid ETFs that are exhibiting relatively high implied volatilities.
There's nothing more gratifying than watching our youngsters graduate to the next level, cheering on athletes who advance through the ranks, or enjoying the ride of our investments moving from "small cap" to "large cap" during our hold.
The 2 to 200 Club report that the All Star Charts team produces attempts to give us the heads up on the next companies that are likely to make the step up to the next level. You can read our latest report here.
One of the names that caught my attention is one involved in data analytics utilizing Artificial Intelligence to drive performance.
We're going to start taking full advantage of the data coming out of our weekly Follow the Flow report and put on at least one actionable trade from this list every week. If you're not already familiar with this report, Steve Strazza puts it together each week and it highlights stocks with both unusual options flow plus interesting chart setups. Combined, these two factors offer traders a pretty unique edge to exploit.
Today's idea is in a recent IPO which might offer us some additional oomph if it gets moving in our direction.
The latest Young Aristocrats report is out and as always, there are some great opportunities setting up there. These are stocks with tremendous dividend growth consistency that are also setting up for bullish price action. How can investors not love these setups? Win from the price appreciation, and get paid while you wait in the form of dividends. Yes, please!
The opportunity that best caught my attention today is an all-time high breakout in a niche corner of the market.
It's summertime and where I live in Colorado, everyone is planning camping and RV trips up in the mountains. There's something about fresh mountain air, cool crisp evenings, and enjoying a beverage next to a roaring campfire.
You would think that this would be bullish for companies that are in the business of supplying the gear for entrepid campers and roadtrippers.
Well, we only follow price and the chart action in one camping name is potentially telling a different story.
Seems there has been a lot of talk about the stock market "pausing" or being "due for a correction."
While I see the same things the bears are seeing, I'm also seeing price action in a variety of corners of the market still telling a bullish story. And as we like to say around here: "Only Price Pays" (h/t @alphatrends).
We're also seeing bullish options flow from several "motivated" and "aggressive" traders in a variety of names. Case in point: a software storage name in our most recent Follow the Flow report caught my attention.
I feel like I say this every time I put a bearish trade on these days: My bearish muscles feel out of shape!
But the ASC team put out a bearish piece on transportation stocks last week and one of the airlines, in particular, has a setup that is uniquely interesting to me.
So it's time to put in our bearish reps to rebuild these muscles!
The team at All Star Charts has started putting out a new report called "Follow the Flow." The goal of this report is to "create a universe of stocks that experienced the most unusual options activity – either bullish or bearish… but NOT both."
The unusual activity we're witnessing in these stocks is not necessarily "smart" money, but "aggressive" or "motivated" money. This is a useful signal.
With this in mind, one of the names mentioned in the most recent report caught my eye for a shorter duration bullish options bet.
Once again this month, I'm going to share info on positions that were closed in the month of May. As a reminder, our exit plans are always laid out ahead of time in each trade idea we publish. In every case, the exits mentioned below were all exited in accordance with the plan as laid out.
We're continuing to see strength and leadership in the semiconductor space. And a name the All Star Charts teams has been high on for some time has recently begun to break out from a new consolidation. Being that the stock is also making all-time highs -- you know situations like this get me excited.
So heading into a long Memorial Day Weekend, we're putting one more position on the books to round out our month.
