The cool thing about working with smart people is being able to learn from them. Having Sean McLaughlin on our team has made everyone better, not just our clients but us as well. In today's video, we tackle the question of when it makes more sense to finance an options position by selling a different contract to collect the income vs simply just buying calls or puts. As usual, Sean does a nice job of explaining this in a way that anyone could understand.
Tuesday I posted a Mystery Chart that got a lot of replies.
Most said you'd be buyers at current levels or on a pullback, but a number of you were skeptical of the recent move and would be avoiding or fading it.
The feedback I got was interesting, so let's get right into the actual chart.
This week's Mystery Chart was an inverted daily line chart of the Metals & Mining ETF relative to the S&P 500. Below is the corrected chart.
It's been a frustrating period for stocks in Canada over the past decade. Up just 7% since their 2008 highs, Canadian equities have been consistently underperforming for almost 10 years. But are things now finally changing?
These are the registration details for the monthly conference call held for Premium Members of All Star Charts. In this call we will discuss the global market environment and how to profit from it. As always, this will include Stocks, Interest Rates, Commodities and Currencies. The video of the call will be archived in the members section to re-watch any time and the PDF of the charts will be made available as well.
This month’s Conference Call will be held on Tuesday March 19th at 7PM ET. Here are the details for the call:
If there is one thing that has worked since October, it's cash. I feel like people are afraid of that word. Like you're doing something wrong for raising some (or a lot of) cash. Do you think it makes sense to always be fully invested? I don't.
I look at everything through the lens of potential opportunity cost. What else could we be doing with that money? In liquid markets, sometimes it's treasury bonds, other times it's gold, and of course all of the market neutral pair trades and options strategies to profit from sideways markets.
Cash is an investment too. Why do you always have to be all in? You want to think 50 years out? Go ahead. We're only concerned about the next couple of quarters. We'll worry about next year, next year. And 50 years from now? I only hope to be around sipping wine and ripping through charts. We'll see...
My presentation at Chart Summit 2019 focused on market breadth and how we like to keep our process of looking at the subject pretty simple.
While that presentation covered a number of our methods of measuring the market's internals, in this post I want to share some stats we pulled this weekend that help provide some valuable context around the market's rally from the December 24th lows.
The table below outlines the major US Indexes we cover with performance stats from important inflection points: The January 2018 highs, the September 2018 peak, and the December 24th low.
We also have some additional stats listed like percentage below 52-week high and above 52-week low, days since those events occurred, whether the daily RSI reading is in a bullish or bearish range, and whether prices are above their 200-day moving average.
The columns we want to pay attention to for now are the first three.
With a new month comes a fresh batch of Monthly Candlesticks. As you are all well aware, I find this exercise to be incredibly valuable. It forces us to identify the direction of the primary trend.
Today we got new Monthly Candlesticks. We wrote a free post on the biggest theme from this month, but this post will go through a few more charts that stood out.
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.
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.
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.
