The market has brought up back to the point where we have to increase the headroom on the Adani Group charts again!
These updates have been such great reminders of riding the trend, don't you think? The way these stocks have taken off and continue to move higher is quite the story!
So without any further delay, let's take a look at the levels we're following next!
For starters, let's see where our custom equally weighted index is headed. Of course, we know it's moving higher, but it's important to note the trend.
Well, there we have it! Higher highs, higher lows. Held on to the support zone and bounced off of it. It's now got a little more room before it runs into resistance.
Today’s most significant insider transaction report is another Form 4 filing by Warren Buffett’s Berkshire Hathaway $BRK.A.
Buffet continues to increase his position in Occidental Petroleum $OXY, as he just reported an additional purchase, this one worth roughly $390 million.
Today we have a stock from the Service sector making its way to the Trade of the Week post. It is definitely a crowd favourite, and I'm sure you'd like to note down the levels for this one! Let's check it out!
Welcome to Under the Hood, where we'll cover all the action for the week ended August 5, 2022. This report is published bi-weekly and rotated with our Minor Leaguers scan.
What we do here is analyze the most popular stocks during the week and find opportunities to either join in and ride these momentum names higher, or fade the crowd and bet against them.
We use a variety of sources to generate the list of most popular names.
There are so many new data sources available that all we need to do is organize and curate them in a way that shows us exactly what we want: a list of stocks that are seeing an unusual increase in investor interest.
This is one of our favorite bottom-up scans: Follow the Flow. In this note, we simply create a universe of stocks that experienced the most unusual options activity — either bullish or bearish, but not both.
We utilize options experts, both internally and through our partnership with The TradeXchange. Then, we dig through the level 2 details and do all the work upfront for our clients.
Our goal is to isolate only those options market splashes that represent levered and high-conviction, directional bets.
We also weed out hedging activity and ensure there are no offsetting trades that either neutralize or cap the risk on these unusual options trades.
What remains is a list of stocks that large financial institutions are putting big money behind.
And they’re doing so for one reason only: because they think the stock is about to move in their direction and make them a pretty penny.
The real answer is because a lot of charting software packages the past few decades have set it as a default.
But you also hear guys like Paul Tudor Jones talk about how below a 200 day moving average, you get out. In other words, bad things happen below the 200 day.
For me, I have reasons for doing everything. And while I understand that there are more like 252 trading days in a year, not 200, I still believe that if a stock is below its 200 day simple moving average, it's probably not in an uptrend.
This is specifically for my personal definition of an intermediate-term timeframe. I like to look out weeks and months, not years, and certainly not hours or days.
200 days is a good number for me. And while it's not perfect (hint: nothing is) looking at the percentage of stocks above their 200 day has historically given us some great washout signals.
The largest insider buy on today’s list is a Form 4 filing by the president and CEO of TransUnion $TRU, who revealed a purchase of $1.9 million in the credit reporting agency.
The chief commercial officer of First Solar $FSLR reported a purchase of 9,946 shares, worth roughly $1 million in the solar panel manufacturer.
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 original 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.
At the beginning of every month, we tune out all the market noise and zoom out. We zoom out, because these calls that are held in the first week of the month, focus on monthly charts. So we're basically looking at long-term trends.
Our Monthly Strategy Session Call concluded early this week. Premium members can access the call recording here.
For non-premium members, don't worry- we haven't forgotten about you! You can check out our posts highlighting the top 3 charts that month, in posts like these!
