Expert technical analysis of financial markets by JC Parets
by Tom Bruni
From the desk of Tom Bruni @BruniCharting
We’ve been looking for breadth and momentum divergences to be confirmed both in the US and globally to mark the start of “the bottom” in equities as an asset class, so today I want to highlight the breadth of one sector which provides perspective on the current market environment.
by Tom Bruni
From the desk of Tom Bruni @BruniCharting
Momentum and breadth diverged slightly in the major indices and many global markets, leading to a short-term bounce that’s been sold into so far. Today I want to look at sector breadth to highlight the extent of the weakness under the surface and outline what we’re watching for if/when prices retest their late October, and potentially Q1 lows.
Ok, I’m on an airplane on my way to San Francisco to present at a conference and to hang with our boy JC, so please forgive the liberties I took with the title of this trade plan. Clearly I’m showing my age…
But seriously, the materials sector is offering us some nice premium to put a fast income trade on into the holidays. [Read more…]
by Tom Bruni
Last Monday we discussed our thesis for a bounce in Indian stocks and by Friday we were talking about how to manage those trades so that we could avoid letting winners turn into losers.
Now that we’ve gotten a decent bounce, many are asking what the next directional move in the market is going to be. In this post we’ll outline why we think that Financials and Smallcaps are the areas to watch for clues.
by Tom Bruni
05/01/2019 UPDATE:
As a result of the labor intensive process needed to maintain the Chartbook Notes and their lack of use by the majority of members, we have decided to discontinue this feature. We will be adding new tools and functionality to replace it by the end of the quarter. In the meantime if any of the charts in the Chartbook are unclear and you need further clarification, please feel free to contact us and we’ll get back to you within 24 hours. Thank you in advance for your patience as we make these improvements to the site.
In June we made some major changes to the format of our Chartbooks based on your feedback and today we’re happy to introduce some new changes that we think are going to be very helpful for us as we maintain them and for you all as you use them in your analysis.
One of the beauties of options trading is even when we don’t have the highest conviction in a trade, we can still participate by lowering or shifting our risks. I come from the school that says spread your bets out across the market — small — because the constant pursuit of edges will yield results over the long run as long as no bad individual trades are too big to take us out.
In our most recent monthly All Star Options Conference call, we highlighted a desire to play for a bounce in bonds. In the days since, the market gods are either taunting us, or smiling on us — offering better entry levels. [Read more…]
by Tom Bruni
From the desk of Tom Bruni @BruniCharting
The TSX Composite is down roughly 6.75% year-to-date, with stocks getting hit hard since their July 13th, 2018 high. Only one sector is positive over that time period, but I think its recent action gives us a really good perspective on the type of market environment we’re in.
by Tom Bruni
Counter-trend trades are lower probability by nature, which means risk management is vital both when they work and when they don’t. Taking the loss and reevaluating when the trade thesis is invalidated is something most traders think about, but managing risk on a trade that begins to work right away is just as important and not discussed as often.
Today I want to look at the importance of managing positions that begin working right away, so that we can avoid winning trades turning into losers.
