Expert technical analysis of financial markets by JC Parets
JC put out a post recently discussing the weakness in small-cap stocks. He makes a pretty compelling case for why they could be leaders in a big way on the downside if the stock market rolls over here. But of course, as we’ve seen time and again in recent years, so many breakdowns have proven to be false and the whipsaw back to new highs has been violent.
Here’s what he laid out for $IWM that has my attention:
Strength in energy and metals continues.
The ASC team had a post out last week highlighting some bullish developments here, and the strength continues in early trading this week. And one stock, in particular, is threatening new all-time highs coupled with declining options prices — my favorite kind of setup.
I’ll be honest with you. I’ve been on cruises before. I don’t think I have a need to ever do them again. I mean, the time spent “in port” was where the real fun for me was. Time trapped on the boat? Meh.
But, I know many people disagree with me and LOVE going on cruises.
I’m fine with that. Especially if it gives me an opportunity to make some money. And we’ve got one such opportunity on board!
We recently had on a counter-trend trade in gold that worked out (we took off the trade at our profit target this week), and we’re starting to see a similar rationale and setup in bonds.
I’m going to let Steve Strazza do most of the talking here because he had an excellent riff on this in the latest R.P.P. Report: [Read more…]
Ok, I’ve changed my mind.
A few of my readers have pinged me privately drawing my attention to an Oil & Gas sector name that could possible make for a good “catch up” trade in the space. I generally would rather play in the leaders, rather than hope for the laggards to catch up, but I’ve been observing the price action from a safe distance after the ASC team put out a bullish idea in this name during their Monthly Charts Strategy Session a couple weeks back.
I like the way it put in a hard reversal last week and it’s giving me some comfort to get in now with calls options priced pretty affordably. [Read more…]
Reporter: “Why do you rob banks?”
Willie Sutton: “Because that’s where the money is.”
True ’nuff. And the same could probably be said of insurance companies, no?
With this in mind, we’ve got a mid-cap dividend paying insurance company with a beautiful trend thats looking like it wants more. [Read more…]
Welcome back volatility.
Three days off the highs for the S&P 500 and twitter traders are acting like the sky is falling. And maybe it is? But at times like these, I like to look for opportunities to fade what often prove to be short-lived spikes in volatility.
And the best way I know how to do this is to look at sector ETFs and observe the ones displaying the highest relative implied volatilities. [Read more…]
The latest Young Aristocrats report dropped on Friday last week. If you love dividends combined with momentum (who wouldn’t?), then this report is always a must read.
Banks of all sizes have been a bright spot for us lately as we’re currently enjoying gains in Morgan Stanley $MS and the Regional Banks ETF $KRE.
Well, this week’s YA report highlighted a couple more banks with attractive setups and one in particular looks like a great setup to play with straight long call options.
