Expert technical analysis of financial markets by JC Parets
From the Desk of Ian Culley
Rates continue to rise along with concerns of an impending recession.
The narrative is quickly shifting back to tighter monetary policy following last week’s higher-than-anticipated CPI and strong economic data. I don’t pay too much attention to this gossip. But I do keep a pulse on the latest discourse surrounding markets.
With these newfound recessionary fears circulating, I want to share a chart I like to avoid… The 2s10s treasury spread.
It’s the weekly currency edition of What the FICC?
It’s victory at sea across currency markets. But it’s not stopping the US dollar from cutting through the chop…
Check it out!
From the Desk of Ian Culley @IanCulley
Challenging conditions prevail across currency markets.
It’s victory at sea!
But that’s not stopping the dollar from cutting through the chop.
Does that mean it’ll go on a run, applying downside pressure on risk assets?
It’s tough to say.
Nevertheless, I have one chart for you that provides clarity as the dollar begins to make its move.
The stage is set for an epic rally. The catalysts are in place.
Yet messy conditions persist as we await ignition and blast off.
Regardless, we can use the current environment to find the most buoyant and promising names.
Check it out… [Read more…]
From the Desk of Ian Culley @IanCulley
With the dollar beginning to rise, gold and silver are coming under some selling pressure.
Nevertheless, these shiny rocks and their related mining stocks are hanging tough.
Instead of getting bent out of shape, I plan on using the recent bout of selling as an opportunity.
When markets come under pressure, it’s time to identify the most resilient names.
Why?
The strongest stocks will likely lead the next leg higher.
Some call it the “beachball” effect. These names tend to rip higher after sellers fail to submerge these stocks.
And I have a potential beachball of a gold mining stock I want to share with you today…
From the desk of Steve Strazza @Sstrazza
Our Top 10 Charts Report was just published.
In this weekly note, we highlight 10 of the most important charts or themes we’re currently seeing in asset classes around the world.
Bulls Dance with France
Last week, France’s CAC 40 Index became one of the first global indices to reach record highs. The fact that more and more countries are trending to the upside speaks to broadening participation overseas.
From the desk of Steve Strazza @Sstrazza
Check out this week’s Momentum Report, our weekly summation of all the major indexes at a Macro, International, Sector, and Industry Group level.
By analyzing the short-term data in these reports, we get a more tactical view of the current state of markets. This information then helps us put near-term developments into the big picture context and provides insights regarding the structural trends at play.
Let’s jump right into it with some of the major takeaways from this week’s report:
* ASC Plus Members can access the Momentum Report by clicking the link at the bottom of this post.
From the Desk of Steve Strazza @sstrazza and Alfonso Depablos @Alfcharts
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.
Then we flip through our list of stocks flashing unusual activity and pick the best setups using many of the same technical filters we do for our other scans.
And, just like that, we’ll follow the money flow and fatten our own pockets along with some of the world’s most powerful financial institutions.
