Expert technical analysis of financial markets by JC Parets
From the Desk of Ian Culley @IanCulley
Energy stocks refuse to lose.
We can’t deny the relative strength of the energy space, whether we’re talking about stocks or commodities. But it’s been equities over the raw materials for months now.
It doesn’t look like that will change any time soon. However, I doubt energy contracts will be left behind.
From the Desk of Ian Culley @Ianculley
Bonds have stopped falling across the board!
That doesn’t mean it’s time to go all in. Tactically, it’s difficult to get behind this week’s near-term strength.
Right now, we’re looking at just a few days of bullish price action. And where do we define our risk?
We have to know where we’re right and where we’re wrong before we get involved in any investment.
Thankfully, high-yield bonds answer this all-important question.
From the Desk of Ian Culley @IanCulley
The dollar is dropping!
It’s finally time to bet on some sustained downside action, and the euro is my vehicle of choice.
I laid out the conditions that would flip my outlook on the euro earlier this month. Three weeks later, the pieces have fallen into place for a bullish position.
Let’s take a look.
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.
From the Desk of Ian Culley @IanCulley
It’s easy to lose sight of how impressive energy has been this year.
We get it. Sideways action is boring.
But while the rest of the market has been selling off, energy has shown incredible resilience, digesting gains in a continuation pattern since early summer.
After an explosive rally for energy stocks off the 2020 lows, it’s normal to experience an extended period of corrective action. In fact, it’s healthy.
Now get this…
Many of these stocks haven’t even broken out yet!
We know it sounds crazy, especially when some of these industry groups have more than tripled during the trailing 24 months.
But the charts don’t lie. They’re telling us some of these trends might just be getting started. Let’s take a look.
From the Desk of Ian Culley @IanCulley
I don’t care what your favorite TikTok financial guru says: Trading isn’t easy.
The market has made this point again and again this year.
The market has also driven home another essential truth: Trends persist.
I talk about this approach quite a bit because I’m a trend-follower. It’s my favorite Dow Theory Tenet, and it’s the foundation of my approach to the markets.
Trend-following might sound simple. But it’s far from effortless. Like any worthwhile philosophy, real-world applications can sometimes be a struggle.
In fact, no other market has tested my trend-following resolve quite like this year’s unstoppable dollar. And I’m still looking for opportunities to get long…
From the Desk of Steve Strazza @Sstrazza.
Welcome to Under the Hood, where we’ll cover all the action for the week ending October 14, 2022. This report is published bi-weekly and rotated with The Minor Leaguers.
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.
Click here for a behind-the-scenes look at our process.
Whether we’re measuring increasing interest based on large institutional purchases, unusual options activity, or simply our proprietary lists of trending tickers, there’s a lot of overlap.
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.
