The $SPX was down more than 1.5% today, but it was a slow and steady grind lower.
I didn’t trade much today, as I want to wait for the right setup.
Expert technical analysis of financial markets by JC Parets
by David
From the Desk of Kimmy Sokoloff
The $SPX was down more than 1.5% today, but it was a slow and steady grind lower.
I didn’t trade much today, as I want to wait for the right setup.
When I last wrote to you, I was mired in a spiral of frustration as I grappled with understanding what went wrong with one of my strategies, what I missed that opened the door to a larger-than-expected loss, and how to move forward.
I’m happy to report that I’ve come out the other side.
The only way out is through.
That’s always been true for me, at least.
My wife can attest: up until yesterday, for a week I’d been walking around like a grumpy zombie, lost in repetitive thought, running mind simulations of hundreds of scenarios and if/then situations. 99% of the ideas were just simple regurgitations of things I tried and failed at in the past. It takes tremendous effort for me to remind myself: been there, done that.
I often waste significant time and energy rehashing old tricks I’ve employed in the past that I’d already proven don’t work as intended. Being better about journaling and reviewing said journal regularly would probably help me out with this.
What helped turn the corner for me was [Read more…]
by David
From the Desk of Kimmy Sokoloff
We’re seeing a decent gap down into the $SPX 4,050 zone. If we break this, we can see 4,020.
We have support on $SPY at 402.65.
by JC
The broadest measure of European equities just hit new 52-week highs last week.
As you can see here, Europe went nowhere for 20 years, mostly due to its lack of exposure to high growth stocks like the United States.
And now that those growth stocks have been out of favor, and it’s the more Industrial and cyclical stocks leading the way this bull market, Europe is the global leader once again.
It’s the U.S. that’s the laggard.
Here’s the Euro STOXX 600 hitting new 52-week highs and coming out of a multi-decade base: [Read more…]
by Ian Culley
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.
by Ian Culley
From the desk of Steve Strazza @Sstrazza.
Welcome back to Under the Hood, where we’ll cover all the action for the week ended February 17, 2023. 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.
by JC
This is the weekly post that aggregates all the charts we put together throughout the week and organizes them all into one, easy to flip through deck.
by JC
In bull markets you have leadership groups.
That’s just a simple fact that you see in every cycle.
During this bull market in particular, the one that turned 8-months old earlier this week, Industrials have been a real leader.
The Industrials Sector Index Fund $XLI is the best performing sector of them all since the June lows.
Now take a look at Industrials on an equally-weighted basis relative to the S&P500 equally-weighted.
From a broader perspective, Industrials are breaking out to new 14-year highs relative to the rest of the market: [Read more…]