If the world was coming to an end, would Homebuilders be breaking out of 6-month bases to new all-time highs?
I would argue no.
The Homies are one of those groups we look to for leadership in strong markets, not in weak ones. [Read more…]
Expert technical analysis of financial markets by JC Parets
by JC
If the world was coming to an end, would Homebuilders be breaking out of 6-month bases to new all-time highs?
I would argue no.
The Homies are one of those groups we look to for leadership in strong markets, not in weak ones. [Read more…]
From the desk of Steven Strazza @Sstrazza and Grant Hawkridge @granthawkridge
Breakouts and breadth expansion kicked off the month of November.
But the market had other ideas…
Instead of fresh legs higher, investors were dealt a handful of downside reversals and failed moves. Last week, we went from discussing breakouts and new highs for stocks… to throwbacks and retests of old ranges. This all happened in the matter of a few trading sessions.
A lot has changed in a short period. In times like these, it’s important to take a good look under the hood to see what market internals are suggesting.
As we reviewed our breadth chartbook today, we asked ourselves the following questions:
Are we seeing a notable expansion in new lows? Is it enough that we should be worried?
Let’s take a look beneath the surface and see if we can find some answers!
by JC
They’re baaaaack….
Did you see the spike in bearish individual investors?
We just got the most amount of bears in over a year: [Read more…]
by Ian Culley
From the desk of Steve Strazza @Sstrazza
We held our December Monthly Strategy Session last night. Premium Members can click here to review the recording and the accompanying slides.
Non-members can get a quick recap of the call simply by reading this post each month.
By focusing on long-term, monthly charts, the idea is to take a step back and put things into the context of their structural trends. This is a valuable exercise, as it forces us to put aside the day-to-day noise and simply examine markets from a “big picture” point of view.
With that as our backdrop, let’s dive right in and discuss three of the most important charts and/or themes from this month’s call.
by Louis Sykes
In an asset class with so much insightful data, it’s vital to have a toolkit of data providers, platforms, and software to navigate it all.
We use a handful of tools when analyzing the crypto markets, and we thought we’d share the ones that have been valuable to our process.
by JC
We have a new Options trade up this week.
We’re selling an $IWM December 31 (weekly) Iron Condor. We’ll be short the 210 puts and 235 calls, while protecting the position $5 away in both direction with long 205 puts and 240 calls. This entire spread can be put on for about a $1.70 credit.
Check out our short video with the thought process behind these trades: [Read more…]
by JC
This is the video recording of our December 1, 2021 Monthly Charts Live Strategy Session
From the desk of Steve Strazza @Sstrazza
When investing in the stock market, we always want to approach it as a market of stocks.
Regardless of the environment, there are always stocks showing leadership and trending higher.
We may have to look harder to identify them depending on current market conditions… but there are always stocks that are going up.
The same can be said for weak stocks. Regardless of the environment, there are always stocks that are going down, too.
We already have multiple scans focusing on stocks making all-time highs, such as Hall of Famers, Minor Leaguers, and the 2 to 100 Club. We filter these universes for stocks that are exhibiting the best momentum and relative strength characteristics.
Clearly, we spend a lot of time identifying and writing about leading stocks every week, via multiple reports. Now, we’re also highlighting lagging stocks on a recurring basis.