Expert technical analysis of financial markets by JC Parets
From the desk of Steve Strazza @Sstrazza
Responses to this week’s Mystery Chart were mixed. Some were betting on a breakout and buying while others wanted to fade this against the prior highs.
Others were waiting for more information, which is likely what we’d be doing. Thanks to everyone for participating.
But this chart is already packed with information. Let’s dive in and talk about what it is.
Over the past month I’ve shared a few happy hour videos with some of my friends. You can find the video with Kimmy & Fahmy here, and my happy hour with Russo & Thrasher here.
Today I sit down with Venture Capitalist and active trader Howard Lindzon. We talked about his favorite stocks, what he’s buying now and why. He’s very open to discuss what’s in his portfolio and is never shy about telling you what he thinks! We discuss $MELI $SFIX $SQ $BABA and $PAGS.
Conversations with Howard are always fun and I learn something every time. I hope you enjoy! [Read more…]
Quick update on our NKLA trade that we entered on Wednesday. [Read more…]
Eyes are on the Gold Market. All-time highs do a great job of getting everyone’s attention, especially if it hasn’t happened in a while. We’re going on almost a decade since precious metals hit their peak and completely collapsed. As bad as Gold did, Silver really got destroyed. To put things in perspective, from the March 2020 lows, it will take a 328% rally in Silver just to get back to where it was in 2011.
Today, let’s focus on Gold. Are we going to make all-time highs? What is the all-time high? Do we look at weekly charts, monthly charts, daily charts? What actually is “The All-time High in Gold?”.
First, let’s keep in mind that this conversation would not even be necessary if we priced Gold in any other currency outside of the US Dollar. The Dollar strength, which is the denominator in this Gold conversation, has held it back, compared to what it’s done priced in other denominations.
Look at this table showing all of them already making new highs:
So why should we care JC? Gold is priced in USD!!
We take a weight-of-the-evidence approach here. With that in mind, when you weigh all the evidence, isn’t most of it pointing to all-time highs? In fact, isn’t most of the “evidence” already making all-time highs? Why should we expect it to be any different when priced in dollars? Maybe a little slower, but still trending in that direction: Up.
The next question: What actually IS the all-time high? Is it the intraday high in 2011? The weekly closing high? The monthly closing high? Let’s take a look. [Read more…]
Believe it or not, there’s a “tech” stock out there that is ripe for a short trade.
I know, I know…. shocking. I was surprised too.
And it’s offering a nice bounce to sell into today, so let’s get to it! [Read more…]
From the desk of Steve Strazza @Sstrazza
New Mystery Chart!
For those new to the exercise, we take a chart of interest and remove the x/y-axes and any other labels that would help identify it. The chart can be any security in any asset class on any timeframe on an absolute or relative basis. Maybe it’s a custom index or inverted, who knows!
We do all this to put aside the biases we have associated with this specific security/the market and come to a conclusion based solely on price.
You can guess what it is if you must, but the real value comes from sharing what you would do right now. Buy, Sell, or Do Nothing?
Last month I shared a video of my Happy Hour with Traders Kimmy Sokoloff and Joe Fahmy. You guys sent in amazing feedback and I really enjoyed doing it. So today, I want to give you a peak at my conversation with Andrew Thrasher and Dan Russo. They both love drinking wine and we’ve always had that in common, so we discussed some of our favorites as well as our thoughts on the stock market and bond market.
It’s cool to be able to sit back and relax with two of the smartest guys out there and hear what they have to say. I hope you enjoy! [Read more…]
