Expert technical analysis of financial markets by JC Parets
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.
Slippery markets make for rising options premiums. And one sector ETF is currently rising head and shoulders above the rest, offering some juicy premiums for us to sell into along with a wide risk management band for us to dance in.
So let’s take advantage of the rising fear in this sector for an opportunistic trade and potentially quick profits.
This is the video recording of the February 2023 Mid-month Conference Call.
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 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.
