Expert technical analysis of financial markets by JC Parets
The market has spoken.
If you’re not long Crypto in one form or another, that’s makes you short by default.
Do you want to make sure you underperform? Keep Crypto out of your portfolio.
These are the current circumstances and consequences.
Here we’re looking at the ratio between Bitcoin and the S&P500: [Read more…]
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.
From the desk of Steve Strazza @Sstrazza and Ian Culley @Ianculley
The markets are a mess and have been a mess for months now.
Risk assets are under pressure as the USD strengthens and overhead supply thwarts potential rallies.
Yet, we continue to find pockets of strength in both stocks and commodities.
We’ve said it time and time again during the past several months…the markets are a bifurcated, choppy mess!
But during these challenging periods, identifying areas that are bucking the trend can prove valuable over intermediate- and longer-term timeframes.
Basically, the assets holding up the best or even breaking out while the broader market is trendless are likely to be your future leaders.
Let’s take a look at one area of the market doing just that! [Read more…]
From the desk of Steven Strazza @Sstrazza and Grant Hawkridge @granthawkridge
You’re probably sick of hearing this but it’s important! Even with the recent bout of volatility, new lows have been non-existent across most of the major averages in the US.
To be fair, many of our Intermarket relationships are still flashing red, suggesting continued headwinds for risk assets.
Earlier this week we saw significant selling pressure in equity markets both domestically and abroad. Conditions are as ripe as they’ve been in more than a year for the bears.
So, did we finally get that “fall day,” as our fellow Technician and friend Mike Hurley likes to call it?
The simple answer is no…
From the desk of Steve Strazza @Sstrazza and Ian Culley @Ianculley
A revolution in energy is upon us.
Some like to call it the green revolution or the transition to renewable and alternative energy. How you want to label it isn’t what matters.
All we care about is that the landscape for energy and how we use it is changing dramatically.
As the world quickly changes and the demand for energy expands, how we generate and utilize it, as well as the natural resources we rely upon to do so – will inevitably change, and adapt to this new environment.
Of course, we’ll continue to burn coal, crude oil, and natural gas for the foreseeable future. But there are other pockets of strength arising in areas that could very well be secular growth trends for decades into the future.
We’re always looking to identify these new arenas of growth. Here’s the way we see it…
With strong prospects for global growth and economic expansion in the cards, additional energy sources will need to be created so that supply can meet the growing demand being placed on an already antiquated and stressed infrastructure.
As usual, the markets are one step ahead and appear to have already sniffed out the necessity for alternative energy sources.
Let’s look at a couple of charts that both highlight the changing backdrop for Energy consumption and offer opportunities to express a bullish thesis on these emerging trends.
From the desk of Steve Strazza @sstrazza
I’ve personally been in the market for a new or used car for a few months now, and let’s just say it hasn’t been easy. The entire supply chain has been disrupted, and the market has been unable to keep up with demand.
I finally made the decision to stop my search until the supply crunch for semiconductors and other critical inputs alleviates. I could be waiting a while though, as this has already been going on for about a year. Thankfully, I live on an island that is only 8 square miles, so my bike or feet can take me wherever I need to go in the meantime.
According to a recent article from the Wall Street Journal:
Prices for both new and used cars are high. The surge is driven in part by the global chip shortage, which is straining new-car inventories. This has led more consumers to shop the preowned market, increasing demand for used cars and eroding dealer inventories.
A little over a month ago we published a post discussing the strength in the Nasdaq Global Auto ETF $CARZ. The index is designed to track the performance of the largest companies in the automobile manufacturing industry. These stocks had been performing quite well as it is a seller’s market out there, but have corrected over the last few months.
We even discussed the relative strength we’re seeing from the new online auto retailer Carvana $CVNA in yesterday’s 2 to 100 Club Report.
But today, we’re going to reveal last week’s Mystery Chart and focus our attention less on the traditional automakers and more on the burgeoning growth industry of autonomous and electric vehicles as this is where the strength has been for the automotive industry of late. Let’s drive right in. Get it…?
From the desk of Steve Strazza @Sstrazza
Welcome to the 2 to 100 Club.
As many of you know, something we’ve been working on internally is using various ‘bottoms-up’ tools and scans to complement our top-down approach. It’s really been working for us!
One way we’re doing this is by identifying the strongest growth stocks as they climb the market-cap ladder from small, to mid, to large – and ultimately mega-cap status (over $200B).
Once they graduate from small-cap to mid-cap status (over $2B) they come on our radar. Likewise, when they surpass the roughly $30B mark, they roll off our list.
But the scan doesn’t just end there. We only want to look at the strongest growth industries in the market as that is typically where these potential 50-baggers come from.
Some of the best performers in recent decades – stocks like Priceline, Amazon, Netflix, and Salesforce, to a myriad of others… all would have been on this list at some point during their journey to becoming the market behemoths they are today.
When you look at the stocks in our table you will notice we are only focused on technology and growth industry groups such as Software, Semiconductors, Online Retail, Solar, etc.
Then like any good technician, we filter the list down to those that are closest to new highs. This allows the cream of these strong groups to rise to the top and helps streamline our mission to identify technical breakouts in the top-performing stocks.
