Expert technical analysis of financial markets by JC Parets
Despite any selling pressure in stocks over the past few weeks, the Nasdaq Inc continues to push to new 52-week highs, again.
This is a trend that has been in place.
The Capital Markets stocks, which are part of the Financials universe, continue to be leaders in this bull market. [Read more…]
From the Desk of Ian Culley @IanCulley
Don’t believe the headlines.
It’s not all doom and gloom for the market.
Plenty of assets are trending higher, mainly those related to precious metals.
Gold is challenging all-time highs. Silver is catching a bid. Palladium is digging in at former support. (So much for those seven-year lows.)
And gold and silver mining stocks are ripping…
From the Desk of Steve Strazza @Sstrazza
Welcome to The Minor Leaguers.
We’ve had some great trades come out of this small-cap-focused column since we launched it back in 2020 and started rotating it with our flagship bottom-up scan, Under the Hood.
For the first year or so, we focused only on Russell 2000 stocks with a market cap between $1 and $2B.
That was fun, but we wanted to branch out a bit and allow some new stocks to find their way onto our list.
We expanded our universe to include some mid-caps.
Nowadays, to make the cut for our Minor Leaguers list, a company must have a market cap between $1 and $4B.
And it doesn’t have to be a Russell component — it can be any US-listed equity. With participation expanding around the globe, we want all those ADRs in our universe.
The same price and liquidity filters are applied. Then, as always, we sort by proximity to new highs in order to focus on the best players.
The goal is to catch the strongest names while they’re small and have serious upside potential. If any of these stocks ever climb the ranks to the big leagues, the returns could be huge.
We’re looking at up to 10x moves just to break into large-cap land!
Let’s dive into this week’s report and see what’s happening in some of the hottest stocks in the Minor Leagues.
When the storm is upon us, it’s too late to purchase hurricane insurance. Nobody will sell it to you. Of if they will, the prices will be obscene.
Last Monday, when the VIX printed a 65 — it was too late to buy downside protection. If you did, you were asking for your face to be ripped off. And it likely was.
Now that the dust has settled a bit, volatility has abated significantly, and the relative winners and loses sorted themselves out, we’re seeing some good setups to position ourselves for any additional downside action.
Additionally, it offers me a good chance to balance out some of the risks I still have on the books in my long positions.
On today’s Flow Show, me at Steve Strazza talked about a good setup in Advanced Micro Devices $AMD that fits our needs.
From the Desk of Ian Culley @IanCulley
Here’s what happened last week…
A few bad actors used open profits from highly leveraged positions to purchase other assets.
When those highly leveraged positions turned against them – ripping their faces off – margin calls went unanswered, leading to a lack of liquidity.
Bonds ripped, stocks dipped, and credit spreads blew out.
Now that the dust is settling, let’s review a few takeaways from last week’s volatility and consider what may lie ahead.
From the Desk of Steve Strazza @Sstrazza
Have you heard about the rally in the bond market?
After a severe multi-year drawdown, bonds have carved out a massive basing pattern and are putting the finishing touches on a primary trend reversal.
More importantly, interest rate-sensitive stocks are following suit and rallying higher as rates come down.
The sector with the highest correlation to bonds, Real Estate, is also putting the finishing touches on a bearish-to-bullish reversal.
With the market under pressure in recent weeks, Real Estate’s relative strength and resilience stands out in a big way.
This once left-for-dead group of stocks is now the sector leader over the trailing month and quarter.
The only responsible thing for us to do is dive beneath the surface and find the strongest individual names to use as vehicles to play this trend.
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.
I love it when a group of people dislike a stock for reasons that have nothing to do with the stock itself.
In some cases it’s because they don’t like the CEO, or they don’t like the politics of the players involved, or they think the stock is some kind of fraud.
In the case of Palantir, you’re getting all 3 of these.
We love it when a stock hitting new 52-week highs makes people sad.
That built-in short-squeeze scenario is just added fuel to the fire to send stocks much higher, much faster.
Here is PLTR hitting new multi-year highs this week: [Read more…]
