Expert technical analysis of financial markets by JC Parets
Once again this month, I’m going to share info on positions that were closed in the month of June. As a reminder, our exit plans are always laid out ahead of time in each trade idea we publish. In every case, the exits mentioned below were all in accordance with the plans as laid out.
As we head towards July expiration, we have six open positions remaining with expiring July options.
Positions with July options that need monitoring: [Read more…]
Whether you know it or not, we’re all exposed to risk from the financials sector (think big banks, GE, etc).
And when I look across the positions in my portfolio, I have significant open exposure on the long side of the market.
This is top of mind for me right now, coming out of our weekly team call. The recent sloppy market action, with no real expansion of new highs, is opening the door — if ever so slightly — for the bull market doubts to creep in. We are certainly not making a “Top” call here by any means, but we are observing that the risks of a potential correction appear to be increasing.
So, while we don’t need to get aggressive with short bets here, it might be prudent to start exploring some bearish setups and keep our eyes and minds open for opportunities to get tactically short in names and sectors that would likely lead on the downside if the broader markets were to stumble here. And we can do this without exposing our portfolio to too much risk, thanks to the existence of long exposure already on the books. [Read more…]
I’ve always wondered — can publicly traded advisory and consulting services recommend the purchase of their own stock to their clients? There’s probably a rule against this. Certainly, it would be in an ethical gray area.
That’s too bad, because the ASC team recently surfaced a $20B market research and advisory group stock during their research and the chart looks like a fantastic setup.
Every so often I like to put on some delta neutral credit spreads to balance out the portfolio a bit. It’s all about diversifying the books so that I’m not solely reliant on direction or volatility. We’ve got positions on currently that will benefit from big moves in either direction, but what if the market just grinds sideways for a bit?
This is where some delta neutral credit spreads can help out.
And my preference is to initiate these trades in liquid ETFs that are exhibiting relatively high implied volatilities.
There’s nothing more gratifying than watching our youngsters graduate to the next level, cheering on athletes who advance through the ranks, or enjoying the ride of our investments moving from “small cap” to “large cap” during our hold.
The 2 to 200 Club report that the All Star Charts team produces attempts to give us the heads up on the next companies that are likely to make the step up to the next level. You can read our latest report here.
One of the names that caught my attention is one involved in data analytics utilizing Artificial Intelligence to drive performance. [Read more…]
We’re going to start taking full advantage of the data coming out of our weekly Follow the Flow report and put on at least one actionable trade from this list every week. If you’re not already familiar with this report, Steve Strazza puts it together each week and it highlights stocks with both unusual options flow plus interesting chart setups. Combined, these two factors offer traders a pretty unique edge to exploit.
Today’s idea is in a recent IPO which might offer us some additional oomph if it gets moving in our direction.
The latest Young Aristocrats report is out and as always, there are some great opportunities setting up there. These are stocks with tremendous dividend growth consistency that are also setting up for bullish price action. How can investors not love these setups? Win from the price appreciation, and get paid while you wait in the form of dividends. Yes, please!
The opportunity that best caught my attention today is an all-time high breakout in a niche corner of the market.
It’s summertime and where I live in Colorado, everyone is planning camping and RV trips up in the mountains. There’s something about fresh mountain air, cool crisp evenings, and enjoying a beverage next to a roaring campfire.
You would think that this would be bullish for companies that are in the business of supplying the gear for entrepid campers and roadtrippers.
Well, we only follow price and the chart action in one camping name is potentially telling a different story.
