Expert technical analysis of financial markets by JC Parets
I was in a meeting a couple of weeks ago where I was going over the geographic locations of all the members of our team. These places include California, Florida, Colorado, Venezuela, Canada, Australia, New Zealand, Mumbai, Delhi, South Africa and the list goes on….
The gentleman asked me how I was able to find all these people.
When I told him I just sent out a tweet whenever I needed to add someone, he almost fell out of his chair.
For me this is just common sense. Others are still coming around to the power of social.
We are a team of almost 30 people now.
And we’re looking to add another one, if you or someone you know is interested. [Read more…]
From the desk of Steve Strazza @Sstrazza.
Welcome back to our latest Under the Hood column, where we’ll cover all the action for the week ended February 18, 2022. This report is published biweekly and rotated with our Minor Leaguers column.
What we do here is analyze the most popular stocks during the week and find opportunities to either join in and ride these momentum names higher, or fade the crowd and bet against them.
We use a variety of sources to generate the list of most popular names.
There are so many new data sources available that all we need to do is organize and curate them in a way that shows us exactly what we want: a list of stocks that are seeing an unusual increase in investor interest.
Watch this video for a behind-the-scenes look at our process.
Whether we’re measuring increasing interest based on large institutional purchases, unusual options activity, or simply our proprietary lists of trending tickers, there’s a lot of overlap.
From the desk of Steve Strazza @sstrazza
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.
From the desk of Steve Strazza @Sstrazza
Our Top 10 Charts Report was just published.
In this weekly note, we highlight 10 of the most important charts or themes we’re currently seeing in asset classes around the world.
Industrials Are On The Ledge
Industrials are currently trading at their lowest level in over 10 months. In the large cap space, there are lots of charts that are still consolidating in the very same ranges they’ve been in since the first-half of last year. Both cap-weighted and equal-weight industrials fall into this category. In order to turn bullish on the broader market, we need to see more areas resolve these ranges to the upside. But in order for that to happen, they need to hold the lower bounds of these patterns in the meantime. As the list of sectors and industry groups that are resolving lower grows, it becomes easier to make a bearish argument for stocks as an asset class. Seeing industrials break down would also be a major development due to their high correlation with the S&P 500. The bottom line is that these ranges need to hold, otherwise we’re likely headed for an environment where the overall market comes under increasing pressure.
From the desk of Steve Strazza @Sstrazza
Check out this week’s Momentum Report, our weekly summation of all the major indexes at a Macro, International, Sector, and Industry Group level.
By analyzing the short-term data in these reports, we get a more tactical view of the current state of markets. This information then helps us put near-term developments into the big picture context and provides insights regarding the structural trends at play.
Let’s jump right into it with some of the major takeaways from this week’s report:
* ASC Plus Members can access the Momentum Report by clicking the link at the bottom of this post.
On this episode of Pardon The Price Action, we continue to see cyclical stocks showing relative strength and popping up on our new highs list.
Are you still stuck in American Growth stocks, or have you moved on?
Metals and Mining stocks are also breaking out to new highs, both in the U.S. and Internationally.
The U.S. is the worst performing country in the Western Hemisphere in 2022. Are you paying attention?
Where do we go from here? What are we buying? What’s the next move?
All this and more on this week’s episode of Pardon The Price Action.
Check out the full video:
