Expert technical analysis of financial markets by JC Parets
It was a big year for Crypto, Web 3.0, the Metaverse and all things Blockchain.
In case you didn’t hear, a lot of people made a lot of money. And “a lot” is probably understating it.
How’d you do?
Either way, win lose or draw in 2021, we’re looking forward to 2022. But in order to do so responsibly, it’s important to know where we’ve come from. [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 Steven Strazza @Sstrazza and Ian Culley @Ianculley
In recent weeks, we’ve been diving into individual commodity groups to size up the structural trend and to get a better idea of where we’re likely headed in the new year.
Last week, we highlighted energy contracts and the fact that many are still grappling with overhead supply. And earlier in the month we covered the worst-performing area of the commodity markets – precious metals.
Today, we’re going to turn our attention back to metals and review the base metals group.
From the desk of Steve Strazza @Sstrazza
Yesterday, we wrote a post about scanning for new lows, putting our own spin on a strategy called “Wall Street’s only free lunch.”
I was joking with JC that it felt a bit uncomfortable to search through such a weak list of stocks. After all, we’re used to scanning for strength.
But the scan was a fun exercise, and we found some weakness we want to be buying in secular leaders.
The universe wasn’t exactly full of strong stocks, as we were scanning for new 52-week lows. But that’s OK; we have plenty others for that.
In this post, we’re going to walk through another scan we did internally this week. Unlike the “free lunch,” this one is more in line with our top-down approach of finding the strongest stocks in the strongest groups.
While we’re still scanning for new lows, we’re doing so on a much shorter time frame, and we’re adding additional filters to ensure all the stocks on our list are leaders.
We like to tailor our scan parameters to the market environment. As such, we’re always changing it up to adapt to the prevailing conditions.
Let’s dive in and walk through our thought process for this scan. Then we’ll take a look at some names and outline the best setups that we could find.
The idea of this scan was to find strong stocks that pulled back during December but remained above their first-half highs. We’re looking for stocks that showed relative strength and resilience during the recent volatility and recovered quickly from it.
From the desk of Steve Strazza @Sstrazza
Our Hall of Famers list is composed of the 100 largest US-based stocks.
These stocks range from the mega-cap growth behemoths like Apple and Microsoft – with market caps in excess of $2T – to some of the new-age large-cap disruptors such as Moderna, Square, and Snap.
It has all the big names and more.
It doesn’t include ADRs or any stock not domiciled in the US. But don’t worry; we developed a separate universe for that which you can check out here.
The Hall of Famers is simple.
We take our list of 100 names and then apply our technical filters so the strongest stocks with the most momentum rise to the top.
Let’s dive right in and check out what these big boys are up to.
Our friends over at Stockcharts.com asked me to put together a short video on the most important theme of 2021.
For me, it’s hard to ignore how breadth deterioration throughout the most the year impacted sentiment. This summer, the extreme levels of bullishness among individual investors and financial advisors became a headwind for stocks.
After the prices of those stocks deteriorated further into the Fall, that sentiment flipped to the opposite extreme. We came into December 2021 with the most bears in over a year and fewest bulls since April 2020.
As we enter 2022, sentiment is very different than how things looked entering 2020 and 2021.
By my work, this time is different. Very different.
Check out the video and full and then let me know what you think!
