Last year Sean and I flew out to Tokyo looking for Japanese Candlesticks.
Here’s what we found…. [Read more…]
Expert technical analysis of financial markets by JC Parets
by JC
Last year Sean and I flew out to Tokyo looking for Japanese Candlesticks.
Here’s what we found…. [Read more…]
by JC
Every month we get a fresh batch of Monthly Candlesticks. It only happens 12 times a year.
I promise you guys from the bottom of my heart that there is no other part of my entire process that provides as much value and information as my monthly chart review. Premium Members can access the Chartbook here. Stay tuned as we’ll be adding more workbooks of charts this week to the Chartbook section.
In the meantime, my friend Josh Brown and I have been doing these short monthly videos since the summer. They’re fun and I like how he pushes back against me sometimes. In other interviews they make it too easy on me. I like these!
This month we talk about the breakout in Biotech, Market-cap rotation into Small-caps, European Stocks performing well and what we’re doing about Gold & Bitcoin.
Here’s this month’s video in full:
From the desk of Steve Strazza @Sstrazza
Welcome to the 2 to 100 Club.
Something we’ve been working on internally this year is using various bottoms-up tools and scans to complement our top-down approach. One way we’re doing this is by identifying stocks as they climb the market-cap ladder from small, to mid, to large, and ultimately to 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 52-week highs. This allows the cream of these strongest groups to rise to the top and makes our job easier to identify technical breakouts in the top-performing stocks.
The latest Under the Hood report is out, and as always, plenty of great ideas for me to sink my teeth into.
This week’s report revealed a software name emerging from a pretty impressive base which has some pretty significant upside targets in it’s sights. [Read more…]
by JC
This is the video recording of our December 1, 2020 Monthly Charts Live Strategy Session
by JC
Today a conversation came up about whether Gold is an “investment” but Bitcoin is just “Speculation”.
Come on…
Let’s be serious. One is a useless rock and the other is an almost useless currency. Both of these are speculations. Both of these can be considered “investments”. But the only reason to buy either of these is because you think someone else will pay you more for it in the future.
If you don’t think a greater fool will pay you more down the road, there’s no reason to own either of them.
On another note, the behavior we’re seeing in both of these is eerily similar. Keep in mind, since earlier this year we were bullish on both of them, betting that Bitcoin and Gold would trade much higher. Our targets? The former all-time highs: Gold’s 2011 peak and Bitcoin’s 2017 peak.
Mission accomplished. Great trades! Since then, they’re someone else’s problem.
Look at both of these and tell me they’re not behaving exactly the same. Granted, on different time horizons, but as they say, “The markets are fractal”, meaning that you’ll see the same behavior patterns across timeframes.
[Read more…]
From the desk of Steve Strazza @Sstrazza and Louis Sykes @haumicharts
At the beginning of each week, we publish performance tables for a variety of different asset classes and categories along with commentary on each.
Looking at the past helps put the future into context. In this post, we review the relative strength trends at play and preview some of the things we’re watching in order to profit in the weeks and months ahead.
Last week, we outlined how the market is in a very healthy state of order.
Nothing has changed from that message. We continue to see strong demand for risk assets and healthy rotation down the market-cap scale.
Additionally, market internals and breadth continue to improve beneath the surface, supporting the recent leg higher for stocks, both domestically and abroad.
Many Growth-oriented groups that have underperformed recently closed at fresh highs this past week, suggesting these are areas we want to continue to lean on to express our bullish thesis.
by JC
I’m not sure if you’ve heard, but stocks as an asset class are in a strong uptrend.
As we mentioned on Saturday, more and more stocks, sectors, and countries are making new highs, not fewer of them.
The most telling chart I came across this weekend has to be The Global Dow Index breaking out of a multi-year base to new all-time highs: [Read more…]