Expert technical analysis of financial markets by JC Parets
by JC
Did you notice how shares of Advanced Micro Devices are trying to finally break out of this 20-year base?
This is a long-term candlestick chart I brought up on our Monthly Conference Call last night. I used a line chart just to show how clean it is.
The “Multi-decade breakout” thesis is only valid if we’re above those 2000 highs. If not, then by definition, it’s not a breakout.
That level for me is $44: [Read more…]
by JC
This is the video recording of the April 2020 Conference Call.
by JC
We’re all stuck at home these days and Zoom is how we get to hang out with friends and family.
This week I was chatting with my pal Jeremy over in Laguna Beach about Gold, Silver and Gold Mining Stocks.
I think there are some good opportunities in the space and I think there are areas in which to be patient.
Here’s a short video of our discussion: [Read more…]
From the desk of Steve Strazza @Sstrazza
Every weekend we publish simple performance tables for a variety of different asset classes and categories along with brief commentary on each.
As this is something we do internally on a daily basis, we believe sharing it with clients will add value and help them better understand our top-down approach. We use these tables to provide insight into both relative strength and market internals.
This week we want to highlight our US Equity Index and Factor tables, as they are both showing near-term reversions in some of the most robust long-term intermarket trends.
Yesterday we published a post titled “The Reality Regarding Real Estate” in which we pointed out the long-term underperformance of REITs as a sector. And although we see no signs of this trend reversing any time soon, when we dug into the space we couldn’t help but notice a select group of stocks outperforming not just Real Estate, but the broader market as well.
In this post, we will illustrate the relentless strength from this niche group of Data-Center and Cell-Tower REITs and offer two trade ideas in the space.
We also wrote a post lately in which we filtered the S&P 500 down to just 32 of its strongest performers based on a variety of metrics. Despite the weakness from Real Estate as a whole, five of the stocks on that list are actually components in our All Star Charts Custom Data-Center & Cell-Tower REIT Index.
by JC
These are the registration details for the monthly conference call for Premium Members of All Star Charts.
This month’s Conference Call will be held on Monday April 13th at 7PM ET. As always, if you cannot make the call live, the video and slides will be archived and published here along with all of the other calls since 2015.
Here are the details for Monday: [Read more…]
From the desk of Steve Strazza @Sstrazza
Thanks to everyone for participating in this week’s Mystery Chart. The vast majority of respondents were either sellers or wanted nothing to do with this messy mess of a chart. Some of our less risk-averse participants were willing to bet on a failed breakdown and buy a reversal back above the recent lows.
In our opinion, this is the definition of a structural downtrend and there is very little evidence to suggest that will change anytime soon. With that as our backdrop let’s discuss why this chart is on our radar right now.
This is a weekly line chart of Real Estate (IYR) vs the S&P 500 (SPY) looking back about 20-years.
From the desk of Steve Strazza @Sstrazza
In our Table Of The Week, we highlighted some of the strongest stocks in the S&P 500 right now. We showed statistical evidence that these stocks have not only performed better over the long-run, but they’ve also suffered smaller drawdowns in the near-term.
Despite remaining skeptical of what is still a bear market rally in our opinion, there are always opportunities on the long side, we just need to pick our spots carefully and respect our risk management levels. In this post, we’re going to outline trade setups in what we believe are some of the most robust uptrends still in place.
If the market moves higher from here, these stocks should continue to exhibit leadership. If it rolls over, they should hold up better than the average stock and our risk will be well-defined to ensure minimal losses in the case we’re wrong.
