Expert technical analysis of financial markets by JC Parets
by Tom Bruni
From the desk of Tom Bruni @BruniCharting
As part of my weekly review I went through the entire S&P 1500 across on both the weekly and daily timeframes to identify long and short opportunities, as well as any major market themes.
Unfortunately the evidence is still mixed when it comes to the market’s next directional move, but there was one chart that I wanted to point out because it reminded that opportunity can often lie where you least expect.
by Tom Bruni
This weekend I was updating our chartbooks for members and preparing for Wednesday’s Members-Only Conference Call when I stumbled upon a chart that’s too good not to share.
It’s a great trade idea, but it also is a great reminder that while the major stock market indexes may not be trending, there’s still plenty of opportunity on both the long and short side of this “market of stocks”.
by Tom Bruni
From the desk of Tom Bruni @BruniCharting
Yesterday I discussed how we use ratio charts to identify trends for both trading opportunities and information that we can use to make inferences about the stock market’s next major move. Today I want to look at an inter-market relationship between Base Metals and Precious Metals that may help provide information about where interest rates are headed.
by Tom Bruni
From the desk of Tom Bruni @BruniCharting
The S&P 500 has rallied more than 10% off its late December lows, making the reward/risk on the long side a lot less favorable as many of the major indexes and sectors approach overhead supply. When the market is at a point on an absolute basis where the weight of the evidence is mixed, the use of ratio charts to identify the trends that are happening under the surface becomes even more valuable. [Read more…]
by JC
Let’s get something straight: being a market participant is not a right, it is a privilege. You have a responsibility to yourself, or your clients, to manage risk appropriately. Our goal is to profit while systematically having protection in place to adjust risk according to the environment. Not only is it not easy, the smartest minds in human history have failed in their attempts to profit from the market. See: The Market Owes You Nothing
A long time ago Mike Bellafiore, from SMB Capital, engraved in my mind that we need to be grateful for the opportunity to participate in the market. This isn’t a right. We need to be humble and know that Mr. Market is here to take it all away at any given moment. The worst trade of your life could be the next one if you’re not careful. [Read more…]
by JC
In the final Chart of the Week for 2018, we looked at the US Dollar reaching a key upside objective and then rolling over to finish the year on a sour note. I started out my Q1 2019 Playbook emphasizing the importance of the US Dollar Index in 2019 and I think we’re already seeing the implications of a weaker Dollar. I also think this trend is likely to remain in place.
The way we saw it, if the US Dollar were to just break through these levels, without even acknowledging it, then there is most likely a severe flight to safety away from stocks and that’s why the Dollar is getting bid up. The counter-argument there is that if the Dollar is weakening, stocks would most likely do well in that environment. That has been our thesis coming into the year. [Read more…]
by Tom Bruni
From the desk of Tom Bruni @BruniCharting
Earlier today we uploaded a post outlining the case for some mean reversion in Canadian Equities, as well as the stocks we’re buying to take advantage of that thesis. The same pattern that can potentially drive those stocks higher is also present in the IBD 50 ETF FFTY, so in this post we’re outlining the IBD 50 stocks with the best reward/risk.
by Tom Bruni
From the desk of Tom Bruni @BruniCharting
In late November we wrote about the best long and short setups in the TSX 60, and our winners offset those trades that were quickly proven incorrect. In today’s environment we’re seeing potential for mean reversion in several areas of Canada’s stock market, so we’re going to focus on the best reward/risk setups on the long side.
