Expert technical analysis of financial markets by JC Parets
Crypto markets can be daunting for those who come from traditional backgrounds.
There are entirely new market mechanisms, trading hours, different exchanges, and distinct ways to analyze the market, let alone the decentralized nature of how these markets operate.
It’s no wonder that people find this asset class complicated.
Adding to the already heightened perplexity of these markets is how they’re driven and how investors benchmark their performance.
Hear me out.
It’s the weekly currency edition of What the FICC?
Yesterday, the US dollar index $DXY booked its largest three-day gain since it peaked in late September. So will today’s bounce turn into tomorrow’s rally?
I don’t know. But you want to monitor these two levels for insight.
Check it out!
From the Desk of Ian Culley @IanCulley
The US dollar index $DXY has some extra pep in its step after posting three consecutive daily gains.
In fact, the past few days constitute its largest three-day gain since the index peaked in late September.
I think it’s safe to say the long-awaited USD bounce has arrived. The question now is whether it will turn into a sustained rally.
No one knows, of course. But these next two levels will help us prepare for an impactful dollar advance…
They teach you this stuff at technical analysis kindergarten.
Buy support.
Sell resistance.
Of course, in the real world, with our primitive monkey brains, implementing this into a trading system is easier said than done. Just take a look at the squeeze you’re seeing in real-time in all these beaten-up growth stocks.
The permabears started shorting these names in droves when they’d already slumped into 90% drawdowns.
Talk about a reckless strategy…
This is the video recording of our February 6th Monthly Charts Live Strategy Session
From the Desk of Steve Strazza @sstrazza and Alfonso Depablos @Alfcharts
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.
Welcome back to our latest Under The Hood column where we’ll cover all the action for the week ended February 3, 2023. This report is published bi-weekly and rotated on-and-off 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.
