Are you looking for trends in this market?
We are.
Here’s one that stands out: U.S. Real Estate is making new All-Time Lows relative to the U.S. Stock Market: [Read more…]
Expert technical analysis of financial markets by JC Parets
by JC
Are you looking for trends in this market?
We are.
Here’s one that stands out: U.S. Real Estate is making new All-Time Lows relative to the U.S. Stock Market: [Read more…]
by JC
I’ve been waiting for Europe to break out since I was in high school. That was over 20 years ago. And people have the audacity to tell me that stocks are in a bubble.
Are you kidding me? [Read more…]
by JC
This one comes up a lot. “JC, what has you concerned?”.
This morning I was on the Alpha Trader Podcast with Aaron Task, former Digital Editor of Fortune and Editor-in-Chief of Yahoo! Finance. It was fun. I’ll post the link when it’s up next week.
But that’s what he asked. What has me concerned?
And what’s interesting is that nothing really “concerns” me. Because I don’t really care. I’m too old for that shit. I can’t worry about the economic and social implications of the market going up or down.
Stocks can get cut in half from here. Or they could double. I’m good either way. Bitcoin can go to zero. Not my problem. Gold can go to $100,000, or $100. Doesn’t matter to me.
So I’m not “concerned” about anything. I just take it how it comes, when it comes. As investors, we have no choice. Well, as open-minded investors, anyway.
Now, if you ask me what it’s going to take to shift to a more defensive approach towards equities, I think I’ve already done a good job of laying that out. We weren’t seeing a bid in those safety trades then, and we’re still not today.
That’s just not happening. [Read more…]
by JC
These are the registration details for our live monthly conference call for Premium Members of All Star Charts.
This month’s Conference Call will be held on Tuesday January 19th at 6PM ET. As always, if you cannot make the call live, the video and slides will be archived and published here along with every other live call since 2015.
Here are the details for Monday: [Read more…]
From the desk of Steve Strazza @Sstrazza
Consider this a special follow-up edition to our most recent 2-to-100 column, published earlier this week.
We update our 2-to-100 club universe every quarter as stocks will come on and off of the list as their market cap fluctuates above and below our criteria of about 2 to 30B.
There are also newly public stocks that need to be added and changes based on our technical criteria, among other things.
A lot of stocks grew above the $30B mark this year and unfortunately left the 2-to-100 club. On the other hand, there weren’t too many that left due to falling below $2B.
This makes sense as all the stocks in the club are from tech/growth industries, many of which performed incredibly well in 2020.
There was also a good deal of new additions from IPOs which is also no surprise as most of the new issuances these days are tech companies.
by JC
In case you missed it this week, our team just got a whole lot better. Willie Delwiche is officially part of the Allstarcharts Team. We couldn’t be more excited to have someone with his experience adding to the conversations we’re already having every day.
To no surprise to any of us, Willie is already hitting the ground running with some excellent perspective on current market sentiment, valuations and breadth.
Here’s what he had to say today,
Stocks are historically expensive, but this is offset by ample liquidity being provided via monetary policy (and to a lesser extent the hope of additional fiscal stimulus). Investor sentiment is heavily tilted toward optimism and complacency. This becomes a more acute concern when market momentum is faltering and/or rally participation is narrowing. That is not currently the case, as an increasing number of markets have broken out of bear markets that stretch back to 2018 or earlier”
by JC
As we get into 2021, the same question keeps coming, “JC, when are we going to see a correction in the market?”
While it is true that some stocks have gone up, and others have gone up a lot in recent months, the biggest stocks of them all have not.
Google, Apple, Microsoft and Amazon are the 4 biggest companies in the world. Throw in fellow behemoths Facebook and Alibaba, and now we’re pushing $8 Trillion in market cap. That’s big time money.
And you know what those stocks have done since September 2nd?
Nothing.
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.