Expert technical analysis of financial markets by JC Parets
by Tom Bruni
From the desk of Tom Bruni @BruniCharting
One of my favorite tasks each week is putting together our “Top 10 Charts” of the week report for Institutional Clients.
This week was very macro and intermarket focused, but one stood out as particularly interesting so I wanted to pass it along.
by Tom Bruni
From the desk of Tom Bruni @BruniCharting
Given our expectation of a choppy market environment over the coming weeks and months, we’re focusing on areas of relative strength/weakness.
Canadian Telecom stocks are hitting new all-time highs on an absolute basis, presenting some new trading opportunities on the long side.
by Tom Bruni
From the desk of Tom Bruni @BruniCharting
New Mystery Chart!
For those new to the exercise, we take a chart of interest and remove the x/y-axes and any other labels that would help identify it. The chart can be any security in any asset class on any timeframe on an absolute or relative basis. Maybe it’s a custom index or inverted, who knows!
We do all this to put aside the biases we have associated with this specific security/the market and come to a conclusion based solely on price.
You can guess what it is if you must, but the real value comes from sharing what you would do right now. Buy, Sell, or Do Nothing?
by JC
Ok so if you’re not caught up with our approach to the market right now, I encourage you to read both “We’re Buying Bonds” and “Selling Emerging Markets” from this weekend.
Today I want to talk about the non-randomness of markets. I think the Russell2000 Small-cap Index is a great example to walk through. For one, it helps you understand the way we look at markets, but selfishly it’s also great because it reiterates a lot of principles that I want to continue to focus on moving forward. Writing helps. Everyone wins. [Read more…]
by JC
In case you missed it yesterday, we’re selling stocks up here and buying bonds.
I tried to outline the levels as best as I could. Let me know if you have any questions!
Quickly today, I just wanted to point out one chart of Emerging Markets that really stands out. Remember this Index is broken down as follows: China 32.40%, South Korea 11.84%, Taiwan 11.71%, India 8.13%, Brazil 6.78%, South Africa 4.25% & Russia 3.84%.
It’s basically 72% Asia and 10% Latin America.
Here’s what it looks like: [Read more…]
by JC
I like to keep an open mind. When the data suggests getting more aggressive towards stocks, that’s what we’re going to do. When the data points a more defensive approach, then that’s what we’ll do too.
We’ve had a heck of a run in stocks since the summer, and now I think it’s time for a break, at least at the index level. Remember, regardless of overall market conditions there will still always be some stocks going up and some going down. In fact, I think Utilities see some outperformance here and I listed which stocks we want to own. So far they’re working.
Anyway, so why the new defensive position? Well, the things we said needed to happen for us to pull back are starting to happen. It’s really as simple as that.
Let’s get into it: [Read more…]
by Tom Bruni
From the desk of Tom Bruni @BruniCharting
Thank you to everyone who responded to this week’s mystery chart.
No mixed opinions this week, almost everyone saw the pullback into support as a successful breakout retest and was a buyer.
With that as our backdrop, let’s take a look at this week’s chart. [Read more…]
by JC
In this Episode of Allstarcharts Weekly, Steve and I talk about the newest Sector in America: Communications. Back in 2018, the Index makers took out some of our favorite Technology stocks and put them along with some telecom into this new Index called Communications. With Google and Facebook now representing 40% of this $XLC index, the fact that we’re just now breaking out to all-time highs says a lot about the space. [Read more…]
