We debuted a new scan recently- The Outperformers.
The Outperformers is our newest scan that pinpoints the very best stocks in the market. It’s the fastest, easiest way to find quality names that are primed for major moves.
Expert technical analysis of financial markets by JC Parets
We debuted a new scan recently- The Outperformers.
The Outperformers is our newest scan that pinpoints the very best stocks in the market. It’s the fastest, easiest way to find quality names that are primed for major moves.
From the desk of Steve Strazza @Sstrazza
“There’s no such thing as a free lunch.”
Many of you are already familiar with this popular market adage as it is a commonly used quip in our industry.
All it really means is that you can’t get something for nothing from the market.
Have you ever bought a high-yielding stock for the dividend and rode it into a big drawdown just for them to announce they’re cutting the payout?
Did you listen to a friend about a biotech stock that was supposed to rip higher on positive FDA results… but it actually gapped lower?
How about following the analyst community into a stock that was a consensus buy… until it turned out not to be?
In all of these scenarios, the investor is simply looking for a free lunch. And 9 times out of 10, these situations don’t work out. There are no easy investments or get-rich-quick tricks on wall street. At least not sustainable ones. You have to put in the work.
One rule that I live by for my own investing is this: “If it seems too good to be true, it probably is.”
I’ve learned first-hand to run from investment opportunities that don’t pass the “smell test” and I believe I sleep better at night for it.
But there are definitely strategies that we can employ and proven processes we can follow to increase our win percentages and profitability. Our friends over at Stock Trader’s Almanac have found a strategy they believe is so good that they even call it “Wall Street’s only free lunch.”
In this post, we’ll discuss the strategy and have some fun by putting our own little spin on it.
From the desk of Steve Strazza @Sstrazza
When investing in the stock market, we always want to approach it as a market of stocks.
Regardless of the environment, there are always stocks showing leadership and trending higher.
We may have to look harder to identify them depending on current market conditions… but there are always stocks that are going up.
The same can be said for weak stocks. Regardless of the environment, there are always stocks that are going down, too.
We already have multiple scans focusing on stocks making all-time highs, such as Hall of Famers, Minor Leaguers, and the 2 to 100 Club. We filter these universes for stocks that are exhibiting the best momentum and relative strength characteristics.
The point is that we spend a lot of time identifying and writing about leading stocks every week, via multiple reports. Now, we’re also highlighting lagging stocks on a recurring basis.
We’ve been talking about how the major strength in the current market has been coming through in IT. But what we also noticed is that while Nifty Pharma wasn’t looking pretty on an absolute basis, the relative strength is pointing in a different direction.
Pharma has been gaining our attention for the past few weeks. This post will see if broad participation is back in Pharma or just a few value weightage stocks are gaining higher.
Today we’re introducing a new series of posts that we will include in our general analysis.
We’re calling this the BASH Series. What does this mean and what do we do?
We look at stocks in the market that are experiencing extreme moves, and we share our views. So we will tell you what we’d do: Buy, Avoid, Sell, or Hold. And that’s how we arrive at BASH (you have to make acronyms that make a word. Just sticks better, so bear with it. Haha!)
Today we’re here to discuss RBL Bank Bank. So let’s do just that.
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 December 24, 2021. This report is published bi-weekly and rotated 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.
From the desk of Steve Strazza @sstrazza
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.
by JC
Wall Street sell side analysts are coming out with their 2022 forecasts.
And we all know how accurate those tend to be 😉
In the latest float of the bear parade, wall street’s sell side analysts are putting out some of the most bearish forecasts in recent memory.
From the WSJ,
And we already know that Individual investors (AAII) and Financial Advisors (II) are much more bearish going into 2022 than they were over the prior two years.
We’re seeing almost half the amount of bulls and twice the bears. [Read more…]