Expert technical analysis of financial markets by JC Parets
Now that there’s some clarity around the Twitter $TWTR/Elon Musk deal, the focus is shifting to how exactly it will get done.
Today’s reports claim that Apollo, Sixth Street, and others have ended conversations with Musk’s team to provide debt financing.
As it turns out, $44 billion is a lot of money, even for the richest man in the world…
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 The Hall of Famers, The Minor Leaguers, and The 2 to 100 Club.
We filter these universes for stocks that are exhibiting the best momentum and relative strength characteristics.
Clearly, 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.
This is the video recording of our October 5, 2022, Inside Scoop Weekly Strategy Session.
Elon Musk and Twitter $TWTR are back in business!
In a letter filed with the SEC on Tuesday, the eccentric billionaire offered to close the originally agreed upon deal worth $44 billion.
The most significant insider activity on today’s list was reported in a series of Form 4 filings by Greg Abel, the vice-chairman of Berkshire Hathaway $BRK.
Abel reported purchases worth roughly $68 million in Berkshire’s class A shares.
The transactions help to align the executive more closely with shareholders as he prepares to take the reins of the company at some point in the future.
From the desk of Steve Strazza @Sstrazza.
Welcome back to Under the Hood, where we’re covering all the action for the week ended September 30, 2022. This report is published bi-weekly and rotated with The Minor Leaguers.
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 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
Our Top 10 Charts Report was just published.
In this weekly note, we highlight 10 of the most important charts or themes we’re currently seeing in asset classes around the world.
Dow Leads Down
Not only is the Dow trading at its lowest level since November of 2020, but momentum is confirming the move with its lowest reading since the COVID-crash back in Q1 of 2020.
The summer lows we’re watching coincide almost perfectly with the pre-COVID highs around 29,600. This confluence of interest reinforces the importance of the current level. As long as the indexes are below their summer lows, sellers are in control.
