The 30-, 10-, and 5-year contracts are trading above our risk levels. And the bond ETFs we covered a couple of weeks ago are also flashing buy signals.
The bond market is sending a well-advertised message to all investors…
It’s time to buy bonds.
Let's review one of the most liquid treasury ETFs, $TLT.
Zooming out on the weekly chart of the Treasury bond ETF TLT…
We have a potential failed breakdown below the former 2014 lows, followed by a tight, multi-month consolidation.
We kicked around a few ideas in this morning's Analyst meeting and the one thing that stood out to me is that I do not currently have any long exposure to the healthcare sector --- one of the strongest sectors out there.
That changes today.
We're going to get long a familiar name in the space, but we're going to do it carefully with a defined risk spread because we've got earnings coming up soon. So we'll go for a longer-duration trade and bet on earnings to be a catalyst for higher prices.
Strazza and I have been having fun discussing options stuff on Twitter Spaces over the past few weeks. Even our friend Brian Lund (@bclund) has been contributing mightily to the conversations.
The topic of discussion has mostly centered around 0-DTE – or daily expiring – options and some experimentation I’ve been doing in this very active corner of the options market. While I will continue to talk about that, we decided we want to broaden out the topic material to include anything else we’re seeing that we can trade with options.
We’ll discuss trades we have on, trades we might be considering entering or anything else that feels topical in the world of options.
During the calls, we like to encourage audience participation. One piece of feedback I’ve heard from a few of you is that you don’t know how to actually participate. “Where’s the button to raise my hand?”
Just because some (most) investors choose to ignore it, doesn't mean that moves in stock prices are random.
They're not.
Stock prices trend.
It's just math. Or science maybe. Or both, I don't know.
But they do trend. This we know is a fact.
And since last June, the majority of stocks have been appreciating in price. And very few stocks have been falling in price, to the point where there are almost no stocks that are still falling.
So if stocks were not going up in price in this environment, that would be really weird.
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.
Welcome back to Under the Hood, where we'll cover all the action for the week ended March 31, 2023. 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.
It's a list of the most important stocks in the most important country on the planet.
Find me a better index.
You can't. I've looked.
And when you look underneath the surface at the components of the Dow, you'll notice that its Advance-Decline line is pressing up against all-time highs.