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[Premium] Trade Of The Week

September 27, 2021

This week we’re looking at a long setup in the Realty sector. Nifty Realty broke out of an 11-year base and has picked up momentum. At this time we're looking for an interesting idea in this space.

Let's take a look at this stock.

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Introducing... The Hall Of Famers

September 25, 2021

From the desk of Steve Strazza @Sstrazza

Our Hall of Famers list is composed of the 100 largest US-based stocks.

These stocks range from the mega-cap growth behemoths like Apple and Microsoft--with market caps in excess of $2T--to some of the new-age large-cap disruptors such as Moderna, Square, and Snap.

It’s got all the big names and more.

It doesn’t include ADRs or any stock not domiciled in the US. But don’t worry; we’re developing a separate universe for that, and we’ll be sharing it with you soon.

So, The Hall of Famers is easy.

We simply take our list of 100 names and then apply our technical filters in a way that the strongest stocks with the most momentum rise to the top.

Let’s dive right in and check out what these big boys are up to.

Here's this week's list:

And here's how we arrived at it:

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Who's Ready for Rising Rates?

September 24, 2021

From the desk of Steve Strazza @Sstrazza and Ian Culley @Ianculley

I was talking to the team earlier this week and mentioned that I was having a hard time writing. Grant and Ian were quick to remind me that it's probably because "nothing new is happening!"

They were right. Until now...

We finally got a major resolution in what we consider one of the most important charts in the world these days.

I'm talking about the US 10-year yield reclaiming that critical 1.40% level this week. And this begs the question as to what a rising rate environment might mean for investor portfolios.

Well, one thing we know for sure is we want to stay away from bonds... unless we're shorting them.

But how do we want to position ourselves in the stock market if yields are breaking out?

It's simple really. Some stocks do better with rising/higher rates, while others thrive in markets characterized by low growth and low yields. If this is the beginning of a fresh move higher for yields, then we want to be focused on buying the stocks that are likely to benefit the most.

The Return of High Beta?

September 24, 2021

High-beta stocks are hitting new multi-month highs relative to low volatility.

This is the opposite of what would be happening if the world was about to come to an end.

The ratio between High Beta stocks and Low Volatility stock basically stopped going up last February.

Is Zee Ready to Zoom?

September 24, 2021

Congratulations to those holding positions in Zee Entertainment, for you, have been rewarded! Well, at least for now.

Zee has been notoriously stubborn for remaining sideways for all of seventeen months now. That's a long time, considering several stocks have grown two-fold, three-fold at the least.

But Zee has also been a part of a sector that has consistently underperformed the market.

But have things changed with the move we saw in Zee over the past two weeks?

Maybe...

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More Of The Same

September 23, 2021

From the desk of Steve Strazza @Sstrazza and Grant Hawkridge @granthawkridge

Considering the selling pressure in recent weeks, we were very excited to take a look at our breadth indicators today to see if we finally saw some downside expansion worth pointing out. Spoiler alert: There was nothing there.

Being as we're in a sideways market, we're always on the lookout for a change in character in internals that might suggest some resolutions are finally on the horizon. And since bears have been driving stocks lower since early this month, our focus is on new short-term lows. 

With the S&P experiencing some volatility and revisiting its 50-day moving average this week, did we finally get that "fall day?"

Two things we've been hitting on ad nauseam for over a quarter now are the consistent lack of new lows and the fact that most stocks have already corrected beneath the surface.

Today, we're going to revisit both of these key themes and see where we currently stand.

The Outperformers

September 22, 2021

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.

The goal is that as the market rally progresses, the sector rotation within the market will reflect in this scan. So while our Top/Down Analysis helps us with the broader view of the market, this Bottom/Up scan makes sure that we catch the slightest change in sentiment.

ITC Shareholder - Early Diwali Gift?

September 22, 2021

Last week, something magical happened.

Something that hasn't happened in a long time!

ITC was up by 6.83%.

If you've invested in this stock, then you know that such a move in ITC is not that common. And more often than not, the follow-through move is generally absent.

But what do we have this week?

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Follow The Flow (09-20-2021)

September 20, 2021

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.