There was a lot of movement across asset classes over the last week, but more importantly, the market gave us some key inflection points to trade against.
In this post, we're going to look at Precious Metals and review how we should be approaching them.
Do stock market crashes normally happen when investors are expecting one?
I'm pretty sure it's the opposite of that.
Well, this is the chart being passed around this week. We're looking at the United States Crash Confidence Index, where fewer than 15% of respondents think NO crash is going to happen.
So in other words, almost 90% of respondents think "a catastrophic stock market crash in the U.S., like that of October 28, 1929 or October 19, 1987, is probable in the next six months, including the case that a crash occurred in the other countries and spreads to the U. S."
Thanks to everyone for participating in this Week's Mystery Chart. Most of you were sellers but the chart was inverted, so you were actually buyers.
We'd be buying this chart too, so let's dive right in and see what it is and why we're all so bullish.
This week's chart was the Invesco Chinese Technology ETF $CQQQ.
In this post, we'll dig into the strongest Chinese technology stocks and outline some trade ideas as a way to express our bullish thesis.
We'll also discuss some intermarket implications of this ETF and its components.
We're going to take a close look at these Chinese tech giants and see if we can glean some insight into the internals of CQQQ in addition to other International Indexes.
First of all, the chart looks a good deal different than it did when we posted the Mystery Chart earlier this week.
Something we’ve been working on internally this year is using various bottoms-up tools and scans to complement our top-down approach. One way we’re doing this is by identifying stocks as they climb the market-cap ladder from small, to mid, to large, and ultimately to mega-cap status (over $200B).
Once they graduate from small-cap to mid-cap status (over $2B) they come on our radar. Likewise, when they surpass the roughly $30B mark, they roll off our list.
But the scan doesn’t just end there. We only want to look at the strongest growth industries in the market as that is typically where these potential 50-baggers come from.
Dividend aristocrats are easily some of the most desirable investments on Wall Street. These are the names that have increased dividends for at least 25 years, providing steadily increasing income to longer-term minded shareholders.
As you can imagine, the companies making up this prestigious list are some of the most recognizable brands in the world. Coca-Cola, Walmart, and Johnson & Johnson are just a few of the household names making the cut.
Here at All Star Charts, we like to stay ahead of the curve. That’s why we're turning our attention to the future aristocrats. In an effort to seek out the next generation of the cream-of-the-crop dividend plays, we’re curating a list of stocks that have raised their payouts every year for 5-9 years.
Introducing the Young Aristocrats. We like to say these are "stocks that pay you to make money". Imagine if years of consistent dividend growth and high momentum & relative strength had a baby, leaving you with the best of the emerging dividend giants that are outperforming the averages.
Welcome to Episode 4 of the JC & Josh Brown show that he likes to call, "Big Trends Monthly". This is where we discuss a handful of the most important monthly charts that stood out during my review.
I'm always preaching how this is probably the most valuable part of my entire process: Monthly Charts! It's only something I have to do 12 times a year and might take me 30-45 minutes each month. This forces us to take a step back and gives us no choice but to identify the direction of primary trends.
Josh Brown is one of the most widely followed financial advisors in the country, and he appreciates these monthly candles as much as anyone else I know. So we're now doing a monthly show about it. You can catch up on last month's episode here.
Check out latest show where we discuss the rotation into Emerging Markets, Chinese Tech Stocks, What's next for Gold and Bitcoin, and a sneak peak at this month's Young Aristocrats list.
From the desk of Steve Strazza @Sstrazza and Louis Sykes @Haumicharts
At the beginning of each week, we publish performance tables for a variety of different asset classes and categories along with commentary on each.
Looking at the past helps put the future into context. In this post, we review the relative strength trends at play and preview some of the things we’re watching in order to profit in the weeks and months ahead.
Welcome to our "Under The Hood" column for the week ended October 30, 2020.
What we do 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.
Whether we're measuring increasing interest based on large institutional purchases, unusual options activity, or simply our proprietary lists of trending tickers... there is a lot of overlap.
The bottom line is there are a million ways to skin this cat. Relying on our entire arsenal of data makes us confident that we're producing the best list each week and gives us more optionality in terms of finding the most favorable trade setups for our clients.
One of the most valuable parts of our day has become reading The Chart Report India daily email.
It's impossible to catch everything that's going on in the markets on a daily basis, but we know that The Chart Report India will help us stay on top of the most significant market insights.
In just a few minutes of reading, we get a recap of what the top technicians in the world are watching in the Indian markets.
Like this tweet below from Nautilus Research, which was featured in the October 28th daily email.
In this case, Emerging Markets outperformance has been something we've been talking about for a while, but seeing its isolated performance relative to Europe really helped highlight what's driving the weakness.
Mark Dow has been a guest on this podcast more times than anyone else for a good reason. Selfishly I always enjoy chatting with him. His perspective is fascinating to me because he does such brilliant job of combining price behavior with sentiment analysis and the global macro intermarket backdrop.
Mark worked for the U.S. Treasury Department in charge of Emerging Markets in the early 90s before ultimately running money for a Global Macro Hedge Fund in New York City. So he has a lot of opinions on economics and politics, but he's great at not letting those things get in the way of his price behavior and sentiment analysis. He's figured out how to separate them but also use his expertise to his advantage. That's not any task.