As the market continues to test the resolve of both bulls and bears, some bearish setups are starting to trigger.
The team put out their latest Short Report last week and one of the names from that list triggered an entry this morning. And considering that my portfolio of options positions is currently leaning long, I like the idea of establishing some bearish positions to add counterbalance to my holdings.
On this episode of Pardon The Price Action, we're talking about which stocks have been, and are, benefiting the most from higher interest rates.
Insurance stocks are ripping, International equities are outperforming and it's not just Energy commodities that are doing well. We're also seeing the strength in Base Metals and Agriculture.
With many Growth stocks still under pressure, which are some of the best areas to sell short?
All this and more on this week's episode of Pardon The Price Action.
Our Hall of Famers list is composed of the 150 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 has all the big names and more.
It doesn’t include ADRs or any stock not domiciled in the US. But don’t worry; we developed a separate universe for that which you can check out here.
The Hall of Famers is simple.
We take our list of 150 names and then apply our technical filters so 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:
We filtered out any stocks that are below their May 10th 2021 high, which is when...
In a market that's going sideways, it can become quite frustrating to figure out what the trend is. More often than not, there are certain sectors that perform well and certain sectors that don't. But it's also important to identify other avenues of investment that could generate good returns over a period of time.
Today we're exploring one such theme in the form of REITs. Read on, to learn more.
There are no magic indicators that are right 100% of the time, no silver bullets, no “one Ring to rule them all.” That’s why we spend so much time talking about weighing the evidence and looking at the behavior of risk on and risk off indicators. That being said, there are times when one indicator or another seems particularly relevant. That is now the case with the number of stocks making new highs and new lows on the NYSE+NASDAQ. The spread between new highs and new lows peaked in early 2021 and was fading (though stayed positive) for much of the year. The situation deteriorated in November and new lows started to outnumber new highs. Even as the indexes moved off of their January lows, we’ve continued to see more stocks making new lows than new highs. Since 2000 all of the net gains in the major US indexes (S&P 500, NASDAQ Composite, Russell 2000, Value Line Geometric Index) have come when the cumulative net new high list has been expanding. The bottom line is that history suggests the indexes could continue to struggle so long as new lows are outnumbering new highs.
While certainly not at panic levels, we've been seeing a persistent $VIX holding north of 20, and the last two days we saw it flirt with 25. This signals to me that there is still a bit of uneasiness remaining in the stock market, leftover from the recent correction.
Scanning my books, I noticed my portfolio is a little light on delta neutral premium trades, so we're going to take the recent rise in volatility as an opportunity to add a little diversification.
As always, I take a gander at my list of the most liquid ETF options and look for the ones with the highest implied volatilities right now. And then if the chart suggests some consolidation is in order, that's where I look to strike.
As technicians, our job is to respond and react to the evidence in front of us.
The market has a funny way of punishing those who let their ego and opinions drive their decision-making instead of objectively following money flow.
We say it over and over again: As a trader, your only job is to follow money flow. Everything else is noise.
This morning, we can't help but think about the resolution from this rally seen in a handful of crypto stocks. I think Microstrategy $MSTR and Coinbase $COIN show it better than any other.