Financials ripping to all-time highs is not something we see when stocks are in a downtrend. To the contrary, this is strong evidence of risk appetite for stocks. This seems to be something that is being underappreciated right now but I think is worth pointing to, again.
There are a lot of questions about the sustainability of the uptrend in stocks. Some might even say that stocks are "stretched" or have gone "too far too fast". But when you look at Financials, they're just getting going now. From many different perspectives, this sector has done nothing for a long time and is just now breaking out.
Next Monday I will by flying to Denver to speak at the local chapter of the CMT Association. This is my favorite time of the year to be in Colorado, so I'm thrilled to be there talking about charts and meeting with local traders and investors. I will do my best to walk you through my process from the top down and show you how I'm incorporating these tools in today's market environment.
This event is Free, but limited space is available. I encourage you to join us for a bunch of charts and then we'll grab some beverages afterwards with the Colorado Traders and Investors Group as well as members of the CMT Association. Here are all the details:
Long Precious Metals has been a big theme for us this year. I still think this is an area we need to be involved with and the weight-of-the-evidence is suggesting higher prices for the entire space.
Today I want to point out the recent breakout in Swiss Franc Futures. Historically there is a high positive correlation between this contract and the price of Gold. As we break out to new multi-year highs in Swissy, Gold looks likely to follow along:
These are the registration details for our live monthly conference call for Premium Members of All Star Charts India.
This month’s Conference Call will be held on Tuesday February 16th at 7PM IST. As always, if you cannot make the call live, the video and slides will be archived and published here along with every other live call since our launch.
Every month I host a conference call for All Star Charts Premium Members where we discuss ongoing themes throughout the global marketplace as well as changes in trends where new positions would be most appropriate. This includes U.S. Stocks & Sectors, International Stock Indexes, Commodities, Currencies and Interest Rate Markets.
We've seen an increase in volatility in the stock market this past week but it has not spilled over into the commodities, currencies or interest rate markets. We'll discuss the current market environment and how we want to responsibly manage risk. A list of trade ideas with risk vs reward opportunities skewed in our favor will be the focus of this call. We want to err in the direction of the underlying trend and we will do our best to identify that throughout the call.
This month's Conference Call will be held on Thursday February 15th at 7PM ET. Here are the Registration Details:
Every month I host a conference call for All Star Charts India Premium Members where we discuss ongoing themes throughout the India Share Market. We take a look at all of the NSE Indexes and Sectors as well as some of our own custom indexes. At Allstarcharts we have become known around the world for the top/down approach to stocks. After we analyze each of the indexes and sectors and have identified where the strength and weakness lies, then we break it down to individual stock opportunities. By having momentum, relative strength and market trend in our favor, the probabilities of success increase dramatically.
I don't like how many oversold conditions have been hit in the major indexes and most sectors. I've tried my best to point out the stocks showing both relative strength and momentum. But there are an awful lot of charts I see where oversold conditions in momentum is a problem. So the question becomes, is a retest of the lows necessary for stocks to continue higher?
The market is never going to give us what we want. We have to take what the market gives us. Play the hand we're given, not the hand we wish we had. What worked in one market environment is not going to work in another. That's why all those filters fail so frequently, because you're trying to take something from the market instead of taking what it is giving us.
This week, a spike in volatility caused forced selling in stock index vehicles that trickled down to ETFs and individual stocks. We did not see any stress, however, in credit markets, currencies or any of the commodities like Crude Oil or Gold. This is further evidence that we want to continue be buyers of weakness, like we have been throughout all of last year and most of 2016. There will be periods where we want to be sellers of strength, but I don't believe that is the correct approach today.
