You're probably hearing a lot about SPACs these days. SPAC technically stands for "Special-Purpose Acquisition Company. So in this video I chat with Howard about these "Blank Check" vehicles. Historically they haven't exactly had the greatest reputation, but supply and demand is trying to prove otherwise.
The world is becoming SPAC crazy! Is it a good thing? It seems like it is. Let's discuss!
After 33 months of zero progress, the market is proving that it is finally time for Transportation stocks to move forward. We call these big bases. It was a well-deserved consolidation in prices after a historic run throughout 2016-2017.
This all seems perfectly normal to me. Not sure why some media outlets are telling investors about turmoil not seen since 2008. Maybe they're looking at the charts upside down? Or blindfolded perhaps?
Here is the second most important stock market index on planet earth breaking out of a long consolidation to new all-time highs:
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 and into mid-cap status (over $2B) then they enter our radar.
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. Some of the best-performers in recent decades – from the likes of Priceline, Amazon, Netflix, and Salesforce, to a myriad of others… they all would have been on this list at some point.
When you look at the stocks in our table you will notice we are only focused on technology and growth industry groups such as Software, Semiconductors, Online Retail, Solar, and more.
The curious case of higher implied volatility in out-of-the-money calls than the correspondingly distant OTM puts continues in a lot of high flying names. This is neither good nor bad, rather a data point we can use to our advantage when crafting bullish trade designs.
One such name that's on our radar which also made the cut in ASC's latest Under the Hood report is everyone's favorite blue bird -- Twitter $TWTR.
For our timeframe, we prefer to look bigger picture and not get caught up in the day to day noise.
That's why we have our Monthly Candle Strategy Sessions and Monthly Conference Call where we focus on the broader themes and how to take advantage of them in the market.
One of those themes we've discussed ad-nauseam is the "reflation trade", so today we're getting our magnifying glass out to look at a few daily charts that suggest more trouble/volatility could be ahead for cyclical assets in the near-term.
Last week’s Mystery Chart featured an ominous rounding top, complete with price violating key lows as it aggressively collapsed.
Today, we’re going to turn that frown upside down. It actually wasn’t a rounding top at all.
We inverted the chart, as we often do, in an effort to make some of you out there aware of any bullish or bearish biases you may have.
In other words, if you were buying this chart (which most of you were NOT), you are really a seller. And if you’re a “seller” who only bought the Mystery Chart because you have a bullish bias, you might now be wondering why you would ever bet against such a nice base.
When we flip this chart around, you can now see we’re looking at a massive base on Japan’s Nikkei 225.
In this post, we’ll check in on the Nikkei and see what market breadth is signaling about the internal strength of the Japanese stock market.
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.
Like we discussed last week, Equity Markets are becoming more of a mixed bag. This week, we'll expand on this theme.
Prices continue to flirt with the risk levels we've outlined for various assets in recent weeks. We still believe the weight of the evidence is in favor of the bulls, but with so many assets at inflection points, we're paying close attention to every new day's data as it comes in.
Welcome to our "Under The Hood" column for the week ended October 2, 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.
This week I chat with Howard about the things that he just doesn't think are going to happen. What can we check off? He mentions major moves in the Nasdaq and also Apple missing on a quarter or new product.
He then flips the script and asks me about what's changed in my life since becoming a father. Tune in to find out!