From the Desk of Kimmy Sokoloff

October turned out to be a decent month for the overall market.

Let's see what November brings.

From the Desk of Steve Strazza @sstrazza and Alfonso Depablos @Alfcharts

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...

From the desk of Steve Strazza @Sstrazza.

Welcome to Under the Hood, where we'll cover all the action for the week ended October 28, 2022. This report is published bi-weekly and rotated with our The Minor Leaguers.

What we do here 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.

Click here for a behind-the-scenes look at our process.

Whether we’re measuring increasing interest based on large institutional purchases, unusual options activity, or...

From the Desk of Kimmy Sokoloff

Today was a nice consolidation day, with the indices just chopping around. If the indices can continue to trade sideways, we can hopefully work off overbought levels.

I'd like $SPX 3,835 to hold if this market wants to trend higher.

From the Desk of Kimmy Sokoloff

Happy Halloween!

They pinned the close on Friday on the $SPX at 3,900. The "W" pattern I spoke about a month back seems to be in play. We have resistance now at 3,945.

The largest insider buy on today's list is a Form 4 filing by CD&R Boulder Holdings LP.

The firm disclosed the purchase of approximately $6 million worth of shares in Beacon Roofing Supply $BECN.

For so long it had been Bigs over Smalls.

People would even complain that it was only 5 stocks driving market returns.

Do you remember how hilarious that was?

Good, because it's so much funnier now.

Get this, those same people complaining that only 5 stocks were driving the market higher are now complaining that those 5 stocks aren't participating.

Market returns are currently being driven by all the other stocks. Those 5 big massive ones are doing their very best to hold the market down, but it's not working.

Investors are buying stocks, whether you like it or not. And they're buying the smaller ones at a much faster rate than their larger-cap counterparts.

Look at the Small-cap Russell2000 hitting new Year-to-Date highs vs the Large-cap S&P500.

And of course Small-caps are also hitting new 16-month...

There are 30 stocks in the Dow Jones Industrial Average.

This is the most important stock market index, both currently and of all-time.

In case you missed my explanation, you can catch up here.

Of the 30 stocks, 5 of them are already at New All-time Highs (2 more that are no longer in the Dow also closed at New All-time Highs).

And several more Dow Components are just a few percentage points away.

New all-time highs are NOT a characteristic of downtrends.

An expansion in new highs is NOT weak breadth.

Here's a Dow component that has been basing for a while. ...

Thanks for all the great comments and emails.

I'm glad to hear how well you guys are doing in this environment.

But keep in mind that not everyone looks at the market the way you and I do.

Some people out there think the Dow Jones Industrial Average is beneath them.

Some people like to pretend to be smart and wait for computers to tell them if stocks are going up, instead of just counting.

Price weighted indexes don't seem to be good enough for some of their ...

From the Desk of Steve Strazza @Sstrazza and Alfonso Depablos @AlfCharts

Our International Hall of Famers list is composed of the 100 largest US-listed international stocks, or ADRs. We’ve also sprinkled in some of the largest ADRs from countries that did not make the market-cap cut. 

These stocks range from some well-known mega-cap multinationals such as Toyota Motor and Royal Dutch Shell to some large-cap global disruptors such as Sea Ltd and Shopify.

It’s got all the big names and more--but only those that are based outside the US. You can find all the largest US stocks on our original Hall of Famers list.

The beauty of these scans is really in their simplicity.

We take the largest names each week and then apply technical filters in a way that the strongest stocks with the most momentum rise to the top.

Based on the market environment, we can also flip the scan on its head and filter for weakness.

Let’s dive in and take a look at some of the most important stocks from around the world.

Here’s this week’s list:

...

From the Desk of Kimmy Sokoloff

Apple saved the day, and the market followed along. I mentioned $AAPL in today's Morning Briefing, noting that if it gets above 146.60 it can head to 149.

Well, it surpassed those levels.

From the Desk of Kimmy Sokoloff

It was a big earnings night last night, with $AAPL up and $AMZN down.

Futures are negative this morning. I'd like to see the $SPX hold 3,772. To continue higher, we must stay above 3,800 for a potential move to 3,820.