Eventually, even thick skulls like mine get the point.
Pretty much all summer long, the team here at All Star Charts has been mentioning Enphase Energy $ENPH as a strong outperformer that is on the verge of a potential epic breakout. During today's internal Analyst meeting, the team agreed that now is finally the time to get involved.
JC and I did a video on a possible trade in $ENPH ahead of today's Fed Reserve Interest Rates announcement. We did just get into it moments ago. Enjoy this video to get a great idea of why we like this trade and how we'll play it:
We've seen these cycles play out over and over again throughout many decades.
But how do we profit from it all?
Well, for me, I like to use seasonal tendencies to help put the current market environment into context.
It's not about today and tomorrow, and it's not about next year. Where are we right now?
Our Cycle Composite does a good job of helping us put together a road map for this market's cycle.
On the left side of this chart we have the 2021 seasonal trends and on the right we have the 2022 trends.
Last year's composite includes every year since 1950, every post election year since 1950 and every year ending in 1, to include the decennial cycle. Look how closely last year's actual results mirrored the composite:
The US Dollar Index $DXY is on cruise control with nothing ahead but an open road.
The few obstacles that stood in its way are falling to the wayside. That’s right – the handful of commodity currencies that have refused to roll over during the past six months are beginning to slip.
Before we get to these fresh breakdowns, let’s set the scene with two currencies that have been anything but resilient – the euro and the British pound.
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 the stock is about to move in...
Welcome back to our latest Under The Hood columne, where we'll cover all the action for the week ended September 16, 2022. This report is published bi-weekly and rotated with our Minor Leaguers column.
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.
More Charts than Football? Or the other way around?
I definitely got a healthy dose of both.
And this one for me definitely stands out.
The way I learned it from Ralph Acampora many years ago was, "DON'T FIGHT PAPA DOW"
So here's the Papa Dow he was referring to. I included the key levels we've been focused on since the 2018 correction. They've really helped and I think they continue to.
But for today, let's focus on the fact that prices are both below overhead supply and above support from the summer lows.
Spoiler alert: a fresh leg lower from gold doesn’t bode well for raw materials or the prospects of sustained inflation.
Nevertheless, inflation hasn’t gone anywhere, at least not yet.
As long as that’s the case, we expect commodities to see further upside, albeit not in unison. The broad rally witnessed at the end of 2020 into 2021 is unlikely to be repeated in the near future.
Regardless, stellar buying opportunities will present themselves.
We aren't going to let the bifurcated nature of commodity markets stop us from catching the next explosive rally.
In other words, the supply and demand dynamics for copper don't affect our decision to trade soybeans or wheat.
Instead, let's trade what is in front of us – even as...