Our Chinese Stocks Idea Is Taking Off Like a Shot
U.S. indexes are having a relatively quiet start to this holiday-shortened trading week. We see them spinning their wheels near all-time highs. Bearish sentiment remains elevated, delivering a ready-made “wall of worry” for the bull market to climb. But, while the action (or lack thereof) here in the United States seems sleepy and subdued, events…
TheoTrade’s Tale of the Tape: Tech’s Timely Triumph
We just saw both the Nasdaq and S&P 500 close at their highest weekly level in history. From a purely technical standpoint, this would imply that another leg higher in stocks is in the works. But all year, we’ve heard stories about bad market breadth, negative market sentiment, tariff tantrums, a clueless Fed, and more.…
Prepare for a Massive Gamma Squeeze (It’s Coming)
Right out of the gate today we hit the upper edge of the SPX 97-point expected move… and stopped. The VIX is sloshing around on the floor, below 15 and falling. For the week, we’re “massively unchanged” on very low volume. For weeks on end we’ve been trading in more or less a 200-point range,…
New All-Time Highs Are on the Way - Prepare Now
Stocks are looking to cap off another impressive week, and register their highest weekly closes in history. Of course, we’ll see how we shape up into the closing bell, but the recent price action really is a testament to the idea that sentiment follows price, not the other way around. Here we have stocks within…
Inflation Is Back - Here’s How to Play It
The market reaction was fairly muted, but the data’s there to see: According to CPI and PPI, inflation’s heating back up. Fed Chairman Powell’s relatively hawkish Congressional testimony this week indicated the central bank is still concerned with it. But hey, even if you don’t trust the data - or Powell, for that matter -…
The Big Vulnerability in This "Invincible" Market
Headline risk… geopolitical chaos… a shakeup of the international order… trade war… radical surgery for the federal government… inflation… There’s a lot going on right now, but the markets have barely budged. As of today, we’re still well inside the weekly expected move - more on that in a few. That’s led a lot of…
Zooming In on China - Here’s the Real Story
A few weeks ago, I shared my thoughts on how Trump’s presidency could turn out to be bullish for the Chinese equity market. I’m still very much in this camp, but now I want to take it a step further, especially after recent headlines of individuals like David Tepper boosting his allocation to China. I…
Stocks Are Still Spinning Near All-Time Highs - Here's What's Next
Traders flipped the script for the big indices, and we saw a nice bid take shape under stocks coming out of the weekend. The past two weeks have been a kind of slow-motion Groundhog Day for stocks - selling on Monday, rallying Tuesday to Thursday, and selling on Friday. We’ll see if we can break…
There’s a New Ballgame in Gold and Materials Stocks
The mainstream media is having a freakout about the tariffs. We usually hear volumes about the potentially inflationary impact of the policy. Breathless, panicked headlines abound. One of my biggest takeaways here at the outset of the Trump administration is that the playbook has changed. The debt-based economy that we've become so accustomed to has…
TheoTrade’s Tale of the Tape: Rate-Sensitive Sectors Rip Higher
Over the past few weeks, we’ve seen the market’s trading range become increasingly narrow. But there is some context to this, because we’ve seen tremendous intraday volatility, or wide trading ranges on the daily timeframe. This is why I love to say, “When in doubt, zoom out.” Because even though there’s a healthy level of…