MarketChess

02Jan2:12 pmEST

Software Keeping Bears Soft

The strength seen in many of the software names housed the IGV and HACK ETFs (with the latter focused on cybersecurity issues), seems worthy of the a Steve Ballmer dancing GIF given the weakness in small caps and many biotechs today. Heck, even the mid-caps are weak in the MDY, sporting a similarly red, prominent candlestick on daily timeframes...

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02Jan11:07 amEST

Newfound Resolve for the New Year

Software, semiconductors (e.g. AMD), and overlapping China plays related to those two sectors are clearly stealing the show on the long side in this first trading session of 2020, so far. Their strength seems to be offsetting the weakness in small caps and biotech, too, with the IWM and IBB XBI all dipping slightly as I write this. Clearly, the...

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31Dec2:41 pmEST

Cheers to a New Year, New Decade

Impressive relative strength in IWM's small cap stocks, biotechs in the XBI ETF, as well as assorted other names like LULU NFLX TSLA is likely a positive sign for bulls that this mild dip is not too menacing. Of course, we are talking about a New Year's Eve trading session, which makes overanalyzing pretty much anything related to the markets...

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30Dec10:47 amEST

Did This Holiday Rally Really Go Off the Rails?

Seeing the Dow down 200 points right now may seem at odds with the notion of the "Santa Rally," encompassing the last five trading days of the year and spilling over into the first two sessions of the new year. However, as we noted with Members late-last week and over the weekend, it may very well be a situation where the extended rally prior...

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26Dec1:47 pmEST

Santa is Officially in Town

Santa Rally: The S anta Claus rally is a typical rise in stock prices during the last five trading days in December and the first two trading days in the following January. With the Santa Rally officially underway as we wind down 2019, it is fairly standard to see the likes of AMZN begin to catch a strong bid. We have been long Amazon...

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25Dec1:53 pmEST

George Washington's Bold Christmas Gamble

We often discuss the risk management aspects about trading and markets, be it position sizing, stop-loss placement, selectivity of actual trades placed, broad market and psychological considerations, not to mention external factors like earnings, known risk events, and so forth. All of those elements can go a long way towards sustainability as...

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23Dec11:36 amEST

Holiday Trading Theory 12/23/19 {Video}

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19Dec12:00 pmEST

They Sure Fixed That Stitch

Stitch Fix, the online personal fashion stylist, has experienced quite a few highs and lows, literally and figuratively, since its late-2017 IPO. Two years later, there have been more lows than highs, especially since the stock topped out dramatically back on September 2018 and subsequently swooned and then went through an extended "dead money"...

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18Dec1:01 pmEST

The Digestif Phase of the Holiday Rally

A digestif is an alcoholic drink served after a meal, intended to aid in the digestion of food.  In light of the FDX 10% selloff to reinforce just how bearish of a chart it is on intermediate-term timeframes the rest of the market could have easily used it as an excuse for a broad-based pullback. Instead, we have more of a mixed consolidation...

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17Dec12:04 pmEST

Peloton Pressing (and Pedaling) Forward

The declaration by Citron Research last week that Peloton was only a $5 stock masquerading as a momentum stock in the $30s served as a gut check for the recent IPO. Peloton initially sold off, as we often see initially after Citron vocally declares a bold short thesis via social media.  We always want to see how well or poorly a hot momentum...

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