Shorting REITs while bullish?
Even though we’re feeling bullish about REITs at the moment, we also see data moving together to give us a short opportunity in one of them. Let me explain. Given: The Real Estate (XLRE) sector is coming under some pressure here in December. A rising US Dollar and interest rate environment is whipping up some […]
Disney : The “Rising Wedge” Ride
Disney (DIS) has experienced a notable rebound after a downtrend, recently gapped up on 11/14/24, and started forming a “rising wedge pattern.” A rising wedge pattern is a technical analysis chart pattern that signals a “potential” reversal in an upward price trend. The defining characteristics of this pattern typically include: Converging Trend Lines: The pattern […]
PROFIT PATH REPORT: How the Market “Conducts” Itself…
Entering December and nearing the year’s end, a reflection reveals that Artificial Intelligence (AI) and the semiconductor industry (particularly Nvidia, represented in SMH) have significantly bolstered the broader QQQ and S&P 500 indexes. The correlation between the semiconductor industry (SMH) and both the QQQ (which is over 50% technology-weighted) and the S&P 500 has been […]
PROFIT PATH REPORT: “Hammer Time” for LLY
In technical analysis, one of the “candlesticks” we can look for in a downtrend and after a significant sell off is called a “hammer” candle. This candlestick pattern often serves as an early indication of a potential bullish reversal, signaling that selling pressure is beginning to wane. The hammer candlestick is differentiated primarily by three […]
PROFIT PATH REPORT: New pressure on stocks?
In general, there’s a negative correlation of the US Dollar (DXY) with US equities (S&P 500 – SPX), suggesting that when the value of the US dollar increases, the S&P 500 tends to decrease, and vice versa. The 1-year correlation coefficient between the U.S. Dollar Index (DXY) and the S&P 500 (SPX) is approximately -0.80. […]
PROFIT PATH REPORT: Do we have the momentum?
With the recent U.S Presidential election results finalized, markets have reacted positively with momentum, experiencing a swift upward surge in prices over a short period. One of the market gauges we can use to assess market momentum is the Momentum Factor ETF (MTUM), which measures the performance of U.S. large & mid cap stocks that […]
PROFIT PATH REPORT: Crypto on the Nasdaq
Several equities exhibit a positive correlation with the price of Bitcoin, and can be traded on U.S. stock exchanges as a proxy. One notable example is Coinbase (COIN – Nasdaq), one of the largest digital currency exchanges in the United States, which facilitates the buying, selling, storing, and transferring of cryptocurrency. The 60-day rolling correlation […]
PROFIT PATH REPORT: Don’t Forget to Stop and Smell the Lily (LLY)
Don’t Forget to Stop and Smell the Lily (LLY Eli Lilly & Co. (LLY) reported 3rd quarter 2024 earnings of $1.18 per share on October 30th, 2024 before the market opened. This missed consensus analyst estimates of $1.47 by -0.29. Upon the market opening 10/30/24, LLY gapped down $105.08 per share from the previous day’s […]
PROFIT PATH REPORT: The Apple of my (Market) Eye
Apple, Inc. (AAPL), as many know, plays a key role in the equity market: as a top “risk-on” trading name, a longer term holding in many institutional/individual portfolios, and its impact on the broader markets. Apple is the #1 weighted holding in both the S&P 500 (SPY) and Nasdaq (QQQ) Indexes: So, as active market […]
PROFIT PATH REPORT: Flip a (Bit)coin – Heads or Tails?
Many market participants are getting excited about Bitcoin again. It’s not without good reasons: Recent bullishness coming back in early September 2024 Price bouncing up from around the former August 2024 lows Ample liquidity coming into global markets Price as of intra-day morning 10/15/24 is trading in a tight indecision “doji” candle, and holding above […]