PROFIT PATH REPORT: Market “Risk On” vs “Risk Off” and Flight to Safety
In times of economic optimism or a bullish market sentiment (“Risk On”), investors tend to favor high beta stocks, which often results in higher prices for these securities. On the other hand, when economic uncertainty or bearish sentiment prevails (“Risk Off), investors typically move away from these stocks, seeking the safety of more stable low […]
Profit Path Report – Stick to your “principles”
“The Principle of Polarity” in stocks is a fundamental concept in technical analysis – and it’s invaluable to us as traders trying to find the right stocks to work with. It explains that once a resistance level is surpassed, it transforms into a support level, and vice versa. This phenomenon occurs due to shifts in […]
Profit Path Report – FXI, KWEB – Institutional Money Rotation into China Stocks
Institutional money has been shifting to the FXI (iShares China Large-Cap ETF) and KWEB (KraneShares CSI China Internet ETF) markets in 2025 for a number of reasons: Economic Recovery in China: China’s economy has shown signs of recovery, including several measures to boost economic growth, attracting investors looking for growth opportunities. Valuation Opportunities: After […]
Profit Path Report – More downside for CAT?
More downside for CAT? From our own technical chart analysis, Caterpillar (CAT) started showing early weakness on Monday, January 27th 2025, gapping down and falling back into a downward sloping price channel. While we also conduct in-depth technical analysis (see chart below), our TST Trender algorithm indicator offers a convenient alternative. You can easily load […]
Profit Path Report – A piping hot coffee stock…
Is SBUX a buy right now? Let’s look at the details… As of Wednesday, January 29th, Starbucks (SBUX) has recently reported positive fourth quarter (FQ1 2025) earnings, and the stock is up 8% from the previous day’s close. From a technical standpoint, analyzing the SBUX weekly chart, August 12, 2024, was a strong trading week […]
Profit Path Report – Your CAT trade plan…
The SPY (S&P 500 ETF) has been in a long-term upward trend, approaching all-time highs, and has seen a 2.3% increase as of January 21st, 2025. Industrial stocks and Caterpillar (CAT) are once again on the rise as well. Here is our process for finding trades in CAT stock: Identify market sectors also experiencing upward […]
Profit Path Report – The only 2 stocks to watch right now…
After the broader markets pulled back at the start of 2025, volatility has crept into the S&P 500 (with the VIX rising above 20 as of early trading on January 25, 2024). With earnings season approaching and a slew of economic announcements slated for this coming week (including: PPI/CPI, Crude Oil Inventories, Retail Sales, Initial […]
Profit Path Report – Yields, Bonds & High Growth Stocks
As of early trading on Friday, January 10, 2025, the benchmark 10-Year Treasury Note Yield (TNX) has continued to climb on a weekly basis following a recent breakout. In an environment of rising rates, and with the 10-Year Yield potentially approaching the previous highs of October 2023 around 5.000%, this is likely to put pressure […]
I “SPY” Important Levels…
Many fund managers and market participants are still on holiday and will return during the week of January 6th. As we start 2025 and progress into the first quarter, it’s essential to establish a technical baseline for the S&P 500 (SPY) before the markets resume their full activity. Here are a few key technical occurrences […]
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 […]