By J.C. Parets & All Star Charts
Thursday, 17th November, 2022
1/ Solar Turns Up the Heat
2/ BABA Bounces Back
3/ Turkey’s Trend Reversal
4/ Gold Stocks are Ready to Shine
Investopedia is partnering with All Star Charts on this newsletter, which both sells its research to investors, and may trade or hold positions in securities mentioned herein. The contents of this newsletter are for informational and educational purposes only, however, and do not constitute investing advice.
1/ Solar Turns Up the Heat
As participation continues to expand to new sectors and industry groups within the U.S. equity market, it is important not to dismiss groups that have shown leadership over longer timeframes. Solar energy stocks have been consistently outperforming year-to-date.
2/ BABA Bounces Back
Stocks around the world continue to show life, as rotation and outperformance from international equities becomes more pronounced.
Today, Chinese technology stocks are atop the global leaderboard again. Ecommerce giant Alibaba (BABA) is leading the rally as investors bid up the stock following a strong earnings report. Other Chinese ecommerce platforms, including JD.com (JD) and Pinduoduo (PDD), report tomorrow and next week, respectively.
When we look at the full price history of BABA, we can see the principle of polarity taking effect as buyers stepped in and defended the all-time lows from 2015 last month. This is a logical place for the stock to bottom.
This week, BABA is confirming a bullish momentum divergence in the weekly RSI-14 as price hooks higher, reclaiming a shelf of pivot lows from the first half of this year. As such, a major trend reversal could be underway. If BABA manages to find a floor, it could bode well for international equity indexes.
3/ Turkey’s Trend Reversal
We’re seeing resurgence from international stocks, as strength expands across the board.
4/ Gold Stocks are Ready to Shine
With the U.S. Dollar Index (DXY) finally rolling over, a growing list of stocks and commodities are catching a bid and trending higher.
Commodity-oriented stocks benefit most from a falling dollar.
—
Originally posted 17th November, 2022
Disclosure: Investopedia
Investopedia.com: The comments, opinions and analyses expressed herein are for informational purposes only and should not be considered individual investment advice or recommendations to invest in any security or to adopt any investment strategy. While we believe the information provided herein is reliable, we do not warrant its accuracy or completeness. The views and strategies described on our content may not be suitable for all investors. Because market and economic conditions are subject to rapid change, all comments, opinions and analyses contained within our content are rendered as of the date of the posting and may change without notice. The material is not intended as a complete analysis of every material fact regarding any country, region, market, industry, investment or strategy. This information is intended for US residents only.
Disclosure: Interactive Brokers
Information posted on IBKR Campus that is provided by third-parties does NOT constitute a recommendation that you should contract for the services of that third party. Third-party participants who contribute to IBKR Campus are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.
This material is from Investopedia and is being posted with its permission. The views expressed in this material are solely those of the author and/or Investopedia and Interactive Brokers is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to buy or sell any security. It should not be construed as research or investment advice or a recommendation to buy, sell or hold any security or commodity. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
Disclosure: ETFs
Any discussion or mention of an ETF is not to be construed as recommendation, promotion or solicitation. All investors should review and consider associated investment risks, charges and expenses of the investment company or fund prior to investing. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
Disclosure: Forex
There is a substantial risk of loss in foreign exchange trading. The settlement date of foreign exchange trades can vary due to time zone differences and bank holidays. When trading across foreign exchange markets, this may necessitate borrowing funds to settle foreign exchange trades. The interest rate on borrowed funds must be considered when computing the cost of trades across multiple markets.
