Finally the markets broke free of their dreaded ranges! This week’s price action was very strong and appears to be signaling a break out (pending follow through). We’ve seen some strong new leadership in stocks and that’s encouraging.
So what’s the best way to celebrate? Studying up. Here’s this week’s edition of Top Trading Links.
Market & Trading Insights
- @harmongreg looks at the recent base in the S&P 500 SPDR ETF. He makes some excellent observations as to why the market can go higher and notes how high it can go.
- @AlmanacTrader looks at the huge potential upside in oil. As Jeff mentions, we’ve just entered the seasonally bullish period and sentiment is still so negative. It’s sinful to discount a potential further advance.
- @gregguenthner says cyber security stocks are the buy and forget group of 2015. With the monstrous earnings beats across the industry and continuous catalysts, it’s hard to disagree.
- @ukarlewitz examines just how fruitless it’s been to try and gauge breadth divergences as a market warning sign. In hindsight we can clearly see they have worked, but there’s really been no consistent way to trade off of them.
- @steenbab composed this piece on mental toughness. It links to a lot of great reads and shares the reminder that the time we most need to be mentally tough is after a series of gains.
Investing Insights
- @millennial_inv explains why it’s best for concentrated value investors to stay away from the cheapest stocks on a book value to price basis. Speaking from my own experience, often times those book values are rapidly shrinking.
- @awealthofcs shared a list of asset allocation intangibles. This post is intended for the average investor, but traders absolutely need to have reasonable expectations and know themselves.
- Gestaltu.com shared a great piece on narratives. It’s incredibly hard to keep a balanced mind-set in the markets. That’s why See It Market’s slogan is tune out the noise!
Other News
- Doesn’t it feel like nearly every central bank is cutting rates? Well, they are. @mktoutperform takes a look. “If everyone debases, no one debases”
- @sirmarket put together an awesome post on all things hyperloop. The future is amazing!
Be sure to read past editions of Top Trading Links. Thanks for reading! Have a great rest of the weekend!
Follow Aaron on Twitter: @ATMcharts
No positions in any mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
