One thing I know about this time of the year is that whipsaws thrive.
We call it Whipsaw Hunting Season.
The lack of liquidity, and lack of interest due to other life priorities, creates over-extended and exaggerated moves that otherwise would not be allowed to occur under normal supply and demand conditions.
But since the b-squads are on the desks, you regularly get failed moves this time of the year that result in very fast moves in the opposite direction.
For some great examples see $GDX in December 2016 and check out $TLT in December 2013, among many others.
These were nasty failed moves that ripped the short sellers' faces off into the new year.
We see these sorts of moves born around this time every single season. It's perfectly...
Welcome back to Under the Hood, where we'll cover all the action for the week ended December 23, 2022. This report is published bi-weekly and rotated with The Minor Leaguers.
What we do here is analyze the most popular stocks during the week and find opportunities to either join in and ride these momentum names higher, or fade the crowd and bet against them.
We use a variety of sources to generate the list of most popular names.
There are so many new data sources available that all we need to do is organize and curate them in a way that shows us exactly what we want: a list of stocks that are seeing an unusual increase in investor interest.
Click here for a behind-the-scenes look at our process.
Whether we’re measuring increasing interest based on large institutional purchases, unusual options activity, or...