HOT
What it looks at
Compare sector relative strength and volume to study changes across sectors.
How to read it
Useful for comparing sectors and following whether sector strength persists. Align data dates and volume measures, then assess the risks of the sector and of the instrument used for exposure separately.
Limits
Relative sector strength can reverse, and price and volume alone cannot establish capital flows. Concentration, leveraged instruments and execution prices can affect actual outcomes.
SnapBack
What it looks at
Distinguish recovery after a strong stock pulls back from a breakout after consolidation, so each price structure can be followed on its own terms.
How to read it
Useful for studying whether a rebound continues or a breakout gains support from later price moves. Identify the structure first, then follow the evidence supporting the initial reading.
Limits
Rebounds can stall and breakouts can reverse. Assess the two structures separately, allowing for changing market conditions and execution differences.
BIO
What it looks at
Read biotech sector trends alongside stock momentum and volume, while tracking risks around clinical and regulatory events.
How to read it
Useful for comparing sector and stock performance and tracking research states around company events. Read changes in model record status alongside event dates.
Limits
Clinical or regulatory news can cause gaps that invalidate an earlier trend reading. Sector concentration, reduced liquidity and execution differences also affect outcomes.
Spread
What it looks at
Study how a stock’s recovery after a drawdown affects a call spread, bringing direction, premium cost, time remaining and volatility into one comparison.
How to read it
Useful for assessing cost and maturity trade-offs in a recovery scenario. Verify spread cost and valuation basis, then read stock returns and returns on the spread premium separately.
Limits
A spread can lose the premium invested; time decay, volatility and execution costs also matter. Historical option estimates use Black–Scholes with realized volatility, and the selected stock universe introduces survivorship bias. These are model estimates, not live trading results.
LC
What it looks at
Combine relative strength, price structure and peer performance to assess whether a stock’s strength has broader market support.
How to read it
Useful for comparing strong stocks and following whether their strength persists. Start with market risk, then examine the stock’s structure and peer performance.
Limits
Choppy markets can produce false breakouts, and peer support can weaken. Concentrated exposure and overnight gaps increase the risk of loss.