After a historic rally fueled by Coffee and Cocoa, our Soft Commodity Index is finally hitting a major wall.
With the price stalling at the 2011 highs and signs of distribution setting in, it’s time to shift our focus from chasing strength to hunting weakness.
One commodity, in particular, is standing out on the downside, and it's giving us a sweet setup to take advantage of.
Let's talk about it...
Our Soft Commodity Index is running into resistance 🛑
Our Soft Commodity Index is an equal-weight basket of Cotton, Coffee, Cocoa, and Sugar.
It has increased in price by more than 150% over the last 5 years. This was primarily driven by historic uptrends in Coffee and Cocoa, which rallied 350% and 500%, respectively.
The complex was the home to some of the best trends in commodities for years.
During a recent Analyst meeting, it was discussed now that we're getting further confirmation that the lows may be in for the broader stock market, it's time to start shifting our attention to stocks that displayed strong relative strength in recent months.
The chart of Groupon $GRPN (remember them?) is exhibit A for relative strength as it's on the verge of printing new multi-year highs. And the team feels if this one goes, the stock could double. If it does, some strategically selected long calls could pay handsomely.
Our International Hall of Famers list is composed of the 100 largest US-listed international stocks, or ADRs.
We've also sprinkled in some of the largest ADRs from countries that did not make the market cap cut.
These stocks range from some well-known mega-cap multinationals such as Toyota Motor and Royal Dutch Shell to some large-cap global disruptors such as Sea Ltd and Shopify.
It's got all the big names and more–but only those that are based outside the US. You can find all the largest US stocks on our original Hall of Famers list.
The beauty of these scans is really in their simplicity.
We take the largest names each week and then apply technical filters in a way that the strongest stocks with the most momentum rise to the top.
Based on the market environment, we can also flip the scan on its head and filter for weakness.
Let's dive in and take a look at some of the most important stocks from around the world.
Welcome to TheJunior International Hall of Famers.
With the goal of finding more bullish setups, we have decided to expand one of our favorite scans and broaden our regular coverage of the largest US-listed international stocks, or ADRs.
This scan is composed of the next 100 largest stocks by market cap, those that come after the top 100 and are thus covered by the International Hall of Famers universe.
Many of these names will someday graduate and join our original International Hall Of Famers list. The idea here is to catch these big trends as early on as possible.
Let’s dive right in and check out what these future big boys are up to.
This is our Junior International Hall of Famers list:
Click table to enlarge view
And here’s how we arrived at it…
We removed laggards which are down 5% or more relative to the ACWI Ex. U.S. Index $ACWX over the trailing...
There is a real power to always staying open-minded.
We can’t be dogmatic with our approach or our positions on the market. It’s dangerous.
The data is always changing, and we need to be nimble and ready to change with it.
That brings me to the point I’ve been thinking about more than anything lately.
I think it is absolutely imperative that we remain open to the possibility of a v-bottom.
While there is plenty of data that suggests this is more likely to be a prolonged bottoming process… there is also a growing amount of evidence indicating we could rip right back to where we were.
I mean, it’s already happening overseas.
MSCI country indexes like Germany, the United Kingdom, Japan,...
If you missed it live, I reviewed the broad market setup and what the recent "follow-through day" is signaling, if anything.
There is now an increasing chance that the recent lows are going to hold for a meaningful amount of time. This does not mean that volatility is going to rapidly cool any time soon -- so we'll have to continue being tactical.
Additionally, we review three profitable exits and one trade that is really starting to shape up for us at the perfect time.
Check it out here:
Sean McLaughlin | Chief Options Strategist, All Star Charts
I’m thrilled to announce that earlier this year I was named Chief Market Strategist of All Star Charts Research.
As many of you know, I have been the full-time Director of Research at All Star Charts for the past 5 years, and have run the entire analyst team during this period.
JC Parets and I together assembled what has turned into one of the greatest teams of traders and analysts on Wall Street.
This team has helped me deliver the daily research and put out all the great analysis and trade ideas that you see here today.
Training our research analysts and watching them grow and develop over the years is one of the things I’m most proud of at ASC. These guys are absolute killers.
We have one of the most talented and deepest teams in the business, and with the support of guys like Alfonso, Sean, and Louis, I am confident that we’re...
Dividend Aristocrats are easily some of the most desirable investments on Wall Street. These are the names that have increased dividends for at least 25 years, providing steadily increasing income to long-term-minded shareholders.
As you can imagine, the companies making up this prestigious list are some of the most recognizable brands in the world. Coca-Cola, Walmart, and Johnson & Johnson are just a few of the household names making the cut.
Here at All Star Charts, we like to stay ahead of the curve. That's why we're turning our attention to the future aristocrats. In an effort to seek out the next generation of the cream-of-the-crop dividend plays, we're curating a list of stocks that have raised their payouts every year for five to nine years.
We call them the Young Aristocrats, and the idea is that these are "stocks that pay you to make money." Imagine if years of consistent dividend growth and high momentum and relative strength had a baby, leaving you with the best of the emerging dividend giants that are outperforming the averages.
In this scan, we look to identify the strongest growth stocks as they climb the market-cap ladder from small- to mid- to large- and, ultimately, to mega cap status (over $200B).
Once they graduate from small-cap to mid-cap status (over $2B), they come on our radar. Likewise, when they surpass the roughly $30B mark, they roll off our list.
But the scan doesn't just end there.
We only want to look at the strongest growth industries in the market, as that is typically where these potential 50-baggers come from.
Some of the best performers in recent decades – stocks like Priceline, Amazon, Netflix, Salesforce, and myriad others – would have been on this list at some point during their journey to becoming the market behemoths they are today.
When you look at the stocks in our table, you'll notice we're only focused on Technology and Growth industry groups such as Software, Semiconductors, Online...