Sector rotation continues to be a major driving factor in this market.

We talked about it earlier this week in our LIVE Strategy Session. 

While some sectors and industry groups have been taking a breather, after these historic runs, other stocks have been catching a bid - things like Medical Equipment, Airlines and now Energy stocks.

The one constant, however, is the rotation OUT of Consumer Staples.

This defensive sector consistently outperforms when stocks are under pressure, and when it's a less than ideal environment to be putting risk on in equities.

This is the opposite of that.

Look at the new all-time lows for Consumer Staples relative to the S&P500:

And while Consumer Staples tend to underperform in healthy environments, it's the Consumer Discretionary stocks that outperform the broader markets during the good...

The commodity bears are going into hibernation.

Today was the best day in years for commodities relative to stocks and bonds. 

Inflation expectations are hitting a fresh 30-month high, with crude oil's price breaking out to 10-week highs.

We think this is the beginning of a much longer period of commodity outperformance.

A few weeks ago, we told you a big move in the energy markets was coming. We think this recent price action has marked the beginning of that move.

In addition, we outlined why we're buying copper futures last week, and so far, that trade has been a home run.

What's next?

We think aluminum futures are up next....

As stocks continue to slide, there are certain sectors and individual names that are beginning to reveal their strength.

It is times like these that offer better than average potential rewards to risk if we mind our risks carefully.

Today's trade is in a stock that looks to be emerging from a two-year consolidation that has come at the end of a massive 10-year base!

In today’s Daily Digest, we’ll review the following:

1. No new positions today.
2. Defensive adjustment to XOP position.
3. No exits since the last report.
4. Current status of open campaigns.
5. Volatility Snapshot.

Let’s dig in!

From the desk of Steve Strazza @Sstrazza

Our Hall of Famers list is composed of the 150 largest US-based stocks.

These stocks range from the mega-cap growth behemoths like Apple and Microsoft – with market caps in excess of $2T – to some of the new-age large-cap disruptors such as Moderna, Square, and Snap.

It has all the big names and more.

It doesn’t include ADRs or any stock not domiciled in the US. But don’t worry; we developed a separate universe for that. Click here to check it out.

The Hall of Famers is simple.

We take our list of 150 names and then apply our technical filters so the strongest stocks with the most momentum rise to the top.

Let’s dive right in and check out what these big boys are up to.

Here’s this week’s list:

*Click table to enlarge view

We filter out any laggards that are down -5% or more relative to the S&P 500 over the trailing month.

Then, we...

To become better investors and traders, it’s natural for our minds to gravitate toward the mechanics of investing. We reach for the best research, systems, chart patterns, risk management strategies, and indicators—the list is endless.

And rightly so. These elements form the backbone of trading. I provide research every day with the intention of offering a valuable filter to help people focus on the most critical aspects of trading and ignore the noise.

But as essential as these tools and strategies are, there’s something even more fundamental—a foundation beneath the foundation.

Well-being.

This might not come as a revelation, given the growing cultural recognition of self-care, but consider this post a gentle reminder to pause and check in with yourself.

Are you attending to the things in your life that truly require your attention

• Are you getting enough sleep?
• Are your dietary habits supporting your energy and focus?
• Are you moving your body regularly, even if just a little each day?
• Are you nurturing meaningful relationships or spending time in way that recharge you?

Here’s why this is so...

From the Desk of Steve Strazza @Sstrazza

We love our bottoms-up scans here at All Star Charts. We tend to get really creative when making new universes as we want to be sure they will deliver us the best opportunities the market has to offer.

However, when it comes to this one, it couldn't be any simpler!

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 stocks.

Welcome to The Junior Hall of Famers.

This scan is composed of the next 150 largest stocks by market cap, those that come after the top 150 and are thus covered by the Hall of Famers universe. Many of these names will someday graduate and join our original Hall Of Famers list. The idea here is to catch these big trends as early on as possible.

There is no need to overcomplicate things. Market cap is a quality filter at the end of the day. It only grows if price is rising. That's good enough for us.

The bottom line is it is a bull market. We...

Just a quick programming note. The US Markets are closed today for a national day of mourning, after the passing former US President Jimmy Carter.

We'll be back to our regularly scheduled program tomorrow and every weekday after that. Make sure to save this link as a favorite to join us 8:30-10AM ET daily on The Best Morning Show in Finance.

The S&P500 is less than 3% away from making new all-time highs, but investors are losing their minds. 

You notice how everyone is now a "breadth expert"? One by one, they're all out there mansplaining breadth deterioration to anyone who will listen.

The odd thing about these johnny-come-lately breadth "experts", is that none of them include sector rotation into their weak attempts at describing the current market breadth. 

...

Today's trade offers a nice opportunity to add some diversification to my mostly long book.

It's no secret that there has been a lot of weakness that has been masked by the performance of the broader indexes. 

We've got a well-diversified business that is showing signs of completing a pretty large top, so it might offer us some alpha on the downside if weakness spreads.

In today’s Daily Digest, we’ll review the following:

1. No new positions today.
2. Defensive adjustment to ITB position.
3. No exits since the last report.
4. Current status of open campaigns.
5. Volatility Snapshot.

Let’s dig in!