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CEO Rady Continues To Buy AAT Shares

August 29, 2022

Ernest S. Rady, the chairman and CEO of American Assets Trust $AAT, continues to appear on our list with his eighth Form 4 filing in the trailing month.

Rady reported his latest purchase on Friday, revealing another 25,000 shares, equivalent to $719,600.

The Stock Market Wrecking Ball

August 28, 2022

There's one major catalyst that can be a wrecking ball in a potential bull market for stocks.

What's going to stop a year-end rally?

I think if there's anything that can stop it, it's further strength in the US Dollar.

This summer, the markets have only reiterated the negative correlation between stocks and the US Dollar.

A little bit of dollar weakness over the past 6 weeks, or lack of progress to be more accurate, sparked a rally in stocks and crypto assets.

But as Dollar strength came back recently, the pressure on stocks and crypto has returned.

So let's take a closer look.

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Taking Another Crack at Natty Gas

August 26, 2022

From the Desk of Ian Culley @IanCulley

Back in early July, we were looking to buy a bounce in natural gas. Let's just say it was a success, as our target was hit within weeks.

But you have to remember the environment back then. Commodities had experienced a broad sell-off. And natural gas and agricultural contracts such as wheat and cotton had recently experienced drawdowns exceeding 40%.

It might have seemed like a tough call at the time, but for us it was clear. The risk/reward was in our favor as natty pulled back to test a key level. It was that simple.

Fast forward almost two months, and we’re back for more. Our risk is well-defined, and cyclical areas of the market are assuming leadership.

Today, I’ll share how we’re gearing up for a fresh leg higher in natty gas.

First, let’s take a look at the weekly chart of natural gas futures.

Regardless of the...

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The Hall of Famers (08-26-2022)

August 26, 2022

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, which you can check out here.

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 sort the remaining names...

[PLUS] Weekly Observations & One Chart for the Weekend

August 26, 2022

From the desk of Willie Delwiche.

Fighting inflation is job number one for the Fed right now. Jerome Powell made that crystal clear in his remarks from Jackson Hole on Friday. He discussed the deleterious effects of inflation and the risks that come with prematurely claiming victory (and loosening policy). This could lead to more persistence in raising rates, more tolerance of economic weakness, and more willingness to keep rates high for an extended period of time. In this environment, inflation data will be scrutinized more than ever. While inflation expectations get a lot of focus, they are much more closely related to where inflation has been than where it is going. There is an 85% correlation between 5-year CPI inflation and current 5-year inflation expectations. That drops to just 26% when inflation expectations are moved ahead 5 years (so that the inflation data and expectations data are covering the same time period).  If inflation stays high, expectations will become further unanchored. Alternative measures of inflation (like the median CPI from the Cleveland Fed and the trimmed-mean PCE from the Dallas Fed) show that the central tendency for inflation...

All Star Options

[Options Premium] Selling Some Shiny Premium

August 26, 2022

"Jackson Hole" has delivered volatility once again. Seems we can always expect fireworks when the bigwigs gather at a luxury resort in the mountains. Must be nice...

We're going to take advantage of some of this volatility by positioning into a delta-neutral credit spread in the highest implied volatility ETF currently on the board.

Let's get to it.

Activist Cevian Buys More ALV

August 26, 2022

The largest insider transaction on today's list is a Form 4 filing by Cevian Capital.

Cevian reported an $11.4 million purchase in Autoliv $ALV, the world’s biggest manufacturer of airbags and seatbelts for cars.