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

1. No new positions today.
2. Defensive adjustment to XME 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

Welcome to The Minor Leaguers.

We've had some great trades come out of this small-cap-focused column since we launched it back in 2020 and started rotating it with our flagship bottom-up scan, Under the Hood.

For the first year or so, we focused only on Russell 2000 stocks with a market cap between $1 and $2B.

That was fun, but we wanted to branch out a bit and allow some new stocks to find their way onto our list.

We expanded our universe to include some mid-caps.

Nowadays, to make the cut for our Minor Leaguers list, a company must have a market cap between $1 and $4B.

And it doesn't have to be a Russell component — it can be any US-listed equity. With participation expanding around the globe, we want all those ADRs in our universe.

The same price and liquidity filters are applied. Then, as always, we sort by proximity to new...

JC here.

I'm out of town this week. So in lieu of the usual daily note, we've arranged for guest posts written by each of the members of the All Star Charts research team. 

Today's post is from Alfonso De Pablos.

Hi everyone, Alfonso here.

For those unfamiliar with me, I've been fortunate to work alongside JC and the All Star Charts team for the past three and a half years.

It's been an incredible...

The best short squeezes happen when sentiment is thoroughly washed out, and it's difficult to picture a scenario where things can get worse.

This is the playbook we've followed for some of our best trades this cycle. Just look at how we nailed the bottoms in Carvana and Coinbase in late 2022. 

We think Walgreens Boots Alliance is setting up for a similar face-ripping rally like those mentioned above, and here's why:

Walgreens Boots Alliance was added to the Dow Jones Industrial Average (DJIA) in 2018 and replaced General Electric. Less than 6 years later and over 60% lower, the eggheads at S&P Dow Jones Indices decided to give WBA the boot.

This removal coincided with the resolution of a multi-decade distribution pattern and an additional 60% downside in the following months.

Last week, the WSJ reported that...

It’s day three of the ASC Research Team covering for me while I’m away. 

You've already heard from Sam and Louis. Today, you’re meeting one of our newest team members with a great trade idea for you… 

Show him some love.

JC

Hi, I’m Jason, one of the newest traders to join the All Star Charts team, and I’m pumped to be here.

Who in their right mind hires a guy who used to get paid to do backflips for a living?

Oh, right… JC would. Because, let’s face it, everyone needs a gunslinging CTA (Futures Trader) in their life.

My story? Not exactly what you’d call “traditional.” I started as a professional athlete and my great great uncle taught me more about trading and economics than he probably realized.

But life doesn’t always play fair. I took some hits, like rupturing my spleen, battling a bone infection, and going through not one, not two, but FIVE knee surgeries.

Yeah, fun times.

But you know what? Those curveballs became my fuel.

They pushed me to...

Editor's Note: The ninth installment in the ASC Mastermind Course, Finding the Best Small-Cap Stocks, is available for your review.

The Mastermind Course is a complimentary part of your ASC Premium Membership.

Grant Hawkridge here for JC while he enjoys some much deserved time off with the family...

We've hit on a magic...

Our series of guest posts written by members of the All Star Charts research team continues... 

Today's note is from our Senior Crypto Analyst. If you're not following what's been going on in crypto, you're missing out...

-JC

Kia ora!

I'm Louis Sykes, the Senior Crypto Analyst here at All Star Charts. 

When JC casually dropped that he was escaping to Disney World for an entire week, I thought he was pulling my leg.

An entire week?

At Disney World?

As a humble Kiwi where our idea of a theme park is basically a few rides and a half-day commitment, this sounded like some parallel universe of leisure.

"It's not just a park," he explained, his voice brimming with childlike excitement. "The hotel's basically a playground, and there are multiple theme parks surrounding you." Multiple? In New Zealand, we consider a carousel and a mediocre rollercoaster a full day's entertainment. This was like hearing about a theme park multiverse.

Speaking of multiverses that boggle the mind, Bitcoin...

This is the weekly post that aggregates all the charts we put together throughout the week and organizes them all into one, easy to flip through deck.

President-elect Donald Trump rang the bell at the New York Stock Exchange this week, and it was reminiscent of the times when Ronald Reagan and George W. Bush went to the NYSE years ago.

The infamous Reagan quote, "We're going to turn the bull loose," immediately came to mind.

Considering that, it seems appropriate to talk about bulls today because of their positive correlation to economic growth.

Live cattle futures and bond yields have danced together for decades:

As you can see, cattle futures and bond yields are structurally similar but sometimes diverge from one another. In the lower pane, we've included the 200-day rolling correlation to highlight the past (and current) divergences in price.

The biggest problem with correlation analysis is that it doesn't tell us which direction the lines will likely go next.

However, the primary trends have been higher since the 2020 low, and the odds favor that the primary uptrends will eventually reassert themselves.

And we think that's currently underway, with live cattle futures closing this week at the highest price in history.

We've been...

You guys in the chat room have been on fire lately!

I love the camaraderie that has been built among you guys and gals. The ideas, the mutual support, the multiple sets of eyes when a position needs our attention. So great.

You're all ONE! OF! US!

With this in mind, today's trade is in a name that has been discussed a few times of late in the chat. I've been waiting for a tradable support level to reveal itself, and we may be getting it right now, so let's get to it....