From the desk of Steve Strazza @Sstrazza

Check out this week's Momentum Report, our weekly summation of all the major indexes at a Macro, International, Sector, and Industry Group level.

By analyzing the short-term data in these reports, we get a more tactical view of the current state of markets. This information then helps us put near-term developments into the big picture context and provides insights regarding the structural trends at play.

Let's jump right into it with some of the major takeaways from this week's report:

* ASC Plus Members can access the Momentum Report by clicking the link at the bottom of this post.

From the desk of Steve Strazza @Sstrazza

Our Top 10 Charts Report was just published.

In this weekly note, we highlight 10 of the most important charts or themes we're currently seeing in asset classes around the world.

New Lows Streak is Over

One thing that has been consistent this year is seeing more stocks hit new lows than new highs. We’ve witnessed this kind of bear market behavior every single week of 2022. Up until now, that is. For the first time all year, more stocks made new highs than new lows last week. This is a huge development because if the market truly bottomed and we’re in the early stages of a new uptrend, we’re going to need more new highs than new lows. It’s just math. Following 37 straight weeks of net new lows, seeing this streak come to an end is yet another big piece of evidence in favor of the bull camp.

Key Takeaway:

• Rally strengthens as participation broadens.
• Risk environment is still cautious as downtrends linger.
• Macro situation is a concern but has not been causing stress.

Breadth thrusts are firing, participation is expanding and for the first time this year new high lists are longer than new low lists. From the perspective of market internals, the rally over the past two months could hardly have been stronger.

This strength is showing up in our bull market re-birth checklist. July brought upside volume thrusts and the first breadth thrust (based on the percentage of stocks making new 20-day highs) in over two years. Last week brought to an end the string of 37 consecutive weeks of more new lows than new highs on the NYSE+NASDAQ. The trend in our net new high advance/decline line also turned higher.

Our bull market re-birth checklist has now had 4 out of 5 the criteria met. While this does...

Will the commodity trade come roaring back? If so, we've got a play in a metals fabrication stock that we think we'll outperform to the upside.

This company recently broke out to 6-year highs and has a lot of runway left to reach decade-plus highs.

We've adjusted a position in the Paid-to-Play portfolio today:

Broadly speaking, risk assets have caught a well-received bid over the last few weeks. This recent period has proven to be an incredibly risk-on tape.

When it comes to crypto, the big narrative driving capital markets seems to be the upcoming Ethereum $ETH merge. This update will see the network move away from proof-of-work (PoW) to a proof-of-stake (PoS) framework.

Of course, as technicians, we naturally follow money flow as opposed to getting stuck in the weeds of narratives. It's quite clear to see traders are bidding Ethereum leading into the merge in what looks like a "buy the rumor, sells the news" event.

The most significant insider activity on today’s list comes in a Form 4 filing by QH Hungary Holdings Ltd, which reported purchases worth roughly $9.2 million in Quaker Chemical $KWR.

The firm now owns 4,440,989 shares, representing a roughly 22.50% ownership stake.

This summer is the most ideal time to be buying stocks, according to the 4-year cycle.

Q3 of the Mid-term Election years. That's the sweet spot.

Do we see new all-time highs for the S&P500 before the end of the year?

The seasonal tailwinds certainly support that:

Today's Chart of the Day was a unanimous decision internally.

How can it not be this one???

Every single week in 2022 we've seen more stocks hitting new lows than stocks hitting new highs.

In bull markets we see the exact opposite of that.

Well, this week the bulls finally got it done. For the first time all year we saw more stocks hitting new highs than new lows.

It wasn't by much. But they pulled it off.

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.

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.

From the Desk of Ian Culley @IanCulley

It doesn’t matter where you look: Commodities are digging in, finding support, and reclaiming key levels.

Grains, softs, base metals, and energy have all stopped going down. Even gold is bouncing off critical levels of former support.

But it’s not just the fact the commodity correction is hitting the pause button that’s important.

It’s where it's happening.

Let’s take a look at a few charts.

First we have cotton futures:

Cotton completed a monster base, breaking to fresh 10-year highs last October. A strong advance took hold during the following months.

But it was answered by a near-vertical decline back into its prior range.

After falling more than 45% from its May peak, cotton is reclaiming a key level of former resistance marked by its 2014, 2018, and 2021 highs.

That shelf of former highs kept a lid on cotton prices for almost a decade. And the 2018 highs...