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

1. New position in USO.
2. No adjustments are needed today.
3. No exits since the last report.
4. Current status of open campaigns.
5. Volatility Snapshot.

Let’s dig in!

Gold futures have been down in 6 out of the last 8 sessions since the winner of the U.S. Presidential Election was announced.

The US Dollar Index $DXY has been adding fuel to the selling pressure as it has screamed higher toward the upper bound of a multi-year range.

However, the dollar is entering one of its weakest seasonal periods of the year and should start serving as a tailwind for our shiny rocks.

And if the dollar is about to roll over, our equal-weight basket of precious metal stocks will likely resolve its multi-decade base and make new all-time highs:

I promise there is a trading lesson here. Stick with me...

Two-point lead. Ball on the opponent's 27-yard line. 4th and 2. Two minutes and 27 seconds left on the clock.

The choices are this:

1. Attempt to kick a make-able, but no gimme 44-yard field goal to go up by 5 points. 

2. Pooch punt to pin the opponents inside their 10-yard line for their next drive.

3. Call a play to attempt to gain the 2 yards needed to earn a fresh set of downs and continue running the clock.

Choose option 1 and there is a very real possibility that the Buffalo Bills' sometimes undependable field goal kicker could miss the 3-point try. This would leave the Kansas City Chiefs, and their future Hall of Fame Quarterback Patrick Mahomes with more than two minutes on the clock to move the ball less than 35 yards to put themselves into position to kick the game-winning field goal.

Even if the Bills' kicker makes the field goal, putting the Bills up by 5, there will still be more than two minutes on the play clock. For the team from Kansas City with countless late comeback wins, there is not a...

A nearly 3-year-long bearish-to-bullish reversal pattern has whetted my appetite for today's trade.

And a follow-through could deliver a nice dash for cash.

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

1. No new positions today.
2. Rolled XLI to January options.
3. Closed XRT at profit target.
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...

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.

In technical analysis kindergarten, you'll learn there are 3 asset classes: stocks, bonds, AND commodities.

Without all 3, you're missing a piece of the puzzle and are putting yourself at a disadvantage.

Since commodities peaked in absolute and relative terms in 2022, they have dramatically underperformed stocks.

It's gotten to the extent where there's not any momentum to the downside remaining.

Commodities have carved out a massive bullish momentum divergence relative to stocks since the start of 2024:

As you can see, DBC/SPY has made lower highs and lower lows all year while the 14-day RSI (momentum) has made higher highs and higher lows.

In addition, the ratio is at the same level it was when it bottomed in the prior cycle and began a multi-year uptrend. 

It's now or never. If the commodity bulls are going to reverse this downtrend versus stocks, they need to show up now.

The Invesco Commodity Index $DBC has carved out a textbook basing pattern:

The Invesco Commodity Index is composed of over 55% energy, 10%...

A weaker dollar will drive Bitcoin, gold and silver higher.

The Greenback often dips toward year-end. It’s the usual seasonal pattern.

And this price behavior is even more pronounced in election years. 

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...

Our last trade idea post was titled "European Vacation." Today's trade is in a name that is most definitely in the vacation theme.

And if you've attempted to book a hotel room in the past year, you know that rates are soaring. This might be bad for budget-sensitive travelers, but it can be bullish for investors.

So let's hedge our travel expenses.