From the desk of Steve Strazza

April will go down as one of the most volatile months in stock market history.

At the lows a few weeks ago, the S&P 500 was in a 20% drawdown. Fast forward to today, and after finding support at the prior cycle highs, the index has already rallied 17% off the bottom.

They call it a fast market. There's no doubt about that.

But more importantly, it's starting to feel like a bull market again.

The major averages reclaimed their VWAPs from the all-time highs earlier this week, and now we're seeing bullish follow-through.

As long as these moves stick, it's looking more and more like a V-shaped recovery out here. And that means it's time to get more aggressive. 

Throughout this correction and subsequent...

Well, here we are. Both $SPY and $QQQ are stuck in a weird place -- above their 50-day moving averages, and below their 200-day moving averages.

What now?

My gut tells me some sloppy digestion will be the rule of the day for the next several weeks. Of course, I reserve the right to change my mind pending whatever Amazon says tonight when they announce earnings.

We did a quick Options Jam Session today due to technical difficulties rendering a late start. But this means I get to the point quickly about what I'm seeing and what I'm trading.

Check it out here:

Sean McLaughlin | Chief Options Strategist, All Star Charts

If the market is serious about making a V-Bottom happen, I have a hard time believing it'll happen without the semiconductors.

And right now, in my opinion, Broadcom has the best-looking chart. So that's the horse I'm going to ride back to highs.

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

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

Let’s dig in!

In the spring of 1998, I was six months into my first job out of college—a mutual fund and insurance salesman for MetLife. The people were kind, and my boss was supportive, but it was a terrible fit for a 22-year-old fresh out of school. Nobody wants financial advice from a kid who, not long before, was slinging pizzas and wings for barely more than minimum wage.

So when my father offered me a chance to move in with him in Tampa, Florida, and look for new opportunities, I glanced out the window at the grey Buffalo skies and didn’t hesitate. Sunshine and a fresh start sounded like the only logical move. Less than a week later, I was on the road.

The first job I landed in Tampa was with what could generously be described as a pseudo-boiler room. We weren’t cold-calling doctors and lawyers with high-pressure penny stock pitches, but we were dialing other stockbrokers and trying to convince them to pump those same junk names to their clients. One step removed from the end-sucker. I was young, naïve—or rather, stupid.

Three months in, barely making any money, it became clear the whole operation was a scam and we were being taken advantage of.

With four of the Magnificent 7s reporting earnings the next two days, big tech is front and center.

I’m talking about the largest and most important companies in the world.

These mega cap growth stocks have grown so massive that they do most of the driving when it comes to the performance of the major averages.

The S&P 500 won’t be in a bull market if too many of the stocks in the trillion-dollar club are in downtrends. It’s just math.

Alternatively, the S&P is going to look great if Microsoft, Meta, and friends are in uptrends… even if market internals are weak beneath the surface. 

The bottom line is that when it comes to the US stock market, these are the heavyweights. You can’t have a bull market without them.

The Mag 7s currently make up over 30% of the S&P 500 and more than 40% of the Nasdaq 100.

The three largest - Apple, Microsoft, and Nvidia - are all tech stocks. So it stands to reason that...

Sorry for the obnoxious title. Sometimes, these things just write themselves.

You would think that a company involved in sports betting would be doing well, considering it seems I can't escape the barrage of advertising for sports betting apps I'm seeing everywhere I turn.

Apparently, there is a company in this space that can't seem to figure it out. Or at least, that's what their stock price action is saying. 

From the desk of Steve Strazza @Sstrazza

Welcome to The 2 to 100 Club.

In this scan, we look to identify the strongest growth stocks as they climb the market-cap ladder from small- to mid- to large- and, ultimately, to mega cap status (over $200B).

Once they graduate from small-cap to mid-cap status (over $2B), they come on our radar. Likewise, when they surpass the roughly $30B mark, they roll off our list.

But the scan doesn't just end there.

We only want to look at the strongest growth industries in the market, as that is typically where these potential 50-baggers come from.

Some of the best performers in recent decades – stocks like Priceline, Amazon, Netflix, Salesforce, and myriad others – would have been on this list at some point during their journey to becoming the market behemoths they are today.

When you look at the stocks in our table, you'll notice we're only focused on Technology and Growth industry groups such as Software, Semiconductors, Online...

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

1. New position in XLP.
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!

The Mexican peso is the “blue-chip” emerging market currency. It’s long been a favorite for hedge fund carry trades—often paired with the yen—due to Mexico’s relatively high interest rates and liquid FX market.

Beyond its appeal to speculators, the peso has also served as a key risk-on currency—often leading and participating alongside a broad base of international equities and commodities.

Following the election of Claudia Sheinbaum in June of 2024, the Mexican Peso and Mexican stocks took a hit, turning into laggards on the international stage. 

It was clear for those paying attention that the market did not feel optimistic about President Sheinbaum’s economic leadership. 

But the tides are shifting. With a weakening dollar, the Mexican Peso is finding its footing, and Mexican equities are starting to improve in a...