From the Desk of Steve Strazza @Sstrazza

We love our bottoms-up scans here at All Star Charts. We tend to get really creative when making new universes as we want to be sure they will deliver us the best opportunities the market has to offer.

However, when it comes to this one, it couldn't be any simpler!

With the goal of finding more bullish setups, we have decided to expand one of our favorite scans and broaden our regular coverage of the largest US stocks.

Welcome to The Junior Hall of Famers.

This scan is composed of the next 150 largest stocks by market cap, those that come after the top 150 and are thus covered by the Hall of Famers universe. Many of these names will someday graduate and join our original Hall Of Famers list. The idea here is to catch these big trends as early on as possible.

There is no need to overcomplicate things. Market cap is a quality filter at the end of the day. It only grows if price is rising. That's good enough for us.

The bottom line is it is a bull market. We want as many vehicles and options to express...

From the Desk of Steve Strazza @Sstrazza

When investing in the stock market, we always want to approach it as "a market of stocks."

Regardless of the environment, there are always stocks showing leadership and trending higher.

We may have to look harder to identify them depending on current market conditions. But there are always stocks that are going up.

The same can be said for weak stocks. Regardless of the environment, there are always stocks that are going down, too. 

We already have multiple scans focusing on stocks making all-time highs, such as Hall of Famers, Minor Leaguers, and the 2 to 100 Club.

We filter these universes for stocks that are exhibiting the best momentum and relative strength characteristics. 

Clearly, we spend a lot of time identifying and writing about leading stocks every week, via multiple reports.

Now, we're also highlighting lagging stocks on a recurring basis.

Welcome to the Short Report.

We...

From the Desk of Ian Culley @IanCulley

One week, the buck is breaking down. The next, it’s ripping higher.

With commodity currencies rolling over, the dollar-yen sliding lower, and the US Dollar Index $DXY failing to hold its recent breakdown… 

What’s it going to be this week? 

So far, the Bulls are in control. 

But that could change if dollar bears violate these critical levels…

First, track the 1.0915 zone for the euro: 

A decisive break above that level will apply pressure on the buck and set an upside target of 1.1125.

Next, keep an eye on the pound.

The GBP/USD is pulling back following the completion of a six-month inverted head and shoulders pattern:

The pound’s breakout remains valid as long...

From the Desk of Steve Strazza @Sstrazza

Welcome to The Junior International Hall of Famers.

With the goal of finding more bullish setups, we have decided to expand one of our favorite scans and broaden our regular coverage of the largest US-listed international stocks, or ADRs.

This scan is composed of the next 100 largest stocks by market cap, those that come after the top 100 and are thus covered by the International Hall of Famers universe.

Many of these names will someday graduate and join our original International Hall Of Famers list. The idea here is to catch these big trends as early on as possible.

Let’s dive right in and check out what these future big boys are up to.

This is our Junior International Hall of Famers list:

Click table to enlarge view

And here’s how we arrived at it…

We removed laggards which are down 5% or more relative to the ACWI Ex. U.S. Index $ACWX over...

They're out there telling me that the stock market is due for a correction this quarter.

But the stock market just had a correction last quarter.

Look at the Equally-weighted Nasdaq100 Index making zero progress since the start of March.

Remember that correction we were looking for back in Q1?

Well we got it:

From the Desk of Steve Strazza @Sstrazza.

Welcome back to Under the Hood, where we'll cover all the action for the two weeks ended July 19, 2024. This report is published bi-weekly, in rotation with The Minor Leaguers.

What we do here is analyze the most popular stocks during the week and find opportunities to either join in and ride these momentum names higher, or fade the crowd and bet against them.

We use a variety of sources to generate the list of most popular names.

There are so many new data sources available that all we need to do is organize and curate them in a way that shows us exactly what we want: a list of stocks that are seeing an unusual increase in investor interest.

Click here for a behind-the-scenes look at our process.

Whether we’re measuring increasing interest based on large institutional purchases, unusual...

From the desk of Steve Strazza @Sstrazza

Last week, we held our June Monthly Conference Call, which Premium Members can access and rewatch here.

In this post, we’ll do our best to summarize it by highlighting five of the most important charts and/or themes we covered, along with commentary on each.

Let’s get right into it!

From the Desk of Ian Culley @IanCulley

Gold’s failed breakout is testing investor resolve.

But let’s consider last week’s action before unearthing our bullion.

Check out the failed breakout with a bearish momentum divergence in the lower pane:

Waning momentum and failed breakouts go hand in hand. Gold futures proved an excellent example of momentum diverging from price, one of the reasons we track RSI readings.

But just because momentum confirmed the failed breakout doesn’t mean we should turn bearish gold and precious metals.

Remember, gold posted a new all-time high last week. New all-time highs are bullish in my book, no matter how you slice them.

Plus, the March breakout remains valid, and the underlying uptrend is intact:

Zoom out on the weekly chart, and last week’s bar becomes a whipsaw (much like last December’s false start).

I get it: No one likes...

The Dow Jones Industrial Average just had its highest weekly closing price in history.

Meanwhile, this week we also saw the highest reading of NYSE stocks above their 200 day moving average during this entire bull market.

Do you know how many times we saw a new 52-week high for the Dow in 2021 along with these breadth readings also hitting new cycle highs?

Zero.

It didn't even happen once.

That's because back in 2021, market breadth was deteriorating, not expanding.

See the difference?

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

Risk assets are taking a hit.

The major equity indexes are seeing red. Crude oil is slipping below eighty bucks. And gold is failing at new all-time highs.

Perhaps the markets are navigating the summertime blues – a tune base and industrial metal investors have been humming for months.

Remember copper’s failed breakout in May:

Oof!

Dr. Copper is living up to the trading adage that from failed moves come fast moves in the opposite direction.

The futures continue to fall – down almost 8 percent this week. 

Meanwhile, track the 4.16 level for potential support:

That level coincides with a key retracement and former resistance area – a logical place for buyers to step in and defend price. 

On the other hand, momentum is drifting toward oversold conditions. If the 14-day RSI drops below 30, I imagine copper will reach...

From the Desk of Steve Strazza @Sstrazza

Breadth has expanded in a big way since last week, with more and more stocks finally joining in on the bull market as big-cap tech leaders take a breather.

At the sector and industry group level, our list of indexes that are in uptrends continues to grow.

Some notable new members on this list include regional banks, small-caps, and various speculative growth funds.

After years of basing in accumulation patterns, these groups are just now completing primary trend reversals.

What does this mean?

In its simplest form, it means there are more ponds we can fish in for long opportunities. There are more stocks -- and groups of stocks -- that are in uptrends.

It’s just more options for us.

One of the groups that has broken out with authority recently is the biotechs.

Regardless of what index you're looking at, the path of least resistance is now higher for this health care subsector.

We’ve identified some of the strongest biotech stocks with asymmetric risk/reward setups and clear levels to trade against.

We think these are the best vehicles to bet...