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...

Speculative technology stocks have been mooning in recent weeks. Many of these stocks have rallied over 100% in the last month alone. 

Today, we're outlining a technology stock that rallied 700% in half a year after pivoting from blockchain infrastructure to high-performance computing. In other words, they pivoted from crypto to AI.

After consolidating for over a year, the stock put the finishing touches on a textbook basing pattern last week and is beginning a fresh leg higher.

But it's not just the chart that has us excited... the short sellers have gotten way too greedy, and we're going to exploit their weakness.

Let's get into the details:

The New York Stock Exchange held its annual Tree Lighting Event this week. It was spectacular, as always.

But we're not here to talk about pine trees or LED lights. We're here to talk about commodities.

The NYSE has an array of vehicles to trade, most being equities.

They also have several commodity funds, which happen to offer asymmetric risk versus reward opportunities at current levels. Let's talk about them.

Our first setup is the Invesco DB Agriculture Fund $DBA:

The top five holdings are cocoa (14.8%), coffee (13%), live cattle (11.9%), sugar (11.6%), and corn (11.4%), several of which we've recently discussed.

As you can...

My cousin wasn't asking me about crypto during this year's Thanksgiving feast. 

Instead, he wanted to know which commodity to buy after the historic cocoa trade.

Without hesitation, I told him, "coffee."

And I really believe that!

Let's talk about why.

Our Soft Commodity Index is testing a critical level of interest:

The index peaked and rolled over in 2011 and has carved out a massive basing pattern in the years since then. If and when the bulls resolve this pattern, we want to be long.

On a relative basis, soft commodities are printing fresh 52-week highs versus the broader commodity complex. This is precisely what we're looking for in a leadership group, and we expect this outperformance to continue for the foreseeable future.

Cocoa futures recently resolved a 45-year base and put the bears in a dirt nap, and we think coffee futures are up next:

As you can see, coffee is at its highest level since it peaked in 1977, following a face-ripping 600% rally in two years.

A close above 340 would mark the end of a nearly 50-year consolidation and the beginning of a new uptrend. 

And we suspect...

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 the trailing...

Last week, we identified a bullish momentum divergence in the commodities versus stocks ratio at a shelf of former lows.

The evidence suggests we're on the verge of a new era of commodity outperformance.

If we're right, it's time to prepare a list of our favorite setups to seize this opportunity.

We've already covered promising setups in uranium and solar.

Now, let's focus on oil and gas, and here's why:

First, crude oil, heating oil, and gasoline have been consolidating above a shelf of former highs for more than two years, and the risk is skewed in favor of the bulls.

Until the bears can resolve these consolidations to the downside, we want to continue betting these levels hold as support.

...

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%...

Investors are reaching for the riskiest stocks in the market.

How do we know?

A long list of stock market indexes and individual issues just had their best day since the pandemic lows almost 5 years ago.

Meme coins are mooning while we're asleep at night.

More and more stocks are completing primary trend reversals.

The most risk-on groups are leading the charge.

With this in mind, it's time for another Freshly Squeezed report.

Here's our approach:

We find the most heavily shorted stocks in the market. Then, we monitor these names for signs of upward momentum. Once that momentum kicks in, we ride them higher as the bears get squeezed.

We got fresh short data on Monday, so let's dive in and talk about it.

Our scan is quite simple. It is designed to identify stocks with the most aggressive short positions.

When a stock is shorted, it means incremental buyers are waiting in the wings...

We recently discussed the extreme demand for uranium stocks as the AI boom progresses.

But what about the other alternative energy equities?

Solar stocks have been amongst the most hated in the entire market, right up there with pot stocks and China.

The Invesco Solar ETF $TAN looks ready to explode higher:

The fund is a market-cap-weighted basket of solar stocks from all around the world.

One of our favorite long-term momentum indicators, the monthly percentage price oscillator (PPO), has been improving for months and is on the verge of triggering a buy signal.

In addition, TAN has carved out a short term reversal pattern. An upside resolution will coincide with a monthly PPO cross, and we want to look for opportunities to buy the best stocks in the industry.

On a relative basis, TAN is at a critical level of interest versus the S&P 500:

This level represents where it began to outperform the broader market in the past.

Adding to our conviction, the 14-week RSI has carved out...

Despite being defensive, consumer stocks can make huge moves. 

Stocks like Monster Beverage, Celsius, and Sprouts Farmers Market are some of the best-performing names in recent history.

Today, we're outlining a consumer stock that rallied 300% in 6-months off its 2022 low. 

Since then, the stock has carved out a textbook accumulation pattern, which the market resolved last week following an earnings report.

With the short sellers caught offside, we're betting this breakout will spark a short squeeze and a fresh uptrend.

Let's get into the details:

November marks the beginning of the best three-month period of the year for stocks and a brand-new NBA season. Moreover, the sportsbooks have priced in my local OKC Thunder as the Western Conference champions.

It's a fantastic time to be alive.

Now is also a great time to take a step back and assess the underlying trends.

Earlier this year, we outlined our Fab 5 Charts for a 2024 equity bull market. 

One of the five key groups we selected was homebuilders, which have been on an absolute tear:

Homebuilders have experienced tremendous markup phases this cycle, nearly doubling in many instances. The visual above shows the SPDR Homebuilders ETF $XHB components sorted by proximity to the 52-week low (the y axis) and 52-week high (the x axis). The 14-day RSI is the size of each bubble.

The homies have been one of the hottest groups of stocks...

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 the trailing...