I had no plans to put a new trade on today. 

In fact, with all the selling in big tech, i thought it would be a good day to leave the office a bit early, get outside, and let the dust settle. Come back next week fresh.

But, here I am writing… because this setup is just too good to miss.

We had an unusual options splash come across our scan just earlier in Cinemark Holdings $CNK.

We know the name well as we’ve been stalking this one for a Freshly Squeezed setup. 

Cinemark Holdings has a 25% short interest and 10x days to cover ratio. 

While the unusual options activity and high short interest are great, what is even more bullish is the fact CNK is in the process of completing a textbook bearish-to-bullish reversal.

Here’s what that looks like:

Sector rotation is the lifeblood of any bull market, and we don’t expect things to be any different this time around.

After a prolonged period without progress, small caps are back in the driver's seat. The Russell 2000 just capped off a bearish-to-bullish trend reversal with a decisive resolution.

At the same time, the profit-taking in mega-cap growth stocks has been non-stop these past two weeks.

The chart below shows the Russell 2000 printing its best 5-day streak of outperformance relative to the Technology Sector… in history:

We call these kinds of moves "initiation thrusts" because it is common for them to occur at inflection points, or the beginning of new trends.

In the case of the above, this extreme reading is telling us that small caps are ready to make a turn versus big tech.

Also notice where all of this is taking place. The extreme momentum in favor of small-caps is...

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

1. No new positions today.
2. Rolling IBB to September.
3. No exits since the last report.
4. Current status of open campaigns.

Let’s dig in!

The most significant insider buy on today's list comes via a Form 4 filing by the chairman and CEO of Truist Financial Corporation $TFC, William H. Rogers Jr.

Rogers reported a purchase of 57,300 TFC shares, equivalent to $2.5 million.

Liberty 77 Capital L.P bought 149,682 shares of Lions Gate Entertainment Corp $LGF.

Here’s The Hot Corner, with data from July 25, 2024:

In another Form 4, William R. Johnson, chairman of the board of directors of United Parcel Service $UPS, revealed a purchase worth $643,035.

Director Robert W. Stallings reported a purchase of 5,500 shares in Texas Capital Bancshares $TCBI.

TCBI has been carving out a base for roughly three years.

Price is pressing against the range's upper bounds as buyers absorb all the overhead supply at this resistance zone:

The level to...

The big story this week has been the Ethereum ETF.

From the early data I'm seeing, it doesn't look to be as spectacular of a launch compared to the Bitcoin ETFs. But this is understandable and was expected.

Here's this week's crypto roundup. It's an opportunity for us to take a step back, set aside the distractions, and delve into the key charts shaping the crypto complex.

The Volatility Index almost hit 20 this week.

That means there are opportunities to generate income that simply were not there before.

"Get while the getting is good", is how I learned it.

A month ago you weren't getting paid to sell volatility.

This week you are.

Take a look at Berkshire Hathaway, which represents the largest component of the S&P Financials Index:

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

1. No new positions today.
2. Rolled SMH to September.
3. Exited GDXJ.
4. Current status of open campaigns.

Let’s dig in!

Are you one of those people who thinks that Transportation Stocks are "boring"?

Those kinds of people exist out there you know...

But in my experience, these are some of the most important stocks in the entire market.

And there are ways to leverage these directional moves to maximize the profits in these types of stocks that you think may not move fast enough for you.

First of all, here is the Dow Jones Transportation Average in a long-term uptrend consisting of higher lows and higher highs:

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...

Zoom In. Zoom Out. Let’s Ride.

When you zoom in on the chart of Zoom Video $ZM you will see an intraday range that is engulfing the prior 7 trading days. Unless a lot changes in the next few hours, it should also be green with a large body. 

When you zoom out, you’ll notice this couldn’t be taking place at a more critical price level. Just look at all the old lows around 60. That’s a lot of dead bodies. 

The most significant insider buy on today's list comes via a 13D filing by Abdiel Capital LP.

This time, the investment firm revealed an additional purchase of 82,500 shares in Appian Corporation $APPN, increasing its ownership stake to 18.60%.

Here’s The Hot Corner, with data from July 24, 2024:

Rep. Michael McCaul of Texas filed a Periodic Transaction Report declaring a purchases in the following stocks:

• Apple Inc $AAPL ($500,000 - $200,000);
• Meta Platforms Inc $META ($50,000 - $100,000);
• Monster Beverage Corporation $MNST ($50,000 - $100,000);
• Workday Inc $WDAY ($50,000 - $100,000);
• Alcoa Corporation $AA ($50,000 - $100,000);
• Vishay Intertechnology Inc $VSH ($50,000 - $100,000);
• Advanced Micro Devices Inc $AMD ($15,000 - $50,000); and
• ...

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...

The Berkshires is a wonderful place to visit. And it can often be a great place to ride out the heat of summer.

Similarly, Berkshire Hathaway $BRK/B is often a great place to ride out the heat in the market.

And given the volatility backdrop in $BRK/B options, the options market is offering to pay us to catch the turn.

Let's get after it!

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

1. New position in XLC.
2. No adjustments are needed today.
3. Exited XLP at our profit target.
4. Current status of open campaigns.

Let’s dig in!

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...

The bears can’t break down Zoom. Despite the structural downtrend and a rough tape for tech over the past few weeks, ZM keeps hanging on. If the stock can reclaim 60, we want to get long and bank on a "scoop n score" back above this shelf of old lows.