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...

I briefly walked through how I want to be patient trading names in the short-term while focusing on relative strength.

While today's name isn't currently actionable, it is just a stone's throw from being so. And, it's both a relative leader as well as having the tailwind of smart money in behind it.

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

1. No new positions today.
2. Adjustment to XLK position.
3. Exited XME position.
4. Current status of open campaigns.

Let’s dig in!

Here's the replay and chart deck from today's stream. 

As a reminder, we do these videos live every Thursday at 11:00 am ET and I'm answering questions from the chat. 

If you're like me and you have a bullish long-term bias towards Bitcoin and other Crypto assets, then you're constantly looking for opportunities to get exposure.

But with equities in the middle of a bull market, we also don't want to be in something that isn't moving.

This is the time to make money. So we want to make sure we're in the things that can make us money NOW, not "one day hopefully in the future..."

Take a look at the price of Bitcoin still working on completing this multi-year base.

The most significant insider buy on today's list comes via a Form 4 filing by Abdiel Capital LP. 

The investment firm revealed a purchase of roughly $2 million in Appian Corporation $APPN.

Director John Bilbrey bought $376,161 worth in Olaplex Holdings $OLPX.

Here’s The Hot Corner, with data from August 21, 2024:

In another Form 4, the president and CEO of Kratos Defense & Security Solutions Inc $KTOS reported an acquisition of 11,980 KTOS shares.

Over in Washington, Rep. Scott Franklin of Florida filed a Periodic Transaction Report declaring purchases in the following stocks:

• Accenture plc $ACN;
• Air Products and Chemicals Inc $APD;
• Amgen Inc $AMGN;
• General Dynamics Corporation $GD;
• Johnson & Johnson $JNJ; and
• Starbucks Corporation $SBUX.

Earlier this...

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 question we're asking ourselves today is a big one.

Is the US Dollar breaking down from a multi-year consolidation?

With the dollar rangebound all year, we haven’t experienced a trending currency market. 

When the dollar is trending higher or lower, we have a good idea of the impact it is likely to have on other markets.

However, when it is trendless, the dollar is neither a headwind nor a tailwind for risk assets.

We think that could be changing.

Here's a weekly line chart showing the U.S. Dollar Index making new year-to-date lows:

As you can see, the US dollar bears have taken control and resolved this multi-year consolidation to the downside.

Here's another way to look at it.

The index is trading at the lower bounds of a well-tested range. Notice the flat 200-day moving average, illustrating the sideways nature of the primary trend.

And notice momentum, hitting its lowest level...

This morning, the team was discussing a notable Board of Directors insider making a sizeable $5 million purchase of stock.

While an insider's buy isn't necessarily grounds for me to get interested in getting involved, it did catch our attention and after looking at the chart and the sector, it looks like a trade we'd like to get into--carefully.

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

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

Let’s dig in!

We're just one week away from the earnings report for one of the most important companies in the world.

We will be LIVE Streaming the earnings call and trading any opportunities that may come from the volatility after the earnings release.

This Live Trading Stream will be on Wednesday August 28th @ 3:45PM ET. 

We'll be LIVE on the main stage on Stock Market TV before the release of the earnings. Don't forget to ...

SoundHound AI $SOUN is working its way up the right-hand side of a massive rounding bottom formation.

This pattern appeared to resolve higher with authority in Q1 as SOUN rallied roughly 500% in a little over a month.

However, it has spent the last 6 months coiling in a wide-ranged symmetrical triangle pattern, right around the base breakout zone.

Price is currently sitting in a roughly 50% drawdown from the March highs, but this $5 level is a big one. It not only coincides with a critical polarity zone at the Q1 and Q2 highs from last year, but it is also where the AVWAP from the IPO comes into play.

The most significant insider buy on today’s list comes via a Form 4 filing by Sarepta Therapeutics Inc $SRPT director Michael Andrew Chambers.

Chambers revealed a purchase of SRPT shares with a total value of $4.9 million.

Here’s The Hot Corner, with data from August 21, 2024:

In another Form 4, director Mark A. Alexander reported the acquisition of 2,000 shares of W. P. Carey Inc $WPC, equivalent to $114,059.

Last but not least, Rep. Kathy Manning of North Carolina filed a Periodic Transaction Report declaring purchases in Garmin Ltd $GRMN and Microsoft Corporation $MSFT.

GRMN has been carving out a base since 2021. Price is pressing against the range's upper bounds as buyers absorb all the overhead supply at this resistance zone:

The line in the sand lies at the 179 level. A breakout above that zone could push prices to a fresh leg to the upside.

There's nothing to provide updates on, nor any new trade opportunities I have seen.

I am reiterating the message earlier in the week.

I think this is a good place to add long-term exposure, but do not believe it to be good for short-term trading opportunities; more patience is needed here.