From the Desk of Steve Strazza and Alfonso Depablos

The most significant insider transaction on today’s list comes in a Form 4 filing by Erik D. Ragatz, director of Grocery Outlet Holding Corp $GO.

Ragatz reported a purchase of roughly $1 million in GO shares.

In today's Daily Digest, we'll review:

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

Let's dig in!

From the Desk of Steve Strazza and Alfonso Depablos

The most significant insider transaction comes in a Form 4 filing by Blue Star Exploration Corp. and director Jerry Jones, owner of the NFL’s Dallas Cowboys.

Blue Star and Jones revealed a roughly $100 million purchase in Comstock Resources Inc $CRK.

One of my favorite setups is when you have a major "top" formation, that doesn't actually turn into a reversal pattern and top for the market.

A recent example was in shares of Disney.

If you guys recall, this one looked like a major top, sentiment was down in the dumps, and we were buyers at 80.

Here we are with Disney at 120 and hitting new 52-week highs.

I gotta tell you, this setup in Energy looks exactly like that.

Look at this chart below - it's got all the hallmarks of a top:

From the Desk of Steve Strazza @Sstrazza

Welcome to The Minor Leaguers.

We've had some great trades come out of this small-cap-focused column since we launched it back in 2020 and started rotating it with our flagship bottom-up scan, Under the Hood.

For the first year or so, we focused only on Russell 2000 stocks with a market cap between $1 and $2B.

That was fun, but we wanted to branch out a bit and allow some new stocks to find their way onto our list.

We expanded our universe to include some mid-caps.

To make the cut for our Minor Leaguers list now, a company must have a market cap between $1 and $4B.

And it doesn't have to be a Russell component — it can be any US-listed equity. With participation expanding around the globe, we want all those ADRs in our universe.

The same price and liquidity filters are applied. Then, as always, we sort by proximity to new highs in order to...

From the Desk of Ian Culley @IanCulley

Pop the champagne!

Gold reached new all-time highs. 

Now, whether we consider the shiny yellow rock a viable investment is another story.

You know I’m bullish…  

Yet I can’t overlook silver's lack of participation.

From the Desk of Steve Strazza and Alfonso Depablos

The most significant insider transaction comes in a Form 4 filing by Blue Star Exploration Corp. and director Jerry Jones, owner of the NFL’s Dallas Cowboys.

Blue Star and Jones revealed a roughly $100 million purchase in Comstock Resources Inc $CRK.

We're getting into Squeeze Season.

The stock market (as measured by the indexes) continues to trek higher, speculative fervor keeps building (as measured by what's happening in crypto), and these forces are combining to make it a dangerous environment to be caught short in.

And if you're short a name that already has a high short interest? Look out!

So naturally, today's trade is a play on punishing the stubborn shorts in a particular stock that look like they are on the verge of getting epically squeezed.

In today's Flow Show on Stock Market TV, me and Strazza get into why we love buying short-dated calls in Carvana $CVNA:

And here's the chart that we are leaning into:

Here's the Play:

In today's Daily Digest, we'll review:

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

Let's dig in!

From the Desk of Ian Culley @IanCulley

Pop the champagne!

Gold reached new all-time highs. 

Now, whether we consider the shiny yellow rock a viable investment is another story.

You know I’m bullish…  

Yet I can’t overlook silver’s lack of participation.

I think of silver as gold’s rambunctious cousin — lots of fun until someone gets hurt — and someone always gets hurt!

Perhaps trading silver isn’t your cup of tea. I don’t blame you.

But silver rallies possess an infectious exuberance. Its rowdy antics and monstrous daily ranges magnetize investors as they attempt to skirt silver’s flame without burning to a crisp. 

Unfortunately, silver isn’t bringing the heat. It has yet to break out, and the silver-to-gold ratio is trending lower.

A similar scenario unfolded last spring when gold ran up against its former all-time highs:

The result: 10 more months of sideways chop.

Despite a likely pullback, gold futures and the Gold Shares ETF $GLD remain buys if they trade above last month’s breakout levels (2,100 and 193, respectively).

But gold will take the scenic route until...

That was the highest weekly close for the US Dollar Index since early November.

The trend has been higher for the US Dollar throughout the entire 1st quarter of 2024.

Remember, the Dollar bottomed towards the end of December in 2023.

So how much higher can the Dollar go?

From the Desk of Steve Strazza and Alfonso Depablos

The largest insider buy on today’s list comes in Form 4 filings by the chairman of the board and one director of Liberty Latin America Ltd $LILA.

The two board members made purchases of LILA shares for a combined amount of $7 million.

What we're seeing happening in Bitcoin right now is demand trying to absorb the overwhelming amount of supply that there is up at these prices.

We know from prior attempts a couple of years ago that just below 70,000, there is more selling pressure than buying pressure.

It's just math, there has been more supply than demand at these prices.

Here's what Bitcoin looks like over time:

Last week, we discussed the high likelihood that crypto markets undergo a period of consolidation. With Bitcoin testing resistance at the former all-time highs, the longer-term technical view would seem to suggest that this is a logical area to see this consolidation take place.

From the Desk of Steve Strazza and Alfonso Depablos

The largest insider buy on today’s list comes in Form 4 filings by the chairman of the board and one director of Liberty Latin America Ltd $LILA.

The two board members made purchases of LILA shares for a combined amount of $7 million.

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.

There is a time and a place for everything in this market.

One of the more fascinating groups of stocks for me right now (and always for that matter) is when a stock has a very high short interest, and is making new highs.

You see, here's what many people fail to remember:

Short sellers are promising to be buyers in the future. Shareholders are only promising to be sellers.

And so what that means to us is that the more short sellers there are in a given stock, the more investors there are promising to buy the stock in the future.

In their view, they would ideally like to buy these stocks back at lower prices (for a profit).

But what happens instead, in many cases, is that they are forced to cover at much higher prices (for massive losses).

And that's where we...

From the Desk of Ian Culley @IanCulley

Commodities are in the early innings of a secular bull run.

The list of raw materials hitting all-time highs since 2020 includes Gold, Copper, Wheat, Soybean Oil, Cattle,  Orange Juice, Cocoa, Heating Oil, Gasoline, Palm Oil, Lumber, Tin, Rebar, Iron Ore, and Coal. (If that roll call doesn’t scream commodity supercycle, I don’t know what does.) 

It’s an exhaustive list that will only grow in the coming years. Remember, these cycles can last decades. We’re only in year four!

Of course, there are also some laggards amongst the ranks. (ahem, Crude). But don’t lose sight of the bigger picture! 

Even Soybeans are queuing up for new all-time highs…

Check out soybean futures zoomed out to the 1950s:

Prices blasted higher in the mid-70s, tracing the upper bounds of a new trading range that defined prices for the next thirty years.

A similar pattern emerged during the last commodity supercycle in the early to mid-2000s. Soybean futures bottomed in...