If you're not a member, sign up here.

The stock market is embarking on a fresh leg higher, supported by the broadest participation we've seen this cycle.

With speculative growth stocks on fire, our $ARKK 11/15 $52 calls are doubling today. 

We want to take half off the table here and redeploy that capital into a new position. I’m selling them for $1.80.

The initial earnings reaction for $SQ is catching our attention today. The stock plunged lower but has been clawing back losses all morning.

Just look at the wick forming on todays daily candle:

...

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...

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

1. New position in SMH today.
2. No adjustments are needed today.
3. Exited  XLP, XHB, and XLV at profit targets.
4. Current status of open campaigns.
5. Volatility Snapshot.

Let’s dig in!

Turtle Creek Asset Management has disclosed a bold insider move in a fresh Form 4 filing. 

The hedge fund invested $10.3 million in JELD-WEN Holding $JELD, which now represents 4.8% of its $3.88 billion portfolio. 

Turtle Creek’s other top holdings include Berry Global $BERY, Middleby Corp $MIDD, and CarMax $KMX. 

Wellington Management Group filed a 13G for The AZEK Company Inc $AZEK, disclosing an increase in ownership from 9.30% to 10.31%.

As one of the world’s largest asset managers, Wellington’s increased stake indicates a positive outlook on AZEK’s market position.

Here’s The Hot Corner, with data from November 7, 2024:

Rep. Josh Gottheimer and Senator Sheldon Whitehouse revealed $50,000 purchases of Apple $AAPL and Eli Lilly and Company $LLY, respectively.

Last but not least, two directors of Verona Pharma plc $VRNA...

It’s been a crazy two days.

The reaction to both the election and the FOMC was overwhelmingly positive for risk assets across the board.

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

NYSE new highs just hit its highest reading in years, telling us the rally is supported by the broadest level of participation this cycle.

The election ended up being the catalyst to break out prolonged ranges in things like regional banks, biotechs, speculative growth, industrial metals, and even bitcoin.

These groups are finally joining the bull market party, and they are kicking it off in a big way.

So, what’s the big takeaway from all this? 

The chart that illustrates it best is the Russell 2000 Micro-Cap Index $IWC:

I’ve annotated it to show the different stages of a market cycle.

IWC just had its best day since April 2020, printing a breakaway gap to new...

Here's the replay and chartbook from today's livestream. Note that we talk strategy every Thursday at 11 a.m. ET, and I answer questions in the chat room.

Be sure to join us and maximize your return potential.

Below is the 8th ASC Mastermind Lab Course. These are special videos that will be made available throughout the duration of the 12-week course featuring conversations with professionals from across Wall Street discussing topics in their expertise. 

If you're going to talk about market seasonality, you might as well talk to the master. Jeff Hirsch is the editor and publisher of the Stock Trader's Almanac. His dad, Yale Hirsch, literally created the Almanac and is responsible for bringing the idea of market seasonality to the mainstream. 

There is no one that understands market seasonality better than Jeff. I have learned everything that I know on this topic from him. I hope you enjoy our conversation. 

Below is the 6th ASC Mastermind Course. In this course, I discuss pattern recognition and why it works. 

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

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

Let’s dig in!

With the election behind us, markets seem ready for a year-end rally.

The S&P Small-Cap 600 Index led the way, climbing 6% as it registered its best daily performance since 2020.

As you can see, IJR jumped above its prior cycle highs from 2021, appearing, at least for now, to complete a massive base.

I’m looking for some follow-through in the days and weeks ahead to confirm this breakout. 

If we get it, this could be a breakaway gap for the history books. Based on the way it started today, odds favor it being a valid resolution.

If it holds, I think we’re likely to see a rotation into the...

The market has spoken.

They either love Donald Trump as your President. Or maybe it's that they're just happy the election is over.

Either way, this consolidation has now resolved in the direction of the underlying trend: Up.

In fact, yesterday we saw the most amount of stocks on the NYSE hitting new 52-week highs that we've seen in years.

Breadth expansion is not evidence of deteriorating market participation. It's by definition, the exact opposite of that.

More and more stocks and sectors making new highs is something you historically see in bull markets. So this is perfectly normal.

Remember when they kept telling you that this was only a "bear market rally" because the small-cap indexes hadn't made a new high yet?

They were lying to you.

Besides, the S&P600 Small-cap Index just closed at a new all-time high yesterday. 

Imagine waiting for this index to make new highs before deciding to participate in this bull market?

There are serial killers out there who actually think this way. These people are sick in the head.

The much more reliable confirmation indicator, which dates back to...

In a notable display of confidence, the CEOs of Heartland Express $HTLD, Clear Channel Outdoor Holdings $CCO, and Intel Corporation $INTC each stepped up with fresh buys of their own stock, according to recent Form 4 filings.

When top executives reach into their own wallets, it’s often a signal they’re betting on one specific thing: They believe the stock is undervalued and primed to move higher.

Here’s The Hot Corner, with data from November 6, 2024:

In another Form 4, Director William Galtney Jr. reported a hefty $1 million buy in Everest Group Ltd $EG, snapping up 2,870 shares.

Thanks to everyone who joined us for today's Hot Corner Insider Weekly Strategy Session.

With the election behind us, banks and crypto proved the ultimate "Trump Trade."

And Customers Bancorp Inc $CUBI stands out as a regional bank, entering the crypto space with blockchain-based payments to attract fintech and crypto clients seeking secure, fast transactions. 

This is an outstanding chart:

CUBI is up more than 18% today, and we believe it still has room to run.

During our Analyst meeting this morning, I observed the relative "calm" in the Chinese Large Cap ETF $FXI and how, while down for the day, it is still holding in a range it's been in for over three weeks now. 

And we love how it's holding this range as a healthy consolidation from its late September breakout.

There's nothing about this chart that is bearish to me:

When I mentioned the relative bargain in long-dated call options in $FXI, JC said: "If we get rotation into China, this trade could make our year.

I agree.

Here's the Play:

I like buying $FXI January 2026 35-strike calls for approximately $3.00 per contract. This premium I pay today is the most I can lose in this trade and I'll size my position accordingly.

Meanwhile, I'm going to take an active roll in reducing my cost basis in this trade by selling nearer-term calls against it. This might not be for everyone (JC said he's not going to do it, for example).

Today, I'll also sell December 35 calls against this position for an approximately 52-cent credit. And I'll look to roll...

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

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

Let’s dig in!

We all know it has been a bull market, but how sustainable is it?

In today's Gold Rush video, we addressed the elephant in the room. Is this a bubble?

Additionally, we revisited some of the greatest bubbles of all-time and tied it back to the current environment.

One of our favorite historic bubble examples is silver in the late 1970s:

The Hunt brothers controlled around 1/2 of the world's supply of silver and sparked a 900% rally over the course of 2-years. Over the next few years, silver retraced the entire preceding move as it collapsed by 90%.

Finally, we discussed a few strategies for riding a bubble higher and profiting from all the madness.

Here's the video:

As always, let us know what you think.

All Star Charts Team