We debuted a new scan recently which goes by the name- All Star Momentum.

All Star Momentum is a brand new scan that guides us towards the very best stocks in the market. This time around, we have incorporated our stock universe of Nifty 500 as the base. Among the 500 stocks that we follow, this scan will pump out names that are most likely to outperform the market.

While we go through our lists of sectors and stocks on a weekly basis, we thought of launching a product that would highlight the strongest performers in our universe. These are the ones that are primed for an explosive move.

Just like The Outperformers scan, this is a list of stocks belonging to the sectors that display relative strength in the market at any given point in time. Since sector rotation is the lifeblood of a bull market, we will be ahead of the curve before the gears keep shifting.

This is the video recording of the January 2022 Mid-month Conference Call.

From the desk of Steve Strazza @Sstrazza and Grant Hawkridge @granthawkridge

One of the most important themes these days is the rotation between growth and value stocks. Groups like energy and financials have been breaking to new highs while growth and tech indexes have come under serious pressure.

So far, 2022 has been a true tale of two markets.

While cyclicals and value stocks appear to be gearing up for a momentous year, it looks like the party is finally coming to an end for the growth trade.

We want to lean on the value-heavy leadership groups for long opportunities in 2022. As for growth, we think it's likely to remain messy as interest rates continue to rise.  

When we look beneath the surface at growth and value stocks right now, our breadth data is confirming the action we’re seeing at the sector level.

Let’s dive in and discuss... 

Here's one way to visualize the opposing paths of large-cap value and large-cap growth right now. This indicator shows us the percentage of stocks above their 50-day moving averages for each of these indexes:

...

From the desk of Steven Strazza @Sstrazza and Ian Culley @IanCulley

What started out as a potential bullish continuation pattern in the US Dollar Index $DXY has turned into a near-term top.

After weeks of failing to hold breakouts on an individual currency basis, the tight coil in the DXY finally resolved lower.

The brief reprieve in USD strength was immediately felt across markets last week, with cyclical/value stocks and procyclical commodities catching an aggressive bid.

Now that the headwinds associated with dollar strength appear to be easing, will risk assets enjoy a tailwind in the form of sustained USD weakness?

Or was this just the latest fake-out from the DXY?

Let’s take a look at a couple of charts and highlight the levels we're watching in the coming weeks and months.

First up is the US Dollar Index:

After the...

From the desk of Willie Delwiche.

Key Takeaway: New highs being seen in areas where most investors have little exposure. Liquidity pressures build as corporate bond yields rise. Indexes consolidating after recent highs lacked broad support.

• Energy remains at the top of the relative strength rankings, followed now by Financials. Materials continued to climb, rising to the number four spot this week. 
• Defensive sectors saw their recent relative strength moderate last week. Consumer Staples dropped one spot, Utilities were down two spots and Real Estate fell by three.  
• Our industry group heat-map shows this is a sector/group-sensitive rather than size-sensitive market right now. Growth sectors are being dragged down regardless of size.

In yesterday's note, we outlined our patient approach in the face of this messy tape.

For the most part, we're sitting on the sidelines waiting for an uptick in investor demand to drag the market out of this correction.

Current price action is being heavily driven by the futures market, which will only serve to increase the probabilities of whipsaws and fake-outs that can wear on traders' emotional as well as their financial capital.

Additionally, when evaluating the altcoins, there isn't any edge in being positioned aggressively long.

As we'll explore in today's post, many names look vulnerable for further near-term downside, and even most of the leading alts have lost much of their bullish momentum over the last few days.

Let's dive in.

On this episode of Pardon The Price Action, we're talking about the implications of rising interest rates. This is no longer an environment where Growth stocks outperform. It's actually the exact opposite.

We're also seeing these signs from other countries around the world with much more exposure to the Value sectors like Energy, Materials, Industrials and Financials.

US Investors have a lot more exposure to Technology and Growth than almost every other country in the world.

I think Latin America is worth watching, China and many other emerging markets.

We believe this time IS different!

Check out the full video:

Over the last quarter, we saw the market really struggle to pick a direction and get going. There were a lot of sideways moves and a lot of failed breakdowns. Currently, we've seen a resumption in the positive trend in most sectors, supported by market breadth.

Today we're taking a look at stocks from the Industrial Manufacturing sector. A handful of stocks are signifying what could be a good bullish going forward.

So let's see what we have today!

What if the outperformance we've seen from the United States stock market for so long is behind us?

Is your portfolio prepared for an environment where US stocks underperform the rest of the world?

What about your peers?

Do you think Financial Advisors across the country have positioned their clients to take advantage of outsized returns outside the United States?

I talk to a lot of people.

And my answer is no. A big fat obnoxious NO.

I don't think they're ready at all. And the pain could last a while.

By the time your average financial advisor gets off the golf course and notices how poorly positioned their clients are, it's usually much later in the cycle.

From the desk of Steven Strazza @Sstrazza

*** Click here to read the reveal post for this Mystery Chart ***

Check out our latest Mystery Chart!

What we do here is take a chart that’s captured our attention, and remove the x and y axes as well as any other labels that could help identify it.

This chart can be of any security, in any asset class, on any timeframe. Sometimes it’s an absolute price chart, other times it’s on a relative basis.

It might be a ratio, a custom index, or maybe the price is inverted. It could be all three!

The point is, when we aren’t able to recognize what’s in front of us, we put aside any biases we may have and scrutinize the price behavior objectively.

While you can try to guess the chart, the point is to make a decision…

So, let us know what it is… Buy, Sell, or Do Nothing?

From the desk of Steve Strazza @Sstrazza

Welcome to our latest Minor Leaguers report.

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

We recently decided to expand our universe to include some mid-caps…

For about a year now, we’ve focused only on Russell 2000 stocks with a market cap between $1 and $2B. That was fun, but it’s time we branch out a bit and allow some new stocks to find their way onto our list.

The way we’re doing this is simple…

To make the cut for our new Minor Leaguers list, 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...

From the desk of Steve Strazza @sstrazza

This is one of our favorite bottom-up scans: Follow the Flow. In this note, we simply create a universe of stocks that experienced the most unusual options activity — either bullish or bearish… but NOT both.

We utilize options experts, both internally and through our partnership with The TradeXchange. Then, we dig through the level 2 details and do all the work upfront for our clients. Our goal is to isolate only those options market splashes that represent levered and high-conviction, directional bets.

We also weed out hedging activity and ensure there are no offsetting trades that either neutralize or cap the risk on these unusual options trades.

What remains is a list of stocks that large financial institutions are putting big money behind… and they’re doing so for one...

From the desk of Steve Strazza @Sstrazza

Our Top 10 Charts Report was just published.

In this weekly note, we highlight 10 of the most important charts or themes we're currently seeing in asset classes around the world.

It’s Time To Look Outside The US

The same areas of the market that are starting to drive the rotation from growth to value are also likely to drive rotation between US and ex-US stocks. The reason for this is simple. International stocks tend to have a high relative weighting toward value, while the US has one of the highest allocations to tech and growth of any country. While we’re still seeing very little evidence of a trend reversal in our ratio charts of international vs US stocks, we are starting to see more and more breakouts from international indexes and ETFs on absolute terms. Fresh legs higher from these diversified global indexes and individual country ETFs could be what sparks a turnaround in the relative trends. We want to keep a close eye on value-heavy countries such as Canada, Australia, and various areas of developed Europe. One area that is standing out recently is the Eurozone and the UK in...

From the desk of Steve Strazza @Sstrazza

Check out this week's Momentum Report, our weekly summation of all the major indexes at a Macro, International, Sector, and Industry Group level.

By analyzing the short-term data in these reports, we get a more tactical view of the current state of markets. This information then helps us put near-term developments into the big picture context and provides insights regarding the structural trends at play.

Let's jump right into it with some of the major takeaways from this week's report:

* ASC Plus Members can access the Momentum Report by clicking the link at the bottom of this post.

Macro Universe:

• Our macro universe was flat this week as 53% of our list closed higher with a median return of 0.06%.
• Oil $CL was the winner this week, closing with a 6.24% gain.
• The biggest loser was Dow Jones Transports $DJT, with a weekly loss of -2.24%.
• There was a 4% gain in the percentage of assets on our list within 5% of their 52-week highs – currently at 55%.
• 30% of our macro list made fresh 4-week highs, 17% made new 13...

Over the last few weeks, our patient approach to the market following December's volatility has continued to pay off.

In last week's report, we outlined how we're viewing this recent dip as yet another low-conviction dip-buy, and why we anticipate messy and whipsaw-prone price action before a tradable bottom is found.

There's little to update on since that report.

Spot flows have been neither bullish nor bearish, but neutral. We need to see demand come in from investors to form a tradable bottom. The market appears to be in oversold conditions, making this a logical place for this to happen.

Elevated leverage in the derivative markets has made futures the dominant force on price action. There are early signs of a short squeeze developing, but we need to see investor demand support it.

Apart from a few exceptions, we're sitting out most of the action in the alts for now.

The market has been different over the past two weeks compared to the past two months. We're seeing a resumption in trend in several sectors and today Fertilizers are in focus.

Let's take a look at the trade for this week!

We retired our "Five Bull Market Barometers" in 2020 to make room for a new weekly post that's focused on the three most important charts for the week ahead.

This is that post, so let's jump into this week's edition.

Some people think that Small-cap stocks underperformed last year.

But those are probably the ones left holding the bag in small-cap growth stocks.

You see, Small-cap Value stocks did great!

One for the record books, in fact.

This is our ASC Research Q1 2022 Playbook.

With the current market environment giving us many mixed messages, what better time to dive in and see what's happening underneath the surface?

• Stocks (International & U.S.)
• U.S. Sectors & Industries
• Market Breadth & Sentiment
• Commodities
• Currencies
• Intermarket Analysis
• Crypto Currencies
• New Trade Ideas
• Overall Strategy

These are the registration details for our live monthly conference call for Premium Members of All Star Charts India.

This month’s Conference Call will be held on Wednesday, January 19th at 7 PM IST. As always, if you cannot make the call live, the video and slides will be archived and published here along with every other live call since our launch.

Here are the details for Wednesday:

Have you noticed the sense of entitlement from investors left holding the bag in these growth stocks?

Why is that our problem?

The rest of the planet doesn't care about your obsession with U.S. growth stocks. It's a much bigger world out there.

Oh, you fell for that narrative about a female rock star portfolio manager?

Too bad.

Oh, you decided to buy stocks that historically do poorly in rising rate environments, during a rising rate environment?

Too bad.

These are the registration details for our live mid-month conference call for Premium Members of All Star Charts.

Our next Live Call will be held on Tuesday January 18th at 6PM ET. As always, if you cannot make the call live, the video and slides will be archived and published here along with every other live call since 2015.

Here are the details for Tuesday night: