Today's number is... 11

All 11 S&P 500 sectors are back in an uptrend.

I define an uptrend as when the 50-day moving average is above the 200-day moving average. 

It's a simple and straightforward approach.

Here’s the chart:

(right-click and open image in new tab to zoom in)

Let's break down what the chart shows:

The blue line in the top panel shows the price of the S&P 500 index.

The black line at the bottom represents the number of S&P 500 sectors with a 50-day moving average greater than its 200-day moving average.

The Takeaway: In a healthy bull market, both the 50-day and 200-day moving averages typically move in the same direction, with the 50-day moving average positioned above the 200-day moving average.

This week, the energy sector signaled a golden crossover (when the 50-day average crosses above the 200-day average). This development has brought all 11 S&P 500 sectors back into uptrend mode. Signaling a continuation of the healthy participation...

I recently sat down with Jason, our commodities and gold expert, to discuss the crypto and gold markets.

You can watch below.

I was actually a customer of All Star Charts Premium research before ever meeting or working with JC.

When I was just finding my way into technical analysis, guys like Brian Shannon, Frank Cappelleri, and JC really resonated with me.

Their charts, their analysis, the way they viewed and discussed markets… They were speaking my language. 

I wanted to do what these guys were doing. End of story.

Without them as my early mentors, I never would have had the faith and courage to make the big career change I did.

Over time, JC and I got to know each other over email. We found out we went to the same college and both liked food, sports, and charts… a lot. 

We met at a CMT symposium later that year. 

I started doing some project work for him while I was still consulting for the Big 4. I begged him to hire me for a while. He finally did, and the rest is history.

I joke with him sometimes that I’m the best investment he ever made.

But seriously, it was a match made in heaven. Just ...

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.

Today we held our Breakout Multiplier Weekly Strategy Session.

When discussing the deck for today's call, Alfonso and I agreed that the best chart had to be Lovesac $LOVE.

Just look how orderly this rounding bottom breakout is playing out.

We scooped up the 12/20 $35 calls, hoping they’d be in-the-money by the time the theta decay window set in.

With the stock up 7% today, that’s exactly what happened. And it came just in the nick of time, as today marks 29 days until the expiration of our calls.

Momentum is firing up, with the daily RSI-14 getting overbought for the first time since the summer. 

LOVE is also sporting a momentum buy signal on the daily, weekly, and monthly charts. Talk about trend alignment across multiple...

Energy stocks have been showing some strength over the past few weeks.

Looking at the large-cap Energy Sector ETF $XLE, the price has been coiling around a key shelf of former highs for the past two years.

And when you zoom out on the chart like I’ve done, you’ll notice this base has been forming for the past 16 years!

Buyers have tested this level multiple times, steadily absorbing the overhead supply at the current level.

This kind of action usually comes before a breakout, as bulls build up fuel for the next leg higher.

If XLE breaks out of this massive base, we’re all going to want a lot more energy exposure than we currently have.

As such, I’m getting ready for it and making a wish list of sector leaders.

I think it will happen soon. 100 marks the line in the sand.

Steve and I were discussing...

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

1. No new positions today.
2. Rolled XOP position to January options.
3. Exited GLD position for a profit.
4. Current status of open campaigns.
5. Volatility Snapshot.

Let’s dig in!

A new secular uptrend is beginning for Oil & Gas stocks.

It was a stand out last night during our LIVE Conference Call for Premium Members of ASC Research.

Sector Rotation is a dominating theme among equities, and you don't want to be left behind....

Paul J. Friborg director at Estee Lauder Companies $EL continues to build a position in his own company’s stock.

This time, Friborg revealed a $5 million purchase, following a $10 million purchase earlier this week.

Here’s The Hot Corner, with data from November 20, 2024:

In another Form 4, Merchants Bank $MBIN director Patrick D. O'brien revealed a purchase of MBIN stock with a total value of $2,000,000.

The CEO of Enphase Energy $ENPH revealed the acquisition of 5,000 shares, equivalent to $308,727.

Solar stocks have fallen off a cliff since they peaked in 2021. But we’re now seeing multiple executives stepping in to buy shares in their own companies.

We’ve seen filings from top decision-makers at SolarEdge Technologies $SEDG, Sunnova Energy...

The big theme this week is textbook retests. We’re seeing this kind of price action across the board right now.

One that stands out is the large cap healthcare index. 

The healthcare sector is finding its footing after experiencing significant downside pressure in recent weeks.

Price is currently testing a critical level of former resistance marked by a shelf of prior cycle highs.

With so much price memory here, this area represents a logical level for XLV to catch a bid.

And so far it is. The bulls are digging in and flipping this old resistance zone into support.  

The line in the sand is $140. As long as XLV holds above this level, I’ll give the bulls the benefit of the doubt. This area offers a great place for a defined risk entry for a potential bounce.

I’m also watching how the smallest and most volatile stocks,...

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

Here are the top three takeaways from the call:

• Small-caps hold the line

The S&P Small Cap 600 Index $IJR pulled back to test former resistance, which is now acting as support.

Buyers stepped in to defend this critical level, leaving the post-election gap partially filled:

As long as prices hold above the prior cycle highs, this is a bullish pattern resolution.

• Big-cap tech losing leadership?

The summer sell-off looks like the initiation of a new downtrend for the XLK/SPY ratio.

This is happening exactly where the ratio peaked during the dot-com bubble.

The current market playbook has shifted: smaller, more speculative stocks are stepping up as the new leaders while the...

Today's number is... 17

The BofA US High Yield Option-Adjusted Spread is at a 17-year low, a level not seen since before the GFC market crash.

Here’s the chart:

(right-click and open image in new tab to zoom in)

Let's break down what it shows:

• The blue line shows the price of the S&P 500 index.
• The black line represents the BofA US High Yield Option Adjusted Spread.

The Takeaway: A rise in high-yield spreads indicates increasing volatility and stress, reflecting a Risk-Off market behavior. Conversely, a decline in high-yield spreads suggests that investors are confident and actively seeking risk, indicating a Risk-On market behavior.

Currently, We are at 17-year lows in this spread. If the bond market isn't experiencing stress, then why should we be concerned? After all, the bond market is one of the largest in the world. If there were real stress in the market, it would likely be reflected in credit.

At this moment, credit spreads are sending a clear message: Relax...

We've got Nvidia earnings after the bell this afternoon. The feeling I shared to my analysts today -- and they all agreed -- is that if Nvidia disappoints, the likely result will be a small speedbump for the overall stock market. But if investors cheer the Nvidia earnings results, then gas is going to get poured on this bull market.

The Russell 2000 Small Cap ETF $IWM does not have direct exposure to $NVDA, so our risks feel limited on the downside. However, in a resumption of the bull market, small caps have a good chance of ripping to and through new highs.

That's the bet we're making today.

From the Desk of Steve Strazza @Sstrazza

Welcome to The 2 to 100 Club.

In this scan, we look to identify the strongest growth stocks as they climb the market-cap ladder from small- to mid- to large- and, ultimately, to mega cap status (over $200B).

Once they graduate from small-cap to mid-cap status (over $2B), they come on our radar. Likewise, when they surpass the roughly $30B mark, they roll off our list.

But the scan doesn't just end there.

We only want to look at the strongest growth industries in the market, as that is typically where these potential 50-baggers come from.

Some of the best performers in recent decades – stocks like Priceline, Amazon, Netflix, Salesforce, and myriad others – would have been on this list at some point during their journey to becoming the market behemoths they are today.

When you look at the stocks in our table, you'll notice we're only focused on Technology and Growth industry groups such as Software, Semiconductors, Online...