Despite the gloomy headlines the market received this summer, major stock market sectors are showing resilience across the board, with new signs of life emerging. 

A shift seems to be on the horizon.

At the moment, we are long bonds. We like bonds, and the charts tell us we are right to like bonds here, but what does the future hold?

If inflation starts ticking up again, the market usually pivots toward the reflation trade—favoring sectors like energy, small caps, and financials as rates rise. (I am not saying that this is happening. I am saying that we need to keep an eye on this.) 

Energy has not participated in the bull run this year. When we compare XLE to some of the best stocks this cycle, like XLK, the performance gap is wild.

The chart below shows XLK up roughly 40% over the trailing 12 months while XLE is negative.

Meanwhile, the rally in bonds appears to be slowing down. 

Bonds have a traditionally inverse relationship with energy stocks, so we think this further sets the stage for a catch-up trade from oil and gas.

Oil...

From the desk of Steve Strazza @Sstrazza

Our International Hall of Famers list is composed of the 100 largest US-listed international stocks, or ADRs.

We've also sprinkled in some of the largest ADRs from countries that did not make the market cap cut. 

These stocks range from some well-known mega-cap multinationals such as Toyota Motor and Royal Dutch Shell to some large-cap global disruptors such as Sea Ltd and Shopify.

It's got all the big names and more–but only those that are based outside the US. You can find all the largest US stocks on our original Hall of Famers list.

The beauty of these scans is really in their simplicity.

We take the largest names each week and then apply technical filters in a way that the strongest stocks with the most momentum rise to the top.

Based on the market environment, we can also flip the scan on its head and filter for weakness.

Let's dive in and take a look at some of the most important stocks from...

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

1. No new positions today.
2. Rolled XLC position to November options.
3. No positions were exited since the last report.
4. Current status of open campaigns.
5. Volatility Snapshot.

Let’s dig in!

The most notable insider activity on today's list comes via a Periodic Transaction Report filing by Rep. Greg Landsman of Ohio.

Landsman revealed a purchase worth between $15,000 to $50,000 in Arista Networks Inc $ANET.

Here’s The Hot Corner, with data from September 26, 2024:

Crypto is on the cusp of a bullish trend reversal.

This is the video recording of our September 2024 Mid-Month Strategy Session

Last summer, Sean and I toured Southeast Asia and gave presentations at CMT events in seven different countries.

I was lucky enough to learn firsthand about the local companies, the nuances of their financial markets, and the compelling growth stories that are playing out in this exciting region of the world.

I fell in love with some of the places I visited.

In countries like Vietnam, Malaysia, and the Philippines… you could literally see it. You could feel it in the air. You could hear it in the voices of the people we met and had conversations with. It was an exhilarating experience.

The runways for these countries to keep growing and eventually play a larger role in the world economy was obvious. The investment opportunity seemed massive.

I was all in on emerging Asia. It was a no-brainer.

But, there was one big problem…

The charts were not telling this story of growth and prosperity. These countries were all trading around new lows.

I was telling the same joke at every new CMT meeting when I got to the segment about local markets. I only had good news for our friends in Japan.

Everywhere else, I would spend 30 minutes...

Here's the replay and chartbook from today's stream.

Note that we do these videos live 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. 

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

Following a nasty drawdown from the all-time highs made back in 2021, Peloton Interactive $PTON is coiling at the upper bounds of a textbook bearish-to-bullish reversal pattern.

An upside resolution from the past month's trading range will confirm a new primary uptrend for this battered growth stock.

Here’s the chart:

Peloton is sporting a 20% short interest and 4x days to cover ratio, which means if we get the move we’re looking for, it should be a big one.

What we’re doing here is simple. Let’s walk through it.

The worst stocks, the cycle laggards, the non-participators, the most-heavily shorted names… they are all working out here...

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

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

Let’s dig in!

The most notable insider activity on today's list comes via a Form 4 filing by Liberty 77 Fund L.P.

The private equity firm reported a purchase of $3.6 million in Lions Gate Entertainment Corp $LGF.

Here’s The Hot Corner, with data from September 25, 2024:

From the Desk of Steve Strazza @Sstrazza

Welcome to The Junior International Hall of Famers.

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-listed international stocks, or ADRs.

This scan is composed of the next 100 largest stocks by market cap, those that come after the top 100 and are thus covered by the International Hall of Famers universe.

Many of these names will someday graduate and join our original International Hall Of Famers list. The idea here is to catch these big trends as early on as possible.

Let’s dive right in and check out what these future big boys are up to.

This is our Junior International Hall of Famers list:

Click table to enlarge view

And here’s how we arrived at it…

We removed laggards which are down 5% or more relative to the ACWI Ex. U.S. Index $ACWX over the trailing month.

Then we sorted...

Below is the replay and slide deck for Week 1 of ASC Mastermind.

During today's internal Analyst meeting, JC said: "We should be doing more in China."

It's not something I often agree with. But today I do.

In fact, I've already got a couple positions on in stocks with China exposure, and I'm adding some more today.

And look at this performance of the China Large Cap ETF $FXI:

And the catch-up trade may be massive.

In today's Options Jam Session, I discuss this, as well as my thoughts on what's in store for the stock market in the coming 2-4 months.

Sean McLaughlin | Chief Options Strategist, All Star Charts

"We should be doing more in China." ~ JC Parets during this morning's internal Analyst meeting.

This, coupled with my feeling that we need to be more aggressive in the stock market right now as the potential profits on the upside could be quite meaningful, playing in China is as aggressive as it gets.