The best short squeezes happen when sentiment is thoroughly washed out, and it's difficult to picture a scenario where things can get worse.

This is the playbook we've followed for some of our best trades this cycle. Just look at how we nailed the bottoms in Carvana and Coinbase in late 2022. 

We think Walgreens Boots Alliance is setting up for a similar face-ripping rally like those mentioned above, and here's why:

Walgreens Boots Alliance was added to the Dow Jones Industrial Average (DJIA) in 2018 and replaced General Electric. Less than 6 years later and over 60% lower, the eggheads at S&P Dow Jones Indices decided to give WBA the boot.

This removal coincided with the resolution of a multi-decade distribution pattern and an additional 60% downside in the following months.

Last week, the WSJ reported that...

It’s day three of the ASC Research Team covering for me while I’m away. 

You've already heard from Sam and Louis. Today, you’re meeting one of our newest team members with a great trade idea for you… 

Show him some love.

JC

Hi, I’m Jason, one of the newest traders to join the All Star Charts team, and I’m pumped to be here.

Who in their right mind hires a guy who used to get paid to do backflips for a living?

Oh, right… JC would. Because, let’s face it, everyone needs a gunslinging CTA (Futures Trader) in their life.

My story? Not exactly what you’d call “traditional.” I started as a professional athlete and my great great uncle taught me more about trading and economics than he probably realized.

But life doesn’t always play fair. I took some hits, like rupturing my spleen, battling a bone infection, and going through not one, not two, but FIVE knee surgeries.

Yeah, fun times.

But you know what? Those curveballs became my fuel.

They pushed me to...

Editor's Note: The ninth installment in the ASC Mastermind Course, Finding the Best Small-Cap Stocks, is available for your review.

The Mastermind Course is a complimentary part of your ASC Premium Membership.

Grant Hawkridge here for JC while he enjoys some much deserved time off with the family...

We've hit on a magic...

Our series of guest posts written by members of the All Star Charts research team continues... 

Today's note is from our Senior Crypto Analyst. If you're not following what's been going on in crypto, you're missing out...

-JC

Kia ora!

I'm Louis Sykes, the Senior Crypto Analyst here at All Star Charts. 

When JC casually dropped that he was escaping to Disney World for an entire week, I thought he was pulling my leg.

An entire week?

At Disney World?

As a humble Kiwi where our idea of a theme park is basically a few rides and a half-day commitment, this sounded like some parallel universe of leisure.

"It's not just a park," he explained, his voice brimming with childlike excitement. "The hotel's basically a playground, and there are multiple theme parks surrounding you." Multiple? In New Zealand, we consider a carousel and a mediocre rollercoaster a full day's entertainment. This was like hearing about a theme park multiverse.

Speaking of multiverses that boggle the mind, Bitcoin...

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.

The Dow Jones Internet Index Fund $FDN has been on a tear, stair-steeping higher in a nearly vertical line for the past three months.

Price is knocking at the door to new all-time highs as it challenges its prior cycle peak from 2021.

However, whether or not this breakout sticks is a big question here.

The lower pane shows that the price is extended from its 200-day moving average.

Every time the price deviated from its long-term average in the recent year, it experienced a corrective wave before continuing its upward path.

So while I’m definitely anticipating some digestion at this resistance zone, I think FDN will eventually get the breakout done and take out this critical level just north of 250.

And when it happens, I want to lean into this leadership group. There is nothing better than a big base resolving into an empty space.

I’m ...

Happy Friday everyone

I would like to give a special shoutout to Tesla and congrats to all the bulls.

This week's new all-time highs mark an end to the longest and largest drawdown in company history.

Here’s the chart:

And now we can officially say that all of the Magnificent Seven stocks have made fresh all-time highs this cycle (and this year).

How magnificent. But it gets better. 

After somewhat of a drought in the back half of the year, these mega-cap growth names are once again the market leaders.

December has been all about big tech. Here’s a performance chart showing the recent relative strength:

The Roundhill Magnificent Seven ETF $MAGS is up over 9%, while the equal-weight S&P 500 $RSP is -3%. That’s a huge performance gap in just two weeks.

The broader market has basically been falling the entire month of December while the largest stocks in the world rip higher.

I think these leaders are being used as ATMs by many investors. Think about it. These stocks are up 100% to 1,000% this...

President-elect Donald Trump rang the bell at the New York Stock Exchange this week, and it was reminiscent of the times when Ronald Reagan and George W. Bush went to the NYSE years ago.

The infamous Reagan quote, "We're going to turn the bull loose," immediately came to mind.

Considering that, it seems appropriate to talk about bulls today because of their positive correlation to economic growth.

Live cattle futures and bond yields have danced together for decades:

As you can see, cattle futures and bond yields are structurally similar but sometimes diverge from one another. In the lower pane, we've included the 200-day rolling correlation to highlight the past (and current) divergences in price.

The biggest problem with correlation analysis is that it doesn't tell us which direction the lines will likely go next.

However, the primary trends have been higher since the 2020 low, and the odds favor that the primary uptrends will eventually reassert themselves.

And we think that's currently underway, with live cattle futures closing this week at the highest price in history.

We've been...

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

You guys in the chat room have been on fire lately!

I love the camaraderie that has been built among you guys and gals. The ideas, the mutual support, the multiple sets of eyes when a position needs our attention. So great.

You're all ONE! OF! US!

With this in mind, today's trade is in a name that has been discussed a few times of late in the chat. I've been waiting for a tradable support level to reveal itself, and we may be getting it right now, so let's get to it....

From the desk of Steve Strazza @Sstrazza

Our Hall of Famers list is composed of the 150 largest US-based stocks.

These stocks range from the mega-cap growth behemoths like Apple and Microsoft – with market caps in excess of $2T – to some of the new-age large-cap disruptors such as Moderna, Square, and Snap.

It has all the big names and more.

It doesn’t include ADRs or any stock not domiciled in the US. But don’t worry; we developed a separate universe for that. Click here to check it out.

The Hall of Famers is simple.

We take our list of 150 names and then apply our technical filters so the strongest stocks with the most momentum rise to the top.

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

Here’s this week’s list:

*Click table to enlarge view

We filter out any laggards that are down -5% or more relative to the S&P 500 over the trailing month.

Then, we...

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

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

Let’s dig in!

[Editors Note] Getting away from the screens is healthy for the soul.

It's important in order to keep the mind right.

And perhaps, I should add, that it's great for the bottom line.

Trust me.

I've been there.

Get away for a few days. Your portfolio returns will thank you. 

And I'm eating my own cooking here. I'm leaving for a few days, so you'll be hearing from different members of the ASC Research Team while I'm away.

Some of them you already know well. Some you're just getting to know. And others you're meeting for the fist time.

So try to be nice!

And please don't let them burn the place down while I'm gone.

I'll be back next week!

JC

My family has always been a healthcare family - I’m the son of a nurse and a pharmacist. When I was 15, they turned...

Jack L. Macdowell, chief investment officer of Chimera Investment Corporation $CIM, acquired $998,580 worth of CIM shares.

Kevin M. Sheehan, Interim CEO of Dave & Buster's Entertainment $PLAY, purchased 37,735 shares.

Here’s The Hot Corner, with data from December 12, 2024:

Director Mark A. Weinberger acquired 1,000 shares of Johnson & Johnson $JNJ.

We also witnessed insider buys in Hubbell Incorporated $HUBB and Jackson Financial $JXN.

Even though the S&P 500 has experienced a series of negative days, no increase in new lows suggests breadth isn't significantly weakening.

One of the weakest sectors post-election has been the SPDR Materials ETF $XLB, which marked its ninth straight down day today.

The last time we saw such a streak of consecutive losses was during the middle of the previous bear market in 2022. 

What makes this particularly significant now is that it’s occurring right at a key level of former highs.

If the bulls want to maintain control, they’ll need to defend this level of former resistance-turned-support. 

As long as it holds and no new lows emerge, I’ll treat this losing streak as part of a corrective wave. We’re likely nearing a bounce as this pullback comes to an end.

Alfonso

Today we held our Breakout Multiplier Weekly Strategy Session. If you’re not a member, click here to join us.

We do this every Thursday at 11 a.m. ET for Breakout Multiplier members, where we discuss new trades ideas, open positions and answer questions from the chat.

Here are two takeaways from today’s call:

• One Rule: Sell the Double

Discipline is crucial in any trading strategy. 

Today, we had a brief discussion on why it is so important to "sell the double." 

It’s the only hard and fast rule we have. But it’s critical. Without it, the whole thing breaks down.

Think of a double as a free swing at a potential multibagger. As long as we sell lots of doubles, the big winners...