Rocket Companies $RKT is in the process of completing a primary trend reversal as it breaks out to its highest level since 2021 on the heels of an earnings beat.

The stock holds a 13.6% short interest and a 6x days-to-cover ratio, which could spark a major squeeze.

As long as we’re above 15, we want to be long RKT.

With the primary trend just now turning higher with the completion of a textbook rounding bottom formation, we like this one over longer time frames too.

Here’s the chart, showing volatility surging higher as it comes off record low levels:

The market hates it when bonds are making outsized moves.

It's less about when rates are rising or when rates are falling.

The bigger point here is that when interest rates are making very aggressive directional moves, that's what brings the volatility to the stock market.

And that's exactly what's happening:

The most significant insider buy on today’s list comes via a Form 4 filing by Control Empresarial de Capitales S.A. de C.V.

The Mexico-based investment company reported purchases totaling $2.8 million in Talos Energy Inc $TALO.

Here’s The Hot Corner, with data from August 1, 2024:

Director John T Baldwin revealed the acquisition of 8,000 shares of Cleveland-Cliffs Inc $CLF.

Last but not least, former Speaker of the House Nancy Pelosi bought 10,000 shares of NVIDIA Corporation $NVDA.

NVDA has been stair-stepping higher and consolidating constructively along the way since a huge base-breakout in May 2023. 

For the last month and a half, the AI leader has been undergoing a corrective wave.

NVDA has fallen more than 20% off its highs, reaching a key extension level from above. We’re looking at this as a potential support zone.

We've been here before.

It's been 24 years since we've been here. 

But this is familiar territory

We saw historic underperformance from Technology stocks immediately after the sector reached the same levels it just reached last month.

Should we expect the same? In other words, should Tech keep underperforming, paving the way for other sectors like Financials, Industrials, Energy and Healthcare to outperform for a while?

Is that why the equally-weighted S&P500 just closed the month at new all-time highs? Because the largest weighting of the Market-cap weighted version is struggling to make any progress?

Here's Technology relative to the S&P500 getting back to those former highs from early 2000:

This is the video recording of our August 1st Monthly Charts Live Strategy Session

Here's this week's crypto roundup. It's an opportunity for us to take a step back, set aside the distractions, and delve into the key charts shaping the crypto complex.

VIX is near its highest level of the year and this is being reflected in options premiums nearly across the board.

It's also earnings season, so we want to be careful not to get caught in any potential earnings-driven landmines.

With this in mind, I've got a big cap name that has already reported earnings, is trading in a range, and is still exhibiting elevated options premiums -- the perfect recipe for a delta neutral options trade.

From the Desk of Ian Culley @IanCulley

Remember when anything priced in yen was trending higher?

It wasn’t too long ago that if you were looking for an uptrend, all you had to do was throw the yen in the denominator, and voila.

Just last month, the dollar hit a new 34-year high against the yen—levels not seen since the 1980s.

But the tables are turning in favor of the Japanese currency.  

While most central banks are either cutting interest rates or considering future rate cuts, the Bank of Japan (BOJ) is hiking—a policy shift that puts a bid beneath the yen…

A couple of months ago, I highlighted buying yen futures above .6500.

Fast forward to today, and I’ve adjusted the entry-level to the former 2022 and 2023 lows at approximately .6625:

The shelf of...

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

1. No new position today.
2. Adjustment to XLC position.
3. No exits since the last report.
4. Current status of open campaigns.

Let’s dig in!

The most significant insider buy on today's list comes via a Form 4 filing by Hanwha Impact Global Corp.

The company reported a purchase of $87 million in NextDecade Corporation $NEXT.

Here’s The Hot Corner, with data from July 31, 2024:

Director Jonathan C. Locker of Loews Corporation $L revealed a purchase of 6,200 shares, equivalent to $499,896.

In another Form 4, director Richard Anderson bought 2,000 shares of Norfolk Southern Corporation $NSC.

After completing a multi-decade basing pattern in 2021, Loews Corporation has screamed higher to the 161.8% extension level and shows no signs of slowing down.

If L is above 75.40, then the path of least resistance is higher.

Stay tuned. We'll be back on Friday with more insider activity.

...

From the Desk of Steve Strazza @Sstrazza

Dividend Aristocrats are easily some of the most desirable investments on Wall Street. These are the names that have increased dividends for at least 25 years, providing steadily increasing income to long-term-minded shareholders.

As you can imagine, the companies making up this prestigious list are some of the most recognizable brands in the world. Coca-Cola, Walmart, and Johnson & Johnson are just a few of the household names making the cut.

Here at All Star Charts, we like to stay ahead of the curve. That's why we're turning our attention to the future aristocrats. In an effort to seek out the next generation of the cream-of-the-crop dividend plays, we're curating a list of stocks that have raised their payouts every year for five to nine years.

We call them the Young Aristocrats, and the idea is that these are "stocks that pay you to make money." Imagine if years of consistent dividend growth and high momentum and relative strength had a baby, leaving you with the best of the emerging dividend giants that are outperforming the averages.

By adding our technical analysis to the mix,...

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...

At the end of the day, our number one goal is to help you secure a double on your trade. 

The Breakout Multiplier system (BOx) is a success when we sell lots of doubles. Period.

Think of flipping a double as securing a free ride. In bull markets, these free rides tend to turn into multi-baggers. That’s all we’re trying to do—put ourselves in the position to win big, consistently.

Once you get that double, it’s on you to decide the next steps. 

We will provide suggestions and always discuss how we are trading out of the remainder, but because everyone's risk tolerance and objectives are different, this is a decision you need to make personally. 

And it should come with a great deal of thought.

Consider the following:

• How much capital do you have in your account?
• How much and how often can you stomach losing?
• How greedy are you -- can you let your winners ride?
• Did you oversize the position in question?
• What is the broader...

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

1. New position in IWM today.
2. No adjustments are needed today.
3. No exits since the last report.
4. Current status of open campaigns.

Let’s dig in!

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

The private equity firm revealed an additional purchase of $3,278,206 in Lions Gate Entertainment Corp $LGF.

The CEO of MaxLinear Inc $MXL, Kishore Seendripu, bought 108,303 shares, equivalent to $1.4 million of his own company’s stock.

Here’s The Hot Corner, with data from July 30, 2024:

The president and CEO of Allegion plc $ALLE, as well as one of its directors, filed Form 4s disclosing a total purchase of $811,454.

ALLE has been building a massive base for the last four years.

The stock has been on fire, rallying 18% in a near-vertical line since the beginning of the month to the upper bounds of its range.

We think it’s only a matter of time before buyers absorb the remaining overhead supply and break Allegion out of this base.