From the Desk of Kimmy Sokoloff

The market was happy with the CPI numbers.

No rest for the weary...

From the Desk of Ian Culley @IanCulley

Markets are bracing for tomorrow’s FOMC decision – including the dollar.

That’s right – we have more indecisive action on tap. Let’s call it the knee-jerk before the knee-jerk, with a little help from today’s May CPI print. 

Interest rates, the US Dollar Index $DXY, and gold have yet to make a decisive directional move.

To be fair, most markets are trading within their respective year-to-date ranges (except the S&P 500 and Nasdaq 100, of course).

But if we turn to emerging market currencies, we don’t see any sign of hesitation…

Check out our EM Commodity Currency Index (equally weighting the Mexican peso, the Brazilian real, the Chilean peso, and the South African rand) posting new 52-week highs after violating a long-term downtrend line at the beginning of the year:

...

We've adjusted a position in the Paid-to-Play portfolio today:

The most significant transaction on today's list comes in a Form 4 filing by Len Blavatnik.

Blavatnik reported a purchase of $10 million in Day One Biopharmaceuticals $DAWN.

From the Desk of Kimmy Sokoloff

We have CPI for May coming out at 8:30 a.m. ET.

I'll hold off on ideas until I see how the market absorbs the data.

From the Desk of Steve Strazza @Sstrazza.

Welcome back to Under the Hood, where we'll cover all the action for the week ended June 9, 2023. This report is published bi-weekly and rotated with The Minor Leaguers.

What we do here is analyze the most popular stocks during the week and find opportunities to either join in and ride these momentum names higher, or fade the crowd and bet against them.

Under the Hood is a value-add for investors of all kinds, as we can express our views through a variety of different types of stocks.

We use a variety of sources to generate the list of most popular names.

There are so many new data sources available that all we need to do is organize and curate them in a way that shows us exactly what we want: a list of stocks that are seeing an unusual increase in investor interest.

Click here for a behind-the-scenes look...

From the Desk of Steve Strazza @sstrazza and Alfonso Depablos @Alfcharts

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 reason only: because they think...

From the Desk of Ian Culley @IanCulley

Gold can’t do all the heavy lifting.

I believe a generational rally for gold has already begun. But my structural outlook hinges on the former 2011 peak.

Gold must hold above that former high, marking the end of the previous secular bull run. 

It’s held this level so far. 

But if gold has any chance of printing new all-time highs as it has versus most major global currencies, it needs a little help from its friends…

From the Desk of Kimmy Sokoloff

New highs for $QQQ once again...

There hasn't been any cooling off for the indices just yet.

We'll see what this week brings.

[12/4: updated stop to 107]

We've been talking a lot lately about the number of stocks setting up to play "catch-up" to this bull market that is only just now starting to get the attention it deserves, in spite of it being nearly 8 months old now, by our measures.

Today's trade is in another one of these setups that continue to work for us ($CAT and $IWM are great, recent examples).

From the Desk of Ian Culley @IanCulley

Gold can’t do all the heavy lifting.

I believe a generational rally for gold has already begun. But my structural outlook hinges on the former 2011 peak.

Gold must hold above that former high, marking the end of the previous secular bull run. 

It’s held this level so far. 

But if gold has any chance of printing new all-time highs as it has versus most major global currencies, it needs a little help from its friends…

I’m talking about the rest of the precious metals space – silver, platinum, and palladium.

Silver is hanging tough as it attempts to reclaim last month’s pivot lows. But this is a lonely bullish data point – one I imagine gold bugs wish they could attribute to palladium.

Check out the Aberdeen Physical Palladium ETF $PALL:

Instead of challenging former support from below, PALL is breaking down to fresh four-year lows. The breakdown in palladium fails to reflect the broad demand for metals I associate with the next secular uptrend in gold.

In short, this is not bull market behavior.

To be clear, I’m not interested in shorting PALL. It...

The next new position in our Paid-to-Play portfolio is:

We had a resting GTC order filled at our profit target in the Paid-to-Play portfolio today:

The most significant transaction on today's list comes in a Form 4 from Diversified Healthcare Trust director Adam Portnoy.

Portnoy revealed a purchase of $14.7 million in DHC.

From the Desk of Kimmy Sokoloff

It's going to be a busy week, with CPI tomorrow and the Fed on Wednesday.

We must be on our toes and trade tactically.

Week starting June 12, 2023 | Edition No. 15 

Our mission at The Buzz is simple: to identify and profit from the most-talked-about stocks on social media. 

Every week, we compile a list of stocks trending tickers that are experiencing a large increase in the investor interest. We use social media data from our partners at Likefolio. 

In each weekly report, we outline 1-3 actionable trades. We also take a closer look at a few other charts from our list. Some weeks will have more actionable setups than others, as we don’t want to force trades. 

With any bottoms-up scan, many of these stocks are at the mercy of the broader market. We will always consider the current market environment when identifying our long/short ideas. 

None of these setups are guaranteed to work. Profitable trading requires you to take small losses and let your winners run. If price closes below our risk levels, we want to take the small loss and move on, to preserve capital for future opportunities. 

As always, feel free to reach out to me at Patrick@thechartreport....

The new 52-week highs list keeps on getting longer.

You can add the S&P500 ETF $SPY to that list now.

Here's what that looks like:

From the Desk of Ian Culley @IanCulley

Commodities are caught in correction mode.

Copper has undercut former support. Crude oil is trading below its former cycle peak. And grain markets can’t catch a bid.

It’s not the most bullish behavior. But remember, price doesn’t travel in a straight line. 

On the bright side, most commodity contracts have stopped going down.

And the future will only become brighter for commodity and stock market bulls if buyers continue to bid up this next stock…

Check out Steel Dynamics $STLD, a $17B steel producer:

STLD has been on our radar for quite some time as it has respected key extension levels while grinding higher.

Notice the 98 level acted as resistance in early 2022. More recently, this level became support. This is the...

From the Desk of Kimmy Sokoloff

It wasn't  the strongest Friday, but $SPY did take out the August high.

Next week will be a big one for data. I still think we can see SPY 422.92 sooner versus later.