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

To close the week, we saw a remarkable rally that drove Bitcoin prices up more than 10%. This was the largest single-day gain going back to February 28.

This came after Bitcoin tested the shelf of support near 19,000, while equity markets bounced on an important inflection point.

In last week's letter, we pointed out that buyers needed to step up and defend these levels, which they clearly have.

On Thursday, we mentioned the purchase made by the CEO of Asana $ASAN, Dustin Moskovitz, of $350 million  of ASAN stock through a private placement.

Moskovitz has completed the Form 4 filing.

The stock we're looking at this week is part of the Industrial Manufacturing sector. Let's examine which name has made it to our scan this time. Also, check out our latest post on Industrial Manufacturing stocks paving the way for the next leg of the rally!

We retired our "Five Bull Market Barometers" in 2020 to make room for a new weekly post that's focused on the three most important charts for the week ahead.

This is that post, so let's jump into this week's edition.

The Industrial sector has been on our radar throughout this year. The Nifty 500 peaked in October 2021, whereas stocks from the industrial sector continued to show resilience. Our outperformers scan list is full of industrial stocks.

Our Custom ASC Industrial Index is making a new all-time high on an absolute and a relative basis. We are looking for opportunities to add based on price breaking above the consolidating or options to add within an ongoing bullish uptrend. Finally, we'll look into potential multi-year breakouts.

In this post, we'll update the trade ideas from the last post and add a few new actionable setups that look attractive on the long side for the next few weeks and months.

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.

Have you noticed that stocks aren't getting oversold?

So not only did the new lows list go quiet, since peaking almost 3 months ago, but stocks aren't even seeing oversold readings.

The sellers appear to be exhausted.

We define oversold conditions as a 14-day RSI below 30. It's incredibly informative.

If you think a stock is in an uptrend and it's hitting oversold conditions, then it's probably time to reevaluate that thesis.

In uptrends you see overbought readings (RSI >70), and more importantly, a lack of oversold readings.

Look at the S&P500 not getting oversold at all during the Spring and Summer months:

From the Desk of Ian Culley @IanCulley

Gold has been a terrible inflation hedge over the trailing 24 months. It’s gone nowhere since the summer of 2020, while every other commodities have experienced rip-roaring rallies.

The truth is, the "inflation hedge" narrative is just that – a narrative. And I believe it’s false.

But, more importantly, so does price.

I prefer to lean on John Murphy’s observation that gold has a tendency to sniff out inflation, leading to major bull runs in commodities.

And, with gold futures on the verge of breaking down to fresh two-year lows, I think it’s a good time to revisit this often misunderstood metal.

Remember, gold was the first commodity to rally in 2019 – a full year ahead of the rest of the rest of the space.

Here’s a chart of gold futures overlaid with our equal-weight commodity index, highlighting the base breakouts:

Not only did gold experience a swift rally while most commodities were fast...

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. You can 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 sort the remaining...

From the desk of Willie Delwiche.

Inflation data has overtaken jobs data as the economic indicator that seems to generate the most interest every month and next week’s CPI report will be no different. But seeing inflation just from a post-COVID perspective misses the point. It’s not about prices for used cars or gasoline or shipping containers. Those might be in the headlines but they aren’t the news. The match was struck when the Fed was cutting rates in H2 2019 with wage growth and median CPI inflation at their highest levels in a decade and more job openings than unemployed workers for the first time ever. That reality got lost during the COVID shut-down & re-opening. All the stimulus that followed was fuel for the fire. The Fed made a policy error in 2019. The Fed compounded that error by mis-reading the situation and remaining complacent through 2021. All that being said, we may very well be nearing peak inflation. Inflation needs to stop going up before it can start going down. But it having stopped going up doesn’t mean that it has started going down in a meaningful way.

...

From the Desk of Steve Strazza @Sstrazza

With stocks posting a broad rally this week, we found a handful of names from our Inside Scoop universe that are on the verge of breaking out from bullish chart patterns.

As we discussed on Wednesday’s call, even the leaders are struggling to hold new highs lately.

For this reason, we want to be patient with these setups and be prepared for false starts.

With that said, these are some of the strongest names from the strongest industry groups right now. 

If the market is kicking off a fresh rally, these are the kinds of stocks we expect to lead it.

We've been keeping a keen eye on Uranian stocks over the past few weeks. Throughout the recent broader market weakness, it became a common refrain in our internal analyst meetings: "...we're still seeing relative strength in Uranium stocks."

When we keep saying that over and over, maybe the market is trying to tell us something?  *slaps head*

The stock that seems the strongest to us in the sector has been showing signs this week that it's ready to break out. So let's get to work.

This is the video recording of our September 9, 2022, All Star Charts Crypto Weekly Strategy Session.

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

From the Desk of Steve Strazza @Sstrazza

We held our September Monthly Strategy Session Tuesday night. Premium Members can click here to watch the recording and review the chartbook.

Non-members can get a quick recap of the call simply by reading this post each month.

By focusing on long-term, monthly charts, the idea is to take a step back and put things into the context of their structural trends.

This is easily one of our most valuable exercises as it forces us to put aside the day-to-day noise and simply examine markets from a “big-picture” point of view.

With that as our backdrop, let’s dive right in and discuss three of the most important charts and/or themes from this month’s call.

The largest insider transaction on today's list is a Form 4 filing by Loews Corp.

The New York City-based investment conglomerate reported a purchase of roughly $5.7 million in CNA Financial Corp $CNA.

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.

You notice how folks these days are all up in other people's business?

What do the decisions other people make with their money have to do with you? or me?

I don't care if someone I don't know makes an irresponsible trade and blows up their account.

Why is that my problem?

Let them blow up.

It's probably for the best anyway. You gotta learn somehow.

But that's not of my concern.

You want to put all your life savings into NFTs? Go for it. I don't care.

You want to sit in cash during a bull market watching everyone make money but you? Sure. Knock yourself out.

From the Desk of Ian Culley @Ianculley

After Federal Reserve Chair Jerome Powell’s remarks this morning, the market is pricing in an 86% chance of a 75-basis-point hike later this month. 

Meanwhile, rates continue to accelerate at the short end of the curve. That’s been the story for months now. 

But will the middle and long end of the curve head higher as well?

According to the two-year US Treasury yield, the answer is a resounding "yes!"

Short-duration rates offer plenty of valuable, leading information regarding US Treasury yields.

We’ve leaned on the five-year yield throughout the current cycle as an early indication of the direction of the 10- and 30-year. It’s proved a beneficial practice.

Today, we’re going to drop it down a notch, extending the same logic to the two-year yield.

Here’s a quad-pane chart of the two-, five-, 10-, and 30-year US Treasury yields:

Starting in the upper-left corner, the two-year is well above its former 2018 highs and hitting levels not seen since November 2007...