From the Desk of Steve Strazza @Sstrazza

Everything has been working lately, as the weight of the evidence continues to stack up in favor of the bottom being in for the current cycle.

The short-term breadth thrusts in late July were among the first signs of it. This week, we’re seeing new highs spread out to longer time frames, such as our 63-day indicators.

The percentage of stocks above their 200-day moving average has rebounded higher after undercutting the critical 15% level. This has marked significant bottoms in the past.

Participation has spread beyond growth stocks over the near term, as materials and energy are also rallying and reclaiming key levels. We can say the same for crypto.

And, most importantly, we’re finally seeing upside resolutions. Not only that, they’re holding.

Some of our favorite charts right now are short-term reversal patterns. We’re seeing them all over in growth stocks.

Let’s talk about some we’re buying.

This is the video recording of our August 10, 2022, Inside Scoop Weekly Strategy Session.

This is the video recording of our August 5, 2022, Inside Scoop Weekly Strategy Session.

From the Desk of Steve Strazza @Sstrazza

As this summer’s relief rally gains momentum, the new highs list is gaining and growing along with it.

For long-only universes like The Hot List, this is great news.

Why?

Because we finally have a good amount of bullish chart setups to choose from again. For a few months there, we were struggling to find solid opportunities for putting on long exposure.

We’ve been patiently waiting for evidence that the market is turning. And while we’re not out of the woods yet, conditions have improved significantly since June.

Let’s dive in and talk about some health care stocks that have our attention right now. 

This is the video recording of our July 27, 2022, Inside Scoop Weekly Strategy Session.

From the desk of Steve Strazza @Sstrazza

It’s been a while since we had two long ideas from The Hot List in a single week. 

But with markets in rally mode for the past month, we’ve had some strong stocks pop up on our scan.

While new highs are hard to trust in this tape, any names setting up for breakouts are stocks we want on our radar.

If they're unable to make a decisive upside resolution now, they'll probably be some of the first stocks to do so when the selling pressure finally eases.

We talked about one name we can put in this category earlier in the week, which you can read here. Today, we have another one.

This is the video recording of our July 20, 2022, Inside Scoop Weekly Strategy Session.

From the desk of Steve Strazza @Sstrazza

US equity markets have stabilized since June as macro headwinds have abated. 

This has brought on more bullish chart setups and a longer list of new highs.

While it’s nothing to get too excited about yet, it’s definitely a departure from the environment we’d been in.

Today, we’ll cover a stock that recently joined the Hot List and looks ready to join the new 52-week highs list next.

This is the video recording of our July 13, 2022, Inside Scoop Weekly Strategy Session.

From the desk of Steve Strazza @Sstrazza

Energy has been the clear leader in 2022. The sector posted a record-setting start to the year, even as the broader market sold off. 

Whether it's our Inside Scoop universe or any other scan, we’ve gotten used to leaning on the strongest stocks in the oil field for long exposure.

As participation narrowed for US stocks throughout the second quarter, we cautioned that energy had become an easy target and was vulnerable to catching lower with the broader market.

About a month ago, that happened as bears finally came for energy. In a matter of weeks, much of this year’s progress came undone, and so did a handful of our stops.

While there has certainly been short-term technical damage, the primary trends are intact. And while these stocks have been hit hard over the trailing month, there's little evidence that they're done being leaders over longer time frames.

Once this corrective action passes, we expect energy stocks to resume higher and offer plenty of bullish opportunities. But in the meantime, they are susceptible to deeper drawdowns and increased selling pressure.

...

This is the video recording of our July 6, 2022, Inside Scoop Weekly Strategy Session.

From the desk of Steve Strazza @Sstrazza

Bullish setups are hard to come by these days.

While this makes things more challenging in terms of finding opportunities, it also makes those opportunities stand out that much more.

If you’re showing relative strength in the current market environment, we’re sitting up and paying attention.

One of these rare leaders popped up in our Inside Scoop scan this week. Let’s talk about it.