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.

We've been obnoxiously talking about soft commodities lately.

But, it's for a good reason! And it all comes down to relative strength.

Aside from a few pockets of strength, the trends have been a mess in the broader commodity complex.

Products like Natural gas and precious metals have been hard to ignore if you're involved in the commodities markets.

There's more though. 

Orange Juice futures made a new all-time high this week and look primed to begin a new leg higher.

Let's talk about how we're playing it:

First, some context: 

Like Cocoa, Orange Juice futures have gone wild in recent years. OJ has rallied 450% in the last 5-years, while Cocoa rallied nearly as much in half of the time. 

The momentum behind products like Cocoa and...

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All 11 sectors in the S&...

When Junk Bond traders jump ship, I’m out of stocks.

With all the talk about credit spreads “blowing out” since early August, this is an important discussion to have right now.

We always trust the bond market. Throughout history, bonds have done an impeccable job at alerting investors about problems in risk asset markets. 

When there is stress in other markets, it shows up in fixed income first.

However, as technical analysts, we are mindful of the math that is behind some of the relationships we study and give weight to.

What if I told you that industrials have been massive underperformers during this bull market? 

The absolute price chart looks incredible. How could that be?

We call it the denominator fallacy. 

Benchmarked against the S&P 500 or Nasdaq 100, of course they are underperforming. 

We think there is a similar situation playing out for our bond market ratios right now.

The absolute chart up top looks great. The relative trend, down below, not so much.

...

From the Desk of Steve Strazza @Sstrazza

First up is the $1.3B pet health & wellness services provider, Petco $WOOF:

We first covered Petco in June, after the retailer had its best 3-day rally in history.

With a 200% run-up in the month of May, the stock earned a few months of digestion, and that is exactly what's played out.

Last week, it rallied over 50% on the heels of earnings, sparking a new short squeeze.

With a 29% short...

I'll be Streaming LIVE TODAY at 4 p.m. ET to talk about what that 20% correction in Semiconductors means for this market, where that money is going next, why markets are usually volatile ahead of November’s election, and what exactly we’re doing to profit from it all.

Click here to join us FREE.

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There are plenty of Technology stocks that are working.

You just have to look.

Our...

That was it?

We can just take our ball and go home now?

The A.I. story has come and gone and the recession that they've been telling us about all these years is finally here?

So this is a major top in Nvidia - ending the whole damn thing?

That's your bet?

And this massive top in Microsoft is exactly that - a historic top? One for the record books?

So the largest company on the planet is about to complete this 8 months of institutional distribution and is about to bring down the entire Technology sector?

Keep in mind that Nvidia and Microsoft combine for over 41% of the S&P Technology Index. (Apple is only 5% of Tech now)

Here's what I'm being told is the end for Microsoft...

Is that the bet you're making?

This is the end of the bull market?

Because I see Consumer Discretionary as the leading sector over the past month. Look at those returns, all outperforming the major averages by a long shot:

And another thing.

You know how we've been pointing out that High Beta has severely underperformed Low Volatility?

Well look at this monster whipsaw.

Keep in mind that...

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 Software, Semiconductors, Online...

From the Desk of Steve Strazza @Sstrazza

Last week, we outlined a short squeeze in Phathom Pharmaceuticals $PHAT, which has been working for us.

It doesn't seem like the market is finished squeezing the short sellers out of their biotechnology positions.

Today, we're discussing yet another biotech stock that has a ridiculously high days-to-cover ratio and short interest.

More importantly, the risk couldn't be more well-defined.

So, we're stepping up to the plate and taking another swing at a short squeeze.

After Covid there was no sector that did better than Consumer Discretionary stocks.

Locking everyone down and sending them all a check to go spend, as it turns out, was great for the Consumer Discretionary sector. 

And then 2021 ended and the correction in Consumer began...

Years in the making, here is the massive top in Consumer Discretionary relative to the S&P500 that's got people talking...

Or is it that the Consumer stocks are just finding support once again where they did a decade ago?

Is the squeeze now ready to get going?

It's interesting that Chip Stocks find themselves in a very similar position.

See:...

Did you hear about the massive top in Semiconductors?

Everyone is talking about it on the internets. So it must be true. 

Seems the easy call here to make is to say "that was it". The Semiconductor story and the bull market as we know it is over...'

One of the things they teach you in the first week of Technical Analysis kindergarten is that infamous Head & Shoulders top.

The reason this is so popular is because it is "easy" to recognize. You have a left "shoulder", followed by a higher high (head), and completed with a lower high, forming the "right shoulder".

Once the "neckline", represented by these gray shaded lines above, gets broken, the whole house of cards collapses.

Or so we're taught.

But here's the thing. 

Asset prices trend. Massive topping formations are much more rare. 

In most cases, particularly during bull markets, these sorts of formations tend to resolve higher, and these "massive tops" are just figments of traders' imaginations.

This could very well be a historic top and selling opportunity in Semiconductors.

It could.

And that's the beauty of Technical...

From the Desk of Steve Strazza @Sstrazza

Welcome to The Minor Leaguers.

We've had some great trades come out of this small-cap-focused column since we launched it back in 2020 and started rotating it with our flagship bottom-up scan, Under the Hood.

For the first year or so, we focused only on Russell 2000 stocks with a market cap between $1 and $2B.

That was fun, but we wanted to branch out a bit and allow some new stocks to find their way onto our list.

We expanded our universe to include some mid-caps.

Nowadays, to make the cut for our Minor Leaguers list, a company must have a market cap between $1 and $4B.

And it doesn't have to be a Russell component — it can be any US-listed equity. With participation expanding around the globe, we want all those ADRs in our universe.

The same price and liquidity filters are applied. Then, as always, we sort by proximity to new highs in order to focus...