This is a big deal for me.

Those of you who know me well already know.

Tomorrow is the last day of June. So do you know what that means????

NEW MONTHLY CHARTS!!!!

If you're new around here, I will just tell you that there is NOTHING, and I mean absolutely NOTHING, I do that adds more value to my approach than this process of taking a step back and reviewing a list of Monthly Charts.

It's so easy to get lost in the day to day noise of the markets.... What did the Dow do today? What did the Powell say? Who reported earnings this morning? etc etc...

I have found over the years that it is so important to just stop, take a deep breath, and focus on the direction of the primary trends.

The reason is because asset prices trend. They're not random. We know this. It's just a fact.

From the Desk of Steve Strazza @Sstrazza

When investing in the stock market, we always want to approach it as "a market of stocks."

Regardless of the environment, there are always stocks showing leadership and trending higher.

We may have to look harder to identify them depending on current market conditions. But there are always stocks that are going up.

The same can be said for weak stocks. Regardless of the environment, there are always stocks that are going down, too. 

We already have multiple scans focusing on stocks making all-time highs, such as Hall of Famers, Minor Leaguers, and the 2 to 100 Club.

We filter these universes for stocks that are exhibiting the best momentum and relative strength characteristics. 

Clearly, we spend a lot of time identifying and writing about leading stocks every week, via multiple reports.

Now, we're also highlighting lagging stocks on a recurring basis.

Welcome to the Short Report.

We...

These are the registration details for our Live Monthly Candlestick Strategy Session for Premium Members of All Star Charts.

This month’s Video Conference Call will be held on Monday July 1st @ 6PM ET. As always, if you cannot make the call live, the video and slides will be archived and published here along with every other live call since 2015.

Here are the details for Monday evening:

Just a few months ago in March, it took an investor 34 ounces of Gold in order to purchase 1 Bitcoin.

By last night, that number was all the way down to only 25 ounces of Gold necessary to buy 1 Bitcoin.

Here's what the ratio looks over time. In other words, here's how much "Real Gold" it costs to buy "Digital Gold":

From the Desk of Ian Culley @IanCulley

Precious metals bulls are taking a stand.

It’s easy to overlook following Friday’s selling pressure.

But price is respecting critical support levels for gold, platinum, palladium, and even gold’s crazy cousin.

From the Desk of Steve Strazza @Sstrazza.

Welcome back to Under the Hood, where we'll cover all the action for the two weeks ended June 21, 2024. This report is published bi-weekly, in rotation 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.

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 at our process.

Whether we’re measuring increasing interest based on large institutional purchases, unusual...

The U.S. Industrials sector represents one of the most important groups of stocks in the entire market.

So with new all-time highs in the S&P500 and Russell3000, then why are Industrials, who historically have the highest correlation with these indexes, not able to keep up?

Industrials are actually down over the past 3 months.

But the Aerospace & Defense stocks, that fall within the category of Industrials, continue to hit new all-time highs.

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.

From the Desk of Ian Culley @IanCulley

Mark it, dude.

We have another bearish divergence calling strike three on the stock market rally…

High-yield bonds $HYG versus US Treasuries $IEI.

Check out the HYG/IEI ratio (dark blue line) overlaid with the S&P 500 ETF $SPY:

We use the HY bond-to-US Treasury ratio to track credit spreads. When the dark blue line falls, credit spreads widen – a sign of dwindling liquidity and stress for the bond market (the world’s largest market).

Stocks tend to struggle as credit spreads widen. 

On the flip side, when these spreads contract (or the HYG/IEI ratio catches higher) stocks rally as capital flows into risk assets. That’s why these two lines trend together. 

Notice the HYG/IEI ratio and SPY bottomed last October before rallying into the spring, following a similar path to new highs. 

But while the S&P 500 hit another all-time high this week, the HY bond-to-US Treasury ratio peaked in late April.

Plus, bullish momentum is deteriorating:

...

This chart really stood out to me this week.

We just saw the Australian Dollar vs the Japanese Yen close at the highest levels since 2007.

So why investors care about the Aussie/Yen cross?

Because look how it trades with commodities...

From the Desk of Ian Culley @IanCulley

Cattle futures are defying gravity.

Unlike most commodities during this cycle (pick your favorite base metal or grain contract), cattle have yet to correct lower. 

Instead, they’re still hanging around new all-time highs.

Something has to give...

Check out the diamond top taking shape on the live cattle chart:

Diamond tops are a rare bearish reversal pattern. They’re so rare that I’m slow to draw their boundaries. 

But I was reassured when referencing Richard W. Schabacker’s Technical Analysis and Stock Market Profits: “The real bible of technical analysis.”

He points out,

It [diamond pattern] is rarely found in perfectly symmetrical and clearly defined form: a certain amount of latitude must be taken and is permissible in drawing its boundaries.

Schabacker’s the authority, so I’ll give myself some wiggle room.

I see a broadening price action...

From the desk of Steve Strazza @Sstrazza

Our International Hall of Famers list is composed of the 100 largest US-listed international stocks, or ADRs.

We've also sprinkled in some of the largest ADRs from countries that did not make the market cap cut. 

These stocks range from some well-known mega-cap multinationals such as Toyota Motor and Royal Dutch Shell to some large-cap global disruptors such as Sea Ltd and Shopify.

It's got all the big names and more–but only those that are based outside the US. You can find all the largest US stocks on our original Hall of Famers list.

The beauty of these scans is really in their simplicity.

We take the largest names each week and then apply technical filters in a way that the strongest stocks with the most momentum rise to the top.

Based on the market environment, we can also flip the scan on its head and filter for weakness.

Let's dive in and take a look at some of the most important stocks from around the world.

Here's this week's list:

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