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Here's What's Actually Driving Things

July 30, 2024

This is where it all starts folks.

The story starts and ends with the Bond Market.

You may not like it. I know I certainly don't. But that's the world we've always lived in. And it's the world I would expect us to be in for a long long time.

The bond market is $130 Trillion. That's compared to a mere $50 Trillion US Stock Market. The total Global stock market is slightly over $100 Trillion, for perspective.

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The Minor Leaguers (07-29-2024)

July 29, 2024

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...

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Freshly Squeezed (07-26-2024)

July 29, 2024

From the Desk of Steve Strazza @Sstrazza

Names with high short interests continue to work in this environment as the bears struggle to take down even the worst stocks.

As such, it's time to run it back with another Freshly Squeezed report.

Here's how we do things...

We find the most heavily shorted stocks in the market. We wait for momentum to come into these names. And then we ride them higher as the bears get squeezed.

We got new short data this week, so let's dive in and talk about it.

Our scan is quite simple. It is designed to identify stocks with the most aggressive short positions.

When a stock is shorted, it means incremental buyers are waiting in the wings to close out their bearish bets.

We love this, as new buyers are the one true catalyst for higher prices.

When shorts are proven wrong, they become buyers of the stock. In many cases, this happens as momentum flows into these names and fuels massive short-covering rallies.

For this reason, we pair short-interest data with short-term momentum overlays, as this combination is needed to spark the moves we’re looking for.

...

Aerospace & Defense New All-time Highs

July 29, 2024

Does it feel like everything is working in this market?

Most things are.

And the strongest industry groups have already been making new all-time highs.

Look no further than Aerospace & Defense coming out of this multi-year base to new record levels:

So Many All-time Highs

July 27, 2024

All week I had people telling me about the severe market correction that stocks were in.

But as I went through all the stocks, I actually found that it was the exact opposite.

Look at the Dow Jones Industrial Average going out this week at another new all-time high:

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The Hall of Famers (07-26-2024)

July 26, 2024

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. 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...

Sell Puts When You Can

July 25, 2024

The Volatility Index almost hit 20 this week.

That means there are opportunities to generate income that simply were not there before.

"Get while the getting is good", is how I learned it.

A month ago you weren't getting paid to sell volatility.

This week you are.

Take a look at Berkshire Hathaway, which represents the largest component of the S&P Financials Index:

This Group of Stocks is Next

July 25, 2024

Are you one of those people who thinks that Transportation Stocks are "boring"?

Those kinds of people exist out there you know...

But in my experience, these are some of the most important stocks in the entire market.

And there are ways to leverage these directional moves to maximize the profits in these types of stocks that you think may not move fast enough for you.

First of all, here is the Dow Jones Transportation Average in a long-term uptrend consisting of higher lows and higher highs:

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Junior Hall of Famers (07-25-2024)

July 25, 2024

From the Desk of Steve Strazza @Sstrazza

We love our bottoms-up scans here at All Star Charts. We tend to get really creative when making new universes as we want to be sure they will deliver us the best opportunities the market has to offer.

However, when it comes to this one, it couldn't be any simpler!

With the goal of finding more bullish setups, we have decided to expand one of our favorite scans and broaden our regular coverage of the largest US stocks.

Welcome to The Junior Hall of Famers.

This scan is composed of the next 150 largest stocks by market cap, those that come after the top 150 and are thus covered by the Hall of Famers universe. Many of these names will someday graduate and join our original Hall Of Famers list. The idea here is to catch these big trends as early on as possible.

There is no need to overcomplicate things. Market cap is a quality filter at the end of the day. It only grows if price is rising. That's good enough for us.

The bottom line is it is a bull market. We want as many vehicles and options to express...

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The Short Report (07-24-2024)

July 24, 2024

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...

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Junior International Hall of Famers (07-23-2024)

July 23, 2024

From the Desk of Steve Strazza @Sstrazza

Welcome to The Junior International Hall of Famers.

With the goal of finding more bullish setups, we have decided to expand one of our favorite scans and broaden our regular coverage of the largest US-listed international stocks, or ADRs.

This scan is composed of the next 100 largest stocks by market cap, those that come after the top 100 and are thus covered by the International Hall of Famers universe.

Many of these names will someday graduate and join our original International Hall Of Famers list. The idea here is to catch these big trends as early on as possible.

Let’s dive right in and check out what these future big boys are up to.

This is our Junior International Hall of Famers list:

Click table to enlarge view

And here’s how we arrived at it…

We removed laggards which are down 5% or more relative to the ACWI Ex. U.S. Index $ACWX over...

Now You Want A Correction?

July 23, 2024

They're out there telling me that the stock market is due for a correction this quarter.

But the stock market just had a correction last quarter.

Look at the Equally-weighted Nasdaq100 Index making zero progress since the start of March.

Remember that correction we were looking for back in Q1?

Well we got it: