I’m Buying This Base

Sing up for my free daily note here.

I’m buying stocks into year-end.

Uptrends remain intact, breadth is back on track, and participation keeps expanding.

Spec growth is acting well, and even the smaller names have joined the party.

And that strength isn’t isolated — it’s showing up in the places that matter most.

Here you have Financials $XLF, the most important sector in America, hitting new all-time highs.

Seeing financials break out to new highs is is not bearish at all.

These stocks are one of the best barometers for market health, and right now they’re signaling that risk appetite is alive and well.

One group I really like here is Broker-Dealers $IAI:

IAI is breaking out after spending a few months consolidating within the context of a strong primary uptrend.

A new leg higher is underway in some of the most risk-on stocks within financials.

Dig under the hood and Charles Schwab $SCHW is setting up beautifully:

Notice how price has been coiling tightly just beneath those 2022 highs.

Momentum is ramping up, and volatility is sitting at its lowest weekly reading — right as the Strazza Indicator gets ready to curl up and cross over.

That’s the kind of setup that often leads to a big move sooner rather than later.

And the best part? You can play it multiple ways.

Buy strength and take the base breakout above 97 with common stock…

or focus on the short-term pattern and grab some out-of-the-money calls.

We’re buying calls for Breakout Multiplier today. If you want the full trade details — risk-free — you can join us here.

Alfonso De Pablos, CMT

Director of Research, All Star Charts