From the desk of Steve Strazza @Sstrazza.

Welcome back to our latest Under The Hood column where we'll cover all the action for the week ended February 3, 2023. This report is published bi-weekly and rotated on-and-off with our Minor Leaguers column.

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.

It's the weekly Gold Rush!

This week Strazza and I highlight critical levels to keep on your radar in the coming days and weeks. 

Check it out...

From the Desk of Ian Culley @IanCulley

The dollar is back and on the move.

After falling for four straight months, the US dollar index $DXY is up three days in a row. Whether the near-term dollar strength turns into a more sustained trend is anyone’s guess.

Regardless, risk assets feel the pressure as many areas begin to correct, including precious metals. 

Despite this recent selling pressure, we have clear levels to trade against when it comes to Silver and mining stocks.

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 Steve Strazza @Sstrazza and Alfonso Depablos @AlfCharts

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:

From the Desk of Ian Culley @IanCulley

Forget about what Powell said or whatever you heard on the street. 

We’re still looking for risk assets to buy.

That includes stocks and commodities. Despite the dollar applying downside pressure to risk assets this morning, I want to share one commodity that looks ready to rip…

Check out the weekly chart of Cotton futures:

Cotton experienced a sharp decline last year following an impressive run-up off the 2020 lows. Fast forward to today, and it’s challenging a critical retracement level from below at approximately 89.

The bulls have hammered this level since October of last year. And the way I learned it… 

The more times a level is tested, the higher the likelihood it breaks.

From the Desk of Ian Culley

The FOMC handed down the expected 25 basis point rate hike yesterday. Yet markets didn’t react until Fed Chair Jerome Powell spoke 30 minutes later.

That's right, he dropped the D-word – “disinflation.”

To be clear, I don’t care what he said. Instead of hanging on the Fed Chair's words, I prefer to focus on the markets. I find it more enjoyable.

But, boy, did markets respond!

The most striking aspect of yesterday’s reaction was highlighted by the relative strength of growth stocks.

Check out the overlay chart of the US T-Bond ETF $TLT and the ARK Innovation ETF $ARKK:  These charts tend to move tick-for-tick, as long-duration assets benefit from the same market environment.

From the desk of Steve Strazza @Sstrazza

Welcome to the 2 to 100 Club.

As many of you know, something we've been working on internally is using various bottom-up tools and scans to complement our top-down approach. It's really been working for us!

One way we're doing this is by identifying 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.

From the Desk of Ian Culley @IanCulley

Everyone wants to know where the dollar is headed next.

It’s great investors are showing interest in the dollar, while understanding the impact it has on risk assets at the moment. 

But I have no idea where the dollar is headed. No one does.

Regardless, I can still form a framework to help make the best logical guess despite an incomplete data set. That’s what we do at All Star Charts!

So let’s recap three points I’ve made regarding the dollar in recent months that I believe hold the greatest weight…

The Time and Place for a Bounce

Given strong seasonal tailwinds and a critical shelf of former highs acting as potential support, the likelihood of a dollar bounce last month seemed probable…

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 February 6th @ 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:

It's the weekly Gold Rush!

While Gold futures digest overhead supply, strength broadens across the metals space.

Check it out...

From the Desk of Ian Culley @IanCulley

Plenty of gold bugs have Krugerrands buried in their backyard or basement –  if not secured in a safety deposit box at their local bank.

It’s no wonder gold falls under the “end-of-the-world” category of assets.

Regardless, gold prices can also rise with risk assets.

I raise this point not only as an important reminder but because it’s pivotal to understanding our bullish thesis for precious metals.

It’s a metals story….