From the Desk of Ian Culley @IanCulley

The US dollar is marching higher, stomping gold mining stocks into dust.

Harmony $HMY, Kinross $KGC, and Eldorado Gold $EGO are hovering just above last month's breakout levels.

And Franco Nevada $FNV –  a secular leader among royalty companies – is sliding toward fresh multi-year lows!

These are the registration details for our LIVE Mid-month Conference Call for Premium Members of All Star Charts.

Our Live Call will be held on Thursday January 18th @ 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 Thursday night:

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

Danger Will Robinson, Danger!

Cocoa futures have violated a parabolic trendline. 

And it may not be safe for bulls to hold their long positions…

Cocoa fell -2.50% on Monday, cementing last week’s trendline break.

Commodity markets tend to experience steep selloffs following dramatic rallies. Escalator up, elevator down.  

But buyers are refusing to throw in the towel here. In fact, Monday’s potential top is yielding a fresh 46-year high today – not bearish.

I will not short those new highs. Nevertheless, I want to prepare for Cocoa’s eventual decline.

Check out the March contract:

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

From the Desk of Ian Culley @IanCulley

Inflation is proving sticky.

So what?

Stocks remain buoyant.

And bonds – the largest market in the world – continue to reveal a risk-on environment.

High-yield bonds relative to Treasuries measure risky junk bonds' performance versus the safest fixed-income asset, US Treasury bonds. 

The key characteristics of these assets create a critical risk gauge for bond and equity markets, as risk-seeking behavior in the bond market also bodes well for risk assets.

Check out the High Yield versus US Treasury Bond ratio ($HYG/$IEI):

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 our latest project, 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.

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.

From the Desk of Ian Culley @IanCulley

Market participants are searching for a new narrative. 

Their uncertainty-fueled meandering is breeding US dollar strength. 

Will the Fed cut, or will they simply do nothing at the March meeting?

No one knows. 

But risk-on currencies have halted their recent advance. And luckily, we have price to light our way…

Check out the New Zealand dollar-US dollar pair (NZD/USD):

The New Zealand dollar is considered a “risk-on” currency as it tends to follow risk assets (global equities and commodities). Notice the NZD/USD rallied into the holidays off its October lows, much like US stocks. That’s not a coincidence.

From the Desk of Steve Strazza @Sstrazza and Alfonso Depablos @AlfCharts

Breadth is expanding to a growing list of sectors and industry groups as the current bull market continues to broaden in scope and participation.

Naturally, this phenomenon is not limited to the US. We’re also seeing more and more countries and regions around the world join in on the party.

As the dominance from mega-cap growth fades, and cyclical and value stocks assume leadership roles, the stage is finally set for international outperformance.

In fact, despite how good US stocks were in 2023, they were not the best.

Today, we’re going to talk about Latin America. They were last year’s global leader, and we think the region is poised for more outperformance in the future.

First, with all the buzz about US stocks this past year, you’d think they were the leader. They weren’t.

Here is a 2023 performance chart of international indexes by region:

From the Desk of Steve Strazza @sstrazza and Alfonso Depablos @Alfcharts

This is one of our favorite bottom-up scans: Follow the Flow.

In this note, we simply create a universe of stocks that experienced the most unusual options activity — either bullish or bearish, but not both.

We utilize options experts, both internally and through our partnership with The TradeXchange. Then, we dig through the level 2 details and do all the work upfront for our clients.

Our goal is to isolate only those options market splashes that represent levered and high-conviction, directional bets.

From the Desk of Steve Strazza @Sstrazza.

Welcome back to Under the Hood, where we'll cover all the action for the week ended January 5, 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.