I received a great, and well-meaning question from a new All Star Options subscriber about a recent trade we entered in $VLO that offers a great lesson or reminder to those who need it.

Question:

What...

From the Desk of Alfonso Depablos @Alfcharts

One of the major themes we’re monitoring closely right now is the Growth vs Value relationship.

While Growth has dominated for the past couple of quarters, the technical setup suggests it may be time for value to take the lead.

The chart below shows the ratio testing a critical area of former resistance from above.

This morning, I ran our emerging cryptocurrency scan, which alerts us to when a cryptocurrency exceeds a certain market-cap threshold for the first time. When a cryptocurrency is climbing the market-cap ladder, we're the first ones to know about it.

I couldn't help but mention the cryptocurrency we got alerted to today.

In today's Daily Digest, we'll review:

1. New position in XLV -- Health Care
2. No adjustments are needed today.
3. No exits since the last report.
4. Current status of open campaigns.

Let's dig in!

From the Desk of Steve Strazza and Alfonso Depablos

The largest insider buy on today’s list comes via Form 4 filings by James F. Lynch, director of Globalstar Inc $GSAT.

Lynch reported an additional purchase of GSAT shares with a total value of roughly $1.8 million.

In the latest example of, "This is not 2023", take look at what Energy stocks have been doing.

And I'm not talking about Coal and Uranium.

Specifically, the Oil & Gas Services, Producers & Explorers and the Integrated names are all outperforming.

This did not happen last year.

From the Desk of Steve Strazza @Sstrazza

Welcome to The 2 to 100 Club.

As most of you know, we use 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.

Some of the best performers in recent decades – stocks like Priceline, Amazon, Netflix, Salesforce, and myriad others – would have been on this list at some point during their journey to becoming the market...

One sector that I feel a bit underexposed to right now is real estate -- particularly REITs. And when a dominant player in New York City's commercial real estate sector pops up in our scans with a beautiful chart, it feels to me like this one might be set to surprise a lot of people.

In today's Daily Digest, we'll review:

1. No new positions today.
2. Adjustment to XHB position.
3. Closed XLU at profit target.
4. Current status of open campaigns.

Let's dig in!

From the Desk of Ian Culley @IanCulley

Gold is outshining the dollar.

The greenback doesn’t know which way to go, as FX markets offer traders little in the way of breakouts.

Instead of reviewing the chopfest, playing devil’s advocate, and weighing the lack of evidence for a near-term directional bias, let’s turn to a trending market for insight into the dollar.

Spoiler alert: It’s shiny, yellow, and trading at new all-time highs.

Yes, I’m referring to Gold.

Gold and the US dollar hold a classic intermarket relationship — an overt negative correlation. 

As I reviewed the charts this weekend, another pattern emerged between the two. 

I decided to offset Gold ahead of the dollar by roughly two to four years. After adjusting the charts, I landed on setting Gold forward by 130 weeks (approximately two-and-a-half years).

And voila:

...

From the Desk of Steve Strazza and Alfonso Depablos

The largest insider buy on today’s list comes via Form 4 filings by Warren Buffett and Berkshire Hathaway.

Buffett and Berkshire reported an additional purchase in The Liberty SiriusXM Group $LSXMK  for a total amount of $176 million.

In Monday’s letter, we walked through how we’re monitoring Bitcoin’s downside risks in the face of an incredibly strong tape. Even though this environment is unequivocally rewarding buyers, it’s always prudent to manage our risks as traders and investors. There is still a probability that Bitcoin consolidates it’s gains near the former all-time highs achieved in 2021; but at the same time, we need to let money flow dictate our execution, not opinions.

So in keeping true to this theme, today’s letter will cover a number of new trade ideas we’re monitoring.