From the Desk of Kimmy Sokoloff

Mega-Cap Tech hung on today, and so did the market. 

$SPY held yesterday's low and headed higher.

We still can see SPY 421 in time.

This is the video recording of our February 3, 2023, All Star Charts Crypto Weekly Strategy Session.

I'm an amateur chartist, at best. If you want charting experts, I'll refer you to my team here at All Star Charts.

That said, I've got my eye on what appears to be a bullish flag forming in a hot Chinese stock and it looks ready for liftoff. Coupled with cheap options pricing, we can neatly define our risks and position ourselves for a big win.

From the Desk of Willie Delwiche.

After Tuesday’s 9-to-1 upside volume day, our Bull Market Re-Birth Checklist is now five out of five.

Why It Matters: The conditions for a new bull market have been met. It’s hard to argue otherwise from a market perspective. Large-cap and mid-cap value indexes reached new all-time highs this week, and small-cap value is not too far behind. The trend for the market for the market is higher, even if not all the indexes (including the popular benchmarks) are trending higher. But when the trend is higher, leadership is evidence of opportunity.

Our Bull Market Re-Birth Checklist has served its purpose well. But it is now time to put it aside and now turn our attention to questions of sustainability and leadership. These will be best answered by price and breadth trends and not one-off surges and thrusts. We will be aggregating some of the key indicators in this regard and introducing a new bull market sustainability checklist next week. Stay tuned.       

We've adjusted a position in the Paid-to-Play portfolio today:

The Natural Gas ETF saw its highest volume of all time on Wednesday - by a long shot.

I mean, it wasn't even close.

When I see something like that, I think "Capitulation".

There's something going on here and I want to take a closer look.

So here's that look.

You can see the $UNG Natural Gas ETF back down to those 2020 levels.

This ETF rallied over 300% last time it was down here:

The most significant insider buy on today’s list is a Form 4 filing by Greg Hayes, the CEO of Raytheon Technologies $RTX.

Hayes reported a purchase of roughly $1 million in Phillips 66 $PSX, where he serves as a director.

From the Desk of Kimmy Sokoloff

Happy Friday!

Well, the tech heavyweights that reported last night had a bumpy evening.

Question is, will $AMZN, $GOOGL, and $AAPL gap and go lower or reverse and bounce?

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.

It doesn’t matter that one ETF holds the largest tech names across the market while the other a basket of long-term US Treasury bonds. 

Whatever Powell said in addition to “disinflationary,” investors heard...

If you're short Peloton with the price above those former highs from the back half of last year, I think you're insane.

The squeeze is on here folks.

At last glance we saw 15% of the float was still short.

Look at this beautiful bottom and breakout:

From the Desk of Kimmy Sokoloff

Markets continued higher today...

And then, around 2:00 p.m. ET, the indices took a much-needed breather.

This is the video recording of the February 2nd, 2023, Weekly Town Hall w/ Willie Delwiche.

2/2/23 2:00 PM ET