From the Desk of Ian Culley @IanCulley

Is the dollar going to finally bounce?

As I pointed out last week, if there was ever a place or time – it's’ now! But that doesn’t mean it’ll happen…. 

One thing is certain: The markets don’t care what I think. This includes the US dollar.

But when I look at a chart of the EUR/USD, the largest component of the US Dollar Index $DXY, it’s running into a logical level of resistance.

How the euro reacts to current levels will set the tone for the dollar in the coming weeks and months.

Check out the daily chart of the EUR/USD:

First, let’s break down momentum in the lower pane.

The 14-day RSI has broken out of a bearish momentum regime, printing a bullish overbought reading last month. This indicates momentum has shifted in...

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

You seeing this?

Riot Blockchain $RIOT is rebranding to Riot Platforms "amid a bleak outlook for the crypto industry."

You can't make this up.

Only after the stock has stumbled into a 96% drawdown do they change the name of the company.

The only Form 4 on today’s list was filed by the chairman and CEO of Erasca $ERAS, who revealed a purchase of $231,420.

Aequim Alternative Investments filed a 13G reporting a passive ownership stake of just over 5% in the oil & gas explorer, Chesapeake Energy $CHK.

From the Desk of Kimmy Sokoloff

Yesterday we saw a lot of whipsaw.

And then we had a slow grind higher to finish the day above the 50-day moving average on $SPY at 389.92.

Historically, Industrial stocks are the ones with the highest positive correlation with the overall market, among all the S&P sectors.

Financials are obviously important. We don't have bull markets around here without them.

Technology has also been important, considering it has the highest weighting among all the sectors in the U.S.

But when you run the numbers, it's actually Industrials that comes out on top.

Industrials are officially the market's most important sector.

And so when we take a look at how they're behaving, I'm still not seeing the weakness that most investors keep telling me is coming.

In fact, look at Industrials breaking out to new multi-year highs relative to the rest of the market:

In the Spring of 2022, JC came to me and said: “What do you think about managing an options income portfolio for me? I’m looking for some more strategy diversification in my portfolios. It doesn’t need to be anything sexy, just steady.”

Ok, I’m probably paraphrasing a bit, but that was the gist of his ask.

So I got to work on putting a plan together for him. When we looked at it together, it became obvious that we should offer this portfolio to the All Star Charts community who might also be interested in some further diversification. Even if people don’t take our trades, it could be a productive learning experience for everyone.

So we got to work and we launched the All Star Options Paid-to-Play (P2P) service in May 2022.

Each trading day, we either enter a new delta-neutral options credit spread in a liquid ETF (from a list of the most liquid Index and Sectors ETFs), or we play defense on an open position with an adjustment to put us in a better position to win. And we leave resting GTC (good-till-canceled) limit orders to close our credit spreads at profit targets which get filled periodically at the whim of the markets.

So far...

From the Desk of Kimmy Sokoloff

Lots of volatility today.

We dipped down to $SPY's 21-day moving average at 386 and bounced, which was nice.

From the desk of Willie Delwiche.

Dynamic Portfolio Update: Our portfolios held up well in 2022. Now we are making some changes to remain well-positioned for the trends that are intact as we begin a new year. We've re-allocated equity exposure away from the US and toward areas around the world (both regions and countries) that are showing leadership while also making room in the portfolios to take advantage of the strength coming from precious metals.

Thank you to everyone who has been participating, engaging with, and learning from the All Star Options Paid-to-Play offering.

I sincerely hope that in addition to watching me trade this portfolio, you have gained both financially and educationally during this continuing journey together.

It was a challenging year for many equities investors. Yet we enjoyed smoother returns and a better (and positive!) end result – what’s not to love about that?

We launched this portfolio on May 11th, 2022, and here is our abbreviated calendar year 2022 Performance with an overlay versus the S&P 500:

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

There's no denying many alts have posted sizeable gains over the last week.

But the fact remains that the appropriate conditions have yet to align for us to flip the book long.

Perhaps the best example of this is the recent move in Gala $GALA.

From the lows to the highs, Gala saw a 230% gain in the space of two weeks. It is, by far, the strongest name in this entire market rally.

But despite this 3x move, we're still below this broken support. Chances are, bears will step in here, and Gala will see some rightful consolidation.

This is just not a chart we want to buy on any level.

Harmony $ONE looks similar in that its retesting this breakdown level from the underside.

Ask yourself, "Is this a chart I want to buy?"

Put aside any preconceived ideas about the environment or Harmony's "fundamentals."

Does a chart like this inspire confidence?

Or patience?

We'd...