The largest insider buy on today's list is a Form 4 filing by Jan Barta of Pale Fire Capital.

Barta now owns 2,658,550 shares of Groupon $GRPN, which represents an ownership stake of approximately 9%.

Monday night we held our April Monthly Conference Call, which Premium Members can access and rewatch here.

In this post, we’ll do our best to summarize it by highlighting five of the most important charts and/or themes we covered, along with commentary on each.

Let’s get right into it!

This is the video recording of the April 21st Weekly Town Hall w/ Willie Delwiche.

04/21/22 2:00 PM ET

From the desk of Steven Strazza @Sstrazza and Ian Culley @Ianculley

A couple weeks ago we pointed out that the stock market was questioning the rise in rates.

Defensive areas we would expect to underperform in the current environment such as utilities and REITs are actually outperforming.

And the names we would expect to do well – specifically banks – can’t seem to catch a bid on either absolute or relative terms.

This is concerning from a broader intermarket perspective. But it’s not the complete story.

While our stock market ratios are not supportive of higher rates, when we look within the bond market, we’re seeing the opposite.

Not only is there a synchronized global rally in interest rates, but the intermarket evidence from our bond market ratios supports this action and indicates a healthy degree of risk appetite. 

Today we're going to highlight one of those bond market ratios – high-yield vs. investment-grade debt.

Let’s take a look.

Here’s an overlay chart of the US 10-year yield and the junk versus investment-grade...

From the desk of Willie Delwiche.

Someone recently asked me why I pursued the CMT (Chartered Market Technician) designation. 

Was it for personal growth or to open up job opportunities? To be honest, fifteen years after the fact it's difficult to fully recall every motivation that went into my decision. I can, however, clearly see the implications of that decision.

In many ways, this is similar to what happened when my family and I moved from the Milwaukee suburbs back into the city itself. We had our motivations and expectations, but none of that could have prepared us for what we have experienced in the wake of that decision.

It was 2008 and we were in the depths of the financial crisis. Plenty of uncertainty was in the air. We sold our old house literally days before Lehman went under and the financial system seized up. We thought we were just buying a house, one that our young family could grow into. It had "good bones" (as they say) but had been ignored for some time and needed (still needs) a lot of loving attention.

This is our ASC Research Q2 2022 Playbook.

With the current market environment giving us many mixed messages, what better time to dive in and see what's happening underneath the surface?

• Stocks (International & U.S.)
• U.S. Sectors & Industries
• Market Breadth & Sentiment
• Commodities
• Currencies
• Intermarket Analysis
• Cryptocurrencies
• New Trade Ideas
• Overall Strategy

In the activist world, Bill Ackman announced that Pershing Square exited its position in Netflix $NFLX, as the stock was plunging lower by 35% on the heels of a disappointing earnings report.

It’s estimated that the hedge fund lost over $400 million on the position, which was just purchased back in January.

From the desk of Louis Sykes @haumicharts

If you've ever been deep in the trenches slinging cryptocurrencies, chances are you're well aware of the infamous liquidation cascade.

For some traders, the thought will send shivers down their backs.

To others, it represents one of the most profitable asymmetries in supply and demand.

The Chicago Mercantile Exchange (CME) is the largest and most sophisticated derivatives exchange for several traditional financial instruments and Bitcoin futures contracts. But there are stringent rules bounding these contracts:

• Each contract is 5 BTC (currently just over $200,000).
• The market is only open Monday through Friday.
• Clients tend to have a good relationship with a broker that's allowed to trade on the CME.

These rules are essentially a risk-mitigation strategy.

In the case of liquidations, if the account reaches negative equity before the liquidation is finished, the trader is liable for the negative amount.

Further, failure to pay this would result in a bankruptcy proceeding, which the broker has to...

We debuted a new scan recently- The Outperformers.

The Outperformers is our newest scan that pinpoints the very best stocks in the market. It’s the fastest, easiest way to find quality names that are primed for major moves.

The goal is that as the market rally progresses, the sector rotation within the market will reflect in this scan. So while our Top/Down Analysis helps us with the broader view of the market, this Bottom/Up scan makes sure that we catch the slightest change in sentiment.

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.

We'll publish this...

For this week's trade, buying $XLI January 130 calls for 35 cents or cheaper.

Get the full details, risk management procedures and targets for this trade here:

From the desk of Willie Delwiche.

Key Takeaway: That investors are in a dour mood is not in doubt. We just saw the fewest bulls on the AAII survey since 1992 and the University of Michigan Consumer Sentiment Index is about as low as it has ever been. This week has brought news that US equity ETF’s have had outflows in three of the past four weeks. If this is just a pause in what some have called the persistent bid fueled by a move toward index investing, then this too is a bullish development. If, on the other hand, it represents the early stages of passive equity investors becoming disgruntled and looking for other options, then consider it a meaningful increase in equity market risk. Time will tell, but price and breadth improvements would help assuage these concerns. Either way, pessimism is a condition that needs a catalyst to spark a rally. It’s a pile of firewood, but for now it remains unlit. 

Sentiment Report Chart of the Week: Conditions Need Catalysts

A pile of wood does not alone make a campfire. You...