From the desk of Steve Strazza 

Don't miss this weeks Momentum Report; our weekly summation of all the major indexes at a Macro, International, Sector and Industry Group level. As a reminder, we analyze this shorter-term data within the context of the structural trends at play.

This week we're looking at a long setup in the Power sector. Certain stocks from this sector are grabbing our attention and we're looking at one of those!

We retired our "Five Bull Market Barometers" in mid-July to make room for a new weekly post that's focused on the three most important charts for the week ahead.

This is that post, so let's jump into this week's edition.

In case you hadn't heard, Commodity prices are soaring. The CRB Commodities Index has practically doubled over the past year.

And while sure, many assets are up a lot over the past 12 months, it's the fact that the Commodities Index is above the 2016 lows that makes it a big deal for me. Same with interest rates. If the US 10yr Yield and CRB Index are above those lows, then inflation is here baby!

Get used to it.

We're seeing it across the intermarket landscape.

And speaking of landscape, did you see the Global Timber & Forestry Index breaking out to new all-time highs?

Our top-down macro approach keeps us in tune with the markets. It’s the backbone of everything we do here at All Star Charts. 

We’ve strived to stay true to our time-tested analysis by complimenting our top-down approach with several bottom-up scans we've implemented over the past 12 months. From Under the Hood and 2 to 100 Club to the Young Aristocrats and Minor Leaguers, we’re always aiming to give you the tools you need to succeed in any market conditions. 

Click here to watch a brief video of JC explaining our most popular scans!

From the desk of Steve Strazza @Sstrazza and Ian Culley @IanCulley

Overall, Commodities came under pressure this past week.

We noticed many markets running into resistance at former highs, and this was most prevalent in the Energy sector, with the exception of Ethanol.

Other areas of the Commodity space like Grains and Softs also showed short-term weakness. However, there were still some bright spots as usual.

Two of the markets that really stood out were Lean Hogs and Palladium.

First up, Lean Hogs broke out of a 6.5-year base, clearing its pivotal 2019 highs.

You know when Livestock futures are breaking out of half-decade long bases that Commodities are most likely in a bull market.

I believe the saying goes, "the bigger the base the higher in space."

If that's going to be at all true then we want to be buying Hogs above 98 with a target of 133.

Palladium also registered a nice move this week as this long-term leader in the Precious Metals space broke out of a 12-...

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 Willie Delwiche.

The recent uptick in US Treasury yields has not been confirmed by other areas of the bond market (specifically Bunds & JGBs). Bonds at this point are extremely oversold and sentiment indicators are pointing to excessive pessimism. The caveat is that bonds are in a bear market and so this sort of behavior should not come as a surprise. Still, there may be some room for yields to consolidate or even pullback from here. If that happens, it could provide a chance for gold to gain some traction. Gold & bonds have moved similarly in recent years, though gold has started to firm up even as bonds sold off this week. What sort of retracement of their recent weakness either bonds or gold can achieve remains to be seen - but an opportunity for that may be emerging.

From the desk of Willie Delwiche.

Earlier this week JC referenced the 1966 Western “The Good, the Bad, and the Ugly”. Labelled a “Spaghetti Western” because it was directed by Italian director Sergio Leone, the movie and the genre overall have become cultural icons. Little did JC know that I had just watched this movie with my son within the past week (much the way that I had watched it with my father when I was growing up). Beyond just seeing the market metaphor in the movie’s title, the reference had the movie’s theme music again ringing in my ears. 

It’s been a volatile week from a sector level performance perspective, but this is still how I am looking at the market:

We held our March Monthly Conference Call on 16th which our Premium Members can access and rewatch here.

In this post, we'll share five of the most important charts along with JC's commentary of them and a brief explanation for each.

US Stocks have been a bit dicey since yesterday afternoon as we're seeing a lot of high beta names get chopped down. This is never fun if you've been riding trends.

But when markets get turbulent, the strongest stocks and future leaders tend to reveal themselves. And that's what I'm seeing right now in a popular name.

Most arguments about the market would never even take place if investors would just acknowledge that they have different time horizons.

"JC, what do you think of Amazon here?"

"JC, what's your favorite stock right now?"

"JC, should we buy this pullback?"

These are all completely irrelevant questions if you haven't first identified your time horizon.