The caution flag is flying.

Broad selling pressure is hitting the markets as gold, silver, and mining stocks slide.

Will the Fed hike? Will it cut? Or will it finally pause?

I have no idea, and nor does anyone else.

But gold’s crazy cousin has some definitive answers for precious metals bulls…

This is what almost everyone I speak to tells me is going to happen.

They expect a failure up here in the S&P500, an inability to make new highs and instead, just an overwhelming rollover in stocks.

Here's what that looks like:

This is the weekly post that aggregates all the charts we put together throughout the week and organizes them all into one, easy to flip through deck.

From the Desk of Ian Culley @IanCulley

Dr. Copper is limping into the close – on pace for its worst week since last November.

The risk-off tone that began earlier in the week is intensifying. Crude oil is turning lower. Gold is pulling back. And the equity indexes are drowning in a sea of red.

But nothing stings stock market bulls quite as badly as the breakdown in copper futures…

Copper just undercut a key polarity zone marked by the August 2022 pivot highs.

From the Desk of Steve Strazza @Sstrazza and Alfonso Depablos @AlfCharts

Our International Hall of Famers list is composed of the 100 largest US-listed international stocks, or ADRs.

We’ve also sprinkled in some of the largest ADRs from countries that did not make the market cap cut. 

These stocks range from some well-known mega-cap multinationals such as Toyota Motor and Royal Dutch Shell to some large-cap global disruptors such as Sea Ltd and Shopify.

It’s got all the big names and more--but only those that are based outside the US. You can find all the largest US stocks on our original Hall of Famers list.

The beauty of these scans is really in their simplicity.

We take the largest names each week and then apply technical filters in a way that the strongest stocks with the most momentum rise to the top.

Based on the market environment, we can also flip the scan on its head and filter for weakness.

Let’s dive in and take a look at some of the most important stocks from around the world.

Here’s this week’s list:

From the desk of Steve Strazza @Sstrazza

Dividend Aristocrats are easily some of the most desirable investments on Wall Street. These are the names that have increased dividends for at least 25 years, providing steadily increasing income to long-term-minded shareholders.

As you can imagine, the companies making up this prestigious list are some of the most recognizable brands in the world. Coca-Cola, Walmart, and Johnson & Johnson are just a few of the household names making the cut.

Here at All Star Charts, we like to stay ahead of the curve. That's why we're turning our attention to the future aristocrats. In an effort to seek out the next generation of the cream-of-the-crop dividend plays, we're curating a list of stocks that have raised their payouts every year for five to nine years.

We call them the Young Aristocrats, and the idea is that these are "stocks that pay you to make money." Imagine if years of consistent dividend growth and high momentum and relative strength had a baby, leaving you with the best of the emerging dividend giants that are outperforming the averages.

These are the registration details for our Live Mid-month Conference Call for Premium Members of All Star Charts.

Our Live Call will be held on Tuesday May 16th at 6PM ET. As always, if you cannot make the call live, the video and slides will be archived and published here along with every other live call since 2015.

Here are the details for Tuesday night:

Bonds are catching a bid as a risk-off tone plays across the market. 

Aside from intraday knee-jerks in price, not much has changed. Rates and the US dollar remain range-bound. US Treasuries have yet to provide a definitive buy signal.

And the S&P 500 continues to contend with overhead supply at the 4,200 level.

It’s a chop fest.

But one data point has changed in recent sessions – the probability of a rate cut or a rate hike next month based on the fed funds futures…

Check out last Thursday’s probabilities after the FOMC raised the overnight rate by 25 basis points:

The futures market was pricing an 8.9% chance of a rate cut in June with a 91.1% chance of a pause in the hiking cycle.

Small-cap stocks are back down to where they bottomed out last summer.

Can they do it again?

I believe they can, and that's the bet that we're making.

Check out: It's Now Or Never and also We're Buying Small-caps

Here's what the Russell2000 Index ETF looks like:

From the Desk of Steve Strazza @Sstrazza

Welcome to the 2 to 100 Club.

As many of you know, something we've been working on internally is using 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.

[9/7: updated stop to 180. We're already #FreeRiding, so whatever we sell for is pure profit!]

It's time for the small caps to make a stand. The time is now. If they don't, it could be 'goodnight' for a long time.

JC posted earlier this week about the Russell 200 index and had this to say:

We’re back to a key level of interest for Small-caps on an absolute basis. And we’re back down to historic levels relative to Large-caps. The chart tells a very powerful story.

I’m a buyer down here.

If the Russell2000 is above last Summer’s lows, I will be long the $IWM ETF. I also think there will be plenty of opportunities this summer in small-cap stocks.

We talked about $IWM internally this morning and I suggested a good, levered way to play this thesis while honoring a nearby risk management level that will get us out of the trade without much pain if we're wrong.

But first, here's the chart of $IWM: