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

The relentless outperformance from commodities and commodity-related assets shows no signs of slowing.

The CRB Index is up 27.03% year to date while the S&P 500 and the 30-year Treasury bond aren’t even in the ballpark, posting lackluster performances of  negative 4.95% and negative 6.25%, respectively.

Commodities are really the only game in town these days.

With that as our backdrop, we want to continue focusing on this asset class for buying opportunities.

As many of these contracts consolidate or correct following explosive upside moves, we’re paying extra attention to those that have been basing in recent months – such as natural gas. 

Let’s take a look.

Here’s a zoomed-out weekly chart of natural gas futures:

One thing commodities aren't short on is big bases – and natural gas is a great example.

It’s carving out a...

From the desk of Steve Strazza @Sstrazza

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:

...

For this week's trade, we're putting on a $CCJ September 30/40 Bull Call Spread for an approximately $2.20 debit. This means we're long the 30 calls and short an equal amount of 40 calls for a net debit which represents the most we can lose in this trade.

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

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

It finally happened…

The yield curve inverted for a brief moment as the 2-year yield rose above the 10-year earlier this week. 

But whether or not it inverted yet is beside the point. It’s been flattening for a long time, and that’s the direction we’re headed in. It's only a matter of time.

While media outlets and fearmongers will spin this development as an urgent warning of an impending bear market, here's what you need to know: Throughout history, equities have done well during and after inversions.

This commonly observed leading indicator has a tendency to precede major market tops by years, not months. In other words, there's still time. The average lead time is about 18 months after prior inversions. 

More importantly, when it comes to forecasting bear markets and recessions, many experts will argue that it is actually not the 2-year we should be focused on, but the 3-month yield. 

And...

From the desk of Louis Sykes @haumicharts

Alright, time for a light-hearted story.

Over the last few months, I've jumped down the rabbit hole that is Crypto Twitter (better known as CT).

As someone who's snooped around Financial Twitter (or FinTwit), a community dominated by industry professionals, CMTs, and CFAs, opening the trapdoor into CT felt similar to the culture shock I would experience moving to a new country.

Anyone that's had a presence in CT knows the culture: anon (anonymous) accounts, constant meme-ing, and shit-posting from a community of outcasts and degenerates enjoying riding the volatility of a new generation of assets.

This carnage was the perfect breeding ground for the wassie...

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.

Some of the best performers in recent decades – stocks like Priceline, Amazon, Netflix, Salesforce, and myriad others – would have been on this list at some point during...

JC had a great blog post out this week about zooming out. In a nutshell, he was reminding us that zooming out and looking at price action from a wider lens often makes the present murky waters look suddenly clear. It's easy to get distracted by the day-to-day price action and to look at only the last few months of daily charts and conclude that a stock or an index is in one sloppy clusterjam of price action.

But when you look at that same price action, instead with weekly or monthly candles, the more recent ones will often look like insignificant noise in an otherwise smoothly trending longer term pattern.

In the post referenced above, JC shared several current examples of instruments that look sloppy recently, but the bigger picture is still sitting pretty.

One of the stocks he mentioned is currently giving us a nice pullback to get a nice entry on.

One of the hallmarks of the beginning stages of new trends, irrespective of asset class, is the thrust.

• Thrust: push suddenly or violently in a specified direction.

There are many different ways markets can thrust, but it's commonly one of two:

• momentum; or
• breadth.

In Monday's letter, we discussed that if Bitcoin could close in the green, it'd be the first time it's seen seven consecutive positive closes since the July short squeeze.

Fast-forward, we're now sitting on eight with a probability of nine green candles in a row:

Over the past half-decade or so, we've seen the US Dollar Index maintain a very high negative correlation with risk assets.

When stocks are doing well, the Dollar has normally been under pressure. And when stocks have struggled, as most of them have over the past year, the US Dollar has kept a bid.

Look how poorly the Dollar did when stocks ripped in 2020 off those pandemic lows. And then look at the strength in the Dollar over the last year as most stocks have struggled:

The team over at Fox Business asked me to come on this week to talk about what I'm seeing in the market.

In this short clip, I talk to Charles about the Sentiment unwind that we've been seeing and whether or not it's got legs.

I think it does.

Here's the interview in full. I come in at the 9:35 mark.

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

Rates continue to move higher around the world as central banks do their best to combat inflation. 

As investors, our best course of action is to position ourselves in those areas that benefit most from rising rates.

Commodities and cyclical stocks immediately come to mind. But there are also specific currencies that tend to excel in rising rate environments.

Today, we'll discuss a handful of emerging-market currencies with heavy commodity exposure. 

We’ve been waiting on these currencies to catch higher and confirm the price action in commodities since last year… and it looks like it’s finally happening.

Let’s dive in.

First up is an overlay chart of the US 10-year yield and our equal-weight basket of EM commodity currencies:

As you can see, these currencies trend in the same direction as interest...

In today's video I sit down with Anne Harris, Client Success Manager at Magnifi.

So what is Magnifi?

How should we get started and begin using the platform?

Anne answers all of my questions and more in this short video about Magnifi, my favorite new investing search engine.

You can sign up for a Free Magnifi account using this link