We've been talking a lot about the differences between Nasdaq stocks and how other indexes are weighted.

With the Nasdaq running up into key resistance vs the S&P500, confirming a bearish momentum divergence, I think it's important to reiterate why:

Do you think the world is coming to an end if Financials are breaking out to new all-time highs?

The answer is no.

If America's most important sector is leading the way higher, then that probably speaks to more continued rotation, not massive distribution.

Sure, some sectors are getting hit.

Some sectors got hit last year too. Most of them did at some point actually.

But if you recall, when some stocks were struggling, there was always another group coming in to pick up the slack.

In this case, it's arguably the world's most important sector:

For me, less is more.

I want to be able to see what's actually going on. Not get bombarded with all sorts of lines and colors.

Price is the only thing that pays anyone. So let's focus on that.

Here's how I see it:

It's Saturday Morning Chartoons time. 

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.

You can find the whole list of trades here.

Below you'll find the full PDF of this week's charts:

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 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.

Before we get into it, let's take a look at how our International Hall...

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

Crude oil bulls are back in town!

They kicked the year off by pushing price back above 76 and reclaiming the upper bounds of a multi-year base. Oil is the most important commodity in the world, so it’s hard to overstate just how bullish fresh seven-year highs would be. 

But we’re not quite there yet. We still need to take out the fall highs. 

The 76 level marks the former 2018 highs and the breakout from a massive reversal pattern. Buyers ran into an overwhelming amount of supply here during the back half of 2021. When they did manage to reclaim those former highs, it was short-lived, and the move quickly failed. 

But the move was more of a false start than a failed breakout. We’re back above this level again today.

Now that the bulls are back in the driver’s seat, can we expect to finally see crude oil at 100 in the coming weeks or months?

It’s very possible -- especially given one key development in recent weeks…  

Energy stocks are on fire! This is the best...

From the desk of Steve Strazza @Sstrazza

The most speculative areas of the market peaked in Q1 of 2021 and have been under pressure ever since. It’s not just IPOs and SPACs. Areas like biotech, social media, and online retail have completely fallen out of favor too.

Many of the stocks that have been selling off were among the top performers off the COVID lows in 2020. Some of these former leaders are in 60% to 70% drawdowns today.

What a difference a year can make!

Now that we’re getting closer and closer to the first rate hike, the prevailing opinion seems to be that these stocks will remain under pressure. As things currently stand, there's not much on the charts to suggest they're ready to turn things around.

On the other hand, some of these industry groups are already more than 30% off of their highs -- and that’s at the index level. Eventually, further downside would be inconsistent with the idea that stocks are in a bull market.

For the health of the overall market, we want to see these stocks stop selling off so aggressively. Despite the volatility this week, there are some signs that this is happening.

Let...

We trust the bond market around here.

I don't have a lot of faith in people, or media or economists. But bonds are something we certainly take seriously.

There's no bullshit with them.

The biggest players in the world have no choice but to be intimately involved in fixed income markets. So if you're curious which way the pendulum is swinging, you'll be able to see it in bonds.

Here's a quick look at US Interest Rates making new highs - from the 1yr to 10yr yields these are going towards the upper right:

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.

US Stock Market Indexes can be a funny thing. As investors we need to understand what's inside of them. Which stocks and sectors drive them higher or lower?

This seems like an afterthought in some circles, especially after the major large-cap indexes have put up nice returns the past 3 years. The S&P500, for example, was up 28%, 16% and 27% respectively in 2019, 2020 and 2021.

But at the individual stock level, it certainly didn't feel that way in many cases.

I have a good feeling 2022 will be the opposite. I think this year, the average and median stock has a higher likelihood to outperform the major indexes, for one simple reason.

No one owns a lot of these names.

We're buying an $MU June 100/125 Bull Call Spread for an approximately $6.50 debit. This means we’re long the 100 calls and short an equal amount of 125 calls

Check out our short video with the thought process behind these trades: