Sector rotation continues to pump new blood into the bull market that's been running for over a year now (yes, over a year, hater). And as it does, we love getting into stocks that are late joiners. These stocks have seen some tremendous rips. Just look at the chart of Caterpillar ($CAT) as but one of numerous examples I can point to. That's what today's trade has the potential to do.

Our Commodities Analyst Ian Culley recently reported on several energy stocks we need to be paying attention to. And one of them just got earnings out of the way. Implied volatility priced into its options was already suspiciously low before the earnings report, so this sets up a great opportunity for a simple long calls play.

And we've got a big round number up ahead that would represent new all-time highs which should act as a magnet to help us out.

Today's trade is inspired by the latest Follow the Flow report. And it's offering up a better than 4-to-1 reward to risk if we nail it.

We're getting long Bausch Health.

Here's the Play:

I love the base resolution underway in $IBKR and we've got a "hundred-dollar roll" lurking within spitting distance.

A break above $91 would mean fresh all-time highs and coupled with low implied volatility priced into calls options, this sets up my favorite kind of trade.

Let's get after it!

Here's the Play:

[12/4: moved stop to 22]

We're going where the "juice" is.

Chatting with Strazza while looking through charts on the plane home from Tokyo today, he said this:

I would do something in the commodity stock world. Think they are about to catch some of that bull market rotation. They all got the juice too.

I couldn't agree more.

Here's the Play:

I’m continuing to travel throughout Southeast Asia — to eight different countries — with my All Star Charts analyst Steve Strazza, giving presentations at local Chartered Market Technicians (CMT) Association events, meeting local traders, enjoying native cuisines, and just marveling about the similarities we traders from different corners of the world all share.

So for the rest of the month of July and into early August, I’m going to cut the preamble and get right to the action for you guys.

As such, here’s the trade I’ll be putting on today:

As many of you know, Steve Strazza and I are touring South East Asia this month. We're hitting the homestretch of our trip, with about a week or so left. We're currently in Hong Kong and this city is beyond description. I don't even know where to begin. It's a cliche to say "you have to see it to believe it." But it is 100% true in this case.

As you can imagine, it's been a bit of a logistical challenge to keep up with the U.S. markets when we are on the other side of the globe. U.S. trading hours in Hong Kong are 9:30 pm to 4:00 am. Lucky for us, many of the positions we have on have been performing well. We've been positioned for a continued bull market and we're definitely being rewarded over the past few weeks.

We're currently positioned long in stocks like $AAPL, $MARA, $KBH, $GXO, $CARR, $VRRM, $ABNB, $IONQ, $DKNG, and more.

I mention this because as I'm looking at candidates for new long trades that we like, I am frustrated that most report earnings over the next 1-2 weeks. And as you know, I don't like positioning when a stock is so close to reporting earnings. I don't like the binary risk.

I’m traveling throughout Southeast Asia — to eight different countries — with my All Star Charts analyst Steve Strazza, giving presentations at local Chartered Market Technicians (CMT) Association events, meeting local traders, enjoying native cuisines, and just marveling about the similarities we traders from different corners of the world all share.

So for the rest of the month of July, I’m going to cut the preamble and get right to the action for you guys.

As such, here’s the trade I’ll be putting on today:

[10/5: updated stop to 8.50]

I’m traveling throughout Southeast Asia — to eight different countries — with my All Star Charts analyst Steve Strazza, giving presentations at local Chartered Market Technicians (CMT) Association events, meeting local traders, enjoying native cuisines, and just marveling about the similarities we traders from different corners of the world all share.

So for the rest of the month of July, I’m going to cut the preamble and get right to the action for you guys.

As such, here’s the setup for the trade I’ll be putting on today:

[9/7: stop updated to 52. We already sold half our calls for profits at our target as mentioned below, so we're a guaranteed winner here!]

I'm traveling throughout Southeast Asia -- to eight different countries -- with my All Star Charts analyst Steve Strazza, giving presentations at local Chartered Market Technicians (CMT) Association events, meeting local traders, enjoying native cuisines, and just marveling about the similarities we traders from different corners of the world all share.

So for the rest of the month of July, I'm going to cut the preamble and get right to the action for you guys.

As such, here's the trade I'll be putting on today:

Me and Steve Strazza are currently aboard an airplane to Singapore for the beginning of our 21-day trip throughout Southeast Asia.

We're headed there to meet traders, chartists, and locals to learn how others approach risk.

And one thing that is on my mind is: "Where are we going to stay?"

This feels right as today's trade of the day often answers this question for many travelers.

If it can't rally in this market, what happens if the market pauses or pulls back?

I was looking for a good short exposure candidate to balance out my portfolio a little bit and I came across this bearish idea the team published this week that makes a lot of sense for a quick hit if we get it right.

[11/16: stop updated to 32]

If it ain't broke, don't fix it.

We've been witness to many charts, that look like today's setup, breaking out and turning into big winners in recent months. And with very few signs of this current bull market running out of steam, we think there will be many more repeats of these profitable patterns in the weeks and months ahead.

And cheap options premiums continue to make it advantageous to play these moves simply with long calls.

Strazza has been pounding the table on DraftKings for a couple weeks now and today's trading action has me convinced that the time is right to get involved.

First, the chart: