We debuted a new scan recently which goes by the name- All Star Momentum.

All Star Momentum is a brand new scan that guides us towards the very best stocks in the market. This time around, we have incorporated our stock universe of Nifty 500 as the base. Among the 500 stocks that we follow, this scan will pump out names that are most likely to outperform the market.

While we go through our lists of sectors and stocks on a weekly basis, we thought of launching a product that would highlight the strongest performers in our universe. These are the ones that are primed for an explosive move.

Just like The Outperformers scan, this is a list of stocks belonging to the sectors that display relative strength in the market at any given point in time. Since sector rotation is the lifeblood of a bull market, we will be ahead of the curve before the gears keep shifting.

Last night went a little longer than I intended but I think it was necessary.

We had a lot to discuss. I hope you found that helpful.

Premium Members can watch the replay of our Live Video Call and download the slides here.

But this is what's on my mind: Is this US Dollar unwind just getting going? 

Is there anything more bullish for risk assets than the US Dollar falling apart?

This is the video recording of our February 1st Monthly Charts Live Strategy Session

It still cracks me up every time I hear that.

"German 10yr Yield is still dealing with resistance at zero".

Is it funny to you too or am I just being a child?

Anyway, joking aside, this is the first time in years that German 10yr Yields have been above zero.

Rates in general have been moving higher, not just in the U.S., but around the world.

From the desk of Steve Strazza @sstrazza

This is one of our favorite bottom-up scans: Follow the Flow. In this note, we simply create a universe of stocks that experienced the most unusual options activity — either bullish or bearish… but NOT both.

We utilize options experts, both internally and through our partnership with The TradeXchange. Then, we dig through the level 2 details and do all the work upfront for our clients. Our goal is to isolate only those options market splashes that represent levered and high-conviction, directional bets.

We also weed out hedging activity and ensure there are no offsetting trades that either neutralize or cap the risk on these unusual options trades.

What remains is a list of stocks that large financial institutions are putting big money behind… and they’re doing so for one...

From the desk of Steve Strazza @Sstrazza

Welcome to our latest “Minor Leaguers” report.

We’ve had some great trades come out of this small-cap-focused column since we launched it back in 2020 and started rotating it with our flagship bottom-up scan, Under the Hood.

We recently decided to expand our universe to include some mid-caps…

For the first year or so, we focused only on Russell 2000 stocks with a market cap between $1 and $2B. That was fun, but we wanted to branch out a bit and allow some new stocks to find their way onto our list.

The way we did this is simple…

To make the cut for our new Minor Leaguers list, a company must have a market cap between $1 and $4B. And it doesn’t have to be a Russell component–it can be any US-listed equity. With participation expanding around the globe, we want all those ADRs in our universe.

The same price and liquidity filters...

From the desk of Steve Strazza @Sstrazza

Our Top 10 Charts Report was just published.

In this weekly note, we highlight 10 of the most important charts or themes we're currently seeing in asset classes around the world.

Testing Former Resistance

We've been pounding the table on the importance of defending the 2018 highs for a long time. These levels represent when risk assets peaked four years ago. The chart below shows the Value Line Geometric Index pulling back to its 2018 highs. This index measures the median stock performance and is an excellent way to view how the overall market is doing. Right now, it’s telling us that the average stock has endured significant damage and has erased almost all of the progress from recent years. Bulls really want to see these 2018 highs hold. If they do, the bias is still higher and the structural trend is intact. But if this level is breached, it will be a major bearish development for the broader market and risk assets in general.

For a while now PSU Banks have been performing better than their counterparts-Private Banks. We have another name popping up from this sector.

Let's take a look at the trade for this week!

It's much better living for stock market bulls if we're above those October lows.

Otherwise, I think you're just living on a prayer.

And why the October lows?

That's the last line of defense for the world's most important Indexes.

We have observed significant drawdowns across the market in the last two weeks.
Nifty 50 faced resistance at its October 2021 high which coincides with a critical Fibonacci extension. This time the index marked a lower high.

According to Dow Theory, the Primary trend is intact. Why is that? Because a lower highs and lower low would mark a negative trend. As long as Nifty50 sustains above 16,500, we could just as well see a market that consolidates.

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

If you’re searching for strength, look no further than commodities!

With risk assets coming under increasing pressure, the strength from commodities and commodity-related stocks stands out that much more. Except for rates, it’s the only thing the bulls have left.

When we look beneath the surface, so far, the story centers around energy – whether we’re talking about crude oil printing fresh seven-year highs or Chevron Corp. $CVX breaking out of a multi-year base to new all-time highs.

Energy is -- and has been --  re-asserting itself as the next dominant leadership group. 

But unlike the stock market -- where energy is the only group working -- we’re seeing broad participation within the commodities market.

In fact, there are still plenty of pockets of strength we want to be buying.

Today, we’re going to highlight one of those areas by outlining a trade setup in soybean...