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International Hall of Famers (02-02-2024)

February 2, 2024

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:

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Sick of Whipsaws? Hogs Can Help

February 2, 2024

From the Desk of Ian Culley @IanCulley

Holy reversals, Batman!

The tactical direction flipped for the dollar and rates this morning on the heels of stronger-than-expected job growth. 

Whipsaws are dotting the charts, erasing weeks of progress.

How should we react?

Today, I want to show you a trade we can take to sidestep the market chop.

Live cattle futures are posting modest gains today (up roughly 0.50%) as they mosey toward last year’s high. 

Most importantly, they’re shrugging off the broad intraday volatility.

Plus, the structural uptrend remains intact. And I can’t help but wonder if and when lean hogs will catch up to cattle

Check out live cattle overlaid with lean hog futures:

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Here Comes The Rug Pull

February 2, 2024

There's nothing like a good rug pull.

Especially when I'm able to make money from it.

This is the type of environment where they happen.

Some of our biggest clients are hedging their positions by buying puts.

Some are outright net short.

It all depends on what you're trying to accomplish as an investor.

Here are a few of the many warning signs we're seeing out there:

Look at High Beta rolling over last month, while S&Ps kept roaring higher.

Not to mention the Dollar strength we're seeing is off the charts. There's your divergence in EM currencies.

And of course, we've already discussed rotation into Consumer Staples:

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Buyers Lift the Offer for Bonds

February 1, 2024

From the Desk of Ian Culley @IanCulley

The FOMC stuck to its script this week, kicking the can and keeping rates steady.

Everyone was expecting the news. But the market wasn’t expecting Fed Chairman Jerome Powell (the man, the myth, the legend) to completely dash its hopes of a March cut. 

Strangely enough, rates continue to fall on the news – even as markets adjust to the possibility of the initial rate cut now coming in May.

Before you run out to buy US treasury bonds, check out the overlay chart of the US 2- and 30-year yields:

There’s a big difference.

The 2-year yield is churning sideways, reflecting the market’s expectations of the FOMC’s next move – nothing in the foreseeable future.

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Junior Hall of Famers (02-01-2024)

February 1, 2024

From the Desk of Steve Strazza @Sstrazza

We love our bottoms-up scans here at All Star Charts. We tend to get really creative when making new universes as we want to be sure they will deliver us the best opportunities the market has to offer.

However, when it comes to our latest project, it couldn't be any simpler!

With the goal of finding more bullish setups, we have decided to expand one of our favorite scans and broaden our regular coverage of the largest US stocks.

Welcome to The Junior Hall of Famers.

This scan is composed of the next 150 largest stocks by market cap, those that come after the top 150 and are thus covered by the Hall of Famers universe. Many of these names will someday graduate and join our original Hall Of Famers list. The idea here is to catch these big trends as early on as possible.

There is no need to overcomplicate things. Market cap is a quality filter at the end of the day. It only grows if price is rising. That's good enough for us.

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2 to 100 Club (01-31-2024)

January 31, 2024

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.

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Follow the Aussie’s Next Move

January 30, 2024

From the Desk of Ian Culley @IanCulley

The entire marketplace is fixated on tomorrow’s FOMC meeting.

Will the Fed make its first rate cut in March, or will it be in June?

Who knows.

I enjoy speculating as much as the next guy, but I’m not into guessing on next moves by central bankers.

I prefer to track another market participant with a Ph.D. in economics, Dr. Copper.

And we can’t discuss copper without including the Australian dollar!

Check out the Australian dollar overlaid with copper futures:

They look almost identical.

I added a 10-day rolling correlation study in the lower pane, highlighting the tight relationship over shorter time frames.

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The Minor Leaguers (01-29-2024)

January 29, 2024

From the Desk of Steve Strazza @Sstrazza

Welcome to The Minor Leaguers.

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.

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.

We expanded our universe to include some mid-caps.

To make the cut for our Minor Leaguers list now, a company must have a market cap between $1 and $4B.

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[Premium] Details For February 2024 Monthly Strategy Session

January 29, 2024

These are the registration details for our Live Monthly Candlestick Strategy Session for Premium Members of All Star Charts.

This month’s Video Conference Call will be held on Monday February 5th @ 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 Monday evening: