This is the video recording of the June 2018 Conference Call for Premium Members of All Star Options

The Technology sector ETF $XLK in recent months has overtaken its previous highs set in the year 2000. For anyone that was trading during that time, you know that breaking these levels is a big deal. Do you think 18 years of reclaiming former highs is going to stall right here? I don't.

But maybe you think this week's stretch break higher is a little much and while you're bullish too, perhaps you're more cautiously so in the near term? I don't entirely disagree. Thankfully we've got some well defined levels to trade against while seeking to earn some income.

Technology stocks continue to lead the broader markets higher, and that still keeps us at All Star Charts bullish on stocks. How can you not be when technology has such an important weight on the indexes?

JC recently drew attention to the leadership in the Payments Processing space. It seems that nearly every chart of every major company in the sector looks insanely bullish. And it's hard to argue when you look at names like Visa ($V), Mastercard ($MA), Global Payments ($GPN), Paychex ($PAYX), and Square ($SQ).

But my attention is squarely focused on an opportunity in Paypal $PYPL and here's why...

The $XLE Energy Sector ETF is currently scoring one of the highest implied volatilities relative to it's biggest ETF peers. Sure, it's warranted as price action has been a bit erratic of late. And we can argue about the politics and economics behind the moves and what they all mean. But I'll leave that to another guy who doesn't value his time. All I care about is putting myself in trades where an edge exits.

And when IV is priced high, these are often great opportunities to hunt for credit spreads. 

So it seems a strong US Dollar has been bad for global stock market ETFs due to local currencies exposure. This has damaged the bullish trends in otherwise strong economies and the team here at All Star Charts has been looking to identify the global ETFs that are holding up best and likely to lead when currency headwinds abate.

A favorite to lead the charge is the iShares Emerging Markets ETF -- $EEM. Tom Bruni likes the bull thesis here, but I'm not so sure it'll be that easy. Have no fear, I've got the perfect way to play our contradicting opinions with options.

I was confused too. But no, $DQ is not America's favorite destination for shakes, malts, and blizzards. But it is sexy in it's own way -- it's an energy company named Daqo New Energy in one of the hottest sectors we think will be leading stocks higher this year -- Solar Energy. According to wikipedia, $DQ is a Chinese company "engaged in the manufacture of monocrystalline silicon, polysilicon, and silicon wafers, primarily for use in solar photovoltaic systems." OK, sounds cool? It really doesn't matter to us, we're just following price, and we're going to trade it with options in a defined risk spread.

It might sound like we're beating a dead horse here, but the Russell 2000 printed another new all-time high yesterday (I know, it ended up being a red day, but that volume tho...) and there's just no way I can view this with any bearish context. Sure, perhaps it's extended and due for a rest (or gasp, a pullback) but it's simply irresponsible to be spouting actively bearish broader market calls in this environment right now.

As such, the team at All Star Charts keeps digging into the sectors that are looking like candidates to lead the next leg of stock market gains higher. Today, we've got our eye on the Biotech sector. 

The team here at All Star Charts is very bullish on the Oil & Gas Exploration & Production sector as discussed here (premium). Before we get into how we're going to play it, here's a little background to give color for our optimism for the opportunity we see, from our kid off the bench Tom Bruni:

Excuse the pun, it was too easy.

Everybody loves a deal. And that couldn't be more obvious after looking at a monthly chart of Costco $COST going back to the financial crisis that bottomed out in 2009. Shoppers clearly have been filling Costco parking lots and their carts, as the monthly chart has been a beautiful uptrend with very little volatility.

In JC's All Star Charts May Monthly Conference call for subscribers, there was a theme that he consistently revisited: Bonds are going lower.

There's no need to over-complicate this stuff. We could waste time arguing about what increasing interest rates means for the stock market, or yield's implications on policy decisions in Washington, the effect to be felt in the housing market, or how retirees savings may or may not be effected. That might fill airtime on SHOUT!TV, but all we care about here is positioning ourselves to make money. Leave the intellectual debates to the talkers.

We're the doers, and we want to position ourselves for further downside in bonds.

...then you simply have to get long The Granddaddy Oracle $ORCL here.

It appears Oracle has successfully digested the hit the stock took after it's most recent earnings report, and the stock is hanging just above the highs it set back in the year 2000! I could be wrong, of course, but I just don't see $ORCL holding around these levels for too much longer. There's just no way it recoups 2000 levels and then just stops here.

Earlier this week, JC pointed out that the software sector broke out to new all-time highs. I don't mean to keep harping on this, as you've no doubt read JC making this point over and over, but this sector making highs is simply not something we are likely to see if the overall market is pointing to a bear market.

The third largest component in the software index is Service Now, ticker $NOW. And we see an interesting opportunity developing.