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 this one, 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.

The bottom line is it is a bull market. We want as many vehicles and options to express...

From the Desk of Ian Culley @IanCulley

I’m avoiding the US dollar and interest rate chopfest.

That includes interest rate-sensitive commodities like crude, copper, and gold.

So, let’s check in with a commodity group that walks to the beat of its own drum…

The New York City Softs: Cocoa, Coffee, Cotton, and Sugar.

First up, Cocoa. 

The recent stock market rally is being led by the mega caps. And there's no reason to think this isn't going to continue for the foreseeable future.

I'm currently under-allocated to the biggest capped names. So today's trade is an attempt to rectify that.

In today’s Daily Digest, we’ll review the following:

1. No new positions.
2. Adjustment to XLK position.
3. No exits since the last report.
4. Current status of open campaigns.

Let’s dig in!

From the Desk of Steve Strazza and Alfonso Depablos

The most significant insider buy on today’s list comes via a Form 4 filing by the founder and CEO of Nerdy Inc $NRDY, Chuck Cohn.

Cohn reported a purchase of 569,976 NRDY shares, equivalent to $957,559.

In 2019 Tesla was worth a tiny $30 Billion.

By 2021 Tesla was approaching a market cap of $1.3 Trillion.

The job of a CEO is to increase shareholder value.

Period.

No CEO in history made shareholders more money faster than Elon Musk.

It's just math.

Bitcoin looks set to end the week down as large-cap growth is driving up the U.S. equity indices. There's a substantial divergence taking place, and I'm betting that Bitcoin catches higher; I just need to see this manifest with a breakout above 73,000.

I keep reiterating the strength in Bitcoin mining stocks. While the short-term trends look set to consolidate in the coming weeks, they have become a favorable sector to craft a more longer-term bullish thesis in the crypto markets.

Here's this week's crypto roundup. It's an opportunity for us to take a step back, set aside the distractions, and delve into the key charts shaping the crypto complex.

The Bull Market is back, baby!

At least, it sure looks that way at the index level as the biggest of the big caps begin new legs higher.

Though, curiously, the two short positions I have on are also showing signs of working out for us.

With $VIX readings continuing to remain low, most bullish bets I’m looking at involve buying options premium since it is quite affordable in this environment.

In this week’s portfolio review, I fielded an important question: “What’s an appropriate account size for trading options?”

Of course, there is no one-size-fits-all for options accounts. But I get into a number of considerations to mull over to determine what is the right size for you.

Check it out:

From the Desk of Ian Culley @IanCulley

The Nasdaq is ripping to new all-time highs. NVIDIA’s market cap is surpassing the three-trillion-dollar mark. And US T-bonds are registering another buy signal. 

But the market’s still a mess. 

Just look at yesterday’s intraday reversal—a bullish reaction to inflation data in the morning, followed by a bearish reaction to the FOMC meeting in the afternoon. Investors are still trying to make sense of the mid-week hoopla.

Friday’s close (the most important data point of the week) will reveal critical information regarding market conviction heading into the weekend.

Meanwhile, you can track high-yield bonds for risk-on confirmation.

Check out the HY Bond ETF $HYG overlaid with the high beta-versus-low volatility ratio (using the $SPHB and $SPLV ETFs):

These two charts are carbon copies over the trailing 52 weeks because HYG is a risk asset...

In today’s Daily Digest, we’ll review the following:

1. No new positions.
2. Adjustment to QQQ position.
3. No exits since the last report.
4. Current status of open campaigns.

Let’s dig in!