Gold futures keep screaming higher to new all-time highs.

It has also rallied over 100% relative to the broader commodity complex.

But what the shiny yellow metal hasn't done this cycle is outperform stocks. We think that's about to change in a major way and here's why.

Today's trade is in a computing company we all know. Some might think their best days are behind them, but the price action as of late would indicate otherwise.

And with what feels like a gift of a pullback to get positioned into, we're going for it!

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.

Nowadays, to make the cut for our 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 are applied. Then, as always, we sort by proximity to new...

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

1. No new positions today.
2. Rolled XME to March options.
3. No exits since the last report.
4. Current status of open campaigns.
5. Volatility Snapshot.

Let’s dig in!

This is the weekly post that aggregates all the charts we put together throughout the week and organizes them all into one, easy to flip through deck.

It's hard to imagine what it is that these investors are all so bearish about.

I mean, we're in the middle of a bull market, where we know historically it pays way better own stocks than to be selling them. We know. We have the data.

And yet, accordingly to the latest AAII survey, more individual investors are bearish over the next 6 months than at any point since November of 2023.

Here's what stocks have done since then:

These are historic returns that have rarely been seen throughout stock market history. It's been practically straight up. 

The S&P500 is up almost 40%, while the Nasdaq100 is up over 45%. Financials and Communications are each up over 50%.Consumer Discretionary, Industrials and Technology are also major leaders during this period.

You see, stocks don't go up or down in price based on "fundamentals". Prices move based on positioning. And when individual investors are all bullish, it's probably a good time to be selling.

More importantly, and definitely more actionable, is when individual investors are bearish. That's historically a great time to be buying very aggressively.

These are the...

Chinese stocks are on the move.

These Breakout Multiplier trades are all popping off one by one. 3 of them doubled today.

The Chinese Internet Index closed at its highest levels since mid-October, well before the Trump landslide victory (that was supposed to be the end of Chinese stocks).

It's actually been the exact opposite.

In fact, look Chinese Internet stocks relative to the U.S. Internet Index. The new lows could not hold, and now the face-ripper is here:

The rotation is real, and this is a perfectly normal characteristic of a bull market, which we are very much in.

There's a time and a place for everything. Buying China has not been a good idea for a long time. So it should be no surprise that the short interest in China is so high.

Those shorts have overstayed their welcome and now it's time for us to profit from their demise. The short squeeze you...

Commodities are catching a serious bid right now.

Coffee futures have resolved a nearly 50-year base, printing fresh all-time highs.

Base and industrial metals keep screaming higher as the Chinese economy strengthens. 

This is all happening at a time when commodities are supposed to be strong.

As you can see, February has historically been an excellent month for owning commodities. The only better month is April, and the difference is marginal.

Will this be another strong February? We think so!

We told you we were buying fertilizer stocks a few weeks ago. ...

Today's trade is in a $104B company that provides cybersecurity solutions that is printing new all-time highs.

You know how I feel about all-time highs...

It's late on Friday. Let's get after it.

If you want to understand where commodity prices are headed, look at the yield curve.

Every major commodity bull market has been preceded by a steepening yield curve—every single one.

📈 When the yield curve bottoms and starts steepening, commodities follow.
 

Look at the last cycle:

• The commodity index bottomed when the yield curve hit its lowest point.
• When the yield curve flipped positive for the first time since 2022, commodities started trending higher.

It’s not magic—it’s liquidity and capital flows. When short-term rates fall relative to long-term rates, the market starts pricing in higher growth and inflation expectations, and commodities are the first to respond.

This is exactly why we’re positioned the way we are. Commodities don’t move in isolation—...