We had a delta-neutral options position on the books that we stopped out of this week. Thankfully, it was not a big loss. It felt like the right idea, but the wrong instrument.

So today's trade is a similar trade in a stock from the same sector. We're going to take advantage of a possible continued consolidation and get out before their next earnings event.

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

1. New position in XHB.
2. No adjustments are needed today.
3. Closed XLE position.
4. Current status of open campaigns.
5. Volatility Snapshot.

Let’s dig in!

I'm bullish crypto.

I'm anticipating a bullish run in this space in the coming months and quarters. And this is the chart that's been an element of this bullish thesis.

We're probably entering into the final contraction before we break out of this seven-month downward channel.

In simple language, the below chart is how these price patterns usually resolve.

From the Desk of Steve Strazza @Sstrazza

Welcome to The 2 to 100 Club.

In this scan, we look to identify 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.

From the Desk of Steve Strazza @Sstrazza

When investing in the stock market, we always want to approach it as "a market of stocks."

Regardless of the environment, there are always stocks showing leadership and trending higher.

We may have to look harder to identify them depending on current market conditions. But there are always stocks that are going up.

The same can be said for weak stocks. Regardless of the environment, there are always stocks that are going down, too. 

We already have multiple scans focusing on stocks making all-time highs, such as Hall of Famers, Minor Leaguers, and the 2 to 100 Club.

We filter these universes for stocks that are exhibiting the best momentum and relative strength characteristics. 

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

1. New position in XLB.
2. No adjustments are needed today.
3. No exits since the last report.
4. Current status of open campaigns.
5. Volatility Snapshot.

Let’s dig in!

Digital gold has churned sideways at its prior cycle high, while gold and risk assets have enjoyed a sweet leg higher over the last half-year.

It would be strange for this bull market cycle to end without Bitcoin enjoying a blue-sky breakout.

So, if it's a bull market, shouldn't Bitcoin and friends be participating?

Yes. We're betting that crypto is about to reach escape velocity and have an epic catch up.

Let's talk about 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.

Escape velocity is defined as the minimum speed that is required for an object to free itself from the gravitational force exerted by a massive object.

I can't think of a better image to describe Bitcoin; after months of chopsolidation, the crypto market is finally gaining sufficient traction to push itself beyond the influence of the bear winter.

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.

Most of us somehow know people who still consume basic cable television news.

It's like watching someone who's obese shop at the grocery store, buying all their cereal and "fat free" cookies. It's terrible. 

It's like seeing the alcoholic walk into the bar at noon and the bartender automatically knows to serve him the regular 2 shots and a beer.

The cable news people are the bartenders giving you the poison that you desire, at the worst possible time that they could possibly serve it to you.

It's like walking into a casino in Reno, NV to see people who have no money, are in terrible health, and have no business being inside a casino, sitting there all afternoon putting money into slot machines.

This is what the sick individuals who still consume basic cable news are doing to themselves.

It's sad to watch them struggle so much and slowly kill themselves. You may not see it easily on the outside, but their souls are dying or already dead on the inside. 

The good news is there are fewer and fewer of these suffering individuals left who are still poisoning themselves in these antiquated ways.

This meme coin is up +3,000% YTD and it just broke out yet again.