The most important groups of stocks are stuck below overhead supply.

That's not usually a characteristic of strong uptrends where investors are consistently rewarded for owning stocks. That was the first half of this year.

Today, it's almost the exact opposite.

In this type of environment, investors are rewarded for selling volatility and collecting income. Investors also tend to be rewarded for avoiding these types of sectors and looking for opportunities elsewhere, in less correlated areas.

Here are 4 of the most important groups of stocks all stuck below their prior cycle's peaks:

From the Desk of Kimmy Sokoloff

It was a steady decline most of the day.

We hit resistance on the indices, and they all reversed.

We had a resting GTC order filled at our profit target in the Paid-to-Play portfolio today:

The next new position in our Paid-to-Play portfolio is:

We had a resting GTC order filled in the Paid-to-Play portfolio yesterday:

The largest insider transaction on today’s list comes in a Form 4 filed by Sylebra Capital Ltd.

The hedge fund reported an additional purchase of $2.8 million in Impinj $PI.

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. 

Clearly, we spend a lot of time identifying and writing about leading stocks every week, via multiple reports.

Now, we're also highlighting lagging stocks on a recurring basis.

Welcome to the Short Report.

We...

From the Desk of Kimmy Sokoloff

$SPY is now above its moving average.

I mentioned two days ago in the Morning Briefing that a move above 441 can send it to 444.

Here we are.

This is the video recording of the August 2023 Mid-month Conference Call.

From the Desk of Kimmy Sokoloff

We saw a nice bounce in the market today.

$NVDA reports after the bell, so that will have some importance tomorrow.

From the Desk of Ian Culley @IanCulley

The US dollar sits atop the heap.

Major global currencies, including the Australian dollar, the New Zealand dollar, the Japanese yen, the Canadian dollar, and the Singapore dollar, are limping lower against the greenback.

The long list could grow in coming sessions as momentum builds behind a sustained USD advance.

While the evidence suggests we lean in that direction, I always prepare to take the other side of a trade if and when the data changes.

So, what’s the best way to play a falling dollar?

Before I share my favorite trade setup, let’s look at the US Dollar Index $DXY: 

DXY is finding resistance at the July pivot highs and a downtrend line originating with the March peak.

It makes sense for the dollar advance to pause at this level. And it has.

If DXY absorbs the overhead supply and rips above 1.0350...

At the risk of sounding like a broken record, I'm continuing my theme of the past week of looking for opportunities to sell premium in mostly delta-neutral options trades.

"Delta-neutral" basically means I'm looking to collect income in sideways consolidations while the broader markets sort out this current correction.

Not only is this a good tactical bet for sideways, sloppy, and messy markets, but it also provides nice portfolio diversification if you have a book of long positions like I do.

We've got a well-known mega-cap stock to use as our vehicle today, so let's get to it.