Gold priced in USD has finally joined other global currencies, closing last week at an all-time high. Silver, the high-beta play, is outperforming its more reserved cousin (gold). And gold mining stocks are breaking out.
Many of our trade ideas over the past few weeks are working. I believe this trend has just begun and could last for months – or even quarters.
From the Desk of Steve Strazza @sstrazza and Alfonso Depablos @Alfcharts
This is one of our favorite bottom-up scans: Follow the Flow.
In this note, we simply create a universe of stocks that experienced the most unusual options activity — either bullish or bearish, but not both.
We utilize options experts, both internally and through our partnership with The TradeXchange. Then, we dig through the level 2 details and do all the work upfront for our clients.
Our goal is to isolate only those options market splashes that represent levered and high-conviction, directional bets.
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.
To make the cut for our Minor Leaguers list, a company must have a market cap between $1 and $4B.
Fair warning: today's trade is in a company that will be reporting earnings early next week. I generally try to avoid entering trades ahead of earnings. But its that time of the season where its kinda hard to avoid earnings. They are happening. We just have to deal with it.
That said, we'll control what we can control: The amount of risk we take, and our time duration for the position to recover, if needed.
Gold priced in USD has finally joined other global currencies, closing last week at an all-time high. Silver, the high-beta play, is outperforming its more reserved cousin (gold). And gold mining stocks are breaking out.
Many of our trade ideas over the past few weeks are working. I believe this trend has just begun and could last for months – or even quarters.
Especially when I consider this next chart…
Check out the VanEck Gold Miners ETF $GDX filling the first of a series of downside gaps:
Precious metals and crude oil stole the show this week.
Crude oil reclaimed its prior-cycle peak, gapping higher on the Sunday open, while gold and silver posted fresh highs.
I’ll have more on those shiny metals Monday in the weekly Gold Rush report.
Today, I want to bring your attention to a commodity that often escapes the headlines – palladium – and why I think a significant bottom could be in place for this diverse metal.
I say “diverse” because palladium has multiple use-cases, from catalytic converters to fine jewelry.
Around ASC we jokingly refer to palladium as “the Notre Dame of precious metals” because it’s in its own conference.
Categorizations aside, here are three reasons I believe palladium is a strong buy…
Commercial Positioning
Commercial hedges hold their largest net-long position in history!
From the Desk of Steve Strazza @Sstrazza and Alfonso Depablos @AlfCharts
Our Hall of Famers list is composed of the 150 largest US-based stocks.
These stocks range from the mega-cap growth behemoths like Apple and Microsoft – with market caps in excess of $2T – to some of the new-age large-cap disruptors such as Moderna, Square, and Snap.
It has all the big names and more.
It doesn’t include ADRs or any stock not domiciled in the US. But don’t worry; we developed a separate universe for that. Click here to check it out.
The Hall of Famers is simple.
We take our list of 150 names and then apply our technical filters so the strongest stocks with the most momentum rise to the top.
Let’s dive right in and check out what these big boys are up to.
