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.

It's fashionable in certain circles to talk about having a Canadian escape plan if shit gets too weird here in the United States.

I'm not one of those. Though I love Canada, having grown up across the border in Buffalo, NY.

There were many times in my younger days, while spending a day across the border, where I'd find myself short on cash and I'd have to hit an ATM to get some loonies! And most often, those ATMs were run by CIBC.

So maybe I should attempt to earn back some of those ATM fees (plus interest!).

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

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

Let’s dig in!

Bitcoin's back above all that broken support with a vengeance.

And what better time to do it when everyone's panicking and the futures market has been absolutely decimated.

As we walked through in this week's video, a great deal of the longs in the derivative markets have completely thrown in the towel.

They've given up, and they don't want anything to do with crypto anymore.

Now, the market is up and recovering rather nicely.

Seems like a hell of a bear trap to me...

From the Desk of Ian Culley @IanCulley

Let everyone grumble over the Japanese yen.

I get it. The yen was cast as the villain decades ago, and something or someone must take the blame for the VIX hitting 65 earlier this week.

While I prefer to point my finger at the preceding low-volatility environment, the November election, and potential rate cuts, the yen certainly played a part. 

But the real question isn’t who, what, when, where, or why. 

Instead, every investor wants to know…Was that it? 

Is the selloff over?

I think the worst is behind us. 

Here’s why…

Check out the USD/JPY chart with a 200-day simple moving average in bright blue (with the percentage above or below the long-term average in the lower pane):

In many ways the yen carry trade is a play on interest rates.

A surprising outcome for some of my defined-risk long delta trades this week is that my losses weren’t as pronounced as I would’ve expected given the vicious sell-off we’ve seen in many tech names.

Why?

One thing that isn’t often discussed about being long options premium when expressing bullish or bearish bets is that owning long options (calls or puts) also means we’re long volatility.

In situations like these where we saw VIX briefly with a 65-handle, the rapid rise in options premiums put a floor in many of the calls I had long positions in. So while many bullish positions in my portfolio were losing money, the losses were rather pedestrian relative to what others who were holding long stock or futures positions were likely experiencing.

It’s not a win, but it felt like one this week.

We discuss this and a whole lot more in this week’s Options Jam Session:

BlackRock just filed for a "Nasdaq Top 30" Stocks" ETF.

That's the top

This is the company that runs the iShares ETFs.

NOW is when they want to launch a vehicle for investors to buy ONLY the top 30 Nasdaq stocks?

Now?

Where was this 10 years ago?

To me, this type of sentiment is just further evidence that Technology has peaked as a percentage of total market cap in the stock market.

This sort of top-heavy hype is confirming what price is already suggesting.

Look at Technology hitting new 10-month lows today relative to the S&P500:

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

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

Let’s dig in!

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.

The stock market likely has a couple of aftershocks left in it. But if the worst is over, I have to believe this is a great opportunity to buy the dip in some names that will be beneficiaries of the AI boom.

And there are few bigger and well-positioned names than Microsoft.

This market environment still demands that we define our risks and we're going to leverage elevated volatility in a way you might not expect to express our bet.

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

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

Let’s dig in!