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Happy New 52-week High

May 20, 2023

I've been at this for 20 years. I've seen a lot of uptrends and bull markets in my day. I've studied many more that came before me.

Along the way, do you know what you'll find a lot of in bull markets?

New 52-week highs.

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The Hall of Famers (05-19-2023)

May 19, 2023

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. You can 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.

Here’s this week’s list:

Click table to enlarge view

We filter out any laggards that are down -5% or more relative to the S&P 500 over the trailing month. ...

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Breakout Alert: Cotton Revisits the Scene of the Crime

May 19, 2023

From the Desk of Ian Culley @IanCulley

Watch out for cotton!

Back in February, I highlighted a bullish setup in cotton futures

Buyers were hammering a key retracement level from below. The way I learned it, "The more times a level is tested, the higher the likelihood it breaks."

Three months later…

The July contract is knocking on the door – again!

How polite.

Check out July cotton nearing the January 2022 closing high of 88.34:

That’s my level.

If and when the July contract breaks above 88.50 (let’s give it a little room), I like it long with an initial target of approximately 106. I’m also watching for a 14-day RSI reading greater than 70 for bullish confirmation.

Not all contracts are approaching buy zones this week....

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[Options Premium] Adding Some Short Exposure

May 19, 2023

It's been a good run for many of our bullish long trades. As such, it wouldn't surprise me if stocks took a bit of a breather soon.

And considering so many stocks we've been tracking are starting to look pretty extended, I'm going to go fishing in the weak stocks pond to find some opportunities for portfolio diversification in the event that stocks go sideways or dip a little bit in the weeks ahead.

One nice thing is the stock market lift this week has really zapped options premiums across the board. So today's trade offers us a somewhat rare opportunity to get responsibly short with long puts.