From the desk of Steven Strazza @Sstrazza and Ian Culley @IanCulley

The US dollar is on the ropes as global currencies bounce back.

After failing to hold its breakout earlier in the month, the USD looks vulnerable against a growing number of currencies.

The pound and euro are catching higher. The Swiss franc is rebounding off its recent lows. And the commodity-centric Australian and Canadian dollars remain resilient.

We can add the Mexican peso to this list, as the USD/MXN cross broke down to fresh 52-week lows yesterday. This breakdown supports the near-term bearish argument for the dollar.

And it also offers a great trade setup. 

Let’s take a look.

Here’s a chart of the USD/MXN pair:

Key Takeaway:

These are the registration details for our Live Monthly Candlestick Strategy Session for Premium Members of All Star Charts.

This month’s Video Conference Call will be held on Thursday June 2nd @ 6PM ET. As always, if you cannot make the call live, the video and slides will be archived and published here along with every other live call since 2015.

Here are the details for Thursday evening:

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

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

We've adjusted a position in the Paid-to-Play portfolio today:

Last week, George Soros filed a 13G revealing the purchase of 9,425,000 shares of the small-cap automotive semiconductor company indie Semiconductor $INDI.

This brings Soros Fund Management's total interest to 9.20%, making it the largest shareholder of the company.

The magazine cover on the left, describing how Bitcoin was "Storming Wall Street" came just a few weeks before Bitcoin put in a historic top in late 2017. Immediately after this cover story, Bitcoin went on to have one of the most epic crashes of all time.

Investors got wiped out right after the one on the left.

And now here we are after Bitcoin got cut in half, and many of the altcoins are down 70-80% if not more.

There's no denying that the market action over the last month has been hectic.

From the collapse of Terra $LUNA to the crash in governance tokens, not to mention the macro headwinds that have played their role in crypto markets.

With all this noise, let's zoom out and focus on how we're viewing the current situation.

Nifty Auto has been gaining strength over the past week. We're seeing some follow-through there and hence, today's post will discuss a stock from the same sector.

From the desk of Steve Strazza @Sstrazza.

Welcome back to our latest Under the Hood column, where we'll cover all the action for the week ended May 27, 2022. This report is published bi-weekly and rotated with our Minor Leaguers column.

What we do here is analyze the most popular stocks during the week and find opportunities to either join in and ride these momentum names higher, or fade the crowd and bet against them.

We use a variety of sources to generate the list of most popular names.

There are so many new data sources available that all we need to do is organize and curate them in a way that shows us exactly what we want: a list of stocks that are seeing an unusual increase in investor interest.

From the desk of Steve Strazza @sstrazza

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 also weed out hedging activity and ensure there are no offsetting trades that either neutralize or cap the risk on these unusual options trades.