That's right, I'm on the couch, settled in for a nice rom-com with the wife, passing the chip dip, and thinking about the stock dip I'm about to buy.
Sometimes, this is where and when my best ideas hit me. How about you?
But in the case, it just so happens the All Star team was already one step ahead of me on today's idea as they covered it in their recent Monthly Charts Strategy Session last week. At least now I get to enter at a better price!
In this weekly note, we highlight 10 of the most important charts or themes we're currently seeing in asset classes around the world.
Breadth Confirms New Highs
Last week we covered the modest breadth expansion in US indexes. The picture was still somewhat mixed as most AD lines had not made decisive breakouts. That all changed this week. Not only did most large-cap AD lines in the US make new highs, but small and mid-cap AD lines also resolved higher. Here’s a look at the advance-decline lines for both developed and emerging markets, which are pressing up against new highs as well. This is the kind of broad confirmation from internals that bulls want to see.
Check out this week's Momentum Report, our weekly summation of all the major indexes at a Macro, International, Sector, and Industry Group level.
By analyzing the short-term data in these reports, we get a more tactical view of the current state of markets. This information then helps us put near-term developments into the big picture context and provides insights regarding the structural trends at play.
Let's jump right into it with some of the major takeaways from this week's report:
* ASC Plus Members can access the Momentum Report by clicking the link at the bottom of this post.
Last week, we outlined that a big move was on the horizon, and the bias for prices over the coming weeks was higher. We were documenting the tightening volatility and the accumulation taking place on-chain, suggesting that upward price discovery was the most probable outcome.
Over the weekend, we've seen this play out in some respects, with Bitcoin breaking out of its tight range, which seems like the beginning of the next leg higher.
Now that Bitcoin is back above 65,000, we want to position aggressively long in anticipation of further strength into the remainder of the year.
We retired our "Five Bull Market Barometers" in mid-July last year to make room for a new weekly post that's focused on the three most important charts for the week ahead.
This is that post, so let's jump into this week's edition.
Our Hall of Famers list is composed of the 100 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 which you can check out here.
The Hall of Famers is simple.
We take our list of 100 names and then apply our technical filters so the strongest stocks with the most momentum rise to the top.
From the desk of Steven Strazza @Sstrazza and Ian Culley @Ianculley
The best opportunities are the ones with the most clearly defined risk characteristics and most favorable risk/rewards.
This summer, Minneapolis Spring Wheat was offering us a trade set-up with both these qualities. Price had just resolved higher from a near decade-long base and was trading at its highest level in 8 years. We were buying the breakout.
Fast forward to today and our initial profit target has been met and we’re locking in gains.
In today’s post, we’ll take a step back, review our trade, pinpoint current levels of interest, and discuss how we’re managing the position moving forward.
First, let’s look at the weekly chart of Minneapolis Wheat futures:
