From the desk of Steve Strazza @Sstrazza

Our Top 10 report was just published. In this weekly note, we highlight 10 of the most important charts or themes we're currently seeing in asset classes around the world.

Bifurcation Looms In The Currency Complex

As the US Dollar has caught a bid in recent weeks, our custom equal-weight index of the G-10 currencies is finding resistance at a perfectly logical level. We’re receiving bifurcated signals from the currency complex all-in-all, as many risk-on currencies are approaching key inflection points. In saying this, the currencies that have held up the best during the Dollar’s recent bout in strength have been those more closely tied with commodity-rich economies. This adds credence to our global growth and Commodity Supercycle thesis.   

From the desk of Steve Strazza @Sstrazza

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 can take a more tactical view in order to better understand and gain insight into 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.

Macro

• Just about all of the major diversified equity indexes in our macro universe - both US and International, were higher this week. The only exceptions were Small and Micro-Caps, as well as Emerging Markets.
  • Here is the S&P Global 100 $IOO, which just tacked on an additional 3.5% and closed at fresh all-time highs for the third consecutive week... and it did so in about as bullish fashion as possible with a marubozu candlestick. As you can see, this candle opens at the lows and closes at the highs, illustrating the strong and steady...

This week we're looking at a long setup in the Chemicals sector. When more analysis processes point in the same direction, that direction becomes hard to ignore.

We have one such stock for this week's actionable idea.

We retired our "Five Bull Market Barometers" in mid-July 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.

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

Commodities continue to churn as they digest recent gains. This has been a recurring theme over the past several weeks.

However, there are signs that this might be changing.

For instance, Lumber pushes to new all-time highs, Steel futures hit new highs, and Platinum is back above a key level of resistance.

Pockets of renewed strength have started to pop up across various groupings within the Commodities space. That's valuable information.

Consider Rebar Futures forcefully breaking out of a 3-year consolidation while most of the market chops sideways.

Both Lumber and Rebar futures hitting new highs screams global growth.  Strength from these markets bodes well for other procyclical areas such as...

This is our ASC Research Q2 2021 Playbook.

This is one of my favorite things to do: Forget everything that happened last year, or even in the first quarter of this year. Start from scratch. And approach the market with an open mind.

That's exactly why we put together these quarterly reports. It's self-serving. It helps us organize our thoughts, and identify which areas we want to attack, and which ones we want to avoid, on all time frames: both long-term and short-term.

Make sure to check out our New Table of Contents on Page 2, which will help you navigate through the full report:

As the pandemic raged on March 23, 2020, the S&P 500 was bottoming out following the quickest crash from its highs in history.

Of course, we didn’t know it was THE bottom in real-time. How could we?

Yet just five days later, we were able to hold our 4th Annual Chart Summit virtually. No, we didn’t get a chance to meet in person or enjoy any amazing skiing in Colorado like we did in year’s past. But we were able to pick the brains of the best analysts I know at what turned out to be a critical moment for the markets.

And I’m so glad we did…

While the world felt like it was falling apart, traders just like you had the chance to soak in the wisdom of some of the top minds in finance. Instead of panic, we were treated to process and analysis. And a ton of hot charts!

From the desk of Willie Delwiche.

We have some good news! We are debuting another new scan for Premium Members of All Star Charts India. As we go forward, we will introduce several new features for our members, but for now, the second scan has just dropped!

Introducing the new scan- All Star Momentum.

All Star Momentum is a brand new scan that pinpoints the very best stocks in the market. This time around, we have incorporated our stock universe of Nifty 500 as the base. Among the 500 stocks that we follow, this scan will pump out names that are most likely to generate great returns.

While we go through our lists of sectors and stocks on a weekly basis, we thought of launching a product that would highlight the names that are the strongest performers in our universe and those that are primed for an explosive move.

Just like The Outperformers scan, this is a list of stocks belonging to the sectors that display relative strength in the market at any given point in time. Since sector rotation is the lifeblood of a bull market, we will be ahead of the curve before the gears keep shifting.

JC and I recorded our latest options conference call last night (subscribers can access it here). We discussed some trades that were exited last month, updated some current positions, and discussed a couple new ideas.

One of the new ideas discussed was a bullish breakout in United Therapeutics $UTHR. And I'm ready to pull the trigger today.

This is the video recording of our April 5th, 2021, Monthly Charts Strategy Session.

Here is the video in full:

There's always information in the Currency markets, even if trading currencies isn't something you do.

There is wisdom in some of the world's largest markets like forex and fixed income. To ignore it would be irresponsible.

One thing that's been hard to ignore is the strength in the US Dollar Index throughout the first quarter of 2021. This could be a potential wrecking ball to the global growth, rotation into cyclical and commodity supercycle themes.

But is it?

When we look at several G-10 Currencies relative to the Dollar, the Commodity-centric currencies have held up the best, which is interesting, isn't it?