With the Dow Jones Industrial Average hitting new highs every week, the question remains: What about the Trannies?

When you study every market cycle going back over 100 years, you'll notice that the Dow Industrials and Dow Transports move together. 

They go up together for a while, and then they go down together for a while, and then up again, and the cycles repeat.

In this bull market, the Dow Industrials broke out towards the end of last year and have been making new all-time highs throughout all of 2024. 

But the Dow Transports have not....

This is the weekly post that aggregates all the charts we put together throughout the week and organizes them all into one, easy to flip through deck.

The worst humans on the planet have been promising you for years that this was just a "bear market rally".

They warned you every day about some made up catastrophic event that was going to occur at any moment.

But these people are not that dumb.

They were just lying to you.

Are you noticing?

Here is the S&P500 hitting new all-time highs along with the equally-weighted version of the S&P500 ALSO hitting the highest levels in history.

These are only things you see in healthy market environments.

The S&P500 on both a market-cap weighted and equally-weighted basis making new all-time highs every week is NOT something you see in bear markets.

But how long will this bull market last?

Does it still have more room to run?

Well, the Dow Jones Industrial Average - the world's most important stock market index - looks to be starting a new leg higher after breaking through its first target:

After seeing all of this above, are you willing to make the bet that this bull market ends before these monster bases shown below complete to the upside?

Look at the Dow Transports and S&P600 Small-cap...

It has been two-years since the S&P 500 bottomed in October 2022 and stocks began a new bull market. 

During this time, many sectors and industry groups have enjoyed tremendous uptrends while materials stocks have gone sideways.

But materials stocks are starting to look interesting...

The SPDR Materials Sector ETF $XLB is making new all-time highs:

As you can see, the prior cycle high coincides with a major Fibonacci extension level going back to the Great Financial Crisis, which adds to the significance of this breakout.

This market-capitalization weighted fund has a large exposure to Linde $LIN amongst several other bellwether materials stocks.

We want to be long XLB if it's above 93, with a target of 139.

The Materials Sector holds a lot of the same stocks as the S&P Chemicals Index:

The S&P Chemicals Index is consolidating below a major Fibonacci extension level going back to the Great Financial Crisis and we're betting it will breakout to new all-time highs like XLB.

If CEX is above 985, the path of least resistance is higher toward 1,500.

Representing over 17% of the Materials Sector...

Whether markets are full of chop or trending higher, bonds offer a versatile haven for our portfolios.

Take a look at inflation-protected securities, commonly known as TIPS. 

In inflationary environments, these outperform the government bond market.

We think it’s happening now and our intermarket analysis is telling us to buy TIPS.

If you take a look at the chart of the TIP ETF against the 10-year bond ETF, you’ll see consolidation above long-term support. One thing we know about these kinds of consolidations is that they tend to follow through in the direction of the primary trend. 

The trend for TIPS relative to treasuries is higher. 

Historical perspectives, like those found in Jack Schwager’s classic Market Wizards, can offer essential guidance on how to navigate through inflationary periods. I think this is where things are headed.

One effective way to thrive through inflationary periods is by diversifying your portfolio with assets like TIPS (Treasury Inflation-...

From the desk of Steve Strazza @Sstrazza

Our International Hall of Famers list is composed of the 100 largest US-listed international stocks, or ADRs.

We've also sprinkled in some of the largest ADRs from countries that did not make the market cap cut. 

These stocks range from some well-known mega-cap multinationals such as Toyota Motor and Royal Dutch Shell to some large-cap global disruptors such as Sea Ltd and Shopify.

It's got all the big names and more–but only those that are based outside the US. You can find all the largest US stocks on our original Hall of Famers list.

The beauty of these scans is really in their simplicity.

We take the largest names each week and then apply technical filters in a way that the strongest stocks with the most momentum rise to the top.

Based on the market environment, we can also flip the scan on its head and filter for weakness.

Let's dive in and take a look at some of the most important stocks from...

This trade gets classified as a "Hard Trade."

The stock has had a strong runup in recent weeks. Some traders have a hard time buying stocks making highs.

I don't.

But with implied volatility relatively cheap right now in this stock, an earnings event on the horizon, and a potential "two-hundred-dollar-roll" looming ahead, this feels like the right time to take a defined risk shot.

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

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

Let’s dig in!

I have been writing about patience for the longest time.

But now I'm finally seeing early signs that altcoins are setting up for an upside move.

As such, I'm increasing my exposure.

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

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

Let’s dig in!

From the Desk of Steve Strazza @Sstrazza

Welcome to The 2 to 100 Club.

In this scan, we look to identify the strongest growth stocks as they climb the market-cap ladder from small- to mid- to large- and, ultimately, to mega cap status (over $200B).

Once they graduate from small-cap to mid-cap status (over $2B), they come on our radar. Likewise, when they surpass the roughly $30B mark, they roll off our list.

But the scan doesn't just end there.

We only want to look at the strongest growth industries in the market, as that is typically where these potential 50-baggers come from.

Some of the best performers in recent decades – stocks like Priceline, Amazon, Netflix, Salesforce, and myriad others – would have been on this list at some point during their journey to becoming the market behemoths they are today.

When you look at the stocks in our table, you'll notice we're only focused on Technology and Growth industry groups such as Software, Semiconductors, Online...

As I've discussed recently, earnings season is quickly approaching. And with it comes risks and opportunities.

For today's trade, I'm going to leverage elevated options premiums in a nearby expiration to get a better net cost on the real call options I'd like to own.

And I'm taking advantage of a recent pullback to get in at attractive prices and a nearby exit if I'm wrong.