The market had given us an indication of a weakening short-term momentum at the end of last week. We thought this would be a good time to go through the sectoral indices to identify strengths and weaknesses.

Read on to know more.

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 Monday February 1st @ 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 Monday evening:

From the desk of Steve Strazza @sstrazza and Louis Sykes @haumicharts

Last week's Mystery Chart was the Israeli Tel Aviv 125 Index zoomed all the way back to the start of this century.

You might be wondering why we're discussing Israeli equities of all things...

The short answer: They're making new all-time highs.

In this post, we explore the sector that is mainly responsible for these gains, dive into its strongest components, and outline some long ideas with risk/reward setups skewed in our favor.

Not only is this yet another group of stocks we can use to express our bullish thesis on risk assets -- it is also excellent information. Once again, we're seeing another development pointing to the increasing participation and improving breadth across international equity markets.

This move in Israeli equities also fits into a larger theme that is taking place beneath the surface for stocks all around the world. It's difficult to overstate the significance of these moves.

In short, we believe this is one of the...

From the desk of Steve Strazza @sstrazza and Louis Sykes @haumicharts

At the beginning of each week, we publish performance tables for a variety of different asset classes and categories along with commentary on each.

Looking at the past helps put the future into context. In this post, we review the absolute and relative trends at play and preview some of the things we’re watching in order to profit in the weeks and months ahead.

As we discussed in last week's report, bears have a lot of work cut out for them.

With all this rotation into offensive groups and cyclical areas of the market, they are really running out of talking points. We literally can't find a meaningful group of stocks in the US or even abroad that we would want to short at this point.

This is excellent information as it's not something we can say very often... and it's bullish, just to be clear.

The move higher in equities is being supported by significant cap-rotation at the index level as well as broad participation among sectors, and most recently, even international stock markets.

Basically, it's hard to find stocks that...

I'm getting trolled more than I have in a long time. It's almost like people are mad at me for being as bullish of equities as we've been, and continue to be...

What's everyone so angry about? I don't understand.

Anyway, yes there are stocks we want to buy. Can some stocks go down? Sure. Does that change the fact that there are stocks we want to buy or own? No.

As far as potential headwinds for stocks go, I've got 3 pretty simple ones today.

One of our biggest winning trades of 2020 has been consolidating over the past month and is setting up for what looks like another high-intensity workout. While it would be wishful thinking to expect another complementary ride like the last one, I do think there is a way to capture some gains without having to push all out again!

From the desk of Steve Strazza @Sstrazza.

Welcome back to our “latest Under The Hood” column for the week ending January 25, 2021. As a reminder, this column will be published bi-weekly moving forward, and rotated on-and-off with our new Minor Leaguers column.

In this column, we 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.

Whether we’re measuring increasing interest based on large institutional purchases, unusual options activity, or simply our proprietary lists of trending tickers… there is a lot of overlap.

The bottom line is there are a million ways to skin this cat. Relying on our entire arsenal of data...

In the week gone by, we saw a weakening sentiment develop on the Nifty 50 daily chart. We looked at this through a lens of caution and continue looking for signals that either strengthen or negate this thesis.

At All Star Charts we follow a top-down research approach whereby we track all the asset classes and global markets in order to arrive at our view. In our weekly analysis, we carried out the same process and saw a pattern worth mentioning.

Let's take a look at some charts!

It's late-January. We've rung in the New Year. Christmas decorations are put away. We're settling into the late winter slog of cold & snow.

In my reading on this morning (a cold & snowy one in Milwaukee), I came across the following passage:

"You see, Rodya, to make a career in the world , it's enough, in my opinion, if you always observe the season; don't ask for asparagus in January, and you'll have a few more bills in your purse; the same goes for this purchase. The season now is summer, so I made a summer purchase. . ."

It's from "Crime and Punishment" by Dostoevsky. Since it's a Russian novel, explaining exactly who is talking, who is being spoken to, and the overall context would take too much time. But I'm quite sure that we can look at what is being said on its own and glean some wisdom.

This week we're looking at one long setup and one short setup. The sectors we've identified are Consumer Durables for a bullish trade and Financial Services for a bearish trade.

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.

The latest E-Trade StreetWise survey, which is put out quarterly, revealed most investors (66%) believe the market is in bubble territory, and another 25% think it’s approaching one.

Check my math, but that's over 90% of investors thinking we're in or near a bubble.

A bubble!

Everything needs to be a bubble.

You see why we can't have nice things?

I mean, what ever happened to a series of higher lows and higher highs defining an uptrend?

Too simple?

Not intellectual enough for you?

Fine. Let's get into facts.

The Dow Jones Industrial Avg and Dow Jones Transportation Avg did nothing for almost 3 years, and just broke out in the 4th quarter last year. Is this a bubble? Or just the beginning of a new uptrend?