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It's Malicious Intent

December 18, 2023

I've been getting emails and messages all year about how it's possible that Wall Street could have gotten this year so wrong.

The financial media with all their gloom and doom has missed the entire bull market.

How could they be so dumb? How could they have been so wrong?

Let me be clear: They are not dumb. They are not trying to avoid being wrong.

It's malicious.

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The Hall of Famers (12-15-2023)

December 15, 2023

From the desk of Steve Strazza @Sstrazza

Our Hall of Famers list is composed of the 150 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. Click here to check it out.

The Hall of Famers is simple.

We take our list of 150 names and then apply our technical filters so the strongest stocks with the most momentum rise to the top.

Let’s dive right in and check out what these big boys are up to.

Here’s this week’s list:

*Click table to enlarge view

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All That Glitters Isn’t Gold

December 15, 2023

From the Desk of Ian Culley @IanCulley

Metals are beginning to shine.

Gold’s new all-time high has captivated the masses. But all that glitters isn’t gold.

In fact, base and industrial metals are also providing ample trading opportunities.

Check out ol’ Dr. Copper challenging near-term resistance:

A decisive close above 3.91 set the path of least resistance toward the year-to-date highs at approximately 4.25.

It’s difficult to imagine a more bullish scenario for global equities aside from a continued expansion in the new highs list.

As much as I enjoy trading futures, I can’t ignore the money flowing into stocks.

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Bonds Sweeten a Potential Santa Claus Rally

December 15, 2023

From the Desk of Ian Culley @IanCulley

The bond market is turning the page. 

Our long US Treasury trades are finally working. And investors are reaching for high-yield debt.

On the surface, it’s a positive shift for the hardest-hit markets in 2022. 

But it also sends a clear message to stock market investors…

Buy!

Credit spreads are contracting as the iShares High Yield Corporate Bond ETF $HYG trades at fresh 52-week highs relative to the iShares 3-7yr Treasury Bond ETF $IEI:

It’s classic bull market behavior.

But that’s not all…

The newest junk bonds to hit the street are catching higher on an absolute basis. 

Check out the Fallen Angel High Yield Bond ETF $ANGL:

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[Options Premium] LuLu is Positioned to Flex Higher

December 15, 2023

Short-term traders will classify today's trade as a "hard trade."

We're positioning in a stock that has already had a significant run over the past two months. But if we widen out our lens and look at weekly or monthly candles, we'll see that this stock is making fresh all-time highs out of a monster base which can fuel a dramatic push higher.

Check out this chart of Lululemon $LULU:

Baker Bros Reports a $30 Million MDGL Buy

December 15, 2023

From the Desk of Steve Strazza and Alfonso Depablos

The most significant transaction on today’s list comes in a Form 4 filing by Baker Bros Advisors LP.

The hedge fund reported a purchase of $30 million in Madrigal Pharmaceuticals Inc $MDGL.

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‘Tis the Season For Dollar Weakness

December 14, 2023

From the Desk of Ian Culley @IanCulley

Bing Crosby dreamed of a White Christmas.

Who hasn’t?

Growing up, I wished for a white Christmas every year. I knew snow was a stretch living in Florida. But a kid can dream… 

This season, stock market bulls hope for quite a different, serene vision: a weaker dollar.

Based on the charts, they might just get their wish.

Check out the updated US Dollar Index $DXY chart:

DXY has respected key retracement levels on the way up and down over the past six months. The repeated touches add to my conviction in these levels.

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Young Aristocrats (December 2023)

December 14, 2023

From the Desk of Steve Strazza @Sstrazza

Dividend Aristocrats are easily some of the most desirable investments on Wall Street. These are the names that have increased dividends for at least 25 years, providing steadily increasing income to long-term-minded shareholders.

As you can imagine, the companies making up this prestigious list are some of the most recognizable brands in the world. Coca-Cola, Walmart, and Johnson & Johnson are just a few of the household names making the cut.

Here at All Star Charts, we like to stay ahead of the curve. That's why we're turning our attention to the future aristocrats. In an effort to seek out the next generation of the cream-of-the-crop dividend plays, we're curating a list of stocks that have raised their payouts every year for five to nine years.

We call them the Young Aristocrats, and the idea is that these are "stocks that pay you to make money." Imagine if years of consistent dividend growth and high momentum and relative strength had a baby, leaving you with the best of the emerging dividend giants that are outperforming the averages.

Buffett's Into OXY for Another $588 Million

December 14, 2023

From the Desk of Steve Strazza and Alfonso Depablos

The most significant transaction on today’s list comes in a Form 4 filing by Warren Buffett and Berkshire Hathaway.

Buffett reported another substantial purchase in Occidental Petroleum Corp $OXY, this time with a total value of $588 million.