From the desk of Steve Strazza @Sstrazza

Our Top 10 Charts 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.

Equal Over Cap-Weight

The equal-weight S&P 500 (RSP) emerged to fresh multi-year highs relative to the cap-weighted S&P 500 index (SPY). Seeing this ratio break out of a multi-year base is a development that indicates a healthy expansion in participation and is further evidence of improving market internals.

From the Desk of Kimmy Sokoloff

The market started off strong and finished even stronger.

We saw a  midday lull, but that was bought up!  The $SPY broke above its 50-day moving average at roughly 379.

The S&P 500 was down last week but remains above its June lows and below its August highs.

More Context: We can look up at the summer highs on the S&P 500, but as long as more stocks are making new lows than new highs the risk is that it is the summer lows that are in jeopardy of being broken. The degree and duration of downturns since 2015 has varied but a clear pattern has emerged: rallies are difficult to sustain if fewer stocks are making new highs than new lows. Clearing the August high for the S&P 500 likely means seeing the NYSE + NASDAQ new high lists getting longer than the new low list (which has happened only twice in the past 50 weeks).   

This is the one we all need to watch.

I don't think it has to be any more complicated.

The strategy here is very simple:

If you read the subject line and didn't immediately know that this post was about energy stocks, then you probably watch too much television.

FANG has always been a Texas-based Oil & Gas E&P stock.

It has nothing to do with mega-cap growth.

It's quite obvious that many investors bought the wrong FANG.

And I say good. That makes this unwind we've been witnessing that much more explosive.

The more people getting smoked in Tech and other growth, the better it is for the rest of us who aren't stuck in that garbage.

My suggestion is to ignore the gossip columnists and focus some more on the only thing that actually pays anyone: Price

Here's Diamondback Energy $FANG breaking out this week to new all-time highs:

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 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.

Macro Universe:

With strength starting to stand out in more and more sectors, we have a few good setups that we like for long trades here.

In chatting with our Head Technical Analyst Steve Strazza today, he pushed me in the direction of today's trade by highlighting the fact that if this one moves, its likely to move much faster and stronger than a couple of the other ideas I was interested in.

And the options in this stock are set up in a way that we can play this idea with a simple long calls trade. I like that. So let's dig in.

We've adjusted a position in the Paid-to-Play portfolio today:

The largest insider transaction on today’s list was reported in a Form 4 filing by Vertiv Holdings $VTR Director Joseph Deangelo.

Deangelo disclosed a purchase of VTR worth roughly $1 million.

From the Desk of Kimmy Sokoloff

We've seen a big gap up in the futures this morning, and we're right at resistance at $SPX 3,800. The next level above is 3,804 to 3,811.

$SPY resistance is at 379.60. Support is at 376.35, then 374.20.

The only way anyone gets paid around here is to sell things at higher prices than where we buy them.

And not necessarily in that order.

Do you have a better way?

I've been doing this for 20 years and I have never seen any other way to profit.

You might enjoy pretending to know "why" a stock or group of stocks may be moving. But the market doesn't pay you to pretend to know why.

The market only pays us when we sell things at higher prices than where we buy them.

And this is all so funny to me, because I constantly see so many people focusing all their attention on everything BUT price.

That never made any sense to me.

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.