These are the registration details for our live mid-month conference call for Premium Members of All Star Charts.
Our next Live Call will be held on Monday December 13th at 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.
We debuted a new scan recently which goes by the name- 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.
As many of you know, something we've been working on internally is using various bottom-up tools and scans to complement our top-down approach. It's really been working for us!
One way we're doing this is by identifying 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.
From the desk of Steven Strazza @Sstrazza and Ian Culley @IanCulley
The recent risk-off action came to a head last week, with commodities, stocks, and interest rates all violating key support levels.
We saw a brief flight to safety, as long-term treasury bonds $TLT broke out to their highest level since early January.
Yes, money was flowing into bonds, which is not a good look for stocks and commodities.
Bottom line, there was a lot of damage done to the primary uptrend in a very short time. Market participants needed to come out and repair the damage ASAP.
In the handful of trading sessions since the selling stopped, bulls have managed to claw back much of the losses from last week.
Buyers needed to quickly step up to the plate. And that’s exactly what we’re seeing right now, as stocks and other risk assets are rebounding aggressively off the recent lows.
As for bonds, the breakout in TLT failed, and the 10-year and 30-year both snapped back above critical levels.
Key Takeaway: Volatility is on the rise and the bulls are in retreat. The recent downside pressure on risk assets has driven investors to take caution. Yet, pessimism remains subdued as volatility was unable to stoke real fear. Now that the market is beginning to rebound, the bullish case needs to prove it deserves the benefit of the doubt. Price needs to justify the risk appetite that still lingers and participation needs to expand. On the flip side, another spike in volatility could woo the bears out of their seats and onto the dance floor. The market finds itself at a critical juncture heading toward year end. The action that unfolds in the coming weeks could well shape investors' approach to risk in 2022.
Sentiment Report Chart of the Week: Despite Some Caution, Investors Still Love Risk
The froth has definitely come off the $VIX spike over the past week. Does this mean we're all clear? Well, no. Not necessarily and not yet.
But it does give us a little bit of confidence that some short-term lows can be leaned against as good risk management levels when taking long directional bets.
There's still some juicy premium to be sold when looking at some sector ETFs and that brings me to the Biotech sector ETF $XBI.
The most likely scenario in our minds is that we see a sideways consolidation in a regime of negative funding while spot flows remain intact. Patience and sitting on the sidelines when whipsaws are dominant on price action can go a long way in saving financial as well as emotional capital.
This message of "sitting on the sidelines" has primarily been geared toward a time frame looking ahead for the coming weeks and the next month.
But, looking longer term, there are plenty of data points right now suggesting this recent selling pressure isn't the beginning of a deeper correction, which remains encouraging for those with a longer-term time horizon looking out into the next quarter and into 2022.
No matter which markets you're investing in, this is a good lesson.
The visual below comes from this Yesterday's Crypto Note. It shows the different scenarios that almost all cyrpto currencies currently find themselves in.
Most are below their former highs, and stuck in a range once again. You can put US Small-caps in that exact same category too, for example.
Homebuilders and Semiconductors look like the one on the left. You can put $LUNA $MANA $SAND $CRO and even $ETH in that category.
And then you can find a lot of nasty Cryptos that look like the one on the right. You can probably put the ARK Funds, Biotechs and China in that bucket too:
Over the past couple of months, we've seen the market give up its highs and settle lower. We also saw certain levels being breached and certain levels being held. But what is the outlook going forward? What are the levels that will be crucial to follow in the days and weeks ahead?
From the desk of Steven Strazza @Sstrazza and Ian Culley @IanCulley
Last week, we pointed out that commodity-centric currencies were beginning to slide.
Our petrocurrency index was making new 52-week lows, and the Australian dollar was on the verge of breaking down. By Friday’s close, the AUD/USD cross looked to have completed a topping pattern and was trading at its lowest level since the summer of 2020.
Seeing one of the world’s leading commodity currencies break down from a major distribution pattern would not bode well for commodities and other risk assets.
But the bulls aren't ready to roll over yet. Investors are back on offense this week, as buyers have already repaired all or most of the damage that was done to stocks and commodities last week.
They needed to come out swinging after the latest flurry of selling pressure… And that’s exactly what they did!
