From the desk of Willie Delwiche.

If there is something to know about me when it comes to the market, it’s this: When I have a chance to talk about the Value Line Geometric Index, I don’t let it pass. The Value Line index is still a smidge further below its June high than the S&P 500 is from its September high, and the Value Line index has not (yet) re-claimed the lead on a YTD return basis. But over the past month, it has provided some leadership, showing the S&P 500-based indexes the path through the 50-day average. While the cap-weight index (SPY) has changed little over the past month, the equal-weight index (RSP) is up nearly 2% and the Value Line index is up more than 3%. I continue to believe that will be the theme of the fourth quarter.

This is the video recording of the October 14th Weekly Town Hall w/ Willie Delwiche

10/14/21 2PM ET

Polkadot has shown some impressive strength in the last week.

Now that prices are back to the upper end of this range, a definitive breakout is only another $10 away.

This has all the same characteristics Solana, Axie Infinity, and Cardano showed before they all surged.

Accumulation, building a base... now we just need to wait for the breakout.

From the desk of Willie Delwiche.

It's mid-October and things are winding down in the garden. 

The greens have perked up as the weather has turned cooler. But attempts to ripen a few final tomatoes as the summer heat fades and the sun spends less and less time above the horizon is like waiting for Godot.

With peak garden season slowing down, I have enough time (and thyme) on my hands to reflect on what went well, and what went awry.

Those angry little gold buggers are finally starting to put some points on the board.

The lack of participation in Gold since last Spring has been something to witness. Every commodity on earth has skyrocketed, except for gold and other precious metals.

My argument is that maybe it's behaved that way because it's not a commodity. Maybe it's more of a currency, something I've always argued.

Right or wrong, call it whatever you want, it has done poorly since last summer of 2020.

And with the Dollar as strong as it's been, Gold has really taken a beating.

But not lately....

Can we call it a comeback?

(While on vacation until Oct 26th, I'm going to be sharing you some anecdotes on my favorite trading strategies: why I use them, when, and how I manage them once they are on.)

Here's the thing about options trading: you can make it as complicated as your heart's content. And there are plenty of incredibly smart practitioners out there who run amazingly complex strategies involving all kinds of volatility and statistical arbitrage.

They analyze 3D volatility surface graphs, use lesser understood greeks, and interpret things like "volatility smile" and dispersion.

If that works for you, great! I always say: if it works, do more of it!

But another beautiful thing about options trading is that there are many different ways to pull profits out of the market, and most of them aren't as complicated as they may sound -- even if the strategies have exotic sounding names like "iron condor" or "broken-wing butterfly."

And my absolute favorite options strategy isn't even really a strategy at all -- it's simply buying long calls when I'm bullish!

From the desk of Steve Strazza @Sstrazza

Welcome to the 2 to 100 Club.

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.

From the desk of Steve Strazza @Sstrazza and Ian Culley @Ianculley

We’re beginning to see signs that risk-on behavior is re-entering the market.

Commodities are ripping in the face of a rising dollar.

Cyclical stocks are back in gear as the S&P 500 High Beta ETF $SPHB posts higher highs and higher lows relative to its low-volatility alternative $SPLV.

Meanwhile, classic risk-appetite barometer AUD/JPY sliced through a critical level of former support-turned-resistance earlier this week.

All of these point to an increasing risk-on environment. 

But what does the bond market have to say about investor positioning toward risk?

Let’s look at a couple credit spreads that speak to investors’ willingness to incur risk.

From the desk of Willie Delwiche.

Some of us were discussing internally today's topic.

After a few minutes, we were stumped.

The market hasn't given us much to write about over the last week.

And that's fine. If the market isn't giving you anything new, don't spend your day looking at the screen for something that isn't there.

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 & relative strength had a baby, leaving you with the best of the emerging dividend giants that are outperforming the averages.

What's the one thing that's on everyone's mind today? What has caught your attention today? Or rather, what has demanded your attention today?

The Tata Group of course! Such a move hasn't come along in this group in the longest time. A post dedicated to this group is definitely the need of the hour.

The Tata Group is synonymous with Trust, Integrity, and Loyalty. There is a certain feel-good factor added to the group based on the people at the helm and their activities. While there is a place for everything, once you look at price action, nothing else matters.

That's the beauty of Technical Analysis I guess. It encompasses all possible pieces of information and presents to you a price level that reflects everything. Quite powerful, when you really think about it.

So here we are today, taking a look at a reputable conglomerate that has been making money for investors for years together!

Since there are so many constituents in this group, I don't think it qualifies to be a Solar System. I feel it's a whole Universe by itself.

So what do we like in this universe at the moment?

Let's take a look, shall we?