Reporter: "Why do you rob banks?"

Willie Sutton: "Because that's where the money is."

True 'nuff. And the same could probably be said of insurance companies, no?

With this in mind, we've got a mid-cap dividend paying insurance company with a beautiful trend thats looking like it wants more.

From the desk of Willie Delwiche.

I planted most of the vegetables for the garden over the past couple of weeks. Seeds and seedlings. Neat rows and clustered groups. Into the raised beds they went.  

I don't know what the day to day (or week to week) fluctuations in the weather will be. But I do know that it is (finally) Spring. Planting as the air temperature rises and our daylight hours expand increases the likelihood of a bountiful garden later this summer. Leafy greens (kale, arugula, chard) were the first into the soil. They can withstand cooler temperatures than the cucumbers, peppers and tomatoes.

As a gardener, I have some understanding of the underlying trends and conditions that guide the seasons. Plant too soon and a late frost will kill off tender seedlings. Plant too late and the summer heat will sap the strength of plants without well-developed root systems. 

It's about knowing the growing environment, managing temperature risks and finding opportunities to increase vegetable production.

Some might dismiss this as a farmer’s market timing. I call it prudent.

These are the registration details for our live monthly conference call for Premium Members of All Star Charts.

This month’s Conference Call will be held on Monday May 24th 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.

Here are the details for Monday night:

This is the video recording of the May 13th Town Hall Meeting w/ Willie Delwiche & JC Parets

05/13/21 2PM ET

From the desk of Steve Strazza @Sstrazza and Grant Hawkridge @Granthawkridge

We’ve been vocal about the strong market internals supporting equities for some time.

We’ve seen one extreme breadth reading after the next from just about all of the major indexes and sectors since last summer.

One index that hasn’t shown a bullish initiation thrust like its peers is the Nasdaq.

We recently pointed out the NASDAQ Composite showing a substantial deterioration in 52-week highs the past few weeks...

But there are still areas of the market with strong & expanding internals. Breadth data continues to be mixed just like we’re seeing from many asset classes right now.

Using equities as an example, while growth has been weak, value and cyclical areas remain strong.

From the desk of Willie Delwiche.

JC and I were talking about the market last week in one of our town hall meetings.

"It's a market of stocks," he said, offering up the old Wall Street adage about looking at market health by looking beneath the surface. 

I don't dispute the wisdom embedded in that comment. It's an adage for a reason.

But my response to JC was, "No, it's a market of sectors." 

Let me explain… 

From the desk of Steven Strazza @Sstrazza

Check out our latest Mystery Chart!

What we do here is take a chart that’s captured our attention, and remove the x and y-axes as well as any other labels that could help identify it.

This chart can be of any security, in any asset class, on any timeframe. Sometimes it’s an absolute price chart, other times it’s on a relative basis.

It might be a ratio, a custom index, or maybe the price is inverted. It could be all three!

The point is, when we aren’t able to recognize what’s in front of us, we put aside any biases we may have and scrutinize the price behavior objectively.

While you can try to guess the chart, the point is to make a decision…

So let us know what it is… Buy, Sell, or Do Nothing?

From the desk of Steve Strazza @Sstrazza

Welcome to the 2 to 100 Club.

Something we’ve been working on internally this year is using various bottoms-up tools and scans to complement our top-down approach. One way we’re doing this is by identifying 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 Willie Delwiche.

Key Takeaways:

Welcome back volatility.

Three days off the highs for the S&P 500 and twitter traders are acting like the sky is falling. And maybe it is? But at times like these, I like to look for opportunities to fade what often prove to be short-lived spikes in volatility.

And the best way I know how to do this is to look at sector ETFs and observe the ones displaying the highest relative implied volatilities.

We debuted a new scan recently- The Outperformers.

The Outperformers is our newest scan that pinpoints the very best stocks in the market. It’s the fastest, easiest way to find quality names that are primed for major moves.

The goal is that as the market rally progresses, the sector rotation within the market will reflect in this scan. So while our Top/Down Analysis helps us with the broader view of the market, this Bottom/Up scan makes sure that we catch the slightest change in sentiment.

Change is the only constant.

Well, Nifty 50 is really not interested in that statement because it continues to remain messy. But in this messy move, we've seen certain sectors outperform the others. One among the outperformers is the Pharmaceutical sector.

Are there any new breakouts in the sector constituents? A few, yes.

Let's do a deep dive in this sector and see what comes up.