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The Outperformers

April 15, 2021

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.

Breadth Thrusts & Bread Crusts: Context Matters

April 15, 2021

From the desk of Willie Delwiche.

We were cooped up all winter, so we decided to head south. 

As soon as the kids got out of school for spring break, we loaded up the car, left Milwaukee, and headed for the Gulf of Mexico. 

It was a long trip -- and I had plenty of time to think along the way. In a world of momentum and trends, we want to remember where we’re coming from so we can better understand where we’re going.

Breaking Through The Glass

April 14, 2021

The latest Young Aristocrats research piece is out and a trade idea that immediately caught my eye is one that is currently breaking through the proverbial glass ceiling.

This manufacturer of glass and fiberclass products is finally breaking out of a 3-year base.

Check this chart of Owens Corning $OC:

Pockets Of Pharma Healing

April 14, 2021

Over the past couple of weeks, we've noticed strength building in the Pharmaceuticals sector. The index has bounced off its support and is now attempting to resume its prior positive trend.

This resumption has come after a substantial pause and hence we thought we'd do a quick round-up of the stocks that are looking good at the moment.

Laurus Labs was one of the major gainers in the bull rally in 2020 following which a sideways move meant that the stock was dormant for almost six months! Last week the price broke above its resistance and the momentum seems to be alluding to strength in the weeks ahead too. This is more of a target update for those looking for the next levels of overhead zones.

Laurus Labs is bullish above the level of 350 with a target near 530.

Click on chart to enlarge view.

All Star Charts Premium

USD Testing Critical Levels

April 13, 2021

Several areas of the market have reached key levels of support or resistance

Crude Oil continues to digest recent gains just below overhead supply near its former 2019 highs. 

The Euro/Dollar is finding support at the recently violated 12-year downtrend line. 

And the Emerging Markets ETF $EEM continues to consolidate near its 2007 highs.

Meanwhile, the US Dollar is also testing key levels. 

USD strength has become a major market theme over the last couple of months -- along with the potential effects it could have on global risk assets. A strong US Dollar could apply pressure to Emerging Markets, Commodities, and cyclical assets in general. This would challenge the global growth thesis and the rotation into cyclical areas we have seen play out over recent months.

All Star Charts Premium

Young Aristocrats (April 2021)

April 13, 2021

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 longer-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 5-9 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.

[PLUS] Weekly Sentiment Report

April 13, 2021

From the desk of Willie Delwiche.

Key takeaway: Despite the decreasing exposure of active equity managers, the weight of the evidence continues to lean toward a neutral sentiment backdrop that supports a much needed reset, allowing optimism to rebuild moving forward. Investment managers may be pulling back from the market, but equity ETF inflows have reached record levels. This past month inflows reached over $80 billion, the highest level over a one month period. This may suggest excessive investor positioning but inflows can remain high for extended periods of time before negatively impacting the market. Another piece of information that points to growing optimism is The Consensus Inc. Bullish Sentiment Index as it reached 74% last week, it’s highest level since early 2018. These pockets of investor optimism, within the broader neutral setting, allude to the nature of the recent unwind.

Sentiment Chart of the Week: Sentiment Reset

Mystery Chart (04-13-2021)

April 13, 2021

From the desk of Steven Strazza @Sstrazza and Grant Hawkridge @granthawkridge

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 it 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?