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.
Introducing the Young Aristocrats. We like to say 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.
Like many people, we've been geeking on short squeezes lately. There's been so much action in heavily shorted names.
Pity the fools who are shorting stocks that are at or near all-time highs. If they want to try to be Heroes, be my guest. But we're smarter than that. We'll use these hurting shorts as fuel to catapult our trades higher. I recently got into Live Person $LPSN and Rackspace $RXT -- both of which are working. And I'm hungry for more.
Forget the hedge funds. You want to crush the suits?
Well, they still make sell side analysts wear suits and come into the office.
It's wild, I know.
Sell side analysts have worse herd behavior habits than your average investor. They have their cushy jobs (a few of them still do anyway). They get to tell their friends and family that they work on wall street, because some people still think that's "cool".
But the truth is, it's our job to take advantage of them. It's a lonely and dying business and they're not having any fun. In fact, they're finding it really difficult to run their antiquated valuation models on today's business. It's hilarious to watch them try.
Now, making fun of the situation doesn't get us paid. BUT, taking advantage of their conflicts of interest certainly can, if done correctly.
You see, they have families, kids in private school, expensive mortgages and used to nice vacations. It's a lifestyle. Their wives don't work and it's up to daddy to make sure the big check comes home every month, regardless of the cost.
The universe comprises several solar systems- big and small. Similarly, the market comprises of several conglomerates- big and small. One such conglomerate that we'd like to look at today is the Adani Group.
It is fit to call the Adani Group a solar system since there have been times in the past when these stocks have rallied despite a broader market correction. So where are these stocks headed and what is our view of the constituents of this group going forward?
Let's take a look at the charts.
We created an equally weighted custom index of the Adani Group constituents. It takes one cursory glance at this chart to see that this group has been on a tear since the dip in March 2020. With only minor corrections halting these stocks from time to time, the returns generated by this group have been handsome indeed.
We've enjoyed a ton of success with the bottoms-up scans and the columns they've inspired.
We absolutely love our scans! When we combine them with our traditional top-down approach, they make it almost impossible to miss key market themes.
In fact, we've launched four columns around these scans since last year -- and we have many more that we only run internally.
Today, we're sharing one with you. We call it "Fade The Street,"and it's one of my personal favorites.
The scan leverages data from sell-side analysts including their buy/sell ratings and price targets in order to identify stocks with the potential to become the market's next big winners.
How do we do this? Simple...
We scan for top-performing stocks that happen to be some of the most-hated and out-of-favor names on the street. Basically, we're looking for names that analysts have gotten wrong - or at the very least, are trending against their respective ratings.
I was away from the office last week with the team, but I was still able to pop into BNN Bloomberg for a quick hit.
We discussed the fact that fear among investors is off the charts, stocks are in uptrends and breadth is expanding. I think the beginning of the new Commodities Supercycle is bullish for stocks and just another tailwind to take them higher.
If the tv anchors think I'm making a bold call by suggesting that stocks in uptrends will go higher, then we're probably not near a top.
From the desk of Steve Strazza @sstrazza and Louis Sykes @haumicharts
New Mystery Chart!
For those new to this exercise, we take a chart of interest and remove the x/y-axes and any other labels that would help identify it. The chart can be any security in any asset class on any timeframe... on an absolute or relative basis.
Maybe it’s a custom index or price is inverted, who knows!
We do all this to put aside the biases we have associated with the asset in order to take a view based solely on price behavior.
You can guess what it is if you must, but the real value comes from sharing what you would do right now.
So let us know what it is... Buy, Sell, or Do Nothing?
At the beginning of each week, we publish performance tables for a variety of different asset classes and categories along with commentary on each.
Looking at the past helps put the future into context. In this post, we review the absolute and relative trends at play and preview some of the things we’re watching to profit in the weeks and months ahead.
In last week's report, we played "devil's advocate" and laid out some of the more bearish developments we could find out there.
But all-in-all, the market is still providing bears less room to make a sound argument. We continue to find that any bearish evidence is primarily isolated to shorter timeframes... and even then, still overwhelmed by the abundance of bullish data points.
And a company with a market cap measured in Trillions (with a capital T), is quietly setting up beautifully with volatility near the lowest levels of the year.
With the ensuing move in the Auto stocks, we thought of doing a deep dive into this sector to see if we could find some actionable setups.
The Auto sector has closed comfortably above the resistance level of 10,400 effectively absorbing overhead supply at these levels. In the weeks and months ahead, this sector could make a dash towards the level of 12,110. The strong bullish momentum regime indicated by RSI alludes to the same view.
Click on chart to enlarge view.
Relatively speaking, Nifty Auto has broken out of its resistance zone and is ready for the next leg of the rally.
Can you think of a more bullish combination than a bunch of angry people and indexes all over the world making new all time highs?
This is what's going on right now. And I think it's fantastic.
It's been a quiet last few days here at Allstarcharts.com as I've been meeting with the team and working on some really exciting new projects. I got together with Willie, Strazza, Peter, Danny, Jean Carlo and Matt this week, and we got a lot more accomplished than I would have imagined.
Anyway, I didn't completely fall off the grid, although I kind of tried to. Most of our conversations still revolved around the market, sentiment, breadth, rotation and the Intermarket relationships. I mean, even over dinner! We just couldn't help ourselves.
I'm seeing stocks making new all-time highs, but the questions I get from journalists is how it's possible?
How it's possible? They're in uptrends. There's more demand for stocks than there is supply of them. That's not my opinion. That's just a fact. There may not be as much demand for stocks in your household, but that's your problem. Not ours....
