initially covered this meme coin in May and it's up +500% since.

Today it looks to be completing a successful breakout.

Here's the chart.

The underperformance from Technology stocks continues.

And keep in mind that you've been seeing it in Large-caps for most of this year, but you've been seeing the underperformance from Small-cap Technology for over 18 months.

Small-cap Tech peaked in the summer of 2023 relative to the rest of the small-caps:

It's really been a disappointment for Technology investors.

Granted, there are Tech stocks working, but they are few and far between, compared to what we have seen in the past.

Look at the returns of these Technology ETFs relative to the performance in Bitcoin over the past month:

From the Desk of Steve Strazza @Sstrazza

When investing in the stock market, we always want to approach it as "a market of stocks."

Regardless of the environment, there are always stocks showing leadership and trending higher.

We may have to look harder to identify them depending on current market conditions. But there are always stocks that are going up.

The same can be said for weak stocks. Regardless of the environment, there are always stocks that are going down, too. 

We already have multiple scans focusing on stocks making all-time highs, such as Hall of Famers, Minor Leaguers, and the 2 to 100 Club.

We filter these universes for stocks that are exhibiting the best momentum and relative strength characteristics. 

In today’s Daily Digest, we’ll review the following:

1. No new positions today. 
2. Adjustment to XOP position.
3. No exits since the last report.
4. Current status of open campaigns.
5. Volatility Snapshot.

Let’s dig in!

We're now well into Year 3 of this bull market. 

So the question becomes: Is this fresh breakout the beginning of the next leg higher for equities?

Or is this market behavior evidence of exhaustion and it's time to get out?

Let me remind you of the "Fab 5" charts from the beginning of 2024 that helped determine whether we were starting a new leg higher this year or if it was time to bail.

We recently discussed gold achieving its second target since it put the finishing touches on a massive base earlier this year.

It wasn't clear how the price would react to our target, but sure enough, the sellers showed up right on cue.

But the weight of the evidence continues to suggest this bull market has legs and it's better to spend our time looking for buying opportunities, not selling opportunities.

Let's talk about the recent price action and what it means for our portfolios:

It's easy to over-complicate things. 

I generally try to avoid that. Today's trade might be the simplest thing I do: follow a trend.

When a chart is going from the bottom left to the upper right, who am I to call a top in something like that? What kind of arrogance must I have to think I'm the one who can call the turn?

Let somebody else be the hero. I'm going to follow the trend until it ends.

In today’s Daily Digest, we’ll review the following:

1. No new positions today. 
2. Rolled XLI to December options.
3. Exited XLB and USO at profit targets.
4. Current status of open campaigns.
5. Volatility Snapshot.

Let’s dig in!

From the Desk of Steve Strazza @Sstrazza.

Welcome back to Under the Hood, where we'll cover all the action for the two weeks ended November 8, 2024. This report is published bi-weekly, in rotation with The Minor Leaguers.

What we do here is analyze the most popular stocks during the week and find opportunities to either join in and ride these momentum names higher, or fade the crowd and bet against them.

We use a variety of sources to generate the list of most popular names.

With the Stock Market making new all-time highs every month, you would think that American consumers would be a little more optimistic.

You would think...

The S&P500 keeps hitting new all-time highs. Same for the Dow Jones Industrial Average and the Nasdaq100.

More recently the S&P600 Small-caps, Dow Jones Transportation Average and Bitcoin all joined the New All-time highs list.

And yet...

Sentiment is still way down in the dumps.

The University of Michigan Consumer Sentiment data goes all the way back to the 1950s. So this isn't some kind of random johnny-come-lately poll.

There's real data here that reiterates how bull markets end with too much optimism, but thrive throughout periods with too much pessimism.

Bitcoin is gearing up for its next major bull run — and while the spotlight is often on BTC, there are plenty of other opportunities to capitalize on this market shift. Beyond Bitcoin itself, many investors are turning their attention to the broader crypto ecosystem, and especially to Bitcoin miners, which tend to outperform during bullish cycles.

In recent weeks, we've been diving into a number of altcoins that offer outsized returns, but today, I want to focus on a different angle: the growing opportunities in Bitcoin mining stocks. These stocks have historically done well when Bitcoin rallies, and as we start to see signs of the next bull market, I believe miners could play a crucial role in boosting returns.

A key metric to watch is the ratio between Valkyrie’s Bitcoin Miners ETF ($WGMI) and Bitcoin ($BTC). When this ratio rises, it signals that Bitcoin mining stocks are outpacing Bitcoin itself — a trend that often precedes a broader surge in mining stock performance.