A couple of weeks ago, we talked about Silver futures attempting to emerge from a multi-year accumulation pattern and potentially retesting the former all-time high.
Last week, Silver made a new multi-decade high in absolute terms and broke a multi-year downtrend line relative to Gold.
And if the 47th element is about to blast off, we should look closer at the Junior Silver Miners.
But first, check out this chart of the Silver/Gold ratio:
Below is the 4th ASC Mastermind Lab Course. These are special videos that will be made available throughout the duration of the 12-week course featuring conversations with professionals from across Wall Street discussing topics in their expertise.
The theme of ASC Mastermind Week 2 is momentum trading, and why it works. So naturally it made sense for me to talk to All Star Charts Director of Research Steve Strazza. Steve uses momentum as much in his day-to-day as I do.
The main concept Steve wanted to hammer home is momentum thrusts, what they are, when they happen, the different types with examples, and how to analyze them.
We've had some great trades come out of this small-cap-focused column since we launched it back in 2020 and started rotating it with our flagship bottom-up scan, Under the Hood.
For the first year or so, we focused only on Russell 2000 stocks with a market cap between $1 and $2B.
That was fun, but we wanted to branch out a bit and allow some new stocks to find their way onto our list.
We expanded our universe to include some mid-caps.
Nowadays, to make the cut for our Minor Leaguers list, a company must have a market cap between $1 and $4B.
The last time the yield curve inverted, they promised us a recession, maybe even a market crash if we're lucky!
Instead all we got was a historic bull market, including back to back years of 20%+ returns in the S&P500.
You see, this is what happened AFTER the yield curve inverted.
And why is this such a big deal?
There's this really hilarious function in the way humans think. A large population of economists and wall street sell side analysts get very sad when the yield of one bond pays more than the yield of another.
It's this really weird thing in the markets that gets these folks very afraid, and so they want their customers to be afraid too.
And if these economists and sell side analysts do their jobs right, as they have for many years, they're loyal following of sheep will be sure to sell their stocks and run to cash just before a historic bull market.
The market keeps squeezing short sellers out of their biotech positions and rewarding bulls with big breakouts.
Knowing this, our strategy is simple. We want to keep buying the best-looking and most heavily-shorted biotech stocks.
Today, we're covering one that has rallied nearly 200% since late last year. Despite this extreme upside momentum, the stock still has a massive short interest.
With the stock resolving a multi-year accumulation pattern, we think this short squeeze has plenty of room to run. To get back to the all-time highs from just a few years ago, it would require about a 10x.
We're looking for something much smaller and quicker for now, but you never know!
Let's talk about how we're trading our latest Freshly Squeezed setup.
When you go back and study bull markets and all the healthiest environments for stocks throughout the past, do you know what you'll find?
Historically, Consumer Staples stocks underperform during the healthiest market environments.
So with that in mind, notice how Consumer Staples on an equally-weighted basis just closed at NEW ALL-TIME LOWS relative to the equally-weighted S&P500:
