New highs and bull flags. 

That’s the picture of the market right now.

The Nasdaq is printing all-time highs. The S&P is knocking on the door. Semiconductors, Industrials, Communications—you name it—they’re all breaking out together.

The playbook has been simple. 

New highs… followed by bull flags… followed by more new highs.

This is what bull markets look like.

And right now, we’re seeing these bullish continuation patterns everywhere.

One group that we think is the next to go is Discretionary.

XLY is coiled up right at its former highs from 2021.

From the desk of Steve Strazza @Sstrazza

Our Hall of Famers list is composed of the 150 largest US-based stocks.

These stocks range from the mega-cap growth behemoths like Apple and Microsoft – with market caps in excess of $2T – to some of the new-age large-cap disruptors such as Moderna, Square, and Snap.

It has all the big names and more.

It doesn’t include ADRs or any stock not domiciled in the US. But don’t worry; we developed a separate universe for that. Click here to check it out.

The Hall of Famers is simple.

We take our list of 150 names and then apply our technical filters so the strongest stocks with the most momentum rise to the top.

Let’s dive right in and check out what these big boys are up to.

Here’s this week’s list:

*Click table to enlarge view

We filter out any laggards that are down -5% or more relative to the S&P 500 over the trailing month.

Then, we...

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

1. New position in XLV.
2. No adjustments are needed today.
3. No exits since the last report.
4. Current status of open campaigns.
5. Volatility Snapshot.

Let’s dig in!

You remember Vanilla Ice. Don't pretend you don't.

He has nothing to do with today's trade, but the name of the stock reminded me of him.

Broker-Dealers are showing incredible strength right now, I want to get long the chart that looks the best of the lot.

From the Desk of Steve Strazza @Sstrazza

Welcome to The Junior International Hall of Famers.

With the goal of finding more bullish setups, we have decided to expand one of our favorite scans and broaden our regular coverage of the largest US-listed international stocks, or ADRs.

This scan is composed of the next 100 largest stocks by market cap, those that come after the top 100 and are thus covered by the International Hall of Famers universe.

Many of these names will someday graduate and join our original International Hall Of Famers list. The idea here is to catch these big trends as early on as possible.

Let’s dive right in and check out what these future big boys are up to.

This is our Junior International Hall of Famers list:

Click table to enlarge view

And here’s how we arrived at it…

We removed laggards which are down 5% or more relative to the ACWI Ex. U.S. Index $ACWX over the trailing...

If you see a bull flag… Buy it. 

It’s what we’ve been telling our clients, and it’s been our mantra internally.

This has been the top pattern to profit from lately. Period.

It’s simple, reliable, and works best in bullish environments like this one.

I’ve been putting more and more money behind these patterns over the past few weeks. Not only do they keep resolving higher, but the reaction legs have been fierce— some going flat-out vertical.

Here are two recent examples to illustrate how I trade this formation.

First up: Micron Technologies $MU.

After a strong leg higher, $MU formed a textbook bull flag. I bought the $MU 7/18 $120 calls...

Today I closed a winning trade. Booked a gain. The kind of thing I tell others (and myself) to celebrate.

So why do I feel bad about it?

Maybe “bad” isn’t the right word. More like unsettled.

Here’s the situation:

The stock had started to break down a bit on the daily chart, so I followed my process and exited. Textbook move, right?

But here’s what’s bothering me…

The stock is still above its 50-day moving average.

It’s still in a hot sector.

And I had January 2027 calls. That’s over 18 months until expiration!

With that much time, why did I feel the need to micromanage?

This is one of those moments where the trade was technically breaking support, yes — but the bigger question I’m sitting with is: Did I kneecap this trade too early? Did I cut off a potential monster winner because I was too zoomed in?

My risk was defined. I could’ve ridden it longer.

Maybe smaller sizing would’ve helped me let it breathe?

Maybe I’m just overthinking? (I do that.)

But one reminder that helps bring me back to center:

I can always get back in.

Just...

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

1. New position in XLP.
2. No adjustments are needed today.
3. No exits since the last report.
4. Current status of open campaigns.
5. Volatility Snapshot.

Let’s dig in!

The team and I have been digging through our currency charts today, trying to figure out if we should trust these new lows in the Dollar Index.

And the truth is, there is plenty we could say about dollars right now, but I don’t think it would help.

The Dollar Index is going to go in the opposite direction of these bull flags in EUR and GBP.

It’s really that simple. 

And as far as other currencies go, I think we can expect them to follow the majors. Some of them are already breaking out. 

Remember, the major developed currencies started trending well against the dollar first, and then emerging currencies gradually followed. 

I expect that intermarket cadence will continue during the next wave of dollar weakness.

And it looks like it already is. Here’s the Euro and Pound resolving their coils higher against USD:

Both of these currencies ramped to fresh multi-year highs in April and have been consolidating in continuation patterns ever since.

This action reminds me of some of the ...

PROGRAMMING ALERT: I’m launching a new weekly show on StockMarketTV.com called What Are My Options?

It’s a 30-minute(ish) show where I take your requests for options strategies on your favorite stocks. I’ll drop a lesson or two along the way, and sometimes I’ll just riff on the philosophy behind options trading.

The first episode airs Tuesday, July 1st at 3pm ET—and I’ll be doing it live every Tuesday after that. It’s meant to be interactive, so I hope you’ll join me!

Lately, I’m noticing more people talking about how the market has “come too far too fast.” Some are even licking their chops, ready to jump in short and try to catch what they’re sure will be an “epic reversal.”

This kind of talk makes me uncomfortable.

Not because I disagree that a pullback could happen — anything can happen. But because I know the psychology behind this kind of positioning. It’s not usually about...

Today's trade goes into the "Hard Trade" bucket. 

I'm buying a stock that has rocketed up 30%+ in just 7 trading days.

But... it has only just cleared overhead resistance which might be the "all-clear" signal from the control tower to ignite the rocket boosters.