Our series of guest posts written by members of the All Star Charts research team continues...
Today's note is from our Senior Crypto Analyst. If you're not following what's been going on in crypto, you're missing out...
-JC
The Goalposts Are in Another Dimension
Kia ora!
I'm Louis Sykes, the Senior Crypto Analyst here at All Star Charts.
When JC casually dropped that he was escaping to Disney World for an entire week, I thought he was pulling my leg.
An entire week?
At Disney World?
As a humble Kiwi where our idea of a theme park is basically a few rides and a half-day commitment, this sounded like some parallel universe of leisure.
"It's not just a park," he explained, his voice brimming with childlike excitement. "The hotel's basically a playground, and there are multiple theme parks surrounding you." Multiple? In New Zealand, we consider a carousel and a mediocre rollercoaster a full day's entertainment. This was like hearing about a theme park multiverse.
Speaking of multiverses that boggle the mind, Bitcoin...
President-elect Donald Trump rang the bell at the New York Stock Exchange this week, and it was reminiscent of the times when Ronald Reagan and George W. Bush went to the NYSE years ago.
The infamous Reagan quote, "We're going to turn the bull loose," immediately came to mind.
Considering that, it seems appropriate to talk about bulls today because of their positive correlation to economic growth.
Live cattle futures and bond yields have danced together for decades:
As you can see, cattle futures and bond yields are structurally similar but sometimes diverge from one another. In the lower pane, we've included the 200-day rolling correlation to highlight the past (and current) divergences in price.
The biggest problem with correlation analysis is that it doesn't tell us which direction the lines will likely go next.
However, the primary trends have been higher since the 2020 low, and the odds favor that the primary uptrends will eventually reassert themselves.
And we think that's currently underway, with live cattle futures closing this week at the highest price in history.
You guys in the chat room have been on fire lately!
I love the camaraderie that has been built among you guys and gals. The ideas, the mutual support, the multiple sets of eyes when a position needs our attention. So great.
You're all ONE! OF! US!
With this in mind, today's trade is in a name that has been discussed a few times of late in the chat. I've been waiting for a tradable support level to reveal itself, and we may be getting it right now, so let's get to it....
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.
We'll be streaming LIVE today on Stock Market TV with The Best Morning Show in Finance. This is where we talk about which stocks are moving, the major themes in the market, and what we're doing about it.
Today's guest is our in-house Quantitative Strategist Grant Hawkridge.
Grant joins us from the other side of the world in Australia. So let's all give him a warm U.S. welcome!
REV Group is a leading manufacturer of specialty vehicles like fire trucks, street sweepers, school buses, and more.
They provide every type of vehicle a municipality needs. Sounds like a good business, right?
In the past few years, the company has been trying to divest from several segments, such as school buses, because of slowing sales growth and margin compression.
Instead of school buses, they've aggressively leaned into the fire and emergency vehicle segments. This has boosted profitability, and the market loves it!
REVG just closed at a fresh all-time high on the heels of a mixed report:
As you can see, the market punished the stock for reporting earnings during its prior drawdown from 2018-2020.
In the nearly five years since it made its all-time low and embarked on a new uptrend, the market has rewarded the stock for reporting 65% of the time.
What's more important to us is this quarter's report was the catalyst for resolving a multi-year accumulation pattern.
Are you adding fire truck exposure to your portfolio? Let me know 🙉