Transportation stocks are finally catching a serious bid—providing a necessary ingredient to  support the current bull market rally.

If you go back and do the work, you’ll find it's tough for the stock market to sustain an uptrend without some rotation into underperforming areas.

Transports fit the bill perfectly as they've gone nowhere for four years. But now, the landscape has changed. 

Forgotten groups like transports are waking up and participating higher, adding fuel to the broader market.

The iShares US Transportation ETF $IYT is breaking out of a massive base to new all-time highs.

The path of least resistance is now higher for this key procyclical index.

Transports finally breaking out above the prior cycle highs gives bulls one of the key missing puzzle pieces they’ve been looking for.

This bull market is finally firing...

In this market, it’s becoming clear that some of the best opportunities are coming from the underdogs—those lagging groups finally starting to turn things around.

One name that stands out to me is Lovesac $LOVE.

The stock is setting up nicely, breaking out of a textbook inverted head-and-shoulders pattern.

The price didn’t just break out of the range—it also reclaimed the anchored VWAP from its all-time high in 2021. I love how these levels of interest coincide, adding conviction to this pattern resolution.

This kind of price action tells us buyers are stepping in and taking control of the primary trend for the first time in three years, suggesting the path of least resistance is now higher.

What makes this setup even juicier is the 29% short interest paired with a 14x days-to-cover ratio. This scenario bodes well for a short squeeze, fueling the rally and creating a tailwind for even higher prices in the future.

Energy stocks have been showing some strength over the past few weeks.

Looking at the large-cap Energy Sector ETF $XLE, the price has been coiling around a key shelf of former highs for the past two years.

And when you zoom out on the chart like I’ve done, you’ll notice this base has been forming for the past 16 years!

Buyers have tested this level multiple times, steadily absorbing the overhead supply at the current level.

This kind of action usually comes before a breakout, as bulls build up fuel for the next leg higher.

If XLE breaks out of this massive base, we’re all going to want a lot more energy exposure than we currently have.

As such, I’m getting ready for it and making a wish list of sector leaders.

I think it will happen soon. 100 marks the line in the sand.

Steve and I were discussing...

The big theme this week is textbook retests. We’re seeing this kind of price action across the board right now.

One that stands out is the large cap healthcare index. 

The healthcare sector is finding its footing after experiencing significant downside pressure in recent weeks.

Price is currently testing a critical level of former resistance marked by a shelf of prior cycle highs.

With so much price memory here, this area represents a logical level for XLV to catch a bid.

And so far it is. The bulls are digging in and flipping this old resistance zone into support.  

The line in the sand is $140. As long as XLV holds above this level, I’ll give the bulls the benefit of the doubt. This area offers a great place for a defined risk entry for a potential bounce.

I’m also watching how the smallest and most volatile stocks,...

One effective way to identify relative strength is by charting one asset class against another.

This approach helps us position ourselves strategically for the current market environment—and right now, it's all about crypto.

Bitcoin is breaking out of a multi-year base relative to the Dow Jones Industrial Average.

The ratio is piercing through the upper bounds of its base, suggesting that BTC is ready to reassert its former leadership.

If this breakout...

This afternoon on Chart Request Live, my friend Patrick and I reviewed some of the standout tickers from the chat.

One group of stocks that really stood out was Digital Payments.

These stocks are on fire, offering favorable setups left and right these days, to the point I would be ashamed not to share some with you.

Before diving into some individual names, here's the Amplify Digital Payments ETF $IPAY:

IPAY just completed a textbook rounding bottom formation and is embarking on a new uptrend.

Aside from bellwethers like PayPal or Block $SQ (which I wrote about last week), there are three stocks that catch my attention within this ETF.

Yesterday I talked about some areas that are struggling to hold onto their post-election gains. The list has grown following today's selloff.

One group that’s been unfazed by this week’s volatility is financials.

Today, let’s flip the script and focus on an industry showing serious resilience.

Banks have been one of the best-performing groups over the past week, positioning themselves as leaders in the current environment.

The S&P Banks ETF $KBE is on the verge of completing a textbook reversal pattern relative to the S&P 500.

The ratio is piercing through the upper ends of this base as we speak.

The 200-day moving average has been flat all year but is curling up, suggesting that the trend could be at the early stages of reversing.

A week after the election, stocks are now digesting some of their impressive gains. 

Some groups like banks, software, Ark funds, and even energy are holding up the best, while others struggle to hold onto those gains and are now giving it all back.

The SPDR S&P Metals & Mining ETF $XME is a great example of this second group that is losing steam.

XME tried to break out from a multi-year base the morning after the election, but was immediately rejected, and has since fallen back into its old...

Eric Balchunas was on the Morning Show today.

I always love to hear his thoughts as he’s one of the best in business when it comes to ETFs.

He really made a lot of good points today. You can watch the replay here.

One thing that stood out to me was what he said about the new iShares Bitcoin Trust ETF $IBIT.

Eric said that the success in the first year of IBIT is hard to find a sports analogy for. It’s even better than Michael Jordan'...

A fresh leg higher is currently underway as momentum picks up across the board.

This is especially true for the most speculative growth stocks. Whether you look at ARK funds, cloud computing, fintech or mobile payments, all these groups are reversing their trends and embarking on new uptrends.

When it comes to individual issues, no chart has my attention more than Block Inc $SQ right now.

Just look how clean this rounding bottom is, and it hasn't even broken out yet.

The stock is working on completing a bearish-to-bullish reversal pattern as price presses against the upper bounds of its range.

These formations can take time to play out as the trend gradually shifts from down, to sideways, and then finally...

Bitcoin is surging toward $90,000.

Memecoins are ripping across the board. 

DOGE is up over 100% since the election.

BTC miners are squeezing higher.

Everyone is talking about shitcoins I’ve never heard of.

NFTs are back.

It’s all working in crypto land right now. As it turns out, the ultimate election trade was in digital assets, and not the traditional market.

The stock market is embarking on a fresh leg higher, and it’s happening with the broadest level of participation we’ve seen this cycle.

Small caps are finally...