In technical analysis kindergarten, you'll learn there are 3 asset classes: stocks, bonds, AND commodities.

Without all 3, you're missing a piece of the puzzle and are putting yourself at a disadvantage.

Since commodities peaked in absolute and relative terms in 2022, they have dramatically underperformed stocks.

It's gotten to the extent where there's not any momentum to the downside remaining.

Commodities have carved out a massive bullish momentum divergence relative to stocks since the start of 2024:

Investors are reaching for the riskiest stocks in the market.

How do we know?

A long list of stock market indexes and individual issues just had their best day since the pandemic lows almost 5 years ago.

Meme coins are mooning while we're asleep at night.

More and more stocks are completing primary trend reversals.

The most risk-on groups are leading the charge.

With this in mind, it's time for another Freshly Squeezed report.

Here's our approach:

We find the most heavily shorted stocks in the market. Then, we monitor these names for signs of upward momentum. Once that momentum kicks in, we ride them higher as the bears get squeezed.

We got fresh short data on Monday, so let's dive in and talk about it.

Our scan is quite simple. It is designed to identify stocks with the most aggressive short positions.

We recently discussed the extreme demand for uranium stocks as the AI boom progresses.

But what about the other alternative energy equities?

Solar stocks have been amongst the most hated in the entire market, right up there with pot stocks and China.

The Invesco Solar ETF $TAN looks ready to explode higher:

Despite being defensive, consumer stocks can make huge moves. 

Stocks like Monster Beverage, Celsius, and Sprouts Farmers Market are some of the best-performing names in recent history.

Today, we're outlining a consumer stock that rallied 300% in 6-months off its 2022 low. 

Since then, the stock has carved out a textbook accumulation pattern, which the market resolved last week following an earnings report.

With the short sellers caught offside, we're betting this breakout will spark a short squeeze and a fresh uptrend.

Let's get into the details:

November marks the beginning of the best three-month period of the year for stocks and a brand-new NBA season. Moreover, the sportsbooks have priced in my local OKC Thunder as the Western Conference champions.

It's a fantastic time to be alive.

Now is also a great time to take a step back and assess the underlying trends.

Earlier this year, we outlined our Fab 5 Charts for a 2024 equity bull market. 

One of the five key groups we selected was homebuilders, which have been on an absolute tear:

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:

The market keeps rewarding investors for buying some of Wall Street's most hated stocks. 

We're getting buy signals from biotechnology and crypto stocks, which tends to happen in healthy market environments.

With this in mind, we're going back to the well and buying a biotech stock with nearly 1/3 of the float sold short and a double-digit days-to-cover ratio. 

The stock we're buying is named after what was once an important ancient trade center in modern-day Turkey.

Let's talk about how we're playing this short squeeze:

Each year, Americans buy over 600 million pounds of candy and eat over 1 pound each for Halloween.

It's a lot...

But are there opportunities to profit from Americans ritualistically eating way too much candy? You betcha!

Let's talk about it.

After a historic 190% run earlier this year, cocoa futures have formed a textbook consolidation pattern:

Uranium stocks have been screaming higher and show no signs of slowing down.

As the AI Revolution demands more and more power, big technology companies are turning to nuclear energy.

The market is sending a very clear message... we (as investors) need to increase our exposure to uranium stocks.

Check out the recent performance from uranium stocks:

From the Desk of Steve Strazza @Sstrazza

We all know how dreadful it can be to get through airport security.

Clear Secure is trying to be the remedy by using biometric data to provide identity verification and expedite security at airports and other venues.

Last quarter, the stock rallied over 20% following its earnings report and has nearly doubled since.

Despite the stock's strong performance and highest price since 2021, the bears are still betting against it. The amount of shares held short is near its highest level in history.

Let's talk about how we're playing it:

From the Desk of Steve Strazza @Sstrazza

What's better than a Bitcoin miner short squeeze?

Some of our best trades have come from these stocks as they can make dramatic moves in both directions.

Our crypto desk recently wrote "it appears this seven month bear market is reaching its concluding stages." 

With that in mind, what're we buying?

We're buying a leader in the crypto mining industry with a double-digit short interest and warrants to juice our returns even more.

Let's talk about it:
 

It has been two-years since the S&P 500 bottomed in October 2022 and stocks began a new bull market. 

During this time, many sectors and industry groups have enjoyed tremendous uptrends while materials stocks have gone sideways.

But materials stocks are starting to look interesting...

The SPDR Materials Sector ETF $XLB is making new all-time highs: