A downtrend consists of a series of lower lows and lower highs.

But the Dow Jones Industrial Average and Russell2000 Small-cap Index are both making higher highs.

That's, by definition, not a downtrend.

The title of yesterday's post was: "You can't be short".

I encourage you to give that a read.

And while that's happening over in the S&P500 and Ethereum, here's a good look at what's been happening in Growth:

From the Desk of Steve Strazza @Sstrazza

When investing in the stock market, we always want to approach it as “a market of stocks.”

Regardless of the environment, there are always stocks showing leadership and trending higher.

We may have to look harder to identify them depending on current market conditions. But there are always stocks that are going up.

The same can be said for weak stocks. Regardless of the environment, there are always stocks that are going down, too. 

We already have multiple scans focusing on stocks making all-time highs, such as Hall of Famers, Minor Leaguers, and the 2 to 100 Club.

We filter these universes for stocks that are exhibiting the best momentum and relative strength characteristics. 

Clearly, we spend a lot of time identifying and writing about leading stocks every week, via multiple reports.

Now, we’re also highlighting lagging stocks on a recurring basis.

Welcome to the Short Report.

We...

This is the video recording of our August 10, 2022, Inside Scoop Weekly Strategy Session.

Was this just a bear market rally?

Or did we just see the initial thrust off the lows before a more sustainable move progresses into the end of the year?

That's a good question to be asking.

And while we don't ever actually know until after the fact anyway, we've set these 2 levels as clear lines in the sand for arguably two of the most important assets on the planet: The S&P500 and Ethereum.

The bottom line is this: If the S&P500 is above 4200 and Ethereum is above 1800 - YOU CANNOT BE SHORT.

George L. Ball, the chief financial officer at Parsons Corporation $PSN, filed a Form 4 revealing a purchase of 35,000 shares of PSN.

That’s equivalent to $1,452,500 worth of his company's stock.

The market has brought up back to the point where we have to increase the headroom on the Adani Group charts again!

These updates have been such great reminders of riding the trend, don't you think? The way these stocks have taken off and continue to move higher is quite the story!

So without any further delay, let's take a look at the levels we're following next!

For starters, let's see where our custom equally weighted index is headed. Of course, we know it's moving higher, but it's important to note the trend.

Well, there we have it! Higher highs, higher lows. Held on to the support zone and bounced off of it. It's now got a little more room before it runs into resistance.

Let's go over the roster sheet now!

Are you seeing Small-caps breaking out to new 4-month highs relative to Large-caps?

This underperformance in Small-caps began in Q1 2021 which, among other things, sparked the beginning of the bear market.

This week would mark the 18-month point, if a bear market is even something we're still in.

This kind of outperformance from Small-caps is not something we've seen over the past 18-months.

Today’s most significant insider transaction report is another Form 4 filing by Warren Buffett’s Berkshire Hathaway $BRK.A.

Buffet continues to increase his position in Occidental Petroleum $OXY, as he just reported an additional purchase, this one worth roughly $390 million.

Today we have a stock from the Service sector making its way to the Trade of the Week post. It is definitely a crowd favourite, and I'm sure you'd like to note down the levels for this one! Let's check it out!

From the desk of Steve Strazza @Sstrazza.

Welcome to Under the Hood, where we'll cover all the action for the week ended August 5, 2022. This report is published bi-weekly and rotated with our Minor Leaguers scan.

What we do here is analyze the most popular stocks during the week and find opportunities to either join in and ride these momentum names higher, or fade the crowd and bet against them.

We use a variety of sources to generate the list of most popular names.

There are so many new data sources available that all we need to do is organize and curate them in a way that shows us exactly what we want: a list of stocks that are seeing an unusual increase in investor interest.

Watch this video for a behind-the-scenes look at our process.

Whether we’re measuring increasing interest based on large institutional purchases, unusual options activity...

From the Desk of Steve Strazza @sstrazza

This is one of our favorite bottom-up scans: Follow the Flow. In this note, we simply create a universe of stocks that experienced the most unusual options activity — either bullish or bearish, but not both.

We utilize options experts, both internally and through our partnership with The TradeXchange. Then, we dig through the level 2 details and do all the work upfront for our clients.

Our goal is to isolate only those options market splashes that represent levered and high-conviction, directional bets.

We also weed out hedging activity and ensure there are no offsetting trades that either neutralize or cap the risk on these unusual options trades.

What remains is a list of stocks that large financial institutions are putting big money behind.

And they’re doing so for one reason only: because they think the stock is about to move in their direction and make them a pretty penny.

Then we flip through our list of stocks flashing unusual...