The major nifty market indexes continue to chop around, creating more failed moves on the upside and downside.

Today we're going to take a look at a few failed breakouts that could serve as very tactical setups on the short side or simply further evidence of the type of choppy environment we're in.

From the desk of Steve Strazza @Sstrazza and Louis Sykes @Haumicharts

At the beginning of each week, we publish performance tables for a variety of different asset classes and categories along with commentary on each.

Looking at the past helps put the future into context. In this post, we review the relative strength trends at play and preview some of the things we’re watching in order to profit in the weeks and months ahead.

We discussed markets remaining more or less a mixed bag over recent weeks/months. At the same time, we've pointed out how the weight of the evidence continues to tilt gradually in the direction of the bulls, particularly due to the action we've observed in key risk assets.

This week, we finally witnessed a meaningful rotation into reflationary assets as yields rallied to their highest levels since June. We also saw a noticeable strengthening from cyclicals.

From the desk of Steve Strazza @Sstrazza.

Welcome to our "Under The Hood" column for the week ended October 23, 2020.

What we do 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.

Whether we're measuring increasing interest based on large institutional purchases, unusual options activity, or simply our proprietary lists of trending tickers... there is a lot of overlap.

The bottom line is there are a million ways to skin this cat. Relying on our entire arsenal of data makes us confident that we're producing the best list each week and gives us more optionality in terms of finding the most favorable trade setups for our clients.

Today we want to discuss two long ideas that might seem counterintuitive at first, making this both an actionable and educational post.

Let's get into it.

This week we're looking at a long setup in the Auto sector.

From the desk of Steve Strazza @Sstrazza

Thanks to everyone for participating in this Week's Mystery Chart.

We went "bottom fishing" with this week's selection, posting a mystery chart that featured a potential bottoming pattern complete with a failed breakdown, fast move higher, and a successful retest of support. These are all bullish characteristics that point to a higher likelihood of this being a true trend reversal.

As we noted earlier this week, bottom fishing is a risky game. But, if we play the bottoming process responsibly, the market could offer us some delicious rewards.

Let's dive right in...

From the desk of Steve Strazza @Sstrazza.

This week we held October’s Monthly Conference Call which our Premium Members can access and rewatch here.

In this post, we’ll provide a summary of the call by highlighting 5 of the most important charts/topics we covered along with commentary on each.

Let’s dive into it.

People tell me we're in a bubble.

They tell me that stocks only go up.

"Too high"

"Long in the tooth" (whatever that means).

I see some of the biggest representatives of global growth making absolutely zero progress since 2007.

From the desk of Steve Strazza @Sstrazza

Welcome to the 2 to 100 club.

Something we’ve been working on internally this year is using various bottoms-up tools and scans to complement our top-down approach. One way we’re doing this is by identifying stocks as they climb the market-cap ladder from small, to mid, to large, and ultimately to mega-cap status (over $200B).

Once they graduate from small-cap to mid-cap status (over $2B) they come on our radar.

But the scan doesn’t just end there. We only want to look at the strongest growth industries in the market as that is typically where these potential 50-baggers come from.

This is the video recording of the October 2020 Conference Call.

From the desk of Steve Strazza @Sstrazza and Louis Sykes @Haumicharts

At the beginning of each week, we publish performance tables for a variety of different asset classes and categories along with commentary on each.

Looking at the past helps put the future into context. In this post, we review the relative strength trends at play and preview some of the things we’re watching in order to profit in the weeks and months ahead.

In recent RPP Reports, we discussed how markets had become more of a mixed bag, particularly equities as they try to recover from September's selloff.

Although, with each passing week we're still seeing more bullish data points than bearish ones, even if only at the margin.

From the desk of Steve Strazza @Sstrazza.

Welcome to our "Under The Hood" column for the week ended October 16, 2020.

What we do 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.

Whether we're measuring increasing interest based on large institutional purchases, unusual options activity, or simply our proprietary lists of trending tickers... there is a lot of overlap.

The bottom line is there are a million ways to skin this cat. Relying on our entire arsenal of data makes us confident that we're producing the best list each week and gives us more optionality in terms of finding the most favorable trade setups for our clients.