Every month I host a conference call for Premium Members of Allstarcharts. By now I think you've noticed that we're really increasing the content on our YouTube Channel, so I thought it would add some value to include some of the highlights from this month's call.

It's an hour long video call and about 150 charts, but here are a few things that stood out this month:

• A weakening US Dollar has been a positive catalyst for Stocks
• Freeport McMoRan is a good example of the types of stocks benefiting from Dollar Weakness, on both a relative and absolute basis
• London FTSE100 breaking out of a multi-decade base makes it hard to be bearish stocks from any sort of intermediate-term perspective
• Our "Dow Fab 5" is breaking out to All-time highs
• Crude Oil is beginning its next leg higher, which makes sense with stock prices rising as well

Here are the highlights:

When it comes to market breadth, the Advance-Decline line is definitely one of our go-to's. This indicator calculates the net advancers. In other words, the number of advancing stocks less the number of declining stocks. This cumulative measure goes up and down over time, similar to the market indexes themselves.

Something to keep in mind is the fact that we use the Common Stocks Only A-D Line because there are other vehicles that trade on the NYSE, like closed-end funds for example. If we're analyzing the stock market, let's stick to just stocks in our indicators.

From the desk of Tom Bruni @BruniCharting

As part of my preparation for my Chart Summit presentation on market breadth, I'm looking at a lot of charts this week. In this post I'll share a bunch of them to provide some perspective on where US markets currently sit from a participation perspective.

Mid and Smallcap Indices in India are retesting their 2018 lows, leaving many wondering we're due for a new set of lows just 2 months into 2019.

From the desk of Tom Bruni @BruniCharting

Tuesday we posted a mystery chart and asked you all to let us know what you would do. Buy, sell, or do nothing?

As we expected there weren't any bearish responses, instead most of you were buyers at current levels or on a pullback. We think the evidence is clearly pointing in that direction too, which is why we put the question out there in the first place. What, if anything could we be missing?

Now that we're all on the same side of the boat, let's get into the chart and why we feel it's relevant.

From the desk of Tom Bruni @BruniCharting

This week's Mystery Chart Reveal was focused on Japan's breakdown to new lows versus the S&P 500. This one chart is part of a much larger theme, so in this post we're going to discuss the best reward/risk pair trades present in this space.

The latest Chart of the Week is actually 4 charts! Today we're looking at Emerging Markets and comparing them to the S&P500. When money managers are bullish and positioning themselves for higher stock prices, they tend to invest in more speculative, higher beta names. When PMs are positioning themselves for lower stock prices, EM gets killed, particularly relative to developed markets.

These 4 charts represent divergences between Emerging markets and the S&P500 over the past couple of decades. When the S&P500 is making lower lows but Emerging Markets are simultaneously making higher lows, it's been evidence of risk appetite for stocks and markets have continued to rally for years after the divergence.

The question: Is this time different?

When it comes to strategies, I've noticed that some investors try to force their approach on to the market, even if we're not in the type of environment where that strategy works. The first thing we want to do is identify what type of environment we're in, so that we can then create strategies to try and profit from it. To think we can build a system for a future environment that doesn't exist yet is foolish.

Here is the type of market I think we're in:

When it comes to buying stocks, I'm a bigger fan of buying things that are already working rather than getting cute and trying to be the first one in hoping others agree with me quickly. Rarely does bottom fishing work out in our favor. The probabilities are against us from the start.

One way to see if something is already "working" is to recognize how it is behaving compared to its peers. In the case of U.S. Stocks, how are specific groups doing compared to the rest of the market? I like to think of it like holding a basketball in a pool under water. You can feel the pressure, similar to overall selling pressure in stocks. Once you let go, the ball explodes out of the water and into the air. Stocks behave the same way once the overwhelming selling is complete. 

Tuesday we posted a mystery chart and asked you all to let us know what you would do. Buy, sell, or do nothing?

Most of you agreed that it looked like a structural breakout that we should be buying as long as prices are above resistance.

So today we want to reveal the full chart and why it's relevant.

I'm in Vancouver for a few days. While I'm here, I need to meet with Gold Bugs and ski Whistler. That's what you do around here right? I'm good with both.

It's hard to have a serious conversation with the true yellow metal cult followers. These clowns are bullish at all times and have been expecting Gold to make a huge move every day since their last big move that ended in 2011. "This is it", I've been hearing for years. But Nope. Not only have they not made any money, but the opportunity cost (what else could they have done with that cash) is through the roof. It's been painful to watch them.

For our purposes, open minded investors, in other words, we don't care if Gold doubles or goes to zero. We could not care less. Our jobs aren't dependent on them. Our "investment strategy" is not tied to rising prices for precious metals and since we don't have "a narrative", we don't need to make things up to justify our existence.

We want to be buying things that are going up and selling things going down. It may sound oversimplified, but that's just the truth. Securities trend. There is a much higher likelihood for a trend to continue than for...