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Young Aristocrats (December 2022)

December 20, 2022

From the Desk of Steve Strazza @Sstrazza

Dividend Aristocrats are easily some of the most desirable investments on Wall Street.

These are the names that have increased dividends for at least 25 years, providing steadily increasing income to long-term-minded shareholders.

As you can imagine, the companies making up this prestigious list are some of the most recognizable brands in the world. Coca-Cola, Walmart, and Johnson & Johnson are just a few of the household names making the cut.

Here at All Star Charts, we like to stay ahead of the curve. That's why we've turned our attention to the future aristocrats.

In an effort to seek out the next generation of the cream-of-the-crop dividend plays, we curate a list of stocks that have raised their payouts every year for five to nine years.

We call them the Young Aristocrats, and the idea is that these are "stocks that pay you to make money."

Imagine if years of consistent dividend growth and high momentum and relative strength had a baby, leaving you with the best of the emerging dividend giants that are outperforming the averages.

By adding our technical...

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The Minor Leaguers (12-19-2022)

December 19, 2022

From the Desk of Steve Strazza @Sstrazza

Welcome to The Minor Leaguers.

We've had some great trades come out of this small-cap-focused column since we launched it back in 2020 and started rotating it with our flagship bottom-up scan, Under the Hood.

For the first year or so, we focused only on Russell 2000 stocks with a market cap between $1 and $2B.

That was fun, but we wanted to branch out a bit and allow some new stocks to find their way onto our list.

We expanded our universe to include some mid-caps.

To make the cut for our Minor Leaguers list, a company must have a market cap between $1 and $4B.

And it doesn't have to be a Russell component — it can be any US-listed equity. With participation expanding around the globe, we want all those ADRs in our universe.

The same price and liquidity filters are applied. Then, as always, we sort by proximity to new highs in...

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Follow the Flow (12-19-2022)

December 19, 2022

From the Desk of Steve Strazza @sstrazza and Alfonso Depablos @Alfcharts

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...

[PLUS] Weekly Top 10 Report

December 19, 2022

From the desk of Steve Strazza @Sstrazza

Our Top 10 Charts Report was just published.

In this weekly note, we highlight 10 of the most important charts or themes we're currently seeing in asset classes around the world.

Banks Tank

The SPDR Regional Banking Index (KRE) registered its lowest weekly close since January 2021 as it threatens to break down from a topping pattern. In addition, the price is violating its AVWAP from the March 2020 lows, and momentum is hitting oversold conditions. If KRE is below this polarity zone ~58, the path of least resistance is lower, and we should be prepared for a leg to the downside.

[PLUS] Weekly Momentum Report & Takeaways

December 19, 2022

From the desk of Steve Strazza @Sstrazza

Check out this week's Momentum Report, our weekly summation of all the major indexes at a Macro, International, Sector, and Industry Group level.

By analyzing the short-term data in these reports, we get a more tactical view of the current state of markets. This information then helps us put near-term developments into the big picture context and provides insights regarding the structural trends at play.

Let's jump right into it with some of the major takeaways from this week's report:

* ASC Plus Members can access the Momentum Report by clicking the link at the bottom of this post.

Macro Universe:

  • This week, our macro universe was negative, as 83% of our list closed lower with a median return of -1.66%.
  • Crude Oil $CL was the winner, closing with a 4.60% gain.
  • The biggest loser was Lumber $LB, with a weekly loss of -5.84%.
  • There was a 2% drop in the percentage of assets on our list within 5% of their 52-week highs – currently at 2%.
  • 13% of our macro list made fresh 4-week highs, and 11% made new 13-week...

Six Insiders Report NRG Share Buys

December 19, 2022

The largest insider buy on today’s list comes in a Form 4 filing by Hill Path Capital Partners.

The hedge fund revealed a purchase in Dave & Buster's Entertainment $PLAY for roughly $12 million.

Hot Corner Insider

The Inside Scoop (12-17-2022)

December 17, 2022

From the Desk of Steve Strazza @Sstrazza and Alfonso Depablos @AlfCharts

A few days ago, we wrote about two large-cap secular leaders from our Inside Scoop list.

We love betting on long-term outperformers.

We discussed them on Wednesday's live strategy session as well.

We also outlined some new long ideas in stocks that are showing relative strength over shorter timeframes.

Let's talk about these names a little more now.

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The Hall of Famers (12-16-2022)

December 16, 2022

From the desk of Steve Strazza @Sstrazza and Alfonso Depablos @AlfCharts

Our Hall of Famers list is composed of the 150 largest US-based stocks.

These stocks range from the mega-cap growth behemoths like Apple and Microsoft – with market caps in excess of $2T – to some of the new-age large-cap disruptors such as Moderna, Square, and Snap.

It has all the big names and more.

It doesn’t include ADRs or any stock not domiciled in the US. But don’t worry; we developed a separate universe for that. You can click here to check it out.

The Hall of Famers is simple.

We take our list of 150 names and then apply our technical filters so the strongest stocks with the most momentum rise to the top.

Let’s dive right in and check out what these big boys are up to.

Here’s this week’s list:

Click table to enlarge view

We filter out any laggards that are down -5% or more relative to the S&P 500 over the trailing month. ...

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China Leads the Charge

December 16, 2022

From the Desk of Steve Strazza @Sstrazza

Equity markets around the globe are getting rocked as we close out another rough week.

And then there's China, which is green on the day.

This isn't just a one-day thing. In fact, it's quite the opposite. China has been showing impressive relative strength since bottoming in late October.

Today is just a microcosm of what that leadership has looked like.

It's had our attention for a while already, which is why we're about to discuss the structural outlook for Chinese stocks and outline some long ideas in the strongest names.

Here's the performance of a basket of international equity ETFs since markets bottomed and ripped higher on Oct. 13:

While China didn't bottom until a few weeks later, on Oct. 31, the MSCI China ETF $MCHI has still outperformed other global stock market indexes over this period.

When we look at the performance of Chinese Technology $CQQQ, the leadership is even more pronounced. Most US-listed Chinese stocks fall into the...

CEO Riley Reports RILY Purchase

December 16, 2022

The largest insider buy on today’s list comes in a Form 4 filing by Bryant R. Riley, chairman and CEO of B. Riley Financial $RILY.

Riley reported a purchase of $2.5 million worth of RILY stock.

Hot Corner Insider

The Inside Scoop (12-15-2022)

December 15, 2022

From the Desk of Steve Strazza @Sstrazza and Alfonso Depablos @AlfCharts

We're still picking our spots selectively when it comes to long ideas on our Inside Scoop list.

However, every now and then, some secular leaders pop up on our scan, offering us nice entries and favorable risk-reward ratios.

We're always looking for ways to gain exposure to these outperformers.

Today, we have two industry bellwethers and household names that recently broke out to new highs relative to the broader market.

Let's take a look at these leaders now.