In today’s Daily Digest, we’ll review the following:

1. No new positions today. 
2. Rolled XLI to December options.
3. Exited XLB and USO at profit targets.
4. Current status of open campaigns.
5. Volatility Snapshot.

Let’s dig in!

From the Desk of Steve Strazza @Sstrazza.

Welcome back to Under the Hood, where we'll cover all the action for the two weeks ended November 8, 2024. This report is published bi-weekly, in rotation with The Minor Leaguers.

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.

Click here for a behind-the-scenes look at our process.

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

With the Stock Market making new all-time highs every month, you would think that American consumers would be a little more optimistic.

You would think...

The S&P500 keeps hitting new all-time highs. Same for the Dow Jones Industrial Average and the Nasdaq100.

More recently the S&P600 Small-caps, Dow Jones Transportation Average and Bitcoin all joined the New All-time highs list.

And yet...

Sentiment is still way down in the dumps.

The University of Michigan Consumer Sentiment data goes all the way back to the 1950s. So this isn't some kind of random johnny-come-lately poll.

There's real data here that reiterates how bull markets end with too much optimism, but thrive throughout periods with too much pessimism.

Currently, it's the excess pessimism that continues to drive the returns in Stocks,...

The most notable insider transactions in our list is from APMH Invest, which disclosed a $46 million purchase in Noble Corporation $NE via a Form 4 filing. 

This acquisition increased APMH Invest’s stake in Noble to 18.92%, reflecting a strong vote of confidence in the company.

APMH Invest, part of A.P. Møller Holding, is known for its strategic, long-term investments in sectors like energy and logistics, prioritizing stability and sustainability.

When these big players come in, it's always worth keeping an eye on the stock.

Here’s The Hot Corner, with data from November 11, 2024:

The CEO of Centene Corporation $CNC, Sarah London, revealed the acquisition of 4,117 shares, equivalent to $250,313.

When CEOs start putting their own money on the line, it signals they’re bullish on the future, expecting big things.

Director David Sachs...

Bitcoin is gearing up for its next major bull run — and while the spotlight is often on BTC, there are plenty of other opportunities to capitalize on this market shift. Beyond Bitcoin itself, many investors are turning their attention to the broader crypto ecosystem, and especially to Bitcoin miners, which tend to outperform during bullish cycles.

In recent weeks, we've been diving into a number of altcoins that offer outsized returns, but today, I want to focus on a different angle: the growing opportunities in Bitcoin mining stocks. These stocks have historically done well when Bitcoin rallies, and as we start to see signs of the next bull market, I believe miners could play a crucial role in boosting returns.

A key metric to watch is the ratio between Valkyrie’s Bitcoin Miners ETF ($WGMI) and Bitcoin ($BTC). When this ratio rises, it signals that Bitcoin mining stocks are outpacing Bitcoin itself — a trend that often precedes a broader surge in mining stock performance.

Over the past two years, miners have lagged behind Bitcoin, but recent movements in this ratio suggest we may be on the cusp of a reversal. If history holds, Bitcoin miners could once...

In recent months I flipped to a more bullish tone.

I was anticipating a return of the bull market, but the only uncertainty lied in when it would come back.

But with Bitcoin breaking to all time highs following the U.S. election, we have unequivocally began the next leg higher in crypto markets.

Bitcoin just broke out to new all-time highs. The new bull market in Crypto is alive and well.

BTC actually closed yesterday at the highest level in history, and now has a market cap of over $1.5 Trillion.

For perspective, there are only 5 companies in the S&P500 that are worth more that Bitcoin: Nvidia, Microsoft, Apple, Alphabet and Amazon.

Every other stock is worth less than Bitcoin. As we say around here, Bitcoin is the 8th component of the "Magnificent 8".

But as we know from prior cycles, as well as Bitcoin performs, it doesn't even come close to the real winners.

Remember the last Crypto Bull Market? DogeCoin rallied 37,000% in a little over a year to reach an $85 Billion market-cap:

The goal this cycle is to catch moves like this.

And we're already seeing it.

Dog Wif Hat recently rallied 7000% in just 3 months to reach a market-cap of $4.5 Billion:

Looking out even longer, Popcat already gained 34,000% over the past 10 months to reach a current market-cap of over $1.4 Billion.

That would be almost a mid-cap if it was a stock:

And the latest monster that's been...

This is the weekly post that aggregates all the charts we put together throughout the week and organizes them all into one, easy to flip through deck.

The market has spoken.

It's only a bubble if it's going up and they don't own enough of it, or any at all.

They only call things bubbles when they have a hard time understanding why prices are doing what they're doing.

As someone who studies human behavior every single day, I can tell you with a high degree of confidence that 99.9% of people who call things bubbles haven't actually done any of the work required to determine whether something is in a bubble or not.

And that's the key thing here.

There is a huge arbitrage between the people who put in the work, and actually take the time to analyze markets using real data, and those who are too busy doing other things to truly have an honest opinion about whether a particular period of time is, in fact, a bubble.

Bubbles, as those of us with common sense know, are incredibly rare, by definition.

So when someone calls something a bubble, they are almost certainly wrong about that, or in most cases, just making it up because they don't know how else to describe certain market behaviors that they can't wrap their heads around.

Bitcoin, for example, just broke out to new all-time highs...

The stock market is embarking on a fresh leg higher, and it’s happening with the broadest level of participation we’ve seen this cycle.

Small caps are finally...

Crypto stands on the cusp of a major bull run, and the possibility of Bitcoin hitting $100,000 feels more real by the day.

When it comes to the second in command, Ethereum seems ready to join the party.

After months of carving out a short-term reversal base, ETH is flirting with a critical polarity level of around $2,850.

If and when we get a decisive breakout about this area, then the path of least resistance will be higher, with a clear shot toward its year-to-date highs near $4,000.

That would ultimately confirm Bitcoin's breakout,...

Curious about how to handle bonds during an inflationary cycle? Wondering which asset classes tend to thrive—and which to avoid—when inflation’s on the rise?

We’ve invited Stephen Weitzel to break it all down. With the election, the Fed meeting, and a constant media buzz, it’s the perfect time to take a step back, focus on the big picture, and understand how the bond market might shape your portfolio.

I hope you enjoy this conversation as much as I did. Talking with Stephen is always a pleasure!

For more on Stephen: https://www.reveillewealth.com/team/stephen-weitzel

Our International Hall of Famers list is composed of the 100 largest US-listed international stocks, or ADRs.

We've also sprinkled in some of the largest ADRs from countries that did not make the market cap cut. 

These stocks range from some well-known mega-cap multinationals such as Toyota Motor and Royal Dutch Shell to some large-cap global disruptors such as Sea Ltd and Shopify.

It's got all the big names and more–but only those that are based outside the US. You can find all the largest US stocks on our original Hall of Famers list.

The beauty of these scans is really in their simplicity.

We take the largest names each week and then apply technical filters in a way that the strongest stocks with the most momentum rise to the top.

Based on the market environment, we can also flip the scan on its head and filter for weakness.

Let's dive in and take a look at some of the most important stocks from around the world.

Here's this week's list:

If you're not a member, sign up here.

The stock market is embarking on a fresh leg higher, supported by the broadest participation we've seen this cycle.

With speculative growth stocks on fire, our $ARKK 11/15 $52 calls are doubling today. 

We want to take half off the table here and redeploy that capital into a new position. I’m selling them for $1.80.

The initial earnings reaction for $SQ is catching our attention today. The stock plunged lower but has been clawing back losses all morning.

Just look at the wick forming on todays daily candle:

...

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:

The fund is a market-cap-weighted basket of solar stocks from all around the world.

One of our favorite long-term momentum indicators, the monthly percentage price oscillator (PPO), has been improving for months and is on the verge of triggering a buy signal.

In addition, TAN has carved out a short term reversal pattern. An upside resolution will coincide with a monthly PPO cross, and we want to look for opportunities to buy the best stocks in the industry.

On a relative basis, TAN is at a critical level of interest versus the S&P 500:

This level represents where it began to outperform the broader market in the past.

Adding to our conviction, the 14-week RSI has carved out...

In today’s Daily Digest, we’ll review the following:

1. New position in SMH today.
2. No adjustments are needed today.
3. Exited  XLP, XHB, and XLV at profit targets.
4. Current status of open campaigns.
5. Volatility Snapshot.

Let’s dig in!

Turtle Creek Asset Management has disclosed a bold insider move in a fresh Form 4 filing. 

The hedge fund invested $10.3 million in JELD-WEN Holding $JELD, which now represents 4.8% of its $3.88 billion portfolio. 

Turtle Creek’s other top holdings include Berry Global $BERY, Middleby Corp $MIDD, and CarMax $KMX. 

Wellington Management Group filed a 13G for The AZEK Company Inc $AZEK, disclosing an increase in ownership from 9.30% to 10.31%.

As one of the world’s largest asset managers, Wellington’s increased stake indicates a positive outlook on AZEK’s market position.

Here’s The Hot Corner, with data from November 7, 2024:

Rep. Josh Gottheimer and Senator Sheldon Whitehouse revealed $50,000 purchases of Apple $AAPL and Eli Lilly and Company $LLY, respectively.

Last but not least, two directors of Verona Pharma plc $VRNA...

It’s been a crazy two days.

The reaction to both the election and the FOMC was overwhelmingly positive for risk assets across the board.

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

NYSE new highs just hit its highest reading in years, telling us the rally is supported by the broadest level of participation this cycle.

The election ended up being the catalyst to break out prolonged ranges in things like regional banks, biotechs, speculative growth, industrial metals, and even bitcoin.

These groups are finally joining the bull market party, and they are kicking it off in a big way.

So, what’s the big takeaway from all this? 

The chart that illustrates it best is the Russell 2000 Micro-Cap Index $IWC:

I’ve annotated it to show the different stages of a market cycle.

IWC just had its best day since April 2020, printing a breakaway gap to new...