This week we’re looking at a long setup in the Energy sector. Nifty Energy broke out above its overhead resistance. While this stock has been an absolute outperformer, the sector-specific breakout can only add more strength to the existing move.

Let's take a look at this stock.

We retired our "Five Bull Market Barometers" in mid-July last year to make room for a new weekly post that's focused on the three most important charts for the week ahead.

This is that post, so let's jump into this week's edition.

From the desk of Steve Strazza @Sstrazza

Our Top 10 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.

The S&P 500’s 50-day moving average has garnered some attention this year, and for good reason.

During every month except April, the S&P 500 has tested its 50-day average. Only after the initial test in February did the index fall further below the moving average than where it is today. Every other instance has ended with a sharp reaction higher. Whether that happens this time remains to be seen. With investors re-evaluating their bullish views on stocks, the dollar pressing on new highs, and the action beneath the surface showing increasing vulnerability, bulls want to see more evidence of risk-seeking behavior. Seeing stocks dig in at this key level would be a great place for that to start.

While this moving average is just one indicator, it tells a good story right now. Not only is the S&P at a big level, but as we’ll discuss below - yields, large-cap groups, and even...

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 context of the big picture 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:

• There was widespread weakness in our macro universe again this week as 77% of our list closed lower with a median return of -0.53%.
• Lumber $LB was the big winner, closing out the week with more than a 24% gain and registering a fresh 4-week high in the process.
• The biggest loser this week was Silver $SI, with a loss of -6.54%.
• We saw another 2% drop in the percentage of assets on our list that are within 5% of their...

Nifty 50 has been making new highs, moving past the early 2021 high in May and continuing to rise further. That's well and good. But if these new highs aren't coming through in Banks and Financials, then that's an issue.

Financial stocks make up 37.58% of Nifty 50. So it's safe to say that Nifty50 can't get very far for too long without the cooperation of Bank Nifty and Financial Services.

Every year in the Spring we hear about "Sell in May and Go Away".

And this year that would have worked out well for you. That's when the NYSE Advance-Decline line peaked. That's when the NYSE stocks really began their drawdowns. That's when the new 52-week high list peaked on the NYSE.

It's when all the Cyclicals stopped going up:

But this seasonally weak period is coming to an end soon.

We've said it a million times, the market peaked in February. I also discussed this last month with Josh & Michael.

Those are the best things were during this cycle. If you recall that was when everyone was launching a SPAC....

Since then, the Average stock on the NYSE is down almost 18%:

It's Saturday Morning Chartoons time. 

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.

You can find the whole list of trades here.

Below you'll find the full PDF of this week's charts:

There's an old saying that you want to buy new 6-month lows within ongoing structural uptrends.

As it turns out, the Dow Jones Transportation Average just went out at new 6-month lows.

From the desk of Steve Strazza @Sstrazza and Ian Culley @Ianculley

Risk assets have been getting hit for the past two weeks. Stocks have been under pressure, and commodities have been struggling.

Meanwhile, we never saw any real follow-through lower in the Dollar, as DXY has bounced right back to the upper bounds of its year-to-date range.

But, as usual, we continue to see pockets of strength in the commodities complex.

Last week, we wrote about the resilience from base metals, such as Steel, Nickel, and Aluminum.

More recently, we're seeing relative strength from the Energy complex. That's what we're going to talk about today...

Energy is actually the only sector that's positive over the trailing two weeks. And Energy futures haven't been looking too shabby, either.

Here's a bubble chart of all of our commodity subgroup indexes with their one-month return along the x-axis:...

From the desk of Willie Delwiche.

In 2021, every month except April has seen the S&P 500 testing its 50-day average. Only after the initial test in February did the index fall further below that average than it is doing in September. The pattern so far this year has been tests of the 50-day that ultimately resolve higher. Whether that happens this time remains to be seen. With investors re-evaluating their bullish views on stocks, bond yields starting to rise and the action beneath the surface showing increasing vulnerability, we want to see evidence of upside resolution rather than just assuming it is on its way. 

This is the video recording of our September 17, 2021, All Star Charts Crypto Weekly Strategy Session.

Another 20 year base breakout? This is the second one we're putting a trade on in this week! Maybe the market is trying to tell us something?

I have to be honest, when I first pulled this ticker up, I thought it was a Men's suits maker. But when I learned it's involved in the intersection of Artificial Intelligence and Semiconductors, the sex-factor went up for me.

Let's get right to it...

These are the registration details for our live conference call for Premium Members of All Star Charts.

This month’s Conference Call will be held on Monday September 20th at 6PM ET. As always, if you cannot make the call live, the video and slides will be archived and published here along with every other live call since 2015.

Here are the details for Monday night:

From the desk of Steven Strazza @Sstrazza and Grant Hawkridge @granthawkridge

In today's post, we’re going to do an update on some of our favorite and most essential intermarket indicators. We’ve also updated our risk checklist so we can discuss the changes that have occurred over the past week or so.

Are market participants embracing more or less risk these days? 

We’ll get there.

We've been obnoxious about our theme that this remains a messy environment for stocks, which is nothing but classic "year two" bull market behavior.

But guess what: That’s just what it is right now. You have to play the cards you’re dealt, and right now they’re not the best. This is particularly true for trend-followers like ourselves.

Let’s talk about why.

Our custom “Risk-On” and “Risk-Off” indexes have been a perfect illustration of the 2021 market environment.

This is what a hot mess looks like… and it’s true for both custom indexes as well as the ratio of the two!

These charts...

This is the video recording of the September 16th Weekly Town Hall w/ Willie Delwiche.

09/16/21 2PM ET

Crypto as an asset class can be very intimidating.

There's so much jargon and nomenclature thrown around, and the drivers of these tokens are very different from traditional markets.

And it's certainly not getting any simpler. There's a flourishing list of smart contract platforms, defi protocols, and other projects, all with their own objectives, purpose, and communities.

Whether you're a developer or a humble trader looking to lend and borrow in the world of defi, the market is becoming so oversaturated with all these protocols that it becomes downright daunting to even touch it.

But I think we can all take solace in the fact that no one is a complete expert in this stuff.

This isn't commodities or stocks where a group of oldtimers have decades of experience dealing with these markets. Crypto has been around for less than a decade, and in the case of the biggest names in the asset class today, less than a few years.

And even from a research and analysis perspective, up until this point, the entire industry of on-chain analytics was done by a select number of people. Only in the last 12-months has the industry started to pick up...

From the desk of Steve Strazza @sstrazza 

Welcome to our latest RPP Report, where we publish return tables for various 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 absolute and relative trends at play and preview some of the things we’re watching to profit in the weeks and months ahead.

We consider this our weekly state of the union address, as we break down and reiterate both our tactical and structural outlook on various asset classes and discuss the most important themes and developments currently playing out in markets all around the world.

In our RPP Report from the end of August, we discussed how the weakest areas were registering failed breakdowns and digging in at support.

In our most recent report, we focused on how the strongest areas were making fresh record highs. Things were looking up for the bulls... but that changed once again.

We've talked about how it's been a back and...

From the desk of Willie Delwiche.

It was the final stretch of the last sailing race of the day on Lake Michigan. 

A couple of my good friends squeezed the race in just before the weather started to deteriorate. They could see clouds in the distance. The wind was picking up and gusts were intensifying. 

In the boat, the cool-handed skipper was catching as much of the wind as he dared, the boat heeling sharply to one side. Those on the high side were leaning over the edge as far as they could without losing their grip. Those on the low side worked their ropes, trying to avoid getting swamped as the rail dipped below the surface of the water.

But a huge gust came up as the finish line came into sight. 

It was powerful enough that those on board took a deep breath, expecting to soon find themselves tossed into the lake. If the boat was going to capsize, this would be the moment…

We live in a world where everything is connected. We have access to the globe as a whole, be that for information, goods, or services.

This is the theme we want to touch upon today. In the post-pandemic era, our definitions of normal have changed several times. Consumer patterns have changed drastically with every version of normal. So why is it that we're discussing this today?

The cost of transportation of goods has skyrocketed, thanks to a variety of reasons. A direct impact of this, of course, would be on the constituents of this unique group.

So we thought this would be a good time to analyse this space and see if there's anything worth looking into here.

At All Star Charts, we enjoy making custom indices and looking out for developing patterns in all the sectors (grouped or ungrouped). We're happy to put together a family of stocks that belong to the same category and study the impact or trend of that particular index. We're doing just that!

Here we have the ASC equal-weighted Shipping and Logistics Index. As clear as this chart can be, it's trading at an all-time high. This has come on the back of a close to three-year base breakout...