This is the video recording of our September 3, 2021, All Star Charts Crypto Weekly Strategy Session.

Here's the thing.

There are going to be scams and bubbles on wall street. Humans and money are the necessary ingredients to create them.

We know that going in.

I keep being told that some of these growth stocks are in bubbles. Or that some of these Crypto Currencies are Scams.

My point is, So what?

What if some of them are bubbles or scams?

Why is that our problem?

This week, Nifty Financial Services broke out to claim an all-time high after forming a six-month base. This sector has been taking a breather for some time now, but we are finally able to see signs of improvement.

Across the world, when strong market rallies come through, they come in unison with Financials. So if this current rally has to continue, we need the support of this sector. Are we going to get that though? Let's see what the charts are saying.

Here is Nifty Financial Services on a monthly timeframe. We do see a resolution of the trend. And prior to that, did you notice something interesting? Something we like to see in particular?

The price was consolidating above the Fibonacci level. That's a good sign. Always!

So now that we have this resolution in trend, the next level we're tracking is 23,350.

Keep in mind, this is a MONTHLY chart. Hence, think 23,350 in the months ahead, not weeks.

We wanted to see if we found any specific high correlation points between...

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

Mixed signals have been the rule rather than the exception since the market peaked in early February.

The major stock indexes have continued to print record highs while breadth has deteriorated beneath the surface, creating several bearish divergences. 

Some stocks have gone up and some stocks have gone down. But the reality is that most stocks have gone nowhere.

The same is true for commodities.

We’ve noticed pockets of strength in base metals, livestock, and softs. But the majority of commodities have remained range-bound...

These are the registration details for our Live Monthly Candlestick Strategy Session for Premium Members of All Star Charts.

This month’s Video Conference Call will be held on Tuesday September 7th @ 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 Tuesday evening:

This is the video recording of the September 2nd Town Hall Meeting w/ Willie Delwiche & JC Parets

09/02/21 2PM ET

From the desk of Steve Strazza @sstrazza and Grant Hawkridge @granthawkridge 

Last week, we pointed out that some US stocks are going up, but most are not.

The S&P 500 and the other US large-cap indexes have continued to grind to new highs all year, completely unphased by any of the deterioration in breadth beneath the surface.

But, when looking at the global stage, things are different… 

In this post, we’ll look at the current state of market breadth around the globe and discuss whether internals are supporting the new highs in many international indexes. 

It's always a worrying sign when price is making new highs at the index level with a lack of confirmation from internals. But that simply isn’t the case for ex-US equities these days. 

In fact, it’s just the opposite, as we’re seeing our breadth metrics support and confirm the recent price action on a global scale. 

Here we’re looking at the percentage of developed and emerging markets above their 50-day moving averages:

...

From the desk of Willie Delwiche.

According to Charles Darwin, you cannot make observations without some kind of underlying theory. And if you have any theories about financial markets, you understand thinking about what could or should happen with your investments.  

These concepts can be useful if they help us prepare for what is happening in the markets. But they can also impede or obscure reality.

We can observe and project all we want -- so long as we don't get distracted by the what could and what should that we lose sight of what is. 

I don't see this as an argument in favor of always being bullish or a warning about the risks of needing to be proven right. Instead, it's an encouragement to agnostically acknowledge and operate within the market as it is rather than as we wish it would be.

It’s about pursuing the opportunities that are before us even when they are unexpected. 

Especially when they are unexpected. 

From the desk of Steve Strazza @sstrazza and Louis Sykes @haumicharts

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 last report, we discussed all the whipsaws we had been witnessing in recent weeks and noted that the next major piece of information would be the velocity of the reactions these charts made in the opposite direction.

Fast forward to today and the bulls got all the follow-through they could want as many risk assets reclaimed all their damage and more. These were true failed breakdowns,...

The bottom line is that we're seeing more new highs underneath the surface.

After Ethereum's impressive +11% print following our bullish tone earlier this week, Bitcoin looks to be inching closer to a 50 handle.

As we've been outlining, if Bitcoin is in the 50k's, we need to obnoxiously long crypto, particularly the altcoins.

From the desk of Steven Strazza @Sstrazza

Check out our latest Mystery Chart!

What we do here is take a chart that’s captured our attention, and remove the x and y-axes as well as any other labels that could help identify it.

This chart can be any security, in any asset class, on any timeframe. Sometimes, it’s an absolute price chart. Other times, it’s on a relative basis.

It might be a ratio, a custom index, or maybe the price is inverted. It could be all three!

The point is, when we aren’t able to recognize what’s in front of us, we put aside any biases we may have and scrutinize the price behavior objectively.

While you can try to guess the chart, the point is to make a decision…

So let us know what it is… Buy, Sell, or Do Nothing?

On September 1st, Sean and JC hopped on a Twitter Live Stream to discuss a recent trade idea for All Star Charts Options Members.

Here's the play:

"I like an $AMZN February 3800/3900 Bull Call Spread for an approximately $29.00 – $30.00 debit. This means we’ll be long the 3800 strike call and short an equal amount of 3900 strike calls."

To learn more about the trade and the thinking behind it, click below to watch a replay of the Live Stream.

From the desk of Steve Strazza @Sstrazza

Welcome to the 2 to 100 Club.

As many of you know, something we’ve been working on internally is using various bottom-up tools and scans to complement our top-down approach. It's really been working for us!

One way we’re doing this is by identifying the strongest growth 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. Likewise, when they surpass the roughly $30B mark, they roll off our list.

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.

Some of the best performers in recent decades – stocks like Priceline, Amazon, Netflix, Salesforce, and myriad others – would have been on this...

From the desk of Willie Delwiche.

Key Takeaway: Investors continue to favor stocks as money relentlessly pours into equity ETFs. It’s no wonder, given that the main stock indexes are printing new record highs. Yet, a depressed risk appetite and an unsupportive breadth backdrop accompany the persistent push higher in equities. Though these suspect undercurrents aren’t apparent at the index level, we see signs that short-term attitudes are shifting. Bears are on the rise, with the average of the II and AAII bears trending higher. However, pessimism remains relatively mooted and optimism is still elevated when viewed through either a cyclical or strategic lens. The current environment suggests there is more risk than opportunity for equities from a sentiment perspective.

Sentiment Report Chart of the Week: Feel the Flow

Equity ETFs saw another $50 billion of inflows in August, bringing the YTD total to more than $400 billion. This was the...

On this episode of the podcast, I sit down with Ed Clissold, Chief U.S. Strategist at Ned Davis Research.

I've been a big fan of Ed's work for a long time, not to mention Ned Davis is one of my personal heroes.

The work they do over there has been inspiring to me throughout my entire career. So as you can imagine, it was so fun and such a pleasure to chat with Ed.

We talk about Market Breadth, Sector Trends, Momentum and Seasonality.

If you have any exposure whatsoever in the market, or even thinking about putting on exposure, then this is the episode for you!

Enjoy!

During our team's weekly strategy meeting this morning, we were chatting about how the retail sector has just been hanging in there. And don't we know it -- we've had a long puts play in $XRT (the retailers ETF) since late July that hasn't gone anywhere for us. Our thinking was this sector would be the one to lead us down if the markets wanted to trade down.

Instead, it's been hanging tough and JC remarked that it might act as "a big trampoline" for some of the notable names in the space if we start moving higher.

And of course, the 800-pound gorilla in the space is Amazon $AMZN, so if we're going to play a move higher in retailers, it makes sense to start here.

There's a permeating myth that cryptos are too volatile to invest and trade.

Naysayers will argue that because volatility's so high, they won't touch it.

The reality is that Bitcoin's less volatile than some members of the S&P 500.

Hell, Crude Oil literally traded in the negatives just over a year ago... talk about recency bias for people leaving that out from the equation.

The real debate isn't comparing cryptocurrencies to other asset classes, it's one of risk management.

So let's flip the question.

It's that time of the month, guys!

We get to see monthly candlesticks and refocus on the broader trend. We've said time and again how messy the current market is. When we look at the daily chart, we see a mess. When we look at a weekly chart, we see a mess. But when we look at monthly charts, a lot of things become clear.

It's almost as if you're trying to take a picture but the lens is unable to focus on the object. Monthly candlesticks correct just that. They help us focus on the object and present a clear picture of the trend.

We took a peek at some of the charts, and at a broader level, we thought these help understand some trends clearly.

From the desk of Willie Delwiche.

Key Takeaways:

• Median stock has gone nowhere for months
• Bond market trusting Powell more than data
• Commodity strength fueled by broad participation

As discussed in yesterday’s Market Notes, last week’s rally has us questioning whether we remain in the choppy market that has been experienced on many levels for the past few months or if we are poised for some degree of resolution to the upside. Today, we’ll take a closer look at what that could mean across stocks, bonds and commodities. As market depth evaporates ahead of the Labor Day weekend, there is no reason to believe that what we talk about has to happen this week.

The S&P 500 is getting plenty of press these days for the number of new highs it has made in 2021 (over 50 at this point). I’m more focused, however, on what the Value Line Geometric Index is doing. This index has gone nowhere over the past three months (while the S&P 500 has risen nearly 8%). A new high by this index (and a return to leadership on a YTD...