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All Star Options

[Options Premium] If This Level Sticks, IWM Rips.

November 20, 2024

We've got Nvidia earnings after the bell this afternoon. The feeling I shared to my analysts today -- and they all agreed -- is that if Nvidia disappoints, the likely result will be a small speedbump for the overall stock market. But if investors cheer the Nvidia earnings results, then gas is going to get poured on this bull market.

The Russell 2000 Small Cap ETF $IWM does not have direct exposure to $NVDA, so our risks feel limited on the downside. However, in a resumption of the bull market, small caps have a good chance of ripping to and through new highs.

That's the bet we're making today.

2 to 100 Club,
All Star Charts Premium

2 to 100 Club (11-20-2024)

November 20, 2024

From the Desk of Steve Strazza @Sstrazza

Welcome to The 2 to 100 Club.

In this scan, we look to identify 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 list at some point during their journey to becoming the market behemoths they are today.

When you look at the stocks in our table, you'll notice we're only focused on Technology and Growth industry groups such as Software, Semiconductors, Online...

Options Paid to Play

[Options P2P] Daily Digest 11/20/24

November 20, 2024

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

  1. New position in IBB.
  2. No adjustments are needed today.
  3. Exited XME position for a profit.
  4. Current status of open campaigns.
  5. Volatility Snapshot.

Let’s dig in!

Hot Corner Insider

Solar Stocks Are Lighting Up the Hot Corner

November 20, 2024

Solar stocks are lighting up our Hot Corner universe again.

This time, Form 4 purchases are stealing the spotlight:

  • Sunnova Energy International $NOVA director Mohamed Akbar just dropped $389,728 on his own stock.
  • Array Technologies’ $ARRY CEO stepped up too, buying 14,430 shares.

When these executives start putting their skin in the game, and it comes in clusters, it's worth taking notice.

Even though solar stocks have been among the most hated in the entire market, they might be close to a turning point…

Here’s ARRY consolidating at a shelf of former lows:

 

There isn’t a more logical place for ARRY to dig in and rebound, than at the current support level. 

Here’s The Hot Corner, with data from...

All Star Charts Crypto

📊 Learning to Fail Upwards

November 20, 2024

In crypto, we love posting about our wins.

The 100x gains. The perfect entries. The "called it" moments.

But today, I want to talk about losing money. Because in the midst of this bull market - where we've caught some incredible moves like our 200% gain in OM - I just took an L on a Bitcoin mining trade.

And honestly? I couldn't be happier about it.

 

Alfonso’s Daily Note

BTC Is Back on Top

November 19, 2024

One effective way to identify relative strength is by charting one asset class against another.

This approach helps us position ourselves strategically for the current market environment—and right now, it's all about crypto.

Bitcoin is breaking out of a multi-year base relative to the Dow Jones Industrial Average.

 

The ratio is piercing through the upper bounds of its base, suggesting that BTC is ready to reassert its former leadership.

If this breakout...

All Star Charts Premium,
ASC Mastermind

ASC Mastermind Week 8: How To Really Make Money With Dividends

Below is the 8th ASC Mastermind  Course. In this video, I got a helpful assist from All Star Charts Director of Research Steve Strazza. 

There's something psychologically magical about dividends. For decades, investors have flocked to all sorts of investment strategies that seek to maximize dividend gains...perhaps because they simply like getting paid to invest. 

But these strategies that focus on dividend-paying stocks...they miss the point entirely. The best way to make money with dividends is not to own the stocks that simply pay the highest yield...it's to own the stocks that pay a dividend while also going up in value.

This is how we avoid common dividend traps like Verizon, AT&T, Phillip Morris, and other companies that have a nice yield but are otherwise garbage investments. 

At All Star Charts, we came up with a new to find the best dividend-paying stocks. We call it The Young Aristocrats. And in this Mastermind course, you'll learn how it works. 

Enjoy.

 

All Star Options

[Options] Bring on the Kitty

November 19, 2024

In today's Flow Show, Steve Strazza said: "Bull Markets give us options."

And he's right.

There is an embarrassment of opportunities right now. And he came to the show with a list of ideas that we reviewed. 

You can watch the full episode here:

 

 

There were two trades I wanted to put on that were discussed during the show.

Today, I'm choosing to enter the Gamestop $GME idea.

So here's the $GME chart:

 

Now, forget everything you ever learned in technical analysis school. And you can certainly throw your fundamental texts in the garbage. None of that will help you with this stock. It doesn't follow the rules or even logic and certainly not common sense.

This is and will likely forever be a story stock. A meme stock. Nothing else.

And right now, $GME is showing signs of waking up again. With options premium in out-of-the-money calls insane, it sets up a nice opportunity for us to leverage that premium to our advantage.

Here's the Play:

I like buying a $GME January 30/40 Bull Call Spread for approximately $1.35 net debit. This means I'll be long the Jan 30 calls and short...

Options Paid to Play

[Options P2P] Daily Digest 11/19/24

November 19, 2024

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

  1. New position in USO.
  2. No adjustments are needed today.
  3. No exits since the last report.
  4. Current status of open campaigns.
  5. Volatility Snapshot.

Let’s dig in!

Alfonso’s Daily Note

Digital Payments Are Paying Off

November 18, 2024

This afternoon on Chart Request Live, my friend Patrick and I reviewed some of the standout tickers from the chat.

One group of stocks that really stood out was Digital Payments.

These stocks are on fire, offering favorable setups left and right these days, to the point I would be ashamed not to share some with you.

Before diving into some individual names, here's the Amplify Digital Payments ETF $IPAY:

 

IPAY just completed a textbook rounding bottom formation and is embarking on a new uptrend.

Aside from bellwethers like PayPal or Block $SQ (which I wrote about last week), there are three stocks that catch my attention within this ETF.

...
The Strazza Letter

The New Growth Playbook

November 18, 2024

Welcome back to the Growth Chronicles.

Growth is the largest area of the market, and betting on these stocks has become one of the primary strategies for US investors. 

As such, the question of “which growth stocks” always lingers.

And these companies come in all different shapes and sizes.

For example, we all know about the mature, high-quality growth names like Nvidia, Meta, and Netflix…. Think Magnificent 7. The best stocks.

And then there are some real offensive, high-beta growth names. I’m talking about companies that are still pre-revenue, or just turning the corner in terms of profitability. 

I like to boil it down to two broad baskets… 

There is large-cap/quality growth.

And there is speculative growth.

So far, the current bull market has been dominated by the largest growth companies in the world. They have been the clear leaders. It hasn’t been close.

But that is finally changing.

As investors embrace increasing levels of risk, I think it’s time to shift the strategy. I...

All Star Charts Gold Rush,
All Star Charts Premium

[Weekly Gold Rush] The Golden Gambit

November 18, 2024

Gold futures have been down in 6 out of the last 8 sessions since the winner of the U.S. Presidential Election was announced.

The US Dollar Index $DXY has been adding fuel to the selling pressure as it has screamed higher toward the upper bound of a multi-year range.

However, the dollar is entering one of its weakest seasonal periods of the year and should start serving as a tailwind for our shiny rocks.

And if the dollar is about to roll over, our equal-weight basket of precious metal stocks will likely resolve its multi-decade base and make new all-time highs:

The Daily Number

The Daily Number 💯 Tuesday, November 19, 2024

November 18, 2024

Today's number is... 21

Our US dollar Advance-Decline line just closed at 21-year highs.

Here’s the chart:

 

(right-click and open image in new tab to zoom in)

Let's break down what it shows:

  • The blue line in the top panel shows the price of the US dollar index.
  • The black line in the bottom panel represents the US dollar Advance-Decline line, which is comprised of 23 key currency pairs.

The Takeaway: The US dollar has been ripping higher over the past month, and when we look beneath the surface, we see healthy breadth readings and confirmation of strength as our US dollar Advance-Decline line has reached its highest level in 21 years.

Typically, a strengthening US dollar would indicate that risk assets like stocks are facing challenges, given the broad intermarket implications of the US dollar. 

However, it appears that stock market bulls remain unfazed by the strengthening dollar. Perhaps a weaker dollar isn't essential for stocks to continue their rally - at...

All Star Options

Playing to Win

November 18, 2024

I promise there is a trading lesson here. Stick with me...

 

 

 

Two-point lead. Ball on the opponent's 27-yard line. 4th and 2. Two minutes and 27 seconds left on the clock.

The choices are this:

1. Attempt to kick a make-able, but no gimme 44-yard field goal to go up by 5 points. 

2. Pooch punt to pin the opponents inside their 10-yard line for their next drive.

3. Call a play to attempt to gain the 2 yards needed to earn a fresh set of downs and continue running the clock.

Choose option 1 and there is a very real possibility that the Buffalo Bills' sometimes undependable field goal kicker could miss the 3-point try. This would leave the Kansas City Chiefs, and their future Hall of Fame Quarterback Patrick Mahomes with more than two minutes on the clock to move the ball less than 35 yards to put themselves into position to kick the game-winning field goal.

Even if the Bills' kicker makes the field goal, putting the Bills up by 5, there will still be more than two minutes on the play clock. For the team from Kansas City with countless late comeback wins, there is not a...