Setups that will turn into 5x, 10x, and 20x winners during earnings season are forming right now.

You're seeing that normal directionless consolidation that develops before explosive moves.

Our proprietary Breakout Multiplier System is specially designed to identify these stocks before volatility begins to expand.

The time to enter is now.

...

The most significant insider activity on today's list comes via a 13D filing by Mubadala Investment Company.

The sovereign wealth fund, which manages a portfolio for the government of Abu Dhabi, reported an initial stake of 9.50% in Equinox Gold Corp $EQX.

The fund's top holdings include GlobalFoundries and Evotec SE.

It’s not uncommon for insiders to buy stocks when they’re still in the accumulation or base-building phase. We see them buy downtrends and beaten-up names all the time as well. 

What we don’t see as much is insiders stepping in and reporting a brand-new stake just as a fresh trend reversal is shaping up.

That’s what is happening here with EQX and Mubadala’s $230 million investment.

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

JC has been giving a special mastermind class on Technical Analysis, and last week he invited me on to discuss momentum thrusts and crossovers. You can watch it here.

We dove into a variety of topics, covering initiation vs exhaustion, thrust clusters, and even a conversation on the difference between MACD and PPO.

One of the points I hoped to drive home in this presentation was around how to know when a momentum thrust is significant. 

For me, momentum thrusts and breadth thrusts are exactly the same in this way. When they are notable, they are hard to miss. They come in spurts and clusters.

What do I mean by this?

Let’s use China as an example because I think we are witnessing a historic initiation phase right now.

A few weeks ago, Chinese stocks had their second-best day in history. 

Then, they had...

A couple of weeks ago, we talked about Silver futures attempting to emerge from a multi-year accumulation pattern and potentially retesting the former all-time high.

Last week,  Silver made a new multi-decade high in absolute terms and broke a multi-year downtrend line relative to Gold. 

And if the 47th element is about to blast off, we should look closer at the Junior Silver Miners.

But first, check out this chart of the Silver/Gold ratio:

Below is the 4th ASC Mastermind Lab Course. These are special videos that will be made available throughout the duration of the 12-week course featuring conversations with professionals from across Wall Street discussing topics in their expertise. 

The theme of ASC Mastermind Week 2 is momentum trading, and why it works. So naturally it made sense for me to talk to All Star Charts Director of Research Steve Strazza. Steve uses momentum as much in his day-to-day as I do. 

The main concept Steve wanted to hammer home is momentum thrusts, what they are, when they happen, the different types with examples, and how to analyze them. 

Enjoy this Mastermind Lab Course on momentum.

Earnings season is closing in. And the election is right behind it. Surely land mines will be discovered all over the place. There is risk.

So any directional bets I place over the coming weeks will be of a defined-risk nature.

But, where there is risk, there is opportunity. We'll get paid when we're right, perhaps handsomely so.

That is why it is worth wading into the rising rivers here to take some shots while keeping our downsides in check.

Today, I joined my friend Patrick on Chart Request Live, discussing all the ticker symbols from the chat.

Click here to watch the replay.

One major topic we discussed at the end of the show was crypto and some equity vehicles to gain exposure to it.

One that stood out was MicroStrategy $MSTR, which continues to show impressive relative strength.

As you can see, MSTR is consolidating above its prior cycle peak as it flirts with new all-time highs.

Meanwhile, Bitcoin continues...

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

1. New position in XLP (consumer staples).
2. No adjustments are needed today.
3. Exited SMH position.
4. Current status of open campaigns.
5. Volatility Snapshot.

Let’s dig in!

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.

Nowadays, 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 order to focus...

The last time the yield curve inverted, they promised us a recession, maybe even a market crash if we're lucky!

Instead all we got was a historic bull market, including back to back years of 20%+ returns in the S&P500. 

You see, this is what happened AFTER the yield curve inverted.

And why is this such a big deal? 

There's this really hilarious function in the way humans think. A large population of economists and wall street sell side analysts get very sad when the yield of one bond pays more than the yield of another.

It's this really weird thing in the markets that gets these folks very afraid, and so they want their customers to be afraid too. 

And if these economists and sell side analysts do their jobs right, as they have for many years, they're loyal following of sheep will be sure to sell their stocks and run to cash just before a historic bull market.

And that, of course, is exactly what happened over the past couple of years, as investors piled into more money market funds than any other time in history, only for that to be one of the worst possible decisions any investor could have made at any point since...

The most notable insider activity on today's list comes via a Form 4 filing by Cartesian Therapeutics Inc $RNAC director Timothy A. Springer.

Springer reported a $4.2 million purchase of RNAC shares.

Neuberger Berman Group LLC filed a 13G for CNX Resources Corporation $CNX, revealing an initial stake of 5.03%.

Here’s The Hot Corner, with data from October 4, 2024:

This is the tape to begin thinking about taking trade setups.

As such, here are three potential meme coin trades.

It appears this seven month bear market is reaching its concluding stages.

There is an increasing number of bullish developments that point to a Bitcoin breakout.

I think there is going to be tremendous opportunity to make money in the altcoins in the coming quarters.

From the Desk of Steve Strazza @Sstrazza

The market keeps squeezing short sellers out of their biotech positions and rewarding bulls with big breakouts. 

Knowing this, our strategy is simple. We want to keep buying the best-looking and most heavily-shorted biotech stocks.

Today, we're covering one that has rallied nearly 200% since late last year. Despite this extreme upside momentum, the stock still has a massive short interest.

With the stock resolving a multi-year accumulation pattern, we think this short squeeze has plenty of room to run. To get back to the all-time highs from just a few years ago, it would require about a 10x.

We're looking for something much smaller and quicker for now, but you never know!

Let's talk about how we're trading our latest Freshly Squeezed setup.

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.

When you go back and study bull markets and all the healthiest environments for stocks throughout the past, do you know what you'll find?

Historically, Consumer Staples stocks underperform during the healthiest market environments.

So with that in mind, notice how Consumer Staples on an equally-weighted basis just closed at NEW ALL-TIME LOWS relative to the equally-weighted S&P500:

Money is fleeing the defensive nature of Consumer Staples and continuing to rotate into more offensive areas of the market. 

Take Financials for example. Here is the equally-weighted Financials Index completing a multi-year base and closing once again at new all-time highs.

The equally-weighted Financials Index eliminates the massive weightings in Berkshire Hathaway, JP Morgan, Bank of America, Goldman Sachs and others.

This chart above shows Financials Equally-weighted making new all-time highs, reiterating the broad strength in Financials, which is typical in the middle of a bull market.

Meanwhile, the Communications Index on an equally-weighted basis is making new multi-year highs as well. 

But for me, it's the market-...

What happens if you can't exit a position on your brokerage platform?

Do you sit and wait it out, hoping for a quick resolution and an opportunity to exit at your price, or better?

Has that ever worked out for you?

I'm fairly certain that has nearly never worked out for me. If it has, it certainly didn't compensate me for all the times it hasn't. Not financially, and certainly not emotionally.

There's a certain panic that sets in when we lose the ability to take control when we need to. We can't control the markets, but we can control how we react to them. We can choose to take action when we need to.

Except when we can't.

Your broker has a glitch, the platform is down, and nobody will take your calls because their customer service lines are being bombarded by traders just like you who are stuck in positions, looking for a quick exit.

This is a pretty powerless feeling.

Some traders I know experienced this on Friday when a well-known broker for some reason wasn't allowing trading in a certain ticker. It was an error on the broker's part, but nonetheless, customers of this broker went the entire day without the ability to exit...

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

Welcome to the Hot Corner Insider Weekly Report!

As you know, we spend a lot of time tracking insider activity to come up with this universe.

But that’s only half the battle!

Once we identify the names insiders are targeting, we overlay our expert technical analysis to see if the market agrees with their actions.

While we track some of the most powerful and well-informed market participants… we aren’t just going to follow them blindly into their trades.

We want to see that the insider activity is confirmed by the trend before we get involved. 

When we can check both boxes, we identify asymmetric risk/reward setups and then jump in and ride these trends higher alongside the smart money.

You can...