From the desk of Louis Sykes @haumicharts

"WAGMI," we've all heard it.

Short for "we're all going to make it," it's the mantra of crypto natives that paints an image of a better future.

As positive as this group expression may seem, it can also be viewed from the lens of a profound juxtaposition.

At its roots, WAGMI represents a deep contrast between the message of hope and the tragic reality of the lives of crypto natives.

For this week's trade, we're buying a $CVX October 180/200 Bull Call Spread for approximately $6.50 here. This means we're long the 180 calls and short an equal amount of the 200 calls for a net debit.

Get the full details, risk management procedures and targets for this trade here:

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.

From the desk of Steven Strazza @Sstrazza and Ian Culley @IanCulley

The US dollar is front and center as risk assets hang in the balance.

Earlier in the month, we placed the Australian and Canadian dollars on breakdown alert as they completed major topping patterns.

US dollar strength was expanding at the time, and the AUD and CAD were the last dominos to fall.

Or so it seemed.

What started as strong downside resolutions for these top commodity currencies quickly turned into potential failed breakdowns.

Now that the most resilient currencies are snapping back against King Dollar, it's compromising the broad US dollar rally and could usher in a more favorable environment for risk assets. 

Let’s discuss what it means for stocks and commodities if these failed breakdowns resolve higher.

Here’s a chart highlighting the recent action in the Canadian dollar and Australian dollar futures:

I heard a good one this morning:

Where do Traders go for Drinks?

An Outside Bar!

haha

Hat tip to Sean for that one.

Anyway, how are you enjoying what is historically the worst part of the 4-year cycle?

From the desk of Steve Strazza @sstrazza

This is one of our favorite bottom-up scans: Follow the Flow.

In this note, we simply create a universe of stocks that experienced the most unusual options activity — either bullish or bearish, but NOT both.

We utilize options experts, both internally and through our partnership with The TradeXchange. Then, we dig through the level 2 details and do all the work upfront for our clients.

Our goal is to isolate only those options market splashes that represent levered and high-conviction, directional bets.

We also weed out hedging activity and ensure there are no offsetting trades that either neutralize or cap the risk on these unusual options trades.

From the desk of Steve Strazza @Sstrazza

Welcome to our latest Minor Leaguers report.

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.

We recently decided to expand our universe to include some mid-caps…

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.

The way we did this is simple…

To make the cut for our new Minor Leaguers list, a company must have a market cap between $1 and $4B.

From the desk of Louis Sykes @haumicharts

We've talked at length about the correlations between macro markets and Bitcoin.

A critical element underlying our crypto thesis is heavily driven by how price action is trading alongside equity markets.

In the case of the US dollar, it's the exact same, but the opposite.

Recently, there's been a notable negative correlation between Bitcoin and the dollar.

The average stock listed on the NYSE is down over 34% off its highs.

The new 52-week highs list peaked in February of last year - that was over 15 months ago!

We've now seen more stocks hitting new lows than new highs for the most consecutive weeks since the Great Financial Crisis.

The Technology, Communications and Consumer Discretionary sectors combined make up almost half of the stocks in the entire S&P500. They're each now down 26%, 33% and 35%, respectively.

In fact, almost half the stocks on the Nasdaq have seen their prices get cut in half.

And people keep asking me if we're going into a bear market?

What the hell do you call that?

If you define all that as a bull market, then I think you need to check yourself into a mental hospital.

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.

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

Markets trend. Trends persist. 

Those crucial Dow Theory tenets form the foundational premises of technical analysis.

As technicians, identifying trends is a central component of our work.

But, most of the time, markets remain range-bound, as we experienced during the choppy mess that dominated the stock market and so many risk assets last year.

However, during that time, commodities continued to rip higher.

Now that the rally in raw materials is reaching significant areas of overhead supply, it would make sense for this leadership space to follow stocks and enter a corrective period.

In other words, the uptrend in commodities that has persisted since 2020 is likely to take a breather and turn into a sideways trend.

Let's talk about it.

From the desk of Steve Strazza @Sstrazza

Our Hall of Famers list is composed of the 150 largest US-based stocks.

These stocks range from the mega-cap growth behemoths like Apple and Microsoft – with market caps in excess of $2T – to some of the new-age large-cap disruptors such as Moderna, Square, and Snap.

It has all the big names and more.

It doesn’t include ADRs or any stock not domiciled in the US. But don’t worry; we developed a separate universe for that, which you can check out here.

The Hall of Famers is simple.

We take our list of 150 names and then apply our technical filters so the strongest stocks with the most momentum rise to the top.

Let’s dive right in and check out what these big boys are up to.

Here’s this week’s list: