Once again this month, I'm going to share info on positions that were closed in the month of May. As a reminder, our exit plans are always laid out ahead of time in each trade idea we publish. In every case, the exits mentioned below were all exited in accordance with the plan as laid out.

From the desk of Steve Strazza @Sstrazza.

Welcome back to our latest "Under The Hood” column for the week ended May 28, 2021. This report is published bi-weekly and rotated on-and-off with our "Minor Leaguers" column.

What we do here is analyze the most popular stocks during the week and find opportunities to either join in and ride these momentum names higher, or fade the crowd and bet against them.

We use a variety of sources to generate the list of most popular names. There are so many new data sources available that all we need to do is organize and curate them in a way that shows us exactly what we want: A list of stocks that are seeing an unusual increase in investor interest.

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

The US Dollar remains at crucial inflection points versus both emerging and developed currencies.

In last week’s note, we pointed out the critical 19 level in the WisdomTree Emerging Currency Fund $CEW, along with the numerous tests of support in our custom USD vs. BRICS Currency Index.

Not only is the USD looking increasingly vulnerable against emerging and developed currencies, but we’re now starting to see some of the major Dollar crosses break down or resolve lower.

In many cases, these moves are confirming long-term reversal patterns with USD/CAD. For example, the Dollar just broke to fresh multi-year lows relative to the Canadian Dollar.

We reviewed the chart in this column a few weeks back, highlighting the possibility of an impending double top. 

Well, here’s what it looks like now:

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 Thursday June 3rd @ 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 Thursday evening:

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:

From the desk of Steve Strazza @sstrazza

This is one of our favorite bottoms-up scans: Follow The Flow. In this note, what we do is simply create a universe of stocks that experienced the most unusual options activity - either bullish or bearish... but NOT both.

What we mean by this is that we have options experts, both internally and through our partnerships with TheTradeXchange, whereby we do all the digging through the level 2 details and do all the work upfront for our clients, in order to isolate only those options market splashes that represent levered and high-conviction, directional bets.

I can't begin to tell you how many people have approached me in recent weeks laughing about how they're happy I'm back on the Gold train.

Why wouldn't I be? Our gold trades are working.

One thing I learned the hard way in this business is to do less of what's not working and do more of what is.

It sounds too simple but I can't emphasize enough just how important this concept is.

This isn't like a Roulette wheel of randomness. Markets trend. That's why Technical Analysis works, because we're looking for trends.

One thing we know about new lows is that they are not a characteristic of uptrends.

We know this.

So here's an update on that whole Growth vs Value thing: New Monthly closing lows all the way down the cap scale.

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

Here we are on Friday, and it's been yet another eventful week for the commodity complex.

Steel futures ripped higher. Corn was limit-up on Thursday. Lumber continues to digest its gains with the same volatile fashion it made them in, giving back another 10% on the week.

And then of course there's Dr. Copper which appears to have successfully defended former resistance turned support at its all-time highs from 2011. It's impossible to overstate the importance of how this massive base in Copper resolves.

Bulls definitely don't want this move to evolve into a failed breakout... The 4.50-4.60 zone is the line in the sand. 

As for Energy Markets... Crude Oil making its highest daily close since October 2018 might be the biggest development of all.

What if these consolidations in Financials and Materials do NOT resolve higher?

What then?

From the desk of Steve Strazza @Sstrazza

Earlier in the week, we held our May Monthly Conference Call, which Premium Members can access and rewatch here.

In this post, we’ll do our best to summarize it by highlighting 5 of the most important charts and/or themes we covered, along with commentary on each.

Let’s get right into it!

Do you see something else here?

Massive tops? Check.

Lower lows? Check.

Lower Highs? Check.