From the desk of Steve Strazza @sstrazza and Ian Culley @ianculley

In last week’s Commodity Report we highlighted the Uranium ETF $URA and promised to dig up some trade ideas within this outperforming group of stocks.

While everyone was enjoying the Labor Day weekend, barbecuing, and watching football - we were pouring over our Uranium universe to uncover the best risk/reward opportunities in the strongest names. 

But hey, this is what we love to do!

So let’s dive right in and see what we found.

First of all, why do we like Uranium so much right now?

Both the Uranium ETF and the underlying commodity are showing leadership and breaking out of 6-year bases. That's more than good enough for us.

This week we’re looking at a long setup in the Energy sector. It's a big name and there has been a breakout in the making for quite some time now. You've probably guessed it by now.

Let's take a look at the trade idea this time around.

From the desk of Steve Strazza @Sstrazza.

Welcome back to our latest "Under The Hood" column where we'll cover all the action for the week ended September 3, 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

Thanks to everyone who participated in last week’s mystery chart.

We questioned whether it was a rounding top reversal pattern – in which case we’d be looking for a breakdown.

Or, if it was actually a failed breakdown - and we all know what tends to follow those patterns…

The responses we received were mixed. But there were plenty of bulls who wanted to be long against the former lows and bet on a swift reaction higher.

That’s pretty much the camp we were in too. We recently wrote about all of the whipsaw action we’ve been witnessing.

We said the next critical piece of information we’d be looking for was whether or not these patterns would see some real follow-through and confirmation.

Fast forward a week or so, and we definitely have our answer.

So let’s talk about it, and more importantly, what it means for risk assets.

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.

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 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.

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.

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!

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.

We debuted a new scan recently which goes by the name- All Star Momentum.

All Star Momentum is a brand new scan that pinpoints the very best stocks in the market. This time around, we have incorporated our stock universe of Nifty 500 as the base. Among the 500 stocks that we follow, this scan will pump out names that are most likely to generate great returns.

While we go through our lists of sectors and stocks on a weekly basis, we thought of launching a product that would highlight the names that are the strongest performers in our universe and those that are primed for an explosive move.

Just like The Outperformers scan, this is a list of stocks belonging to the sectors that display relative strength in the market at any given point in time. Since sector rotation is the lifeblood of a bull market, we will be ahead of the curve before the gears keep shifting.

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. What remains is a list of stocks that large financial institutions are putting big money behind… and they’re doing so for one reason only: because they think the stock is about to move in their direction and make them a pretty penny.