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.

We put out a post recently about the breadth indicators picking up bullish signals. This was when Nifty 50 was attempting to move past its earlier high of 15,431.

Well, what do we have now? In addition to keeping track of the participation in the general market scenario, it is increasingly important to track the same indicators when new highs are claimed.

Nifty 50 managed to move past its resistance, but what do the breadth indicators say?

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 

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.

This week we're looking at one long setup in Cement. Commodities and Infrastructure are bouncing from crucial levels. We'd like to look at a name from this segment.

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.

We're back to share with you, what we love to do and that is the Top/Down approach. At All Star Charts we're big fans of the weight of the evidence. The market tells us where it's going, and we listen. It's pretty simple really.

Over the past couple of weeks, we've noticed the PSU banks bouncing off their support and actually displaying some strength.

So today, let's take a look at what this particular sector is hinting at.