From the desk of Steve Strazza @Sstrazza and Louis Sykes @haumicharts

At the beginning of each week, we publish performance tables for a variety of different 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 relative strength trends at play and preview some of the things we’re watching in order to profit in the weeks and months ahead.

In last week's report, we outlined how the market was in an incredibly healthy state of order. We've been seeing rotation into SMIDS and Micro-Caps, strong breadth, and a sustained bid for Growth, particularly down the market-cap scale.

This week, we're harping on a similar theme.

The weight of the evidence, particularly from an intermediate and long-term time horizon, looks excellent.

From the desk of Steve Strazza @Sstrazza.

Welcome to our “Under The Hood” column for the week ending December 04, 2020.

What we do 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.

Whether we’re measuring increasing interest based on large institutional purchases, unusual options activity, or simply our proprietary lists of trending tickers… there is a lot of overlap.

The bottom line is there are a million ways to skin this cat. Relying on our entire arsenal of data makes us confident that we’re producing the best list each week and gives us more optionality in terms of finding the most favorable trade setups for our clients.

This week we're looking at a long setup in the Pharma sector.

All Star Charts is known for its Top-Down analysis. In this process, we begin at the asset-class level to ascertain the best category of investment that matches our reward/risk ratio. This then trickles down to specific instruments of investment on the basis of relative strength and momentum.

Let’s take a look at this procedure in our weekly column, The Top/Down Take, and help you understand our analysis better.

Last time it was Tata Consultancy Services (TCS), but today the stock we're looking at is IndusInd Bank (INDUSINDBK) which has been tearing through the roof since November.

One of the biggest themes in last night's Monthly Strategy Session was the sector rotation we're seeing globally.

In this post, we're sharing two bubble charts that highlight this occurrence and we'll discuss how we're approaching the market going forward.

Every month we get a fresh batch of Monthly Candlesticks. It only happens 12 times a year.

I promise you guys from the bottom of my heart that there is no other part of my entire process that provides as much value and information as my monthly chart review. Premium Members can access the Chartbook here. Stay tuned as we'll be adding more workbooks of charts this week to the Chartbook section.

In the meantime, my friend Josh Brown and I have been doing these short monthly videos since the summer. They're fun and I like how he pushes back against me sometimes. In other interviews they make it too easy on me. I like these!

This month we talk about the breakout in Biotech, Market-cap rotation into Small-caps, European Stocks performing well and what we're doing about Gold & Bitcoin.

Here's this month's video in full:

In today’s analysis, we’re looking at Media. It’s been one of the subdued sectors in the market and we’ve been observing this space for any signal of revival in momentum.

Let's get into what's happening and how we're approaching it.

Some divergences remain at the index level, but with the Tech-heavy Nasdaq 100 breaking out to new highs...the question is will we see the same rotation back into Technology stocks globally?

In this post, we're taking a look and identifying the best reward/risk in the sector right now.

From the desk of Steve Strazza @Sstrazza

Welcome to the 2 to 100 Club.

Something we’ve been working on internally this year is using various bottoms-up tools and scans to complement our top-down approach. One way we’re doing this is by identifying 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.

This week on Happy Hour w/ Traders, I sit down with venture capitalist Howard Lindzon. He's a Tech investor, or that's what it feels like from my perspective. So my question was how he invests when money is rotating out of large-cap tech and into other areas?

This sparked an interesting conversation about using today's tools to generate new ideas, even if they're out of your wheelhouse. We have a massive community and new tools at our disposal that investors before us never had. Let's be grateful, and let's take advantage!

Here's the video in full:

Last week we suggested that the major indices could be due for a pause after a massive run in November.

So far we've seen the large-cap indices churn sideways, but the mid and small-cap indices pushed to new recovery highs.

Today those mixed signals continue. Not just in India, but around the globe.

Let's take a look at what we're seeing and how we're approaching it.

This is the video recording of our December 1, 2020 Monthly Charts Live Strategy Session