From the desk of Tom Bruni @BruniCharting

Tuesday's Mystery Chart is one of my favorite charts right now, so thank you all for your feedback and participation.

I received a lot of answers, but I'd say 1/3 of you were buying a breakout, 1/3 were fading this strength, and the last 1/3 were yawning and off to find something more exciting.

With that as our backdrop, let's get into it.

From the desk of Tom Bruni @BruniCharting

Last night was our Members-Only Conference Call where we discussed the major themes we're seeing across asset classes.

A big theme was the lack of direction within Equities and last month's failed breakout to new highs in the US as we "catch down" to some of the weakness we're seeing globally.

As a result, today I want to revisit an exercise I performed in late May when the environment was pretty similar to today...and that was to look for stocks with "big bases."

Todd Sohn is one of my favorite guys to talk to about the markets. He often sends me charts that no one else is looking at and points out important data that most people aren't talking about. His unique perspective on the market definitely makes him stand out from the rest. Todd and his team at Strategas do great work and it's a real pleasure to have him on the podcast. In this conversation we discuss the current environment for US Stocks, Interest Rates, Precious Metals and the sentiment driving current trends. He offers good advice for both new technicians and seasoned veterans. If you're at all interested in the market, this is an episode you can't miss. Enjoy!

In this Episode of Allstarcharts Weekly, Steve and I talk about the underperformance of European Stocks and the fact that it's their weighting in Financials that is, in part, dragging them lower. This has really become an interest rate story as Financials around the world are keeping other countries' markets from breaking out. The overwhelming exposure to Technology continues to keep the US winning relative to everyone else.

From the desk of Tom Bruni @BruniCharting

In early June we wrote a post titled "Canada Update" advocating for a patient approach towards Canadian Equities and outlining some well-defined reward/risk setups.

Since not a lot has changed at the TSX Composite or TSX 60 level, we want to take another look two months later to see what's developed under the surface and where there are opportunities to profit.

Tuesday's Mystery Chart received mixed responses, with some people buying this dip and others waiting to short a breakdown.

Now, let's look at the chart and its related theme.

Ari Wald is always one of my favorite Technical Analysts. Him and I were trained around the same time so we look at the market in a very similar way. Today Ari is the Head of Technical Analysis at Oppenheimer in New York and we're very lucky to have him on the podcast. If you're interested in learning more about Ari, go back and listen to his guest appearance in Season 1 (EP 2). In this episode, Ari and I discuss the current state of the US Stock Market. Included in the analysis are breadth measurements, important levels, smoothing mechanisms and sector rotation. Him and I can talk forever about this stuff so the time felt like it flew by. We covered a ton of material in a very short period of time. I hope you enjoy this one as much as I did!

We're below former resistance levels in all of the major US Indexes. While structurally, longer-term uptrends are still intact, there is short-term risk of price volatility and/or opportunity cost. This is where establishing your time horizon is important. We laid out important levels from an intermediate-term horizon earlier this week. I think we're in for more of a sideways mess than anything else for now.

Historic breakouts are rarely clean. Go back and look at the early 80s. If we are to resolve this 18-month range in US Indexes higher, with European Stocks also breaking out, I'd argue it's a historic market event. If that happens, a bumpy start would not be anything we haven't seen before at other important points in the past.

With that in mind, let's take today to focus on where we stand in momentum.

I've been a fan of Tony Dwyer's work for a long time. Those of you who know me see me approach the market from a top/down global macro and intermarket perspective. Tony starts his process in a similar way at Cannacord Genuity and Dwyerstrategy.com. When we're talking about the next direction for stocks, we both focus on other assets like credit to help identify big trends. We look at the behavior of commodity and currency markets to make decisions in equities. I thought this was a really fun conversation. I particularly enjoyed Tony's comparisons to 1995 and what was going on then with respect to the President's public issues, interest rates, precious metals and the US Dollar. This podcast could have gone on forever if we let it, but we kept it short and concise so we could get to the point quickly.

From the desk of Tom Bruni @BruniCharting

Cannabis stocks have been a bit of a disaster since late March, but let's take a look at what's happening and if there's a way to play it.

From the desk of Tom Bruni @BruniCharting

Wednesday morning I outlined the charts we were watching ahead of the Fed Decision and what we would need to see before getting out of the way and reevaluating our bullish Equities and US Interest Rates thesis.

Today I want to look at those same charts and note what's changed and how we're moving forward.