With stock market investors looking every which way at different market-moving headlines today, let's take a step back and talk about what's really important.
We just got monthly candles. It's time to zoom out.
And when we do, is there a chart more important than the US Dollar Index $DXY right now?
The dollar has had a very strong inverse correlation with stocks and other risk assets for several years now.
Equities have done well for the past two years while the dollar has been rangebound.
Just imagine how they'll do if DXY breaks down from its current range:
It's been a rainy and windy week in the Florida Keys so we've been all couped up inside.
Now that the Hurricane Helene storm system has played its course, we're due for some beautiful weather.
I woke up this morning and I checked the forecast.
It said the sun will be shining.
Another thing I typically do from bed each morning is check my crypto accounts and watchlists.
When I did, I noticed the SOL is shining too.
Solana has rallied about 20% since the middle of last week.
When it comes to the overall crypto market, Solana is as important as anything.
It is the 4th largest token with a market cap of about $74B. For context, if Solana was in the S&P 500, it would carry a larger weight than large cap stocks like Target, Crowdstrike, and FedEx. It's a big deal.
But more importantly, Solana is the secular leader when it comes to crypto.
It tends to move first, and tip off the rest of the asset class, and it tends to outperform during bull cycles.
When it comes to our short-squeeze universe, the best trades tend to come from the junkiest stocks.
In late 2022, we went dumpster diving for the most beat-up and heavily shorted stocks in the market and had some big winners. We were at the depths of the bear cycle, and the charts looked terrible. They were supposed to be zeros, but they weren't.
Just look at how Carvana $CVNA has performed since we were buying it at 8.25 almost 2-years ago.
Another junky group that has been working recently is the Marine Shipper industry.
Our custom Marine Shipping Index is on the verge of reclaiming the 61.8% retracement of its prior drawdown:
Our International Hall of Famers list is composed of the 100 largest US-listed international stocks, or ADRs.
We've also sprinkled in some of the largest ADRs from countries that did not make the market cap cut.
These stocks range from some well-known mega-cap multinationals such as Toyota Motor and Royal Dutch Shell to some large-cap global disruptors such as Sea Ltd and Shopify.
It's got all the big names and more–but only those that are based outside the US. You can find all the largest US stocks on our original Hall of Famers list.
The beauty of these scans is really in their simplicity.
We take the largest names each week and then apply technical filters in a way that the strongest stocks with the most momentum rise to the top.
Based on the market environment, we can also flip the scan on its head and filter for weakness.
Last summer, Sean and I toured Southeast Asia and gave presentations at CMT events in seven different countries.
I was lucky enough to learn firsthand about the local companies, the nuances of their financial markets, and the compelling growth stories that are playing out in this exciting region of the world.
I fell in love with some of the places I visited.
In countries like Vietnam, Malaysia, and the Philippines… you could literally see it. You could feel it in the air. You could hear it in the voices of the people we met and had conversations with. It was an exhilarating experience.
The runways for these countries to keep growing and eventually play a larger role in the world economy was obvious. The investment opportunity seemed massive.
I was all in on emerging Asia. It was a no-brainer.
But, there was one big problem…
The charts were not telling this story of growth and prosperity. These countries were all trading around new lows.
I was telling the same joke at every new CMT meeting when I got to the segment about local markets. I only had good news for our friends in Japan.
Welcome to TheJunior International Hall of Famers.
With the goal of finding more bullish setups, we have decided to expand one of our favorite scans and broaden our regular coverage of the largest US-listed international stocks, or ADRs.
This scan is composed of the next 100 largest stocks by market cap, those that come after the top 100 and are thus covered by the International Hall of Famers universe.
Many of these names will someday graduate and join our original International Hall Of Famers list. The idea here is to catch these big trends as early on as possible.
Let’s dive right in and check out what these future big boys are up to.
This is our Junior International Hall of Famers list:
In this scan, we look to identify 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.
Gold has been making new all-time highs consistently since March and now Silver looks like it wants to join in on the fun.
I think there is a major catchup trade brewing as silver threatens to resolve this multi-year basing pattern. In fact, it looks like it may already be underway.
Today it rallied nearly 5%, marking its best day since May, and closed at its highest level in over 10 years.
I love to see this kind of momentum on breakouts.
I also think gold has given us a beautiful roadmap for where silver is headed next.
The chart below shows the historical correlation between gold and silver.
Uncorrelated trades continue to pay off as an effective way to diminish portfolio risk in this messy market environment.
A few days ago, a trade was put on United States Natural Gas Fund ETF $UNG for Breakout Multiplier members.You can see the details here.
Fast forward to today, and the value of those options have doubled. This gives us and our members the opportunity to take half off the table and enjoy a free ride.
While we are able to reduce our risk in the trade, and always want to in these cases, we still like Natural Gas a lot… maybe even more than we did when we put the trade on initially.
Here’s a look at natty gas putting the finishing touches on a short-term bearish-to-bullish reversal within the context of a longer-term rounding bottom formation.
We love our bottoms-up scans here at All Star Charts. We tend to get really creative when making new universes as we want to be sure they will deliver us the best opportunities the market has to offer.
However, when it comes to this one, it couldn't be any simpler!
With the goal of finding more bullish setups, we have decided to expand one of our favorite scans and broaden our regular coverage of the largest US stocks.
Welcome to TheJunior Hall of Famers.
This scan is composed of the next 150 largest stocks by market cap, those that come after the top 150 and are thus covered by the Hall of Famers universe. Many of these names will someday graduate and join our original Hall Of Famers list. The idea here is to catch these big trends as early on as possible.
There is no need to overcomplicate things. Market cap is a quality filter at the end of the day. It only grows if price is rising. That's good enough for us.
Our Hall of Famers list is composed of the 150 largest US-based stocks.
These stocks range from the mega-cap growth behemoths like Apple and Microsoft – with market caps in excess of $2T – to some of the new-age large-cap disruptors such as Moderna, Square, and Snap.
It has all the big names and more.
It doesn’t include ADRs or any stock not domiciled in the US. But don’t worry; we developed a separate universe for that. Click here to check it out.
The Hall of Famers is simple.
We take our list of 150 names and then apply our technical filters so the strongest stocks with the most momentum rise to the top.
Let’s dive right in and check out what these big boys are up to.
