From the desk of Steve Strazza @sstrazza

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 absolute and relative trends at play and preview some of the things we’re watching to profit in the weeks and months ahead.

We continue to harp on the risk-on themes that support our bullish macro thesis.

Rotation down the market-cap scale, commodity strength, and defensive alternatives making new relative lows have been some major themes we continue to see play out.

From the desk of Steve Strazza @sstrazza

If Bitcoin's run to $50,000 or the latest YOLO stocks aren't too distracting right now, you might have noticed Crude Oil just registered new 52-week highs for the first time since fall 2018.

Or maybe you're ahead of the curve and caught our post about the Energy Sector experiencing what looks like a bullish initiation thrust just a few weeks ago.

Or perhaps you saw Financials just closed the past week at fresh all-time highs... finally breaking out after almost 15-years of no progress!

On top of all this action, the US 10-Year Yield is also pressing on its highest level in almost a year.

It's clear that more cyclical stocks and economically sensitive Commodities are taking on leadership roles. We're in quite the risk-on environment.

Considering the evidence we just listed, it's finally time to address the elephant in the room...

From the desk of Steve Strazza @sstrazza

Another fresh Mystery Chart!

What we do here is take a chart that's captured our attention and remove the x/y-axes as well as any other other labels that'd help identify it. This chart can be any security of any asset of any timeframe - on absolute or relative basis.

Maybe it's a ratio, a custom index, or maybe price is inverted. It could be all three!

The point is, when we aren't able to recognize what's in front of us, we put aside any biases we may have and scrutinize it objectively.

While you can try to guess the chart, the point is to make a decision...

So let us know what it is… Buy, Sell, or Do Nothing?

From the desk of Steve Strazza @Sstrazza

In a further effort to identify individual equities that fit within our larger Macro thesis, we recently rolled out our latest bottoms-up scan: "The Minor Leaguers."

We write a post every other week where we outline some of our favorite setups from the watchlist.

We've already had some great trades from this universe and couldn't be happier about the early feedback.

Moving forward, we'll be rotating this column with "Under The Hood" each week.

In order to make it onto our Minor League list, you must have a market cap between $1 and $2B. There are also price and liquidity filters.

Then, we simply sort the stocks by their percentage from new highs. Easy done.

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

Leadership in this environment is stretching far and wide.

We're seeing a growing number of industry groups and areas not only making new highs but also outperforming and offering us more and more avenues to express our bullish thesis on stocks and risk assets in general.

Last week, we discussed Commodities and Ags.

The week before that, we dove into Chinese equities.

And for some time now, we've been vocal on SMIDs in general.

The point is, with such an overwhelming amount of leadership these days, we can be picky and place our bets on only the best of the best in each group.

In today's post, we'll explore a hot new growth industry we haven't covered in much detail yet - Autonomous Vehicles.

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

As JC pointed out the other day, this week we saw the most amount of new 52-week highs in the history of the Nasdaq.

That's right. The highest reading ever. That's bullish.

We've also witnessed another very encouraging development in market internals of late.

Let's talk about it...

From the desk of Louis Sykes @haumicharts

Two ETFs tracking the same sector, industry, or niche area can yield significantly different outcomes.

We see it all the time.

I'll share a few examples, along with a short discussion of what I've taken away from it all.

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.

From the desk of Steve Strazza @Sstrazza

Dividend aristocrats are easily some of the most desirable investments on Wall Street. These are the names that have increased dividends for at least 25 years, providing steadily increasing income to longer-term minded shareholders.

As you can imagine, the companies making up this prestigious list are some of the most recognizable brands in the world. Coca-Cola, Walmart, and Johnson & Johnson are just a few of the household names making the cut.

Here at All Star Charts, we like to stay ahead of the curve. That’s why we’re turning our attention to the future aristocrats. In an effort to seek out the next generation of the cream-of-the-crop dividend plays, we’re curating a list of stocks that have raised their payouts every year for 5-9 years.

Introducing the Young Aristocrats. We like to say these are “stocks that pay you to make money”. Imagine if years of consistent dividend growth and high momentum & relative strength had a baby, leaving you with the best of the emerging dividend giants that are outperforming the averages.

From the desk of Steve Strazza @sstrazza

We've enjoyed a ton of success with the bottoms-up scans and the columns they've inspired.

We absolutely love our scans! When we combine them with our traditional top-down approach, they make it almost impossible to miss key market themes.

In fact, we've launched four columns around these scans since last year -- and we have many more that we only run internally.

Today, we're sharing one with you. We call it "Fade The Street," and it's one of my personal favorites.

The scan leverages data from sell-side analysts including their buy/sell ratings and price targets in order to identify stocks with the potential to become the market's next big winners.

How do we do this? Simple...

We scan for top-performing stocks that happen to be some of the most-hated and out-of-favor names on the street. Basically, we're looking for names that analysts have gotten wrong - or at the very least, are trending against their respective ratings.

We like buying stocks that are breaking out of bases, regardless of what sector they're a part of.

But when you combine a emerging leadership with these base breakouts, now you have a smokin' combination!

That's exactly what's happening in the Pot space. Make sure to check out our latest on Marijuana Stocks here.

But today it's the Cresco Labs that has my attention. 

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

New Mystery Chart!

For those new to this exercise, we take a chart of interest and remove the x/y-axes and any other labels that would help identify it. The chart can be any security in any asset class on any timeframe... on an absolute or relative basis.

Maybe it’s a custom index or price is inverted, who knows!

We do all this to put aside the biases we have associated with the asset in order to take a view based solely on price behavior.

You can guess what it is if you must, but the real value comes from sharing what you would do right now.

So let us know what it is... Buy, Sell, or Do Nothing?