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Welcome to the Best 3 Months of the Year!

November 6, 2020 by JC

Welcome to the Best 3 month period of the year!

They always make a big fuss about “Sell in May and Go Away”, but rarely do you they tell you to “Remember to Buy in November”. Or as my friend Jeff Hirsch, of the Stock Trader’s Almanac, likes to put it, “Buy in October and Get Yourself Sober”.

All these sayings derive from the fact that since 1950, every single dollar made in the Dow Jones Industrial Average has come between the months of November through April. In fact, had you bought the Dow on the first trading day in May every year since 1950 and sold on Halloween, you would actually have negative return (or close to it, anyway. I believe the past couple of years put it in the black).

Now, within the “Best 6 Months” of the year, you have an even sweeter spot: November – January.

The way I see it, if stocks couldn’t fall during what is historically the worst time of the year, imagine how they’ll do during a time where they’re actually supposed to go up!

Here’s how stocks did during the “Worst 6 months” of 2020: [Read more…]

Biotechnology Breaks Out Of Historic Base

November 5, 2020 by JC

When I was going through my charts this week, this is one of the ones that stood out the most. I see Biotechnology, on both an equally-weighted and cap-weighted basis, breaking out of major bases.

More specifically, if you look at the Cap-weighted Index Fund $IBB, we’re talking about half a decade of no progress. It looks to me like this is all changing now: [Read more…]

[Premium] 2 to 100 Club (11-05-2020)

November 5, 2020 by Steve Strazza

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.

Some of the best performers in recent decades – stocks like Priceline, Amazon, Netflix, and Salesforce, to a myriad of others… all would have been on this list at some point during their journey to becoming the market behemoths they are today.

When you look at the stocks in our table you will notice we are only focused on technology and growth industry groups such as Software, Semiconductors, Online Retail, Solar, etc.

Then like any good technician, we filter the list down to those that are closest to new 52-week highs. This allows the cream of these strongest groups to rise to the top and makes our job easier to identify technical breakouts in the top-performing stocks.

[Read more…]

[Options] Tis the Season?

November 4, 2020 by Sean McLaughlin

Depending on where you’re located, the month of November means many of you are looking forward to your first snow falls of the season. Were I live here in Colorado, we’ve already had two snow storms — the first one on the day after Labor Day!! Don’t feel sorry for me though, we love it. And with all the wildfires Colorado has had recently, it was badly needed.

With snow on my mind, it feels fitting today’s trade idea is also related to snow, if in name only. [Read more…]

Young Aristocrats (November 2020)

November 4, 2020 by Steve Strazza

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.

By adding our technical analysis to the mix, the Young Aristocrat setups give you the opportunity to own the best of the market’s future blue-chip winners before they become must-own household names.

And maybe the best part? This list is not just designed for long-term investors. Traders of all time frames can use this list to help generate ideas even in the shorter-term. Remember, some of the most important filters we use for this list are momentum, relative strength, and proximity to new highs. So let’s keep it real, these stocks are going up across all time horizons.

With that said, Let’s dive right in… [Read more…]

Mystery Chart (11-03-2020)

November 3, 2020 by Steve Strazza

From the desk of Steve Strazza @Sstrazza

New Mystery Chart!

For those new to the 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 inverted, who knows!

We do all this to put aside the biases we have associated with this specific security/the market and come to a conclusion based solely on price.

You can guess what it is if you must, but the real value comes from sharing what you would do right now. Buy, Sell, or Do Nothing?

[Read more…]

[Video] Big Trends Monthly w/ Josh Brown (EP.4)

November 3, 2020 by JC

Welcome to Episode 4 of the JC & Josh Brown show that he likes to call, “Big Trends Monthly”. This is where we discuss a handful of the most important monthly charts that stood out during my review.

I’m always preaching how this is probably the most valuable part of my entire process: Monthly Charts! It’s only something I have to do 12 times a year and might take me 30-45 minutes each month. This forces us to take a step back and gives us no choice but to identify the direction of primary trends.

Josh Brown is one of the most widely followed financial advisors in the country, and he appreciates these monthly candles as much as anyone else I know. So we’re now doing a monthly show about it. You can catch up on last month’s episode here.

Check out latest show where we discuss the rotation into Emerging Markets, Chinese Tech Stocks, What’s next for Gold and Bitcoin, and a sneak peak at this month’s Young Aristocrats list. [Read more…]