Expert technical analysis of financial markets by JC Parets
From the Desk of Ian Culley @IanCulley
What started out as a bearish reversal in the dollar-yen is beginning to look more like a bullish continuation pattern.
Buying the Japanese yen will produce absolute gangbuster returns – at some point.
But the market’s simply not there yet…
From the Desk of Alfonso Depablos @Alfcharts
When assessing the overall market, we are always asking a lot of the same questions. One of the more common ones is, “how are the laggards doing?”
Many times, these will be the culprits of the last bear market. Other times, they are former leaders that have lost their way.
For a healthy and sustainable bull cycle to take place, we eventually need these laggards to participate.
For the 2021 and 2022 bear, speculative growth was the poster child.
We’re talking about biotech, the ARK funds, the IPO index, online retailers, etc. These groups were absolutely decimated.
Not only did they experience some of the worst bear market drawdowns, but in 2023, when new leaders emerged, and many areas of the market began to move higher, these laggards continued to struggle.
Fast forward to today, and these groups are still repairing the technical damage from the prior cycle. With that said, the seeds have been planted for some epic bearish-to-bullish trend reversals.
We think these transitions are happening now. Let’s hit the charts and talk about it.
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 long-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 five to nine years.
We call them the Young Aristocrats, and the idea is that these are “stocks that pay you to make money.” Imagine if years of consistent dividend growth and high momentum and 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.
Oftentimes, the strongest performers in this universe and even the Aristocrats themselves pay relatively small dividends. This is usually because the stock appreciation makes it tough to keep up with the payout — even for companies that consistently grow their yield in the double-digits! For this reason, we don’t have a minimum threshold for the dividend. What we’re really doing here is creating a list of quality stocks based on their ability to persistently grow their shareholder return.
And maybe the best part? This list is not just designed for long-term investors. Any kind of investor or trader can use this list as it helps generate ideas across all timeframes, even the short term. Remember, some of the most important filters we use for this list are momentum, relative strength, and proximity to new highs.
From the Desk of Steve Strazza @Sstrazza
Welcome to The Minor Leaguers.
We’ve had some great trades come out of this small-cap-focused column since we launched it back in 2020 and started rotating it with our flagship bottom-up scan, Under the Hood.
For the first year or so, we focused only on Russell 2000 stocks with a market cap between $1 and $2B.
That was fun, but we wanted to branch out a bit and allow some new stocks to find their way onto our list.
We expanded our universe to include some mid-caps.
To make the cut for our Minor Leaguers list now, a company must have a market cap between $1 and $4B.
And it doesn’t have to be a Russell component — it can be any US-listed equity. With participation expanding around the globe, we want all those ADRs in our universe.
The same price and liquidity filters are applied. Then, as always, we sort by proximity to new highs in order to focus on the best players.
The goal is to catch the strongest names while they’re small and have serious upside potential. If any of these stocks ever climb the ranks to the big leagues, the returns could be huge.
We’re looking at up to 10x moves just to break into large-cap land!
Let’s dive into this week’s report and see what’s happening in some of the hottest stocks in the Minor Leagues.
From the Desk of Ian Culley @IanCulley
The market is punishing investors for owning gold mining stocks.
Sure, a handful of gold miners are holding above key levels.
Buenaventura S.A.A. $BVN, Orla Mining $ORLA, and Harmony Gold $HMY belong to this elite group of outperformers.
But that’s about it.
I’m not giving these trades too much room. And I’m not piling into new long positions. Not yet!
Here’s why…
