Utilities - what a run! 

Take a look at the chart ... we have a near perfect projection (percentage) and a 3 drives to a top pattern ...all on a Monthly chart!

Folks, this is a VERY important PATTERN and one which could signal a very big top in the Utilities.  About 8% to go ...

Put this on the radar.

I’m liking energy more and more with each passing day.

And the bull thesis couldn’t be simpler.

It’s a raging bull market for stocks around the world. It’s being led by offense. 

Internals continue to improve. 

And like any bull cycle, as time passes and the market grinds higher, it drags a growing list of non-performers higher with it.

Some call it rotation, but it’s really just a broadening of participation over longer timeframes. 

What I mean is that more groups join the party as the bull market progresses. The ones that had previously not been working, start working. We see it every time.

In bull markets, the laggards catch up to the leaders. And not vice versa.

And it’s happening now, isn’t it?

Look at international markets. Even the worst-performing regions, like Southeast Asia and South America, are now working. They’re actually outperforming in the short-term.

And in the US, look at old laggards like small-caps, speculative growth, and transports. They are working too,...

Would you look at that — Greece ($GREK) just topped our global ETF Power Rankings.

Despite making progress on its debt issues, Greece remains relatively fragile compared to the rest of Europe. So what does it tell us when GREK is leading all global ETFs?

It’s up an impressive +35% year-to-date, while the S&P 500 has barely moved, up just +1.6%.

Take a look at how GREK has performed since the most recent tariff drama that weighed down global markets.

One of the most important themes shaping the 2025 investment landscape is the growing number of opportunities outside the U.S.

Forgotten markets — like much of the Eurozone — are surprising investors with their strength.

And we think that trend is just getting started.

Sign up for my free note here.

We just flipped the script—and it happened fast. In a matter of weeks, we’ve gone from full-blown washout to a full-speed rebound. 

We’re in the middle of a textbook V-shaped recovery. And we’re seeing rotation back into risk assets, which supports the bullish action in the broader market. 

The bulls are back in control.

Just look at Industrials $XLI. It is now the first sector ETF to reclaim its all-time highs and complete the V.

This...

The gold bugs are getting louder.

And frankly, they should be. The weight of the evidence is stacking up in their favor.

We’re not just talking about price action here, although that’s been impressive on its own. 

The intermarket relationships and momentum dynamics are all confirming what the charts have been whispering for months.

This is an uptrend. A real one. And it’s just getting started.

Let’s walk through two key charts that tell the story.

The first time I opened a brokerage account, I didn’t know what the hell relative strength was.

I just bought dips.

In 2008…

And like clockwork, the market kept falling... and I lost everything in that little account.

Every damn dollar.

I remember thinking, “How do people actually learn to trade? Is this even possible?” It felt impossible at the time. But deep down, I knew I’d figure it out, I had to.

Fast forward a few years—I'd devoured every book, article, chart, and white paper I could find on relative strength (not to be confused with RSI—different beast).

Relative strength compares an asset’s performance to a broader index. If it drops less or climbs more, it’s showing strength. And strength attracts capital. Leaders lead. That’s the game.

But this flew in the face of everything I was ever taught…

Buy low, sell high... Where does that logic even...

While most of the heavyweights have already reported their quarterly earnings, there are still plenty of names left on the docket. And as always, earnings reports can be a powerful catalyst.

I used to fear earnings season. The old stock trader in me had it drilled in early: don’t hold into earnings. The risk of an overnight blow-up always loomed too large.

But now? I see it differently.

As an options trader, I can define my risk. And that’s a game-changer. I no longer automatically avoid stocks with earnings coming up. In fact, I often lean intothose setups now—especially when I see a trend that looks like it’s just waiting on a spark to resume.

Case in point: I’m putting on a new trade today in a stock from the global life sciences sector. It has earnings coming up, yes—but it also has a...

Today's trade is in a $39B leading provider of software solutions for the global life sciences sector that is on the verge of breaking multi-year highs with an eye towards making a run at all-time highs.

There is an earnings release coming up soon which I think will be the catalyst to get the move underway.

In today’s Daily Digest, we’ll review the following:

1. No new positions today.
2. Adjustment to XLC position.
3. No exits since the last report.
4. Current status of open campaigns.
5. Volatility Snapshot.

Let’s dig in!

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.

Nowadays, to make the cut for our Minor Leaguers list, 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...

Applied Materials $AMAT can’t catch a break.

The company reported mixed results last week, and the stock dropped 5.3% on Friday.

This marked its 5th consecutive negative earnings reaction. 

That’s not a one-off... 

That’s a trend, and not the good kind.

This is one of the most important names in the semiconductor supply chain. 

If this is how the market treats it after a decent report, we’ve got to ask: what’s really going on here?

Once again, price is running into overhead supply, and once again, sellers are showing up in force.

So what else did we learn from Friday's earnings reactions? Let’s dive into the details.

*Click the image to enlarge it

Take-Two Interactive Software $TTWO had the best reaction score after reporting mixed results.

The company reported revenues of $1.58B, versus the expected $1.55B, and earnings per share of $1.08, versus the expected $1.10. 

I just returned from the annual ISPOR show which showcases companies which tell the 'value' of a therapy coming to market ... thru a combination of "evidence synthesis, economic modeling or RWE (Real World Evidence) studies very smart people are able to create models which show the value - economic and medical for anything hitting the streets.  This industry is reeling ... between the disruption w/in HHS, NIH, etc., the pricing EO, Medicare and UNH we are in a very real pivot at how Pharma/Health Care will be administered in the future.  I don't think there is any going back.  

My good friend, a 25 year pharma executive, told me this week this is the biggest disruption he has ever seen.  Will the drugs and devices go away? Of course not, and they shouldn't ...will the crazy run these companies have been on happen again?  Possibly.  That being said, business models are being retooled as I type ...

Hence, the IBB chart below.  Looks like it's sitting on a cliff of support and just finished a three way move up at the recent highs ... if/when we break the dashed red line of support, look at the near perfect BUY we have.  That will...

Today's number is... 49.5%

49.5% of S&P 500 stocks are now in strong uptrends.

Here’s the chart:

 Let's break down what the chart shows:

• The blue line in the top panel shows the price of the S&P 500 index.
• In green is the % of S&P 500 stocks above both their 200-day and their 50-day moving averages, indicating a longer-term uptrend.
• In yellow is the % of S&P 500 stocks above their 200-day but below their 50-day moving averages. This indicates a longer-term uptrend but a short-term mess.
• In red is the % of S&P 500 stocks below their 200-day and below their 50-day moving averages, indicating a longer-term downtrend.

The Takeaway: This chart does a good job of showing what’s really happening under the surface. And something just changed.

For 47 trading days, more S&P 500 stocks were trading below both their 200-day and 50-day moving averages. That trend had been in place for a while.

Now, that’s flipped.

Nearly half of the S&P 500 stocks...

Like the rest of the All Star Charts team, I spent last week in New Orleans. It was hot. It was muggy. But the food—oh man, the food—made it all worth it.

I think I hit all the cornerstones of New Orleans cuisine:

Crawfish. Muffuletta Sandwich. Gumbo. Jambalaya. Shrimp Ettoufee, Alligator Po-Boy sandwich. Lousiana Fried Catfish. Red Beans and Rice. Grilled Oysters. Andouille Sausage. Beignets. Bananas Foster.

I even enjoyed a non-alcoholic Hurricane. I was told it was a "Category 1". LOL

This trip was also a first for me: my first time visiting New Orleans sober. And let me tell you, it didn’t change my love for the city one bit. I still soaked in the music, the architecture, the culture, and that ever-present sense of celebration that pulses through every corner of the French Quarter.

But being clear-eyed did sharpen my awareness of some of the more absurd—and uniquely American—aspects of the experience. Lets just say I raised my eyebrow more than once at some of the things I observed...

The contrast was never more apparent than on the days we held our Portfolio Accelerator meetings in our hotel, right on Bourbon Street.

...

I have just returned to Kansas after spending a week in New Orleans with some of the brightest minds in finance at our Portfolio Accelerator event.

I had oysters for the first time, and they exceeded my expectations. 

And I had my first hurricane, a drink that New Orleans is known for. They put way too much sugar and vodka in it... I don't think I'll try it again.

I also spent some time at the jazz bars where the music was incredible. My favorite was Pat O'Brien's Dueling Piano Bar, which I highly recommend you visit if you ever get the chance.

It was great to spend time with my Stock Market Media family. 

Jason and Spencer were unable to attend, but everyone else was there. Mary, Alfonso, Steve, Sean, Grant, Rick, Louis, Patrick, Riley, and, of course, my loud and obnoxious Cuban friend, JC.

We also welcomed friends from around the world, and I’m incredibly grateful for the deep bench of talent and insight this community brings. It’s truly the best network in the business.

One highlight was hearing Brien Lundin speak Wednesday afternoon...

Last week was packed with key reports, and while the numbers told one story, the reactions told another.

We saw some names break out to new highs. 

Others got slammed, even after solid results. 

A few quiet leaders continued to quietly lead. 

And some names, despite years of consistent performance, just couldn’t catch a bid.

Here’s what stood out… 👇

• Monday:
  • Monster Beverage $MNST reported mixed results, but the market liked it. The stock has been rewarded for 18 of its last 26 earnings reports.
  • McKesson $MCK reported mixed results, but the stock rallied on the news. They've been rewarded for 19 of their last 25 earnings reports.
• Tuesday:
  • NRG Energy $NRG reported a double beat and had its best earnings reaction ever. The stock made a gap-n-go to new all-time highs.
  • Fox $FOX reported a double beat and rallied for its 5th consecutive...