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...

We’re back from New Orleans, so I’m doing a lot of catching up this weekend.

When I was plowing through charts yesterday, I realized two appeal to me a lot more than the rest right now.

One of the things I always do at Portfolio Accelerator is share my best ideas for the coming months and quarters.

I’ll share some tactical opportunities and discuss the themes and areas of the market I’m interested in trading.

But I’ll also zoom out and talk about some of the fresh new uptrends I’m buying with a longer timeframe in mind.

I’ve been an Asia bull for some time now. China has already been the best idea at past conferences. BABA, BIDU, and TCEHY are currently conviction longs for this theme. 

Southeast Asia’s online retail giant, Sea Ltd $SE is another one I shared with our clients at one of last year’s events. It’s been a top international stock. It’s one of my largest long-term holdings...

The S&P GSCI Commodity Index just bounced from a critical level… again.

You don’t need to be a technician to see the importance of 500 on this chart. 

It was the top in 2018. It was the ceiling again in 2021. 

Since then, it’s become the most important shelf of support in the entire commodity complex.

Now, after retesting this level multiple times in the last two years, we’re once again sitting on the edge.

Support and resistance are not random. 

This 500-level has acted as a magnet for prices in recent years. 

If this shelf gives way, it opens the door to a much deeper reset in the commodities market.

However, for now, the level is holding steady.

Let’s talk about what this index is made of...

The S&P GSCI is primarily focused on one thing above all else: Energy.

• Energy makes up 57.4% of the index in 2025, led by:
  • WTI Crude Oil (15.3%)
  • Brent Crude Oil...

This is the weekly post that aggregates all the charts we put together throughout the week and organizes them all into one, easy to flip through deck.

The US Dollar Index $DXY continues to sit near the top of our macro checklist.

It’s been one of the more important tells of the cycle, not just for currencies—but for equities, commodities, and global risk assets.

Traditionally, the dollar moves opposite to US stocks. But as technicians, we know better than to marry intermarket correlations. These relationships ebb and flow, strengthen, weaken, invert, and sometimes go completely quiet. That’s normal.

Late last year, a big shift took place as stocks began to...

Below is my weekly video for members of Macke's Retail Roundup.

If a few weeks ago we had 'The Week From Hell" as I called it, then this week was "The Best Week Ever". 

My Retail Roundup Portfolio ripping right now thanks to the changing market sentiment. And our newest position just had its second-best week as a public company. 

So I'm in a great mood! 

Below is my latest update on the portfolio, as well as a couple of new ideas for stocks that I could be interested in soon.

I talk all the time about how the options market makers are not stupid. Options are priced the way they are, when they are, because options market makers know what they are doing. Usually.

But once in a blue moon, they can get caught sleeping. 

I think I may have found one such opportunity and I want to pounce on it today.