On today’s call we discussed rolling some positions that have entered the theta decay window. When we still like a setup, but we didn’t buy enough time, we simply buy more calls further out. 

Remember, this is what we did with SOUN. It was a zero before it was our best trade of the year.

Right now, HIMS is coming out of a perfect pattern as bulls regain control of the tactical trend.

We are going to game this roll a little bit and hold onto our existing calls for now. I think we’re coming out of this coil and can get more for them soon.

But in the meantime, let's position in new calls that give us a better shot of winning big.

We’re...

Here's the replay and chartbook from the January 23 Weekly Strategy Session.

Be sure to join us on Thursdays at 11 am ET and maximize your return potential.

With Bitcoin closing in on fresh all-time highs, our crypto-related trades are playing out just as planned.

Our $CORZ 2/21 $17 calls just hit a high of $1.12 this morning.

We put them on Friday for $0.55.

Depending on your entry price, you might already have a double on your hands.

If that’s the case, it’s time to take action—we’re locking in some profits today and letting the rest ride risk-free.

We’re also keeping a close eye on $APLD and $CSCO, as both are approaching double territory.

With CSCO trading at new highs right now, I think we could get the move we need by today’s close.

Set your alerts and be ready for it!

Steve

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

1. New position in XLB.
2. No adjustments are needed today.
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

We love our bottoms-up scans here at All Star Charts. We tend to get really creative when making new universes as we want to be sure they will deliver us the best opportunities the market has to offer.

However, when it comes to this one, it couldn't be any simpler!

With the goal of finding more bullish setups, we have decided to expand one of our favorite scans and broaden our regular coverage of the largest US stocks.

Welcome to The Junior Hall of Famers.

This scan is composed of the next 150 largest stocks by market cap, those that come after the top 150 and are thus covered by the Hall of Famers universe. Many of these names will someday graduate and join our original Hall Of Famers list. The idea here is to catch these big trends as early on as possible.

There is no need to overcomplicate things. Market cap is a quality filter at the end of the day. It only grows if price is rising. That's good enough for us.

The bottom line is it is a bull market. We...

We just heard from 14 of the largest corporations in the world.

The biggest winner was Netflix, $NFLX, which soared higher after a top- and bottom-line beat. The company said it added 19M paid subscribers, the most in its history.

It was a glorious day for the NFLX bulls, but that wasn't it.

Let's go over what else happened on Wednesday.

*click the image to enlarge it

Teledyne Technologies $TDY rallied 6.42% with a reaction score of 3.80 after reporting a double beat. 

The company also issued upbeat guidance for 2025.

Johnson & Johnson $JNJ beat its expectations but fell nearly 2%, with a reaction score of -2.52. 

Stelara sales, one of JNJ's most significant revenue sources, are declining because of biosimilar competition. Management expects that trend to continue, and the stock is declining because of it.

Procter & Gamble $PG rallied nearly 2% with a reaction score of 1.31 on the heels of a double beat. 

The company is continuing to return cash to shareholders rapidly. During the quarter, PG returned...

Let’s kick off with UnitedHealth Group $UNH, where Director Timothy P. Flynn made waves by purchasing 1,000 shares, a buy worth $511,575. 

That’s a confident signal from inside one of the healthcare giants.

Here’s The Hot Corner, with data from January 22, 2025:

Meanwhile, over at Home BancShares $HOMB, Chairman, CEO, and Co-Founder John W. Allison put his money where his mouth is, snapping up 10,000 shares. 

That’s a bold vote of confidence from the man who built the bank from the ground up.

The stock has carved out a massive base for the last eight years. Price is pressing against the top of the range as buyers work on absorbing all the overhead supply at this resistance zone:

If we get a decisive breakout above 30, the path of least resistance will switch higher.

Today's number is... 17.5

Bank of America's US High Yield Option-Adjusted Spread is currently at its lowest level in 17.5 years.

Here’s the chart:

(right-click and open image in new tab to zoom in)

Let's break down what it shows:

• The black line is the BofA’s US High Yield Option-Adjusted Spread.
• The red line is the 40-week moving average of the High Yield Spread.
• The blue line is the S&P 500 index price.
• The gray shading highlights when the high yield spread 40-week average is trending lower.

The Takeaway: Let me explain this data more clearly…

A widening in high-yield spreads (the black line moving higher) typically indicates a risk-off environment. This suggests that investors are becoming more risk-averse and that the economy may be facing challenges. Conversely, a tightening in high-yield spreads (the black line moving lower) indicates the opposite.

If there had been meaningful stress in the stock...

Consumer Discretionary $XLY and Financials $XLF are still the strongest sectors right now.

What's capturing our interest is the rebound we've seen in energy stocks, pictured below.

While this is certainly a positive development for the sector, we're still mindful that the Large Cap Energy ETF $XLE is still rangebound and isn't offering an actionable setup currently.

Jeff Macke has been analyzing retail stocks for more than 30 years. Now, for the first time, he's sharing his ideas in a live model portfolio and sharing his best ideas as part of the Retail Roundup. Learn more in this special live event.

Click here to watch the replay.

We’re at a huge pivot point for the US Dollar. 

It’s in make or break territory—either the dollar cracks here, just like it did after Trump’s last inauguration, or it holds strong and puts pressure on stocks, commodities and the global economy. 

I’m betting the greenback is heading south, and if I’m right, it’ll be a game changer for risk on assets.

Remember what happened to Bitcoin the last time the dollar fell back in 2017?

Historically, a weakening dollar has fueled massive moves across commodities, currencies, cryptocurrencies, and real economy stocks. 

This isn’t just a short term trend—it’s the kind of shift that can set the tone for the next major macro cycle.

The dollar’s next move holds the key to what’s ahead for global markets. 

Thanks for reading.

And be sure to download this week’s Currency Report!

Click here for our Weekly Currency Report.

JC has really been bringing the heat with his chart game lately.

I just rewatched the monthly conference call from Monday night where he ripped through over 115 charts. 

He went over a ton of valuable topics and themes, from forex to sentiment and even some risk appetite.You can sign up here and watch it. These calls are one of the best things we do at All Star Charts.

In the meantime, I stole two of my favorite charts from his slide deck to share with you.

Here’s the first one. This is a textbook topping formation in Eli Lilly $LLY with a peak marked by the old reliable magazine cover indicator from October of last year.

The timing from these headline writers is just too good sometimes. This is the millionth example. They nailed it again.

They call them the “everything drugs.” They are probably not, but let's just go with it. This excerpt is all you need to know about the vibe on the street for GLP-1 stocks.

“[GLP-1 drugs] started as treatments for...

Thanks to everyone who joined us for today's Hot Corner Insider Weekly Strategy Session.

Today's trade leverages the flexibility of calendarized options spreads to put us in a long, free position for a potentially long ride.

This would be a highly desired position of strength.

From the Desk of Steve Strazza @Sstrazza

Welcome to The 2 to 100 Club.

In this scan, we look to identify the strongest growth 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, Salesforce, and myriad others – 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'll notice we're only focused on Technology and Growth industry groups such as Software, Semiconductors, Online...

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

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

Let’s dig in!

Technology stocks have been quite the laggard for some time. In fact, the Large-cap Technology Index ($XLK) is actually down since mid-July.

Sector Rotation is the lifeblood of a bull market. How many times have you heard me say that?

And this cycle is no different. They used to tell me that it was only the Tech stocks that were driving this bull market, and nothing else what's working.

Here we are with the S&P500 hitting new all-time highs literally every single month, and Technology stocks are actually down since July.

It's been the epic rotation into Consumer Discretionary that has helped drive this market higher. 

Yesterday I hosted a...

The S&P 500 closed less than 1% from a new all-time high in the 1st market session under the new Trump administration.

It was a great day for the bulls.

In addition to the broad rally, investors dove into the latest financial results from massive corporations like Charles Schwab, DR Horton, and 3M.

*click the image to enlarge it

Prologis $PLD, a leading industrial warehouse REIT, had the best earnings reaction and rallied over 7% with a reaction score of 3.43. PLD reported mixed top and bottom-line results, but the market did not care about that. It was all about the positive guidance for 2025.

The company is trying to grow its presence in the data center and energy industries, and the market is rewarding them for their efforts. 

DR Horton $DHI, the largest homebuilder, beat its top and bottom-line expectations but fell over 2.50% with a reaction score of -2.29. This poor reaction was primarily due to the negative gross margin guidance for 2025.

The homebuilders have been in the penalty box as an industry group, and DHI hasn't been...