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. NEW: Volatility Snapshot.

Let’s dig in!

Last month, we discussed the Palladium ETF $PALL hitting fresh 7-year lows, breaching a critical support level.

However, the bears could not gain any downside momentum, and it seems like we're nearing a cyclical trough.

Commercial hedgers have never carried a larger net-long position. Historically, it has been prudent to not bet against the smart money in commodities markets.

And one of our favorite long-term momentum indicators, the monthly MACD, has now given us a buy signal. That said, it's still a bit messy in the short term.

Let's talk about it.

The most significant insider buy on today's list comes from two Form 4 filings by the CEO and COO of Prospect Capital Corporation $PSEC.

Together, they reported purchases of additional PSEC shares totaling $3.9 million.

Here’s The Hot Corner, with data from September 6, 2024:

I've anticipated sideways price action for a month.

This continues as my intermediate outlook (months) has shifted from bullish to neutral as Bitcoin lost $56,000 and stocks appear as if they need time to improve.

My short-term outlook (weeks) moves from neutral to bullish, with Bitcoin and Ethereum at their lows and negative funding set us up for a bounce. I remain long on tokens like HNT, SOL, and BLUR holding support, but await further market shape before becoming overly bullish.

High Beta outperforming Low Volatility stocks is usually something we see in healthy market environments.

This year, however, High Beta has been struggling to make any progress vs their Low Volatility counterparts.

"Beta" is essentially how volatile a stock is relative to its benchmark.

So High Beta think $SMCI, $NVDA, $AMD, $AVGO and others. You have half the S&P500 High Beta Index in Technology and another 17% in Consumer Discretionary.

In contrast, for Low Volatility think Berkshire Hathaway, Coca-Cola, Visa, Procter & Gamble. You'll find a lot of Financials, Consumer Staples, Utilities and Industrials in this group.

Here is the ratio of High Beta vs Low Volatility breaking down to the lowest levels all year.

This breakdown in High Beta / Low Vol comes in an environment where we have yet to see any real meaningful expansion in stocks hitting new lows.

You can't have a bear market or a correction of any kind without the prices of stocks falling. And we haven't seen that yet.

Check the new 1-month lows, new 3-month lows, new 6-month lows. You'll see.

And don't even bother with new 52-week lows, because they're...

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.

With fall approaching us, things are beginning to change.

The weather is perfect for golfing, the Kansas City Chiefs are back to dominating the NFL, and it's the best time of the year for Natural Gas futures.

In July, we outlined asymmetric risk/reward setups in Natural Gas futures and 4 natural gas stocks.

As we expected, it has taken some time for these setups to come to fruition. 

However, the cleanest fossil fuel has carved out a textbook reversal pattern and looks poised to blast off any day now.

Here's the average monthly performance for Natural Gas futures over the past 3 decades:

Natural Gas has a tendency to rally in the fall as September and October are the two best months of the year.

The longer-term structure is also shaping up quite nicely:

Historically, we've seen demand for methane step in at this level time and again.

But these bottoms have been messy...

So instead of getting chopped up in a range, we like the monthly MACD as a mechanism for timing our entry.

This long-term...

The Analysts here at All Star Charts were discussing Natural Gas in a recent analyst meeting, and the feeling is that 'ol Natty might be putting in a bottom and ready to reverse higher.

It's certainly got me in the mood to 'F around and find out.'

From the desk of Steve Strazza @Sstrazza

Our Hall of Famers list is composed of the 150 largest US-based stocks.

These stocks range from the mega-cap growth behemoths like Apple and Microsoft – with market caps in excess of $2T – to some of the new-age large-cap disruptors such as Moderna, Square, and Snap.

It has all the big names and more.

It doesn’t include ADRs or any stock not domiciled in the US. But don’t worry; we developed a separate universe for that. Click here to check it out.

The Hall of Famers is simple.

We take our list of 150 names and then apply our technical filters so the strongest stocks with the most momentum rise to the top.

Let’s dive right in and check out what these big boys are up to.

Here’s this week’s list:

*Click table to enlarge view

We filter out any laggards that are down -5% or more relative to the S&P 500 over the trailing month.

Then, we sort the remaining names by their proximity to new 52-week highs.

This leaves us with only the strongest stocks. Let’s talk about some of...

With interest rates coming off and expectations for rate cuts on the rise, US Treasury Bonds are hitting the highest levels they've seen all year.

Look at the size of this base in the 7-10yr Bond ETF:

All the attention has been on the yield curve and how we're now officially getting back above the zero line.

This yield curve inversion has lasted longer than ever.

The "recession" was supposed to start when the yield curve originally inverted. 

The "recession" was going to come any minute because the yield curve was inverted for so long.

The "recession" is now going to come because the yield curve is uninverting.

Imagine spending your time worrying about other people's recessions instead of your own personal gain in the market?

Recessions are a choice for many investors, especially the people who own almost all of the assets in the stock market.

And even if the recession wasn't a choice, and something we all have to live with, we know from history that price leads first, and then the economy follows. 

So if your goal as a trader or investor is to profit from the market, then why would you spend any...

Control Empresarial de Capitales S.A. made two notable insider purchases, continuing to increase its holdings in a pair of energy companies.

The Mexico-based investment firm disclosed purchases amounting to $40 million in PBF Energy Inc $PBF and a $26 million investment in Talos Energy Inc $TALO.

The CEO of Lululemon Athletica Inc $LULU revealed a purchase of 4,000 shares, equivalent to $1,040,000.

Here’s The Hot Corner, with data from September 5, 2024:

While crypto is down, Helium is up. That's relative strength.

I'm also watching Polygon for longs and Maker for shorts.

More widely, the correlation between crypto and stocks is back. With Bitcoin nearing my bullish invalidation of 56,000, stocks are selling off and that's dragging crypto down.

From the Desk of Steve Strazza @Sstrazza

Precious metals stocks have been ripping since Gold futures resolved a multi-decade accumulation pattern earlier this year.

But most of these stocks don't have much short interest...

We love to trade stocks with high short interest as there is a built in catalyst of forced buyers when the stock makes an upside move.

Today, we're outlining a trade for a precious metals stock with an extremely high days-to-cover ratio and short interest.

First, check out this long-term uptrend in A-Mark Precious Metals $AMRK:

There aren't many precious metals stocks that look this good...

Here's how we're trading it:

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

1. New position in XME.
2. No adjustments are needed today.
3. No exits since the last report.
4. Current status of open campaigns.
5. NEW: Volatility Snapshot.

Let’s dig in!

The stage is set for a strategic shift.

Since this summer, safe haven assets have been catching a bid and outperforming across the board.

Investors are paying attention to growth indicators like ISM and PMI data. Other investors are looking at CPI and paying extra-close attention to the Fed… 

Here's the US Core Inflation Rate along with the 7-10 Year Treasury Bond ETF $IEF. Since inflation peaked and rolled over in 2022, bonds have been building a massive base:

However, similar to economic growth data, inflation is a lagging indicator.

The same is true for employment.

Here's the unemployment rate along with the 2s/10s spread.

We are starting to see some pressure in the labor market, which goes hand-in-hand with rising treasury spreads.

July job openings dropped to 7.67 million, the lowest since January 2021. This marks a significant decline from the March 2022 peak of 12.2 million. 

There were only 1.1 jobs for every unemployed person, down from 2.0 last year. Major declines were seen in healthcare, government, and transportation. Voluntary quits decreased to 3.3 million...

Here's the replay and chartbook from today's stream. 

Note that we do these videos live every Thursday at 11 a.m. ET, and I answer questions in the chat room. Be sure to join us and maximize your return potential.  

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

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

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 want as many vehicles and...