It has been two-years since the S&P 500 bottomed in October 2022 and stocks began a new bull market. 

During this time, many sectors and industry groups have enjoyed tremendous uptrends while materials stocks have gone sideways.

But materials stocks are starting to look interesting...

The SPDR Materials Sector ETF $XLB is making new all-time highs:

As you can see, the prior cycle high coincides with a major Fibonacci extension level going back to the Great Financial Crisis, which adds to the significance of this breakout.

This market-capitalization weighted fund has a large exposure to Linde $LIN amongst several other bellwether materials stocks.

We want to be long XLB if it's above 93, with a target of 139.

The Materials Sector holds a lot of the same stocks as the S&P Chemicals Index:

The S&P Chemicals Index is consolidating below a major Fibonacci extension level going back to the Great Financial Crisis and we're betting it will breakout to new all-time highs like XLB.

If CEX is above 985, the path of least resistance is higher toward 1,500.

Representing over 17% of the Materials Sector...

Whether markets are full of chop or trending higher, bonds offer a versatile haven for our portfolios.

Take a look at inflation-protected securities, commonly known as TIPS. 

In inflationary environments, these outperform the government bond market.

We think it’s happening now and our intermarket analysis is telling us to buy TIPS.

If you take a look at the chart of the TIP ETF against the 10-year bond ETF, you’ll see consolidation above long-term support. One thing we know about these kinds of consolidations is that they tend to follow through in the direction of the primary trend. 

The trend for TIPS relative to treasuries is higher. 

Historical perspectives, like those found in Jack Schwager’s classic Market Wizards, can offer essential guidance on how to navigate through inflationary periods. I think this is where things are headed.

One effective way to thrive through inflationary periods is by diversifying your portfolio with assets like TIPS (Treasury Inflation-...

From the desk of Steve Strazza @Sstrazza

Our International Hall of Famers list is composed of the 100 largest US-listed international stocks, or ADRs.

We've also sprinkled in some of the largest ADRs from countries that did not make the market cap cut. 

These stocks range from some well-known mega-cap multinationals such as Toyota Motor and Royal Dutch Shell to some large-cap global disruptors such as Sea Ltd and Shopify.

It's got all the big names and more–but only those that are based outside the US. You can find all the largest US stocks on our original Hall of Famers list.

The beauty of these scans is really in their simplicity.

We take the largest names each week and then apply technical filters in a way that the strongest stocks with the most momentum rise to the top.

Based on the market environment, we can also flip the scan on its head and filter for weakness.

Let's dive in and take a look at some of the most important stocks from...

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.  

This trade gets classified as a "Hard Trade."

The stock has had a strong runup in recent weeks. Some traders have a hard time buying stocks making highs.

I don't.

But with implied volatility relatively cheap right now in this stock, an earnings event on the horizon, and a potential "two-hundred-dollar-roll" looming ahead, this feels like the right time to take a defined risk shot.

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

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

Let’s dig in!

Today’s top insider transaction comes from a Form 4 filed by State Farm Mutual Automobile Insurance Company, one of the largest insurers in the U.S. 

State Farm made a bold move with a $1.2 million purchase in GATX Corporation $GATX—a key player in the Rental & Leasing Services industry.

Here’s The Hot Corner, with data from October 10, 2024:

I have been writing about patience for the longest time.

But now I'm finally seeing early signs that altcoins are setting up for an upside move.

As such, I'm increasing my exposure.

Snowflake Inc $SNOW is absolutely on fire, breaking out of its coil with authority these past two days.

This is exactly the kind of explosive resolution we hoped for when we entered our position. Volatility was tight. Now, it’s expanding in our favor. This one is working perfectly according to plan.

Our 11/15 $130 calls hit a high price of $5.15 today. Depending on what you paid, you might have a double on your hands.
 

Tech stocks are taking charge as we kick off the fourth quarter, and I think it’s time to press the gas and prepare for a year-end rally.

When I review our portfolio of open positions I think we have a good mix, and I particularly like how overweight tech we are.

In fact, I think our most promising positions right now are the speculative tech names that we piled into over the past few weeks. I’m talking about Peloton, Robinhood, Snow, and ARKK.

HOOD and SNOW are the only ones working for us so far, but I think this is about to change.

Let’s take a look at the price action in ARKK and discuss why.

When we got long this one, it was coiling in a pennant just above some key VWAPs. 

Last week, ARKK appeared to resolve this coil to the downside as it tumbled to new multi-week lows.

But what has happened since is inconsistent with a pattern resolution… or more specifically, a pattern failure.

There has been no follow-through at all. ARKK is still in the same place it was when it broke down last week.

So, maybe this wasn’t...

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

1. New position in XRT (Retailers).
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!

The most notable insider activity on today's list comes via a Form 4 filing by Liberty 77 Fund.

The private equity fund, which manages approximately $2.95 billion in assets, reported a purchase of $1.2 million in Lions Gate Entertainment Corp $LGF.

Many times these transactions make sense only to buyers in the context of their investing or trading strategies.

With regard to LGF, for example, as technicians we prefer to wait until the chart looks more promising to us. This is not the case right now.

Here’s The Hot Corner, with data from October 9, 2024:

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...

As I've discussed recently, earnings season is quickly approaching. And with it comes risks and opportunities.

For today's trade, I'm going to leverage elevated options premiums in a nearby expiration to get a better net cost on the real call options I'd like to own.

And I'm taking advantage of a recent pullback to get in at attractive prices and a nearby exit if I'm wrong.