What overbought conditions? We haven't even broken out yet. Take a look at what's actually going on!

After 14 years of no progress, Financials just went out at a new all-time high!

This is arguably the most important sector in the world. We don't have bull markets without Financials, at least, participating.

Just imagine them emerging as a leadership group...

From the desk of Steve Strazza @sstrazza and Louis Sykes @haumicharts

Leadership in this environment is stretching far and wide.

We're seeing a growing number of industry groups and areas not only making new highs but also outperforming and offering us more and more avenues to express our bullish thesis on stocks and risk assets in general.

Last week, we discussed Commodities and Ags.

The week before that, we dove into Chinese equities.

And for some time now, we've been vocal on SMIDs in general.

The point is, with such an overwhelming amount of leadership these days, we can be picky and place our bets on only the best of the best in each group.

In today's post, we'll explore a hot new growth industry we haven't covered in much detail yet - Autonomous Vehicles.

You have 2 choices:

1) You can complain that you don't like the rules, you don't like the people who make and enforce those rules, you don't like the people who take advantage of those rules and you can take your ball and go home. You can do that. You have that right in this country.

or

2) You can acknowledge the fact that you don't like certain rules, you may not like some of the people who make and enforce the rules, and you especially don't like some people who take advantage of those rules. But if you can't beat them, join them!

We choose #2. Because this is nothing new. We figured this out decades ago.

Welcome to the market.

Enjoy!

From the desk of Steve Strazza @sstrazza and Louis Sykes @haumicharts

As JC pointed out the other day, this week we saw the most amount of new 52-week highs in the history of the Nasdaq.

That's right. The highest reading ever. That's bullish.

We've also witnessed another very encouraging development in market internals of late.

Let's talk about it...

From the desk of Louis Sykes @haumicharts

Two ETFs tracking the same sector, industry, or niche area can yield significantly different outcomes.

We see it all the time.

I'll share a few examples, along with a short discussion of what I've taken away from it all.

These are the registration details for our live monthly conference call for Premium Members of All Star Charts.

This month’s Conference Call will be held on Tuesday February 16th at 6PM ET. As always, if you cannot make the call live, the video and slides will be archived and published here along with every other live call since 2015.

Here are the details for Tuesday night:

From the desk of Steve Strazza @Sstrazza

Welcome to the 2 to 100 Club.

Something we’ve been working on internally this year is using various bottoms-up tools and scans to complement our top-down approach. One way we’re doing this is by identifying 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.

From the desk of Steve Strazza @Sstrazza

Dividend aristocrats are easily some of the most desirable investments on Wall Street. These are the names that have increased dividends for at least 25 years, providing steadily increasing income to longer-term minded shareholders.

As you can imagine, the companies making up this prestigious list are some of the most recognizable brands in the world. Coca-Cola, Walmart, and Johnson & Johnson are just a few of the household names making the cut.

Here at All Star Charts, we like to stay ahead of the curve. That’s why we’re turning our attention to the future aristocrats. In an effort to seek out the next generation of the cream-of-the-crop dividend plays, we’re curating a list of stocks that have raised their payouts every year for 5-9 years.

Introducing the Young Aristocrats. We like to say these are “stocks that pay you to make money”. Imagine if years of consistent dividend growth and high momentum & relative strength had a baby, leaving you with the best of the emerging dividend giants that are outperforming the averages.

Like many people, we've been geeking on short squeezes lately. There's been so much action in heavily shorted names.

Pity the fools who are shorting stocks that are at or near all-time highs. If they want to try to be Heroes, be my guest. But we're smarter than that. We'll use these hurting shorts as fuel to catapult our trades higher. I recently got into Live Person $LPSN and Rackspace $RXT -- both of which are working. And I'm hungry for more.

Forget the hedge funds. You want to crush the suits?

Well, they still make sell side analysts wear suits and come into the office.

It's wild, I know.

Sell side analysts have worse herd behavior habits than your average investor. They have their cushy jobs (a few of them still do anyway). They get to tell their friends and family that they work on wall street, because some people still think that's "cool".

But the truth is, it's our job to take advantage of them. It's a lonely and dying business and they're not having any fun. In fact, they're finding it really difficult to run their antiquated valuation models on today's business. It's hilarious to watch them try.

Now, making fun of the situation doesn't get us paid. BUT, taking advantage of their conflicts of interest certainly can, if done correctly.

You see, they have families, kids in private school, expensive mortgages and used to nice vacations. It's a lifestyle. Their wives don't work and it's up to daddy to make sure the big check comes home every month, regardless of the cost.

From the desk of Steve Strazza @sstrazza

We've enjoyed a ton of success with the bottoms-up scans and the columns they've inspired.

We absolutely love our scans! When we combine them with our traditional top-down approach, they make it almost impossible to miss key market themes.

In fact, we've launched four columns around these scans since last year -- and we have many more that we only run internally.

Today, we're sharing one with you. We call it "Fade The Street," and it's one of my personal favorites.

The scan leverages data from sell-side analysts including their buy/sell ratings and price targets in order to identify stocks with the potential to become the market's next big winners.

How do we do this? Simple...

We scan for top-performing stocks that happen to be some of the most-hated and out-of-favor names on the street. Basically, we're looking for names that analysts have gotten wrong - or at the very least, are trending against their respective ratings.