The Dow Jones Industrial Average is the world's most important stock market index.

While many think the "pros" use the S&P500 because they may be benchmarked to it, those "pros" are not your problem.

DON'T FIGHT PAPA DOW, is how I learned it.

If you get the Dow 30 right, you'll get the S&P500 right.

And if you're going to do a sum of the parts analysis, would you rather try to get the direction of 30 stocks right? Or 500?

With the S&P500 already hitting new 52-week highs, do you think the Dow is next?

They look the same don't they?

This is the video recording of our July 5th Monthly Charts Live Strategy Session

From the Desk of Steve Strazza @Sstrazza

Welcome to The 2 to 100 Club.

As many of you know, something we've been working on internally is using various bottom-up tools and scans to complement our top-down approach.

It's really been working for us!

One way we're doing this is by identifying 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.

Me and Steve Strazza are currently aboard an airplane to Singapore for the beginning of our 21-day trip throughout Southeast Asia.

We're headed there to meet traders, chartists, and locals to learn how others approach risk.

And one thing that is on my mind is: "Where are we going to stay?"

This feels right as today's trade of the day often answers this question for many travelers.

From the Desk of Ian Culley @IanCulley

First stop, Singapore!

Steve Strazza and Sean McLaughlin are headed east on a whirlwind tour of Asia.

I must admit, I’m a bit jealous. And I’m not the jealous type!

They’ll visit seven cities over the course of the next month, meeting traders and financial professionals from the tip of the Malay Peninsula all the way to Japan.

I can’t physically travel with them, but I can live vicariously through their stories and videos, and, of course, my charts…

Check out the US dollar/Singapore dollar pair:

It’s not a bad time for Strazza and Sean to be in Singapore with greenbacks in their pockets.

Sure, it’s well off its September 2022 highs.

From the Desk of Ian Culley

Healthy retest or failed breakout?

These are the scenarios rolling through my mind as I watch the Gold Miners ETF $GDX.

It’s easy to lean toward further weakness based on recent selling pressure and the five-year real yield breaking out to fresh decade highs. 

But who likes easy? I certainly don’t. I doubt gold bugs do, either.  

Luckily, I always defer to price action across multiple time frames for insight. As Brian Shannon always says, “It’s price that pays.”

And in the case of GDX, the charts aren’t as bearish as you might think…

More and more "things" keep making new highs.

This is the sort of thing that happens in bull markets.

You can see Ethereum and Bitcoin both finding support the past year near former resistance levels from the highs in its prior cycle at the end of 2017:

From the Desk of Steve Strazza @sstrazza and Alfonso Depablos @Alfcharts

This is one of our favorite bottom-up scans: Follow the Flow.

In this note, we simply create a universe of stocks that experienced the most unusual options activity — either bullish or bearish, but not both.

We utilize options experts, both internally and through our partnership with The TradeXchange. Then, we dig through the level 2 details and do all the work upfront for our clients.

Our goal is to isolate only those options market splashes that represent levered and high-conviction, directional bets.

From the Desk of Steve Strazza @Sstrazza

Welcome to our latest Minor Leaguers report.

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.

To make the cut for our Minor Leaguers list, a company must have a market cap between $1 and $4B.

As investors, the first step in deciding whether to buy something or not is to identify the direction in which price is heading.

So many investors out there choose to skip this step.

I never understood that.

We know for a fact that asset prices trend. We know. We all have the data. It's just a fact.

So if we know that, then why wouldn't we begin our process by identifying which direction price is heading?

"Should we buy this stock?"

Well, is it going up in price? Down? Or sideways?

Trend recognition is also really helpful in identifying the type of market environment we're in.

"Are the majority of stocks going up? Down? Or sideways?"

At the end of every month we get a fresh batch of monthly data that goes a long way in helping us identify these trends.

On Friday we just got the highest monthly close for both the Nasdaq100 and S&P500 in over a year.

This is now the 3rd consecutive month that they do that:

These are the registration details for our Live Monthly Candlestick Strategy Session for Premium Members of All Star Charts.

This month’s Video Conference Call will be held on Wednesday July 5th @ 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 Wednesday evening:

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.