On September 8th, Sean and JC hopped on a Twitter Live Stream to discuss a recent trade idea for All Star Charts Options Members.

Here's the play:

"I like a $BSX Nov/Mar 50-strike Call Calendar spread for a $1.15 debit or cheaper. This means I’ll be long the March 50 calls and short an equal amount of November 50 calls for a net debit which represents the most I can lose in this trade if it short-circuits on us."

To learn more about the trade and the thinking behind it, click below to watch a replay of the Live Stream.

From the desk of Steve Strazza @Sstrazza and Ian Culley @Ianculley

We held our September Monthly Strategy Session last night. Premium Members can access and rewatch it here.

Non-members can get a quick recap of the call simply by reading this post each month. 

By focusing on long-term, monthly charts, the idea is to take a step back and put things into the context of their structural trends. This is easily one of our most valuable exercises as it forces us to put aside the day-to-day noise and simply examine markets from a “big-picture” point of view.

With that as our backdrop, let’s dive right in and discuss three of the most important charts and/or themes from this month’s call.

A funny thing happened back in May.

The Cyclicals stopped going up. You can see it in the NYSE Advance-Decline line, which has been falling ever since.

But you can really see it when you overlay the Industrials with Materials and Financials.

Chop Chop Chop:

As the third quarter winds to a close, the bulls just took the lead for the first time since early in the 1st half.

Everything is clicking for them and they're in control of the game right now. While it's been a nice comeback, it's still just 52 to 48, so they have plenty of work to do.

I'm not talking about basketball. Not the Chicago bulls. I'm referring to stock market bulls and the current score on our risk checklist.

It's currently at its highest reading since we started publishing it back in June, so we'd be remiss not to write about it.

It's been a great roadmap for us in recent months so let's have a quick look at what it's saying now as well as some of the more recent developments that have taken place.

From the desk of Steve Strazza @sstrazza and Ian Culley @ianculley

In last week’s Commodity Report we highlighted the Uranium ETF $URA and promised to dig up some trade ideas within this outperforming group of stocks.

While everyone was enjoying the Labor Day weekend, barbecuing, and watching football - we were pouring over our Uranium universe to uncover the best risk/reward opportunities in the strongest names. 

But hey, this is what we love to do!

So let’s dive right in and see what we found.

First of all, why do we like Uranium so much right now?

Both the Uranium ETF and the underlying commodity are showing leadership and breaking out of 6-year bases. That's more than good enough for us.

This week we’re looking at a long setup in the Energy sector. It's a big name and there has been a breakout in the making for quite some time now. You've probably guessed it by now.

Let's take a look at the trade idea this time around.

From the desk of Steve Strazza @Sstrazza.

Welcome back to our latest "Under The Hood" column where we'll cover all the action for the week ended September 3, 2021. This report is published bi-weekly and rotated on-and-off with our "Minor Leaguers" column.

What we do here is analyze the most popular stocks during the week and find opportunities to either join in and ride these momentum names higher, or fade the crowd and bet against them.

We use a variety of sources to generate the list of most popular names. There are so many new data sources available that all we need to do is organize and curate them in a way that shows us exactly what we want: A list of stocks that are seeing an unusual increase in investor interest.

From the desk of Steve Strazza @Sstrazza

Thanks to everyone who participated in last week’s mystery chart.

We questioned whether it was a rounding top reversal pattern – in which case we’d be looking for a breakdown.

Or, if it was actually a failed breakdown - and we all know what tends to follow those patterns…

The responses we received were mixed. But there were plenty of bulls who wanted to be long against the former lows and bet on a swift reaction higher.

That’s pretty much the camp we were in too. We recently wrote about all of the whipsaw action we’ve been witnessing.

We said the next critical piece of information we’d be looking for was whether or not these patterns would see some real follow-through and confirmation.

Fast forward a week or so, and we definitely have our answer.

So let’s talk about it, and more importantly, what it means for risk assets.

This week, Nifty Financial Services broke out to claim an all-time high after forming a six-month base. This sector has been taking a breather for some time now, but we are finally able to see signs of improvement.

Across the world, when strong market rallies come through, they come in unison with Financials. So if this current rally has to continue, we need the support of this sector. Are we going to get that though? Let's see what the charts are saying.

Here is Nifty Financial Services on a monthly timeframe. We do see a resolution of the trend. And prior to that, did you notice something interesting? Something we like to see in particular?

The price was consolidating above the Fibonacci level. That's a good sign. Always!

So now that we have this resolution in trend, the next level we're tracking is 23,350.

Keep in mind, this is a MONTHLY chart. Hence, think 23,350 in the months ahead, not weeks.

From the desk of Steve Strazza @sstrazza and Grant Hawkridge @granthawkridge 

Last week, we pointed out that some US stocks are going up, but most are not.

The S&P 500 and the other US large-cap indexes have continued to grind to new highs all year, completely unphased by any of the deterioration in breadth beneath the surface.

But, when looking at the global stage, things are different… 

In this post, we’ll look at the current state of market breadth around the globe and discuss whether internals are supporting the new highs in many international indexes. 

It's always a worrying sign when price is making new highs at the index level with a lack of confirmation from internals. But that simply isn’t the case for ex-US equities these days. 

In fact, it’s just the opposite, as we’re seeing our breadth metrics support and confirm the recent price action on a global scale. 

Here we’re looking at the percentage of developed and emerging markets above their 50-day moving averages:

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

Welcome to our latest RPP Report, where we publish return tables for various asset classes and categories, along with commentary on each.

Looking at the past helps put the future into context. In this post, we review the absolute and relative trends at play and preview some of the things we’re watching to profit in the weeks and months ahead.

We consider this our weekly state of the union address as we break down and reiterate both our tactical and structural outlook on various asset classes and discuss the most important themes and developments currently playing out in markets all around the world.

In our last report, we discussed all the whipsaws we had been witnessing in recent weeks and noted that the next major piece of information would be the velocity of the reactions these charts made in the opposite direction.