We bought some calls in EHang $EH yesterday.

They build autonomous flying cars in China. Some real-life Jetsons stuff.

We also bought some calls in PDD Holdings $PDD.

They are one of the Chinese online retail conglomerates, known in the US for temu.com.

Today, I sold half of both of my positions at double the price I paid yesterday.

Now, this does not mean I think these stocks will go lower from here. I think they’re going higher.

It’s just my rule. I follow it religiously. 

It keeps me in the game. It’s how I keep swinging.

When I sell a double I am effectively earning a risk-free shot at making big profits. No matter what happens, I can’t lose.

But, it’s bigger than that. It’s not about the half position left on the table.

It’s about getting liquid and doing it quickly.

It’s about getting my money back. 

In bull markets I don’t just have cash laying around. I’m invested. 

And in times like these, there are so many opportunities....

Every now and then I come across a chart that I feel the need to send over to our friends at the CMT association.

The curriculum covers all sorts of pattern recognition and analysis. While things don’t always work out the way the textbook teaches… sometimes, they do. And it’s just so lovely to see. 

It’s happening now with the recent action in Bank OZK. Both of these flag pattern breakouts are picture perfect.

Let’s use this chart as an example to discuss the classic continuation pattern.

Price was coiling in a bear flag coming into the year. 

The only difference between the first flag and the second flag is the trend that preceded them. When the trend that leads into the coil is down, it is a bear flag. When it is up, like it is now, it is a bull flag.

Another difference between the two formations is the way that they resolved. The bear flag resolution is actually considered a failed pattern as it resolved in the opposite direction of the downtrend that preceded it.

Failed patterns are some of the best patterns though. As...

The monthly strategy session has always been one of my favorite things we do here at All Star Charts. I’ve been watching these calls for like ten years now. Since long before I worked here.

They are a huge part of my process. 

So, when I got the call from JC on Monday, I was pumped. It’s always an honor.

Not to mention, there’s so much to talk about right now… from some major intermarket developments to the expansion in participation for global equities and commodities. We covered it all. 

If you missed the call, you can rewatch it here.

If you are not a member of ASC premium, you can sign up here and get access.

And for the rest of you, here’s one of my favorite charts from the slide deck:

This is a custom equal-weighted index of some of the absolute worst...

It’s been a wild ride for crypto these past few months.

The post-election rally was one for the record books.

But the same is true for the steep and swift drawdowns that have ensued.

The majority of these altcoins are down more than 50% from their December highs. The average cryptocurrency has been decimated. 

It is common for volatility to spike in both directions at inflection points… and I think the entire crypto market is at one now.

The question is what direction are we going in?

When I think of charts like Binance, Ethereum, or Solana… they’ve been rangebound for a long time. These primary trends are sideways.

Here they are shown trading right around the same levels they were at in Q1 of last year:

So it could really go either way. I don’t have a strong opinion on whether they resolve higher or lower from here. But when I see a resolution, I’m going to go with it. 

I’ll be adding on breakouts and I’ll be out if these ranges break down. In fact, I already ...

Last week, I joined my friend Michael Batnick on “What Are Your Thoughts.”

The guys over at Ritholtz Wealth and the Compound are the absolute best at what they do. For that reason, doing their shows is always an honor. 

But, it’s also a blast. They make talking markets fun.

We talked about a number of topics from breadth, to short-sellers, and even Nancy Pelosi’s latest trades.

Make sure to check out the replay if you missed it.

Anyways, it is on my mind because Batnick brought up the Dollar Tree chart and I’ve been watching it ever since. We both really like the setup. 

Today, I’m pulling the trigger as it looks to be finishing the right shoulder of this inverse head and...

This week was all about mega cap growth.

We kicked off Monday with an AI-themed selloff on the DeepSeek news.

And then over the course of the week, the majority of the magnificent seven names reported earnings. I discussed all the key chart levels and reactions on a livestream yesterday.

Most of them did well, but it’s a mixed bag. 

MSFT got hit. AAPL pulled some gains forward ahead of their report. META is an absolute monster. And the setup in TSLA looks as good as anything after a muted reaction.

This is all great. I own most of these names still, and I’m content with them. I’ve taken profits in some - like META & NVDA, and I’ve added to others - like TSLA & GOOGL, recently. I think they all keep drifting higher. But, they don’t excite me.

US mega tech is no longer a conviction long for me. 

There are...

Last week, I joined my friend Michael Batnick on “What Are Your Thoughts.”

The guys over at Ritholtz Wealth and the Compound are the absolute best at what they do. For that reason, doing their shows is always an honor. 

But, it’s also a blast. They make talking markets fun.

We talked about a number of topics from breadth, to short-sellers, and even Nancy Pelosi’s latest trades.

Make sure to check out the replay if you missed it.

Anyways, it is on my mind because Batnick brought up the Dollar Tree chart and I’ve been watching it ever since. We both really like the setup. 

Today, I’m pulling the trigger as it looks to be finishing the right shoulder of this inverse head and...

Europe has come a really long way in just a short while

The Euro STOXX 50, an index of the largest blue-chip companies in the Eurozone, is up about 10% in less than a month. 

I remember a time not long ago when I was worrying about the potential tops that had formed in Europe.

They never completed. Instead, we hooked higher like we’ve seen so many times before.

This is what the STOXX 50 $FEZ chart looked like coming into the year (in USD).

What a nasty distribution pattern, right?

But here's what it looks like today.

Buyers showed up and defended this key support zone again in December. 

For now this top is nothing like the top from the prior cycle. It's likely just another continuation pattern. It completes on a breakout above 54.

So what is next for Europe?

Considering the messy, rangebound action for...

I keep hearing that today’s FOMC announcement and press conference will be a snoozefest.

I couldn’t disagree more.

I think a major development is riding on the market's expectation for future rate cuts.

In recent weeks, the expectations for the next rate cut have moved forward.

During this time, Trump has put pressure on the Fed, and the latest CPI report showed inflation cooling.

But, the reason doesn’t matter as much as the fact that the bond market is buying the story.

The US 10-yr has fallen from about 4.8% to 4.55% in the last two weeks.

More importantly, it’s taking the US Dollar with it.

DXY is the most critical chart in the world right now and it is moving with the bond market and investors’ expectations for interest rates.

If Powell gives any indication that they are moving lower sooner today, it could be the catalyst needed to fail this breakout and send DXY back into its old range.

If the dollar rolls over here or even falls back into a sideways trend, the impact could be massive for risk assets.

And I don’t just mean US equities. I think international stocks stand to win more than...

I’m really grateful for the path I took in getting where I am today.

I wasn’t always hanging out on an island trading and covering the stock market.

I put in my time. 

I started my career in the Big 4, auditing some of the largest financial institutions in the world.

I spent long nights ticking and tying financial statements and testing derivative valuations for companies like Morgan Stanley and Interactive Brokers.

I know the strangest things about these companies' fundamentals and their history. I made friends and memories I’ll never forget. I was in the room for some historic market events. When I think back on some chapters of my early adult life, they were literally set in these offices. 

But none of the non-public information I learned at these places back in the day is relevant or material now. I have an insider's understanding of these businesses, but no special information about them. 

And I don’t need it. I’m a long-term bull on a lot of these companies simply because of the people who run them. Some have been great mentors over the...

Bears just can’t seem to score any points lately.

They continue to struggle at breaking down even the worst areas of the market. We keep seeing it.

Solar stocks are the latest example.

The whole group was bid up today with some huge moves from the heavily-shorted names. 

Here’s the Solar Index $TAN:

TAN suffered its worst single day performance since the 2020 crash following the election in November. It fell over 10% to new cycle lows.

However, there has been little follow-through in the time since. And today, we saw a nice pop off the pivot lows from last month.

Also notice how TAN hasn’t been oversold for more than a year now as selling pressure has waned. I think bears are slowly losing control. 

They are also positioned way offside when it comes to this basket of stocks. Some of the largest short positions in the market are in the indexes components.

And we can’t finish the bullish argument without discussing the obvious political tailwinds under the new Trump administration.

While I’m...

JC has really been bringing the heat with his chart game lately.

I just rewatched the monthly conference call from Monday night where he ripped through over 115 charts. 

He went over a ton of valuable topics and themes, from forex to sentiment and even some risk appetite.You can sign up here and watch it. These calls are one of the best things we do at All Star Charts.

In the meantime, I stole two of my favorite charts from his slide deck to share with you.

Here’s the first one. This is a textbook topping formation in Eli Lilly $LLY with a peak marked by the old reliable magazine cover indicator from October of last year.

The timing from these headline writers is just too good sometimes. This is the millionth example. They nailed it again.

They call them the “everything drugs.” They are probably not, but let's just go with it. This excerpt is all you need to know about the vibe on the street for GLP-1 stocks.

“[GLP-1 drugs] started as treatments for...