The Sunday Stalk List | Ep. 38

Welcome back to The Sunday Stalk List.

Every weekend, I review hundreds if not thousands of charts across U.S. indices, global markets, breadth, sentiment, and intermarket relationships.

And now I’m opening up my stalk list.

The names that stood out the most from my review.

This Week’s Theme: Grandpa’s Stocks

This market is filled with opportunity. 

The problem for many is it’s the kind of stocks your grandpa likes, not your tech friend in LA.

I’m talking cash-flow heavy, dividend-paying, old-school management teams. 

No Lululemon work pants. Just khakis and a belt. 

The coffee pot sits nowhere near oat milk, and 90% of the C-suite couldn’t tell you what matcha is if you paid them.

I’ve got five grandpa-approved stocks this week setting up in good old Health Care, Energy, and Materials.

Let’s get into it.

Breadth - "The Market of Stocks"

If you missed it, I broke down this dashboard and how I actually use it in my process during my weekly show.

As I wrote about yesterday, the sexy are messy and the boring are beautiful.

The split is still obvious and fully intact.

Technology and Communication Services continue to lack broad participation beneath the surface, while Energy, Utilities, Staples, and Materials show strong intermediate and longer-term participation.

That push and pull is what’s keeping the index balanced.

The boring trends remain intact. The sexy trades are still messy.

The Stalk List 

KGS — Kodiak Gas Services

Does it get any sexier than gas compression services? Hollywood can’t movies about it make fast enough.

KGS has reclaimed prior resistance near the 50 area and is pressing to new highs. 

Most of Energy is short-term extended, so I’m not chasing it up here. 

The play is a controlled pullback into that breakout zone. If buyers defend prior resistance as support, this trend likely continues higher.

HCA  — Healthcare

The ticker is literally Healthcare. You can’t get more on brand than that.

HCA broke out above prior highs, pulled back, and is now consolidating above former resistance in a tight range. 

 If it holds this shelf and resolves higher, this looks like the next leg in an already established uptrend. Losing that breakout level would negate the setup.

LGND — Ligand Pharmaceuticals

Biotech without the meme energy. Just a clean trend.

LGND is in a well-defined uptrend and building a tight bull flag beneath resistance near the 200 area. 

Momentum has reset without damaging price. 

I like incremental exposure here in anticipation of a breakout. 

AA — Alcoa

Aluminum. Riveting stuff.

AA completed a major base and has been stair-stepping higher ever since. 

Now it’s consolidating in a rounded structure near the highs after reclaiming prior resistance. 

If this digestion resolves higher, there’s room for continuation. A loss of the recent higher lows would suggest it needs more time.

MLM  — Martin Marietta Materials

If you’ve got exposure to these names, your grandpa would be proud of you.

Take him out for lunch. 

Order the egg salad sandwich. 

Tell him about your overweight to Energy and Materials and how you’re stalking breakouts in Health Care. 

The smile will be priceless. 

Anyway, that's my two cents. 

All Gas No Brakes | Ep. 8

Once a month I rip through 20 charts in 20 minutes. 

This week I got carried away and ran through 30.

If you missed it, throw it on 1.5x speed and let it rip.

And if you enjoy it, hit the like button. It’s the easiest way to show some support.

Much love.