We’re very excited to present our Squeeze Engine, one of the main tools that powers the success of Breakout Multiplier.
Forgotten areas in staples are starting to re-emerge, and the breakouts here are massive.
Here’s today’s standout:
The Food and Beverage ETF $PBJ is currently exhibiting a Long-Term Squeeze Score of 86.
Here's what the chart looks like:
After years of basing, Food and Beverage stocks—a cornerstone of the Consumer Staples sector— look ready for a breakout. The setup is similar to what we saw during the 2016–2020 period.
The monthly Strazza Indicator shows volatility compressed near multi-year lows.
By nature, these defensive stocks are not known for producing doubles, five-baggers, or ten-baggers. That is where options level the playing field.
As the market continues to rotate toward more defensive themes, our system allows us not only to capture the rotation, but to amplify otherwise modest, low-volatility moves through options leverage.
We’ve been capturing this value rotation. We have plenty of dry powder from selling doubles and taking profits in our materials trades. Now, the market is telling us to press the gas on staples.
