Overtime

Mailtime

Good morning,

Summer is in full swing, and with a super light mailbag this week, I’m guessing many of you may be reading this from the beach.

I’m counting down the days until my own summer vacation, so I’m not going to complain about a shorter report.

No market questions, and just a handful of chart requests this month, thanks to everybody who participated.

Let’s get into it!

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Chart Requests

ALAB: Astera Labs

I don’t see this as an attractive entry point, but ALAB is an overall bullish chart. The stock hit its highest level since January yesterday and there is nothing to call resistance between current levels and the all-time highs near $147. Despite the name, this is a semiconductor company, and the relative strength of that group is an additional bonus.

CAT: Caterpillar

CAT is on a tear, up 60% from the April lows and hitting a fresh all-time high yesterday. The stock hasn’t done anything wrong yet, but when that steep uptrend line inevitably breaks, I’d expect a serious consolidation. The stock’s recent 3-month rate of change is the strongest since coming off the Great Financial Crisis lows 👇 so the pause is probably coming sooner rather than later.

CFR: Cullen Frost Bankers

A lot of regional banks have been strong, but not Cullen Frost. The Texas-based holding company hasn’t been able to reclaim its 200-DMA vs. the S&P 500 and is going the opposite direction of the index over the past week.

COF: Capital One Financial