Trend Signal Now: Throwin' Darts at Bullish Charts

Monday, June 16, 2025

Welcome to The Strazza Letter, a free note with market insights from me, All Star Charts Chief Market Strategist Steve Strazza.

I was joking with Patrick earlier, and I told him I buy every ticker he texts me these days.

"Buy first. Ask questions later."

But I was just alluding to the fact that it seems like every bullish chart pattern is working out here.

I talk to my friends about what I'm seeing and trading throughout the day, and many of us have been on the speculative growth train.

It's insane how well these junky stocks are working. And it's a longer list of them every day.

I know almost for a fact that a good deal of these are probably zeros over the long run. That doesn't matter.

What matters is that they are working now.

It's the kind of market to take shots on the crazy stuff. And we have been doing it more and more because we keep being rewarded.

It's that stage in the cycle where the worst companies are the best stocks.

It's starting to feel like one of those "throw a dart" markets again. Who remembers 2020? Good times, right?

We're going back there. Trust me, we are already well on our way. I can tell by the kinds of stocks I'm talking about and trading on a day-to-day basis.

Today, a company that makes character-themed cups and stuffed animals for Disney parks announced a reverse merger and a new MSTR-inspired treasury strategy whereby they will be buying Tron tokens instead of Bitcoin.

The market absolutely loved it, and SRM rallied over 500% on the news.

Have you noticed the IPO market is back from the dead, too?

This year's leaders range from space stocks, to quantum computing, new nuclears, and electric helicopters.

And how about the AI trade and semiconductor industry? It's back from the dead.

So when I saw BigBear.AI $BBAI come across my screen a few weeks back… I was downright giddy about it. I know exactly what to do with a stock like that in an environment like this.

First of all, it's a perfectly poetic name for a heavily-shorted hot stock.

It's the kind that rips bears' faces off once a squeeze ignites.

And with a 23% short interest, that can happen any day.

But more importantly, BBAI is one of the best-looking coil patterns out there. I'm all in on this chart. It's my largest trading position right now.

I'm in common stock, warrants, and a couple of different calls.

This is a textbook example of Brian Shannon's VWAP pinch. Price is at the apex of the coil now, and it looks like it could be starting its next big move.

The volatility squeeze indicator is at its lowest level of the year as the stock challenges a big polarity zone around $4.

This pennant formed at the upper bounds of a tactical base back in May and has been chopping in a tight range since.

I think all the supply has finally been absorbed, and the shorts are about to get squeezed as BigbearAI ramps back toward its Q1 highs.

You'll find a beautiful base-on-base pattern when you zoom out on the chart. You'll also notice just how critical the current level is.

It's more than just the VWAPs from the pivot high and low converging on price here. This $4 zone is also where the VWAP from the all-time high comes into play.

In addition, BBAI is experiencing its first weekly momentum buy signal with the PPO in positive territory. We call this kind of thing a center-line crossover. It simply means bullish momentum is coming back into the stock— but from a position of long-term strength— following some corrective action.

So I think it's decision time for BBAI, and I think the stock is going to ramp higher from here.

A lot of speculative growth names have been taking that path these days. I don't think BBAI will be any different.

I'm looking for a huge move in the coming days and weeks, and I'm positioned for it.

My team and the Breakout Multiplier members already sold some doubles in our BBAI calls, but they haven't been winners for us… at least not yet.

In fact, the calls are cheaper today than they were when we got in, and the setup is even sweeter. We're going to look to double down in the coming days.

Join us risk-free and make sure you don't miss the trade!

Steve Strazza | Chief Market Strategist, All Star Charts

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