Yo Pit Crazies,

The S&P 500 is printing all-time highs this week. On Wednesday the Treasury sold $42 billion of 10-year notes at 4.683 percent, the highest yield at a 10-year auction since 2007. And Washington just posted a $432 billion deficit for July, a record for the month and the biggest monthly shortfall since March 2021.

So the index is at a record while the government borrows at crisis-era prices. The nice thing about the stock market is that it always sorts itself into names that look good and names that don't.

Cheap Groceries, Cheaper Stock

BJ's Wholesale Club (BJ) is working its way up my Sibyl screen, though I want the next earnings print before I get loud about it. The stock bottomed near $83 in June and has clawed back about 11 percent. It's still roughly 15 percent below its 52-week high of $108.85.

ll for me and is going very well as one of the signals in the Ceres Club.

1-Year BJ Chart

Here's the disconnect. The business isn't broken: BJ grew net sales close to 10 percent last quarter, beat on earnings, held full-year guidance, and picked up a first-time investment grade rating from Fitch. Costco (COST) told the same story in July, with net sales up 10.7 percent and comparable sales up 8.9 percent.

Both stocks trade well under their highs anyway. COST sits about 12 percent below its 52-week high. The clubs are doing more business than ever and getting paid less for it.

I'd normally want a cleaner signal in the open interest on the long-dated options (the count of contracts still open on options that don't expire for a year or more, which is where institutions park size). BJ is showing a jump off a low base, not a stampede. Traders are accumulating, just not in the size I want yet.

What BJ did clear is the 10 percent level Sibyl tracks, a filter that's tested well for me and is working right now in the Ceres Club. Earnings hit before the open on Friday, August 21. Membership fees went up in January, and that money drops straight to the bottom line, so I like BJ into the print.

A Garage Full of Hundred-Year-Old Names

The other end of the screen is a short, unhappy list: stocks with options listed all the way out to 2028 (long-dated contracts, the ones institutions use to bet years ahead) trading within 2 percent of their 52-week low. Two names qualify.

One is Stellantis (STLA).

1 Year STLA

Stellantis is what's left of Jeep, Chrysler, Dodge, Ram, Fiat, Alfa Romeo, Peugeot and about a dozen other century-old nameplates. I've had a hard time finding a less investable company since Gianni Agnelli died.

The numbers explain it. Stellantis suspended its dividend for 2026 after a €22.3 billion loss in 2025 and a restructuring charge north of $25 billion. Second quarter was the good news: revenue up 13 percent, North America up 32 percent, back in the black.

Then look at the margin. They moved €43.5 billion of trucks and cars in one quarter and kept 1.8 percent of it. Management already warned the second half leans on the fourth quarter because of the summer shutdown.

The stock agrees. STLA is near $5.45, about 55 percent under its 52-week high and a couple of percent off its low. When the index prints a record and your name is scraping one-year lows, that isn't a discount, it's a verdict.

Same economy, two outcomes. Rates at 2007 levels punish the company financing pickups at a 2 percent margin and reward the one selling memberships to shoppers hunting cheaper eggs.

So which one does the crew pick for Monday's Ticker Highlight Show? Tap this link to join at whatever rate you want and get Monday's pick as soon as it hits.

Hopefully this was helpful,

Andrew Giovinazzi