Chart of the Day: 2 Important Bellwethers

JC Parets
July 20, 2022

There are many examples of important Indexes and Sector ETFs that are retesting key former highs, the 2018 peak in particular.

You can see it in Small-caps, Financials, European Indices, Bitcoin/Ethereum and many others. We discussed all of these on this week's live Premium Conference Call, and also in our Q3 Playbook to Profit.

But you can also see these important retests in the bellwethers.

Here are two of the most important on the planet, one representing Industrials and the other Financials - 2 key sectors in America.

Caterpillar is a massive industrial stock with historically high correlations with the US stock market, Emerging Markets and Global Growth in general.

Goldman Sachs, of course, is a market bellwether and a great representation of the Financial Sector, and Broker Dealers more specifically.

The ability for these 2 stocks to successfully bounce off those former resistance levels will tell us a lot about both their corresponding sectors and the broader markets.

I thought these 2 charts shown together really tell the story about today's markets.

And while it might be easy to get caught up in the market strength over the past few days, it's also important to recognize the implications of those former 2018 NOT holding.

It works both ways.

But this chart is great for investors who want to understand what's going on underneath the surface.

What do you think? Do you agree?

Let us know what you think!

- JC

Here's How To Get Caught Up

Our ASC Research Q3 2022 Playbook is up. Premium Members can download that here.

Here’s what we discussed:

  • Stocks (International & U.S.)
  • U.S. Sectors & Industries
  • Market Breadth & Sentiment
  • Commodities
  • Currencies
  • Intermarket Analysis
  • Cryptocurrencies
  • New Trade Ideas
  • Overall Strategy

You can download the PDF in full here.

This Playbook is more designed to get structural perspective on markets, while our Mid-Month Conference Call this week focuses on the more tactical opportunities.

Shoot me a note with any questions.

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