I could not be happier to see this rally in stocks all over the world. The Transportation stocks in particular have been especially impressive (See here: Transports 8/24/16). But I want to point to some of the rotation we've started to see in other asset classes since last week.
One of the characteristics of bull markets and strong uptrends is sector rotation. While Technology was the first to start leading the market higher in July, Financials and Transportation stocks have recently held the leadership duties. You can start to throw in Industrials the past few weeks into the leadership category as well. Meanwhile, some of the mega-cap names have held back Technology, at least temporarily, from continuing to make new highs. But when you look underneath the surface, I believe there is a much different story to tell.
Every month I host a conference call for All Star Charts Members where we discuss ongoing themes throughout the global marketplace as well as changes in trends where new positions would be most appropriate. This includes U.S. Stocks & Sectors, International Stock Indexes, Commodities, Currencies and Interest Rate Markets. Transports and Copper continue to make new highs while US Treasury Bonds keep selling off on the back of higher interest rates. We'll discuss all of these issues and more.
This month's Conference Call will be held on Tuesday November 15, 2016 at 7PM ET. Here are the Registration Details:
Every month I host a conference call for All Star Charts Members where we discuss ongoing themes throughout the global marketplace as well as changes in trends where new positions would be most appropriate. This includes U.S. Stocks & Sectors, International Stock Indexes, Commodities, Currencies and Interest Rate Markets. We have been bullish towards both U.S. and International stocks since early July and are seeing money rotate into new sectors and countries showing leadership. We will be discussing this in detail on Tuesday.
We will also be focusing particular attention to the recent sell-off in precious metals and rally in US Interest Rates.
This month's Conference Call will be held on Tuesday October 18, 2016 at 7PM ET. Here are the Registration Details:
Have you guys noticed that the prices of Gold and Silver have gone nowhere for 3 months? There's a reason why we've wanted to stay out of this market since early July and let them digest their impressive gains since the January lows. Knowing when to stay out of a market is just as important as knowing when to be in it. Opportunity cost should also be considered in the risk calculation.
Today we are taking a deep dive into Gold and we're going to look at things from all angles, all currencies and all time frames.
We take a weight of the evidence approach here at All Star Charts. There is no one data point that will suggest buying is more advantageous than selling, or vice versa. In addition, the process of collecting and reviewing that data, to me, is really the most important thing I do. There are no short cuts in this business. You have to put in the work and I share the results of that homework with you daily so you don't have to.
Today I want to point you to a chart that I've kept for a while, but have never really shared because I don't want to overwhelm you with too much data. But since we're at a critical point, I think it's worth adding to the Chartbook this week: