Check out this week's Momentum Report, our weekly summation of all the major indexes at a Macro, International, Sector, and Industry Group level.
By analyzing the short-term data in these reports, we get a more tactical view of the current state of markets. This information then helps us put near-term developments into the big picture context and provides insights regarding the structural trends at play.
Let's jump right into it with some of the major takeaways from this week's report:
* ASC Plus Members can access the Momentum Report by clicking the link at the bottom of this post.
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This month’s Video Conference Call will be held on Tuesday April 5th @ 6PM ET. As always, if you cannot make the call live, the video and slides will be archived and published here along with every other live call since 2015.
Good morning everyone! This dispatch comes to you from deep in the northernmost reaches of Northern California, on the edge of the great Redwoods National Park.
I flew out here on Sunday morning with my oldest friend (since we were both five years old). After landing and shopping for some provisions, we got a short three-mile hike in during the afternoon/early evening to get our feet acclimated. But it was just a warm-up for the 30 miles we hope to cover today through Wednesday. Yesterday, the weather was perfect, the trail conditions were excellent, and the giant Redwoods were absolutely stunning! And we're just getting started. Hopefully, the weather continues to hold up (fingers crossed!).
Of course, I brought my laptop, and since my East Coast friend was suffering from a little jet lag, he crashed early last night. That left me some time to rip through charts in my hotel room, as one, such as me, does.
During my scanning, I couldn't help but get fully distracted by this chart of $GLD:
In last week's letter, we outlined a handful of key bullish developments leading us to forecast a high probability of an upward resolution from this consolidation.
Alleviation of the selling in futures and renewed spot demand pointed to a high probability of Bitcoin resolving higher out of this multi-month trading range.
As of the writing of this note, we've seen this take place, with Bitcoin taking out resistance at 46,000.
We are almost done with the first quarter of the calendar year and the last quarter of our financial year. There are certain sectors that are peeping out from beneath the surface and hence attracting attention. Is this a theme we may see play out in the quarter going forward? Most likely. Most sectors have remained sideways or subdued in their move and they are finally picking a side!
Today we are here to discuss one such sector and some interesting setups that one could take advantage of.
Let's see what's on the roster sheet today.
We mentioned this in the recently concluded conference call, and we'll say it again- Bouncebacks are here! From within the price bouncebacks that we're seeing certain sectors are displaying more strength. One such sector is the Industrials. We're talking about the Industrial Manufacturing sector, so don't go looking for the US sector XLI.
From the desk of Steven Strazza @Sstrazza and Ian Culley @Ianculley
Cyclical stocks are all the craze.
If you're doing well this year, it's because you own these stocks. If you're not, it's because you don't own these stocks.
Whether we're talking about energy, agricultural inputs, or industrial metals, these are the kinds of industry groups that are showing relative strength.
And, to be clear, this is nothing new. This theme has been in place for over a year now.
The only new development is that we're seeing upside momentum in these names pick up. As a result, the gap between these winners and the rest of the market has widened to historic levels.
Our Hall of Famers list is composed of the 150 largest US-based stocks.
These stocks range from the mega-cap growth behemoths like Apple and Microsoft – with market caps in excess of $2T – to some of the new-age large-cap disruptors such as Moderna, Square, and Snap.
It has all the big names and more.
It doesn’t include ADRs or any stock not domiciled in the US. But don’t worry; we developed a separate universe for that which you can check out here.
The Hall of Famers is simple.
We take our list of 150 names and then apply our technical filters so the strongest stocks with the most momentum rise to the top.
Let’s dive right in and check out what these big boys are up to.
The ASC team, as always, threw out a bunch of actionable ideas in their most recent Mid-Monthly Conference Call. As you might expect, there's still a lot to like in the energy space. But it might have surprised you to see some bullish setups in some chinese and marijuana space names. I know it did me!
But one name in the Precious Metals sector piqued my interest and when I chatted with Steve Strazza about it this morning, he was pretty excited about it.
