From the desk of Steve Strazza @Sstrazza

For the week ended Friday, April 24, 2020:

Every weekend we publish performance tables for a variety of different asset classes and categories along with commentary on each.

This week we want to highlight the continued divergence between Energy stocks and Oil using our Sector and Industry ETF and Commodity tables.

First, let's look at some of the longer-term leaders. Biotechs (IBB) just broke out to fresh multi-year highs and are one of the top performers on our Industry ETF list across all timeframes.

Aside from Gold Miners (GDX), they are the only industry on our expanded list of over 50 ETFs already back at fresh 52-week highs. Definitely some relative strength worth paying attention to in these areas.

Be sure to read our recent post on Gold Miners.

This week we saw a huge gain from not only the strongest Industry ETF over the trailing year (GDX) but also the weakest, as...

The Nifty Financial Services Index continues to show relative weakness.

In this post, we're going to update our risk management levels, targets, and discuss the components within the index that are showing the most relative strength and weakness.

When analyzing the Gold Mining Sector, I can't help but think about the 1993 movie Dazed & Confused. One of the more popular lines in the film is the perfect way to explain what is currently happening in today's market.

In this scene Matthew McConaughey's character is telling a couple of kids,

You heard about the party being busted right? Not to worry. There is a new fiesta in the making as we speak. It's at the moon tower. Full kegs. Everybody's gonna be there. You oughta go...."

The guys at ASC are out with a piece this week highlighting the weakness under the hood in some of the biggest sectors in the US Stock Market. Read it here.

One of the poster children for weakness we want to get short ahead of another possible leg down is setting up right now.

From the desk of Steve Strazza @Sstrazza

We have been writing a lot about risk-appetite lately as we're constantly trying to gauge the "animal spirits" at work in the markets.  Right now we're seeing a lack of participation from risk-assets such as Small-Caps, Commodities, and the more cyclical sectors as well as a risk-off theme in many of our intermarket ratios.

We've covered the US plenty already, so this post will focus on what we're seeing from risk-assets in Equity Markets abroad.

This week's Mystery Chart was an inverted chart of the Frontier Markets ETF (FM). Thanks to everyone for participating. You were pretty much ALL buyers this week, which means you were actually selling Frontier Markets against their prior all-time lows.

From the desk of Steve Strazza @Sstrazza

Yesterday I wrote a post about deteriorating market internals. I discussed breadth divergences as well as the lack of confirmation of the S&P 500's recent highs from many important sectors and indexes.

In this post, we're going to focus specifically on the Large-Cap Sector SPDRs that failed to make higher highs and are showing early signs of cracking. To no surprise, these are some of the most cyclical areas of the market including Industrials (XLI), Financials (XLF), Materials (XLB), and Energy (XLE).

This speaks to the lack of risk-appetite we continue to see not only within equities but across all asset classes right now.

You can see the first three sectors in the chart below. With Crude Oil futures crashing below zero this week, we think it's prudent to stay away from the Energy sector until the smoke clears.

Click on chart to...

Reliance Industries is in the news this week due to an investment from Facebook in JioMart.

Regardless of the fundamental merits or impact of this deal, let's analyze the charts and see how the market's digesting this information.

From the desk of Tom Bruni @BruniCharting

Bonds are on the move once again, so we're updating our risk management levels and targets.

Additionally, we'll revisit the ratios to analyze which credit quality and duration characteristics remain in favor.

In the most recent ASC Monthly Conference call, JC laid out a case for what would get him bullish in Anglogold $AU: a break above $24.00.

We're getting that today.

It's time to get involved.

From the desk of Steve Strazza @Sstrazza

We don’t need to dig too far into the internals to know breadth has been deteriorating since last week even as the S&P 500 was making new incremental highs. Most large-cap sectors failed to make new highs with the S&P as well as many other major indexes, including small-caps, mid-caps, and Transports.

We’ll talk about this more below. First, here is a new breadth indicator we’re looking at using the Anchored Volume Weighted Average Price (AVWAP).

Over the last few weeks we've been outlining what conditions would warrant us getting more aggressive on either the long or short side, and last Wednesday we got our signal to get short again.

After the indexes pressed to new marginal highs late in the week, we've finally gotten some downside follow-through to confirm the weakness we were looking for.

Let's review several key aspects of our bearish thesis and a few ways we're taking advantage of the volatility.

This is our monthly conference call for All Star Charts India Premium Members where we discuss ongoing themes throughout the India Share Market. We take a look at all of the NSE Indexes and Sectors as well as some of our own custom indexes. At Allstarcharts we have become known around the world for the top/down approach to stocks. After we analyze each of the indexes and sectors and have identified where the strength and weakness lies, then we break it down to individual stock opportunities. By having momentum, relative strength and market trend in our favor, the probabilities of success increase dramatically. The video of the call will be archived in the members section to re-watch any time and the PDF of the charts will be made available as well.

I'll do my best to lay out my weight of the evidence conclusions and walk you step by step with how I got there! This month's Conference Call will be held on Wednesday April 22nd at 7:00 PM IST.

Here are the Registration Details: