Last week the US Healthcare Sector hit new multi-year highs relative to the S&P500.
The Relative Strength has already been there under the surface.
And when you look at Healthcare on an absolute basis you can see the sideways digestion of prior gains during a period where most stocks and indexes were falling:
The largest insider transaction on today’s list is a Form 4 filing by Nimish P. Shah, who reported a purchase of roughly $5.1 million of Tricida $TCDA.
Thomas Meth, the president of Enviva $EVA, reported a purchase of 8,600 shares, equivalent to $505,508 worth of stock.
We retired our "Five Bull Market Barometers" in 2020 to make room for a new weekly post that's focused on the three most important charts for the week ahead.
This is that post, so let's jump into this week's edition.
When one of the most important procyclical assets breaks to fresh 52-week lows, it takes center stage. It also has major implications across a variety of markets.
But what about energy? What about grains and softs and the rest of the commodity space?
Well, most of those contracts have already been in correction mode.
And, based on the recent selloff in energy and other commodity-related stocks, a much deeper correction could be in store for these raw materials.
It’s definitely something we’re monitoring. And that’s where copper and today’s chart in focus come into play.
Let’s take a look.
Here’s an overlay chart of copper futures and the five-year breakeven inflation rate:
Our International Hall of Famers list is composed of the 100 largest US-listed international stocks, or ADRs. We’ve also sprinkled in some of the largest ADRs from countries that did not make the market-cap cut.
These stocks range from some well-known mega-cap multinationals such as Toyota Motor and Royal Dutch Shell to some large-cap global disruptors such as Sea Ltd and Shopify.
It’s got all the big names and more--but only those that are based outside the US. You can find all the largest US stocks on our original Hall of Famers list.
The beauty of these scans is really in their simplicity.
We take the largest names each week and then apply technical filters in a way that the strongest stocks with the most momentum rise to the top.
Based on the market environment, we can also flip the scan on its head and filter for weakness.
Let’s dive in and take a look at some of the most important stocks from around the world.
This is a good time to think about what could happen after the midterms because the run-up to this fall’s elections could be almost unbearable. The Fed, the Supreme Court and lingering fights over the 2020 election will provide candidates of all stripes with plenty of political fodder. The public mood is already dour and an onslaught of negative ads is not likely to help. History and conventional wisdom suggest stocks could struggle for traction over the summer, find a low prior to the election and then rally as the outcome becomes evident. The S&P 500 has been higher 12 months after every single mid-term election since at least 1950. The problem with that information is that it is being widely discussed. The data is what it is and the past is all we have to go on. Nonetheless, the words of Bernard Baruch seem relevant right now: “Something that everyone knows isn’t worth anything.”
The stock market has breathed a much-needed sigh of relief this week.
Are we out of the woods? I wish I knew.
But in case we're not, I'm hedging a little bit by taking this bounce opportunity to get into a bearish position in an Electric power generation stock that appears to be dead-cat bouncing.
We debuted a new scan recently which goes by the name- All Star Momentum.
All Star Momentum is a brand new scan that guides us towards the very best stocks in the market. We have incorporated our stock universe of Nifty 500 as the base this time around. Among the 500 stocks that we follow, this scan will pump out names that are most likely to outperform the market.
