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.
As we progress into Q1 of Fiscal Year 2022-2023, this playbook outlines our thoughts on every asset class and our plan to profit.
This playbook will cover our macro view, touching on Equities, Commodities, Currencies, and Rates, as well as outline our views on the major nifty indices and the sector/thematic indices.
We also cover individual stocks we want to be buying to take advantage of the themes discussed in the playbook.
We get to talk to a lot of traders and investors every single day. I like to listen.
In the first chart, we have what seems to be the consensus view. Investors fear that we're going to complete this top in the S&P500 sending prices down even lower.
Do you agree? We break 4100 and down we go?
Or could it be like the second chart, and all this support holds?
From the desk of Steven Strazza @Sstrazza and Ian Culley @Ianculley
A few weeks ago, we pointed out widening crack spreads and what they meant for oil refining stocks. You can read more here, as we explain how wider crack spreads support higher prices for this particular area of the market.
Three weeks later, crack spreads have widened to their highest level in more than a decade.
This post is not about crack spreads, though. It’s about energy and how everything in the space is working these days.
Bullish rotation continues to be the theme for energy.
This week, gasoline was the standout, booking a 10% gain and breaking out of a massive base to new all-time highs.
Let’s take a look at the breakout in gasoline futures and discuss what it means for crude oil.
Our weight of the evidence dashboard argues for caution, as risk outweighs opportunity. This is echoed by our Risk Off - Risk On indicators, which never showed a decisive move toward Risk On assets as stocks moved off their lows in March. Assessing the situation through the lens of various intra- and inter-market relationships, our range-o-meter shows a move toward Risk Off leadership over the past month. Risk Off assets are gaining strength, Risk On assets are stumbling. Where things go from here remains to be seen. None of us can predict the future. But we can identify whether we are in a higher risk or lower risk environment and adjust our portfolios accordingly. One of the best things I heard at last week’s CMT symposium came from Frank Teixeira: “The market gives you a lot of information if you are willing to listen for it.”
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.
