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.
We do a lot of intermarket analysis here at Allstarcharts.
We include all asset classes and countries in our process.
How can we not?
I mean we have the time.
This is what we do.
And so, Australian dollar vs. Japanese yen has historically been a great indicator for me to measure risk appetite. That's not just in the currency markets but, more importantly, in stocks and commodities as well.
So, take a look at what Bitcoin has been doing when compared to aussie/yen, one of my favorite intermarket relationships...
