While the world felt like it was falling apart, traders just like you had the chance to soak in the wisdom of some of the top minds in finance. Instead of panic, we were treated to process and analysis. And a ton of hot charts!
We have some good news! We are debuting another new scan for Premium Members of All Star Charts India. As we go forward, we will introduce several new features for our members, but for now, the second scan has just dropped!
Introducing the new scan- All Star Momentum.
All Star Momentum is a brand new scan that pinpoints the very best stocks in the market. This time around, we have incorporated our stock universe of Nifty 500 as the base. Among the 500 stocks that we follow, this scan will pump out names that are most likely to generate great returns.
While we go through our lists of sectors and stocks on a weekly basis, we thought of launching a product that would highlight the names that are the strongest performers in our universe and those that are primed for an explosive move.
Just like The Outperformers scan, this is a list of stocks belonging to the sectors that display relative strength in the market at any given point in time. Since sector rotation is the lifeblood of a bull market, we will be ahead of the curve before the gears keep shifting.
JC and I recorded our latest options conference call last night (subscribers can access it here). We discussed some trades that were exited last month, updated some current positions, and discussed a couple new ideas.
One of the new ideas discussed was a bullish breakout in United Therapeutics $UTHR. And I'm ready to pull the trigger today.
There's always information in the Currency markets, even if trading currencies isn't something you do.
There is wisdom in some of the world's largest markets like forex and fixed income. To ignore it would be irresponsible.
One thing that's been hard to ignore is the strength in the US Dollar Index throughout the first quarter of 2021. This could be a potential wrecking ball to the global growth, rotation into cyclical and commodity supercycle themes.
But is it?
When we look at several G-10 Currencies relative to the Dollar, the Commodity-centric currencies have held up the best, which is interesting, isn't it?
Baseball is back -- another sign that life is returning to normal.
I’m already thinking about heading to the ballpark to see the Brewers play in person (even though my son isn’t thrilled that they changed the name from Miller Park to American Family Field).
I wasn't much of a baseball fan growing up. In fact, I never progressed beyond Tee-ball. Washington didn't have a team at the time and rooting for the team from Baltimore seemed to be out of the question. After moving to Milwaukee as an adult, I was surprised to hear the actor from "Mr. Belvedere" calling the games on the radio. Little did I know that Bob Uecker, a Milwaukee legend, was a baseball guy first and an actor second.
Despite my lack of on-field experience, I’ve enjoyed watching my son progress through the Little League ranks.
We've been observing Aluminum for some time now and also included it in our Three Charts for the Week post, and the move seems to have picked up the pace.
Aluminum has been leading the base metals space for a while since Copper took a back seat, and we're now seeing the follow-through of that action in the price breakout.
JC and I put together this months Options Conference call and it was one of my favorites yet!
We discussed positions we closed out in Google in Biotechs, as well as some of the trades we have on that are worth an update. There are a few new ideas on our radar and we get into some of that as well so you can get a little bit of a behind the scenes look at our thought process.
Key takeaway: Despite the decreasing exposure of active equity managers, the weight of the evidence continues to lean toward a neutral sentiment backdrop that supports a much needed reset, allowing optimism to rebuild moving forward. Investment managers may be pulling back from the market, but equity ETF inflows have reached record levels. This past month inflows reached over $80 billion, the highest level over a one month period. This may suggest excessive investor positioning but inflows can remain high for extended periods of time before negatively impacting the market. Another piece of information that points to growing optimism is The Consensus Inc. Bullish Sentiment Index as it reached 74% last week, it’s highest level since early 2018. These pockets of investor optimism, within the broader neutral setting, allude to the nature of the recent unwind.
Sentiment Chart of the Week: Economic Activity and Risk Appetite
Two weeks back we had noticed IT putting its head again from underground and shared some actionable ideas. As the market progresses, we're noticing new names joining this list and thought it would be nice to have a follow-up post for the same.
Let's see what these stocks are indicating for the weeks and months ahead.
HCL Tech has now joined the other stocks in this sector as it attempts to move past its overhead supply zone of 1,024. Retreating from the same level twice in the recent past, we might see a follow-through this time around as the tailwinds favouring IT could favour this particular stock as well. The indicator is attempting to move back into the strong zone.
We are bullish above the level of 1,024 with a target near 1,425.
Key Takeaway: The overall market continues to digest gains within a larger structural advance. Market sectors that relate to tangible goods push to new highs. Traditional safe-haven assets fail to ensure safety.
Financial, Energy, Industrial, and Material sectors continue their reign in our relative strength rankings, while mid-cap groups narrowly surpassed small-caps to command the top-tier of our industry group rankings. Though more defensive sectors continue to have the best relative strength on a short-term basis, Technology and Consumer Discretionary are starting to pick up in the near term as well. Small-cap deterioration persists at the industry group level, whereas large and mid-caps improve.
