Is it time to buy the Travel, Leisure & Entertainment stocks?
I don't necessarily think we need to own all of them. But if we focus on the ones with the most relative strength and positive momentum, we should be in a much better position to succeed. In other words, if we can find the ones that don't look like most Travel, Leisure & Entertainment stocks, then we could have a winner!
First of all, here is the Dow Jones Travel & Leisure Index (can't trade it) overlaid with the Leisure & Entertainment ETF $PEJ (can trade it) so you can see how similarly they move. I also included some of the fun facts about $PEJ from the Fund Factsheet.
As we come into the week of Dhanteras and Diwali, and the celebrations that go with that, let us talk about some of the financial decisions we may consider at this time. I heard Swarup Mohanty at Mirae Asset Management say this a few weeks ago: "Dhanteras is the time for our Annual SIP into Gold." It's true and I'd never thought of it that way.
Buying Gold has been a traditional investment for many. But financial markets have developed to the point that we look at buying Gold as a financial decision - complete with its risks, rewards, and top-down analysis.
(I'm not sure if Mr. Mohanty came up with that expression or if I should have credited someone else. I heard it from him. Please forgive any mistakes in this.)
On this week's podcast, I wanted to share a recent interview I did on Opto Sessions with Ed Gotham over in London England. Our chat took place on Thursday afternoon November 5, 2020, just a couple of days after an unresolved election. My main points revolved around focusing on price trends and worrying less about election results, at least as far as portfolio decisions are concerned.
Ed came at me with a bunch of great questions. I appreciate how direct he was. I wish more interviews I did came at me with such relevant topics and ideas.
I really enjoyed this one. Thanks Ed for a fun chat!
We've been pointing out historic breadth readings since this summer. We've actually seen a handful of extreme readings that typically occur at major market lows and the early stages of new secular bull markets.
We've seen them across most major indexes as well, even Small and Mid-Caps.
For those new to this exercise, we take a chart of interest and remove the x/y-axes and any other labels that would help identify it. The chart can be any security in any asset class on any timeframe on an absolute or relative basis. Maybe it’s a custom index or inverted, who knows!
We do all this to put aside the biases we have associated with this specific security/the market and come to a conclusion based solely on price.
You can guess what it is if you must, but the real value comes from sharing what you would do right now. Buy, Sell, or Do Nothing?
At the beginning of each week, we publish performance tables for a variety of different asset classes and categories along with commentary on each.
Looking at the past helps put the future into context. In this post, we review the relative strength trends at play and preview some of the things we’re watching in order to profit in the weeks and months ahead.
Despite being in a split market environment, we've pointed out how the weight of the evidence continues to shift further and further in the direction of the bulls with each passing week.
This past week, we finally saw what appears to be the tipping point as stocks and risk-assets were all up generously. We've been waiting for the market to make up its mind from a risk-appetite perspective, as well as for the stock market to pick a direction after almost three months of sideways action.
Wow! What an open for stocks today. The votes are in and investors have decided the winner is: STOCKS. Of course, I'm told there's some positive vaccines news which may be accounting for the run up we're seeing today. Either way, all the major stock indices are printing new all-time highs today --- something you don't see in bear markets.
Our latest Under the Hood report is out and there's a bevy of opportunities to choose from. And given the week we've just had, my favorite idea supports something I think we all could use a little more of -- rest.
Welcome to our "Under The Hood" column for the week ended November 6, 2020.
What we do is analyze the most popular stocks during the week and find opportunities to either join in and ride these momentum names higher, or fade the crowd and bet against them.
We use a variety of sources to generate the list of most popular names. There are so many new data sources available that all we need to do is organize and curate them in a way that shows us exactly what we want: A list of stocks that are seeing an unusual increase in investor interest.
Whether we're measuring increasing interest based on large institutional purchases, unusual options activity, or simply our proprietary lists of trending tickers... there is a lot of overlap.
The bottom line is there are a million ways to skin this cat. Relying on our entire arsenal of data makes us confident that we're producing the best list each week and gives us more optionality in terms of finding the most favorable trade setups for our clients.
We retired our "Five Bull Market Barometers" in mid-July 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.
