From the Desk of Alfonso Depablos @Alfcharts
When assessing the overall market, we are always asking a lot of the same questions. One of the more common ones is, “how are the laggards doing?”
Many times, these will be the culprits of the last bear market. Other times, they are former leaders that have lost their way.
For a healthy and sustainable bull cycle to take place, we eventually need these laggards to participate.
For the 2021 and 2022 bear, speculative growth was the poster child.
We’re talking about biotech, the ARK funds, the IPO index, online retailers, etc. These groups were absolutely decimated.
Not only did they experience some of the worst bear market drawdowns, but in 2023, when new leaders emerged, and many areas of the market began to move higher, these laggards continued to struggle.
Fast forward to today, and these groups are still repairing the technical damage from the prior cycle. With that said, the seeds have been planted for some epic bearish-to-bullish trend reversals.
We think these transitions are happening now. Let’s hit the charts and talk about it.