It’s Saturday Morning Chartoons time.
This is the weekly post that aggregates all the charts we put together throughout the week and organizes them all into one, easy to flip through deck.
I rip through more charts than almost anyone in the world.
Here’s the bottom line. Some stocks are going up, most stocks are not.
That’s the answer.
You want know what’s up? That’s the deal.
So are more stocks going to start going up too?
But right now that’s the trend. Mostly a choppy sideways hot mess, with some stocks resolving those consolidations higher.
One thing I will add, however, is the lack of downside resolutions.
We’re just not seeing these stocks and indexes breaking down and holding down. Or at least, we’re not seeing more and more of them do that.
So the glass is half full right now. And I think if Regional Banks can get their act together and the 10yr yield can get back above 1.4% then I believe the glass could be even more full.
In the meantime, I think we need to continue to err on the mostly messy with a few exceptions side of the market.
And I will also tell you that those few exceptions are NOT coming from defensive assets, like they typically do near major tops in the market.
They’re coming from places like Tech, Consumer Discretionary and Communications.
Look at these guys relative to Consumer Staples.
Those are not bearish looking charts. And if those charts are not bearish, it’s hard to have an aggressively bearish take on the market.
Look at Internet and Software. These are potential UPSIDE resolutions from 5-month bases, not breakdowns confirming distributive tops:
Look at DocuSign, for example $DOCU. This one came on our 3 weeks ago as it was showing an unusual increase in investor interest. It got flagged on our Under The Hood Report that looks for exactly this sort of thing.
We want to stay long and still think we can see 400:
The details of the Trade can always be found on our Trade Ideas page, including price targets and risk management levels.
Meanwhile, with Healthcare making new all-time highs here as well, the Medical Devices definitely stand out.
Here’s Medtronic $MDT. We want to be long if we’re above 123 with a target up near 185.
With new all-time highs in Consumer Discretionary, McDonald’s $MCD continues to work.
There are pockets of strength out there. Our 280 target remains intact.
I also think it’s worth noting the strength in Homebuilders recently.
If $XHB is above 70, you can’t be short. It’s a long.
But those are really the areas that are shining.
A lot of things are NOT working. In fact, most things are not.
Regional Banks, for example, are making new 6-month relative lows:
Emerging markets $EEM just went out at their lowest levels of the year. And the lowest levels relative to the S&P500 EVER!
Energy stocks continue to struggle, stuck below all that former support from 2016.
Crude Oil stuck 76 remains a headwind for Energy:
Some things are working.
Most things are not.
We discussed all of this and more in our latest Quarterly Playbook. Premium Members can download that here.
And also don’t forget to watch This Week’s Live Conference Call. You can watch that here if you haven’t already.
Here are the rest of this week’s charts and trades:Lost Password?