Dividend Aristocrats are easily some of the most desirable investments on Wall Street. These are the names that have increased dividends for at least 25 years, providing steadily increasing income to long-term-minded shareholders.
As you can imagine, the companies making up this prestigious list are some of the most recognizable brands in the world. Coca-Cola, Walmart, and Johnson & Johnson are just a few of the household names making the cut.
Here at All Star Charts, we like to stay ahead of the curve. That’s why we’re turning our attention to the future aristocrats. In an effort to seek out the next generation of the cream-of-the-crop dividend plays, we’re curating a list of stocks that have raised their payouts every year for five to nine years.
We call them the Young Aristocrats, and the idea is that these are “stocks that pay you to make money.” Imagine if years of consistent dividend growth and high momentum and relative strength had a baby, leaving you with the best of the emerging dividend giants that are outperforming the averages.
When we do our market analysis, we go through a ton of different indexes all over the world.
But specifically within the U.S. you have things like the S&P500, Russell2000, Nasdaq100 and of course the Dow Jones Industrial & Transportation Averages. These are just a few of the most popular ones.
You can go on and on with the Value Line Indexes, Wilshire 5000, NYSE Composite and the list goes on and on.
They all serve a purpose in our analysis and all represent the market in different ways, whether it be using market capitalization, broadness of measurements and even specific sector exposure.
But you know one that doesn't get the credit it deserves?
The percentage of new highs and other internal indicators spiked to historic extremes in 2020, indicating that we were in the early innings of a new bull cycle.
Sideways and choppy price behavior has been the theme this year. We haven’t come close to the high-water marks achieved by our breadth indicators last year, so, naturally, there are divergences.
Indeed, these breadth divergences are to be expected. Market internals tend to peak early in a cycle. What bulls don't want to see is a meaningful downside expansion in breadth.
During the recent selling pressure, we experienced some of the highest readings in new lows since the COVID crash.
In the stock market, we have software, internet, homebuilders, and gold miners. The powers at be do their best to classify all the publicly listed companies into industry groups. This allows us to break them into various baskets and analyze them at the index level.
In crypto markets, there are tokens focused on decentralized finance, the metaverse, smart contracts, and more. But unlike the stock market, the crypto asset class is still in its infancy. As such, there is no industry standard for how to group these different tokens based on what they do.
In our analysis, we'll often discuss what some of these tokens do. We use some indexes that are offered from data providers, as well as create custom indexes of our own as we see fit.
The reason we do this is for information. Aggregating tokens into groups and analyzing them as a whole allows us to glean insights about the strength or weakness of different areas of the crypto market.
These are the registration details for our live mid-month conference call for Premium Members of All Star Charts.
Our next Live Call will be held on Monday December 13th at 6PM ET. As always, if you cannot make the call live, the video and slides will be archived and published here along with every other live call since 2015.
From the desk of Steven Strazza @Sstrazza and Ian Culley @IanCulley
The recent risk-off action came to a head last week, with commodities, stocks, and interest rates all violating key support levels.
We saw a brief flight to safety, as long-term treasury bonds $TLT broke out to their highest level since early January.
Yes, money was flowing into bonds, which is not a good look for stocks and commodities.
Bottom line, there was a lot of damage done to the primary uptrend in a very short time. Market participants needed to come out and repair the damage ASAP.
In the handful of trading sessions since the selling stopped, bulls have managed to claw back much of the losses from last week.
Buyers needed to quickly step up to the plate. And that’s exactly what we’re seeing right now, as stocks and other risk assets are rebounding aggressively off the recent lows.
As for bonds, the breakout in TLT failed, and the 10-year and 30-year both snapped back above critical levels.
The froth has definitely come off the $VIX spike over the past week. Does this mean we're all clear? Well, no. Not necessarily and not yet.
But it does give us a little bit of confidence that some short-term lows can be leaned against as good risk management levels when taking long directional bets.
There's still some juicy premium to be sold when looking at some sector ETFs and that brings me to the Biotech sector ETF $XBI.
No matter which markets you're investing in, this is a good lesson.
The visual below comes from this Yesterday's Crypto Note. It shows the different scenarios that almost all cyrpto currencies currently find themselves in.
Most are below their former highs, and stuck in a range once again. You can put US Small-caps in that exact same category too, for example.
Homebuilders and Semiconductors look like the one on the left. You can put $LUNA $MANA $SAND $CRO and even $ETH in that category.
And then you can find a lot of nasty Cryptos that look like the one on the right. You can probably put the ARK Funds, Biotechs and China in that bucket too:
