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 absolute and relative trends at play and preview some of the things we’re watching to profit in the weeks and months ahead.
In recent weeks, we've seen some rotation back into Large and Mega-Caps, which has propelled the major indices to new highs, while SMIDs are still resiliently consolidating. While the list of negative data points has grown, it's still not close to anything that warrants concern.
Welcomeback to our “latest Under The Hood” column for the week ended April 16, 2021. As a reminder, this column will be published bi-weekly moving forward, and rotated on-and-off with our new Minor Leaguers column.
In this column, we 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.
It was a 10 hour chart marathon of 24 presentations being live streamed to thousands of people all over the globe.
And it actually worked!
To be clear, I had nothing to do with the Technology behind all that. This was all our incredible team along with the partnership with Stocktwits.
So hats off to everyone who helped get this done!
My job was easy. All I had to do was talk about charts with a bunch of old buddies. I can do that!. It was everything else involved that makes it more complicated. But they got it done.
From the desk of Steve Strazza @Sstrazza and Grant Hawkridge @GrantHawkridge
Following an onslaught of bullish initiation readings for US stocks last year, global equity markets began to register similar breadth thrusts earlier this year.
In this post, we'll take a look at those thrusts in addition to the current state of international stock market internals.
We'll even take a quick look at some of the differences we're seeing take place beneath the surface in various global markets.
Public investors finally have opportunities to gain exposure to the exciting new Space Exploration industry.
We've seen a handful of new pure-play Space IPOs and SPACs hit the market this year. Most recently one of our favorite fund managers, ARK Invest joined the party and launched their own thematic Space ETF, $ARKX.
There's obviously a ton of hype surrounding this emerging theme right now. But is this industry, in its current form, worth investors' time?
Something we’ve been working on internally this year is using various bottoms-up tools and scans to complement our top-down approach. One way we’re doing this is by identifying stocks as they climb the market-cap ladder from small, to mid, to large, and ultimately to mega-cap status (over $200B).
Once they graduate from small-cap to mid-cap status (over $2B) they come on our radar. Likewise, when they surpass the roughly $30B mark, they roll off our list.
But the scan doesn’t just end there. We only want to look at the strongest growth industries in the market as that is typically where these potential 50-baggers come from.
Last night I popped into BNN Bloomberg to talk about what's going on in the market.
We're seeing new highs across a lot of major indexes, but what's happening underneath the surface?
We've been seeing the price of lumber soaring along with things like Steel and Rebar futures. It's the whole demand/building/growth theme that continues to stand out.
One thing that's definitely worth watching is the All Country World Index Ex-U.S., which is basically a snapshot of what the rest of the world looks like. And you'll notice that the index ETF $ACWX is stuck right between its 2008 highs and 2018 highs.
This puts the global stock market in quite a predicament. If you're bullish equities, you're going to want to see a breakout through those historic 2008 highs. If you're bearish equities, this is one you want to see break back below those 2018 highs.
These are the registration details for our live monthly conference call for Premium Members of All Star Charts.
This month’s Conference Call will be held on Tuesday April 20th 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.
The latest Young Aristocrats research piece is out and a trade idea that immediately caught my eye is one that is currently breaking through the proverbial glass ceiling.
This manufacturer of glass and fiberclass products is finally breaking out of a 3-year base.
Meanwhile, the US Dollar is also testing key levels.
USD strength has become a major market theme over the last couple of months -- along with the potential effects it could have on global risk assets. A strong US Dollar could apply pressure to Emerging Markets, Commodities, and cyclical assets in general. This would challenge the global growth thesis and the rotation into cyclical areas we have seen play out over recent months.
