From the desk of Steve Strazza @sstrazza and Louis Sykes @haumicharts
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 in order to profit in the weeks and months ahead.
As we mentioned last week, the weight of the evidence overwhelmingly lies in favor of the bulls.
We're seeing rotation supporting this move higher in equities; a sustained bid for SMIDs and Micro-Caps while Large-Cap indexes slowly work higher is all very constructive for the early innings of bull markets.
This environment is also providing bulls with an increasingly wide selection of areas to allocate capital - from Industrials, Technology, and Cylicals, and now Financials.
We're back this month with another edition of the Josh & JC show.
This is where I sit down with my boy Josh Brown and talk about the most important Monthly Charts I see around the world.
I love doing this monthly show. Josh and I have been good friends for the better part of the past 2 decades. He knows me really well by now, and I think I've got a pretty good handle on him too, although he certainly finds ways to surprise me quite often.
On this month's show, we take a look at Financials potentially breaking out. One of the leaders is Goldman Sachs, as $GS is now back above its 2007 highs. Meanwhile, Consumer Discretionary is breaking out to new all-time highs relative to Consumer Staples, which is consistent with higher stock prices. But that doesn't mean that Staples can't do well on an absolute basis. And finally, Commodities are breaking out. Crude Oil is back above its 2016 lows. And with all of this bullish talk, what's it going to take to position ourselves more defensively? I lay out the 4 most important signals that we're watching.
The first section dives deep into the US Stock Market and Market breadth, then we discuss the International Markets and specific Factors around the world. Next we go into U.S. Sectors and the best looking Industry Groups. In the second half of the report, we dive into the FICC space (Fixed Income, Commodities & Currencies) and their Intermarket Relationships. Finally we finish up with Cryptos, Options and overall Market Sentiment.
You can skip right to the trade ideas here if you'd like, or give the full report a read!
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 in order to profit in the weeks and months ahead.
The weight of the evidence continues to overwhelmingly lie in favor of the bulls.
The major indices are above important levels and are well on their way to achieving our targets. We're seeing sector rotation into offensive, cyclical areas of the market, and away from defensive, which is all confirming these new highs.
Commodities are showing incredible strength in the face of extreme positioning, reflecting the control buyers have in these markets.
From the desk of Steve Strazza @Sstrazza and Louis Sykes @haumicharts
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 in order to profit in the weeks and months ahead.
After several months of consolidation, the major indexes have set the foundation for another leg upward in line with their primary trends. We've been seeing many of them resolve higher in recent weeks.
We continue to see rotation into economically sensitive and cyclical assets - supporting our view that there is a strong appetite, not aversion, for risk.
And the FICC markets continue to confirm this bullish environment for stocks and risk assets.
From the desk of Steve Strazza @Sstrazza and Louis Sykes @haumicharts
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 in order to profit in the weeks and months ahead.
The major indexes continue to hold important levels and many large-cap sectors have laid the foundation for upside resolutions and another leg higher in their relative leadership.
SMIDs and Micro-Caps have had every chance to digest their recent gains, but we're yet to see that play out. Seeing such strong upward momentum from these stocks speaks to the healthy risk appetite we continue to point out.
From the desk of Steve Strazza @Sstrazza and Louis Sykes @haumicharts
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 in order to profit in the weeks and months ahead.
We continue to pound the table on leadership down the market-cap scale. There's been strong evidence over the past few weeks/months suggesting this is a structural trend reversal in the large vs small-cap ratio.
After drastic underperformance since March, one chart suggests that Gold could be setting up to outperform large-cap Indian stocks in the coming weeks and months.
For months now, we've been pointing to the fact that metals are doing great. It's just that Gold isn't one of them.
Base metals are where the smart money has been flowing. Copper has been hitting the highest levels since 2013 and absolutely embarrassing the performance of its precious metals counterpart, Gold which has not been so golden.
Copper outperforming Gold is consistent with higher Interest Rates, and we've been getting those too.
More specific to Base Metals on an absolute basis, the positive correlation with Emerging Market Stocks is off the charts. Here is Iron Ore making new 7-year highs overlaid with the Emerging Markets Index so you can see how closely they trade together:
