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.

This is our ASC Research Q1 2021 Playbook.

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!

If you are distressed by anything external, the pain is not due to the thing itself, but to your estimate of it; and this you have the power to revoke at any moment.”

There's a lot of noise out there.

It's poison.

The glorified gossip columns and cartoon networks keep proving to be the equivalent of sugar and trans fat packed fast food.

Don't be mentally obese.

Stick to price.

It's better for the portfolio.

It's better for the soul.

It's a Bull Market you know...

I'm not sure if you've noticed, but owning stocks and spending our time looking for stocks to buy has been a much better idea than shorting stocks and spending your time looking for stocks to sell.

It's not even close.

Just think back at all the people who told us to do the opposite every day, every week and every month since the Spring.

Gross.

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.

This is the video recording of the December 2020 Conference Call.

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.

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.

In last week's report, we discussed the continued rotation into SMIDS, international markets, and risk assets. Our conclusion is and continues to be that the market remains in a very healthy state of order.

FICC markets are also confirming the move higher in equities.

From a short-term perspective, SMIDS digesting their recent gains would be a healthy development.

Assets around the globe have been on the move since March, but the Rupee has remained steady.

Today let's take a look at the currency pairs we track and see if those charts suggest they'll be an actionable setup anytime soon.

During bull markets I always get asked about when it's going to stop. I don't get asked about stock market bubbles and unsustainable valuations during bear markets, that's for sure. Those environments come with other kinds of funny questions.

This morning I woke up to one of my college buddies telling me that tech valuations are too high and that this has to be a bubble.

Journalists ask me every day how this can possibly continue. "Too high", they say. "Too fast", they tell me. "Fed Printing", they claim. "It's only 5 stocks!!!"... I can't.

Anyway, maybe this is the top. Maybe we are about to crash. Maybe valuations are too high....

But there's no evidence at all that this is the top. New All-time highs are not characteristic of downtrends. They are things we see regularly in uptrends. In fact, new highs are perfectly normal, and should even be expected in this type of environment.

Emerging Markets remain in focus and today we're identifying why its trend relative to Developed Markets is likely to accelerate higher.

This is a follow-up to our last few Emerging-Market-focused posts --- August 12th, September 11th, and September 25th.

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 relative strength trends at play and preview some of the things we’re watching in order to profit in the weeks and months ahead.

In last week's report, we outlined how the market was in an incredibly healthy state of order. We've been seeing rotation into SMIDS and Micro-Caps, strong breadth, and a sustained bid for Growth, particularly down the market-cap scale.

This week, we're harping on a similar theme.

The weight of the evidence, particularly from an intermediate and long-term time horizon, looks excellent.