We retired our "Five Bull Market Barometers" in mid-July to make room for a new weekly post that's focused on the three most important charts for the week ahead.
This is that post, so let's jump into this week's edition.
Today, we want to take a look at a key retest that's about to occur in Euro/Rupee and revisit a few setups we've spoken about in the past that are approaching actionable levels.
Here's the Euro/Rupee post that sparked the need for this post. Two weeks ago we wrote about the notable breakout here (and breakdown in Rupees), but the Euro was the only pair to see any follow-through. Now that prices are pulling back, we want to see if this coming breakout retest is successful.
Today we want to follow up on that theme, show why it's still intact, and outline stocks with an attractive reward/risk at current levels.
We've written extensively about what the Large-Cap/Small-Cap ratio means and how we interpret it. If you haven't read them, I'd highly recommend checking them out before continuing with this post (June 9th post and June 19th post)
But, to sum it up the idea here is that Small-Cap outperformance is associated with a Bull Market in Indian Equities because it signifies risk appetite among market participants and a broad-based market rally that has sufficient participation from sectors/industry groups.
We retired our "Five Bull Market Barometers" in mid-July to make room for a new weekly post that's focused on the three most important charts for the week ahead.
This is that post, so let's jump into this week's edition.
There has been a lot of opportunity in Commodities lately, particularly in Precious Metals and Base Metals, after years of nothing.
Today we want to highlight the strength in Natural Gas, a theme we've been pointing to most of this year but that's now accelerating.
Let's take a look at what's happening and how we can take advantage of it.
Here's the chart we were using as our roadmap at the beginning of the year as prices approached long-term support near 115. Additionally, we were seeing momentum stay out of oversold territory, signaling that sellers were unable to stay aggressive and take prices to new lows.
We've been selectively participating in a few Steel stocks over the last few months as we waited for a signal to get more aggressive in the space.
Yesterday we got that signal as the Nifty Metal Index broke out to new recovery highs and reclaimed support on a relative basis.
In this post, we're going to outline what we're seeing in the sector and what we're buying to take advantage of this theme.
First, let's start with Base Metals (read for context), which continue to trend higher along with Precious Metals. In July when we were talking about them, we were staying very selective in the Nifty Metal space because it hadn't yet broken out despite the strength in Commodities.
We've outlined some headwinds for stocks in this week's "Three Charts For The Week Ahead", so this week we're looking for a short setup in a struggling sector.
We retired our "Five Bull Market Barometers" in mid-July to make room for a new weekly post that's focused on the three most important charts for the week ahead.
This is that post, so let's jump into this week's edition.
One of our favorite ways of looking at a sector or industry group is by using equally-weighted charts.
A lot of "Home TV" stocks have been on the move, so we're going to take a look at what's happening and determine what's next for the group.
First, let's take a look at our equally-weighted custom index of Den Networks, Hathway Cable, Sun TV Network, TV18Broadcast, and Zee Entertainment. Prices did break down to new all-time lows during the March decline, but quickly reversed and took out the downtrend line from their 2018 highs. Now, prices are testing former support/resistance with momentum diverging negatively, suggesting a near-term pause is likely.
