In early May we outlined the "Five Bull Market Barometers" we're watching to identify the beginning of a new bull market in stocks.

If you haven't read our initial post linked above, we'd encourage you to check it out so you understand what the rationale behind these five indicators is.

Now, let's see where we stand after another strong week in the market.

Contrary to popular belief, Small and Mid-Cap stocks do not always provide better returns than Large-Cap stocks.

In academia, the thesis is that these "riskier" Small and Mid-Cap stocks should provide a higher potential return than more mature "Large-Cap" stocks. If they didn't, then rational investors would not own them because they're not being adequately compensated for the risk they're taking.

In the real world, we know that this theory is absolute nonsense. Instead of the consistent outperformance from the SMID (Small/Mid-Cap) segment of the market, we see periods of outperformance, periods of in-line performance, and performance of underperformance.

Since 2018 the SMID market-cap segments have been absolutely clobbered, but the weight of the evidence is suggesting that we may be at a major inflection point and SMID stocks are beginning a period of long-term outperformance.

Here we're going to explore the SMID resurgence thesis, what it would mean for Equities as an asset class, and how we're taking advantage of it.

Last week we wrote about the trend change that's potentially underway between the Large-Cap Nifty 50 and the Small-Cap 100 Indexes.

Today, we want to follow up on a trend that we discussed during May's Members-Only Conference Call...Mid-Cap stock outperformance.

Let's just into it.

A lot of our focus in the Commodity space has been around Gold/Silver and Base Metals, and rightfully so as those have been trending well, but there are now several interesting setups in the Agriculture space.

In this post, we're exploring some emerging opportunities amongst the less widely-followed Commodities.

First, let's take a look at Rapeseed Mustard, which is a great example of how quickly these assets can move once they get going. Not only does this highlight the profit potential, but also the importance of risk management and respecting stops when things head in the wrong direction.

Click on chart to enlarge view. 

As part of our Top-Down Approach, it's important to consider all asset classes around the globe.

In our Five Bull Market Barometers we cover what's happening in Commodities and Fixed Income, and we wrote about the Rupee here, so this post is going to focus on what's happening in Equities.

Since global markets are highly correlated, it's important to understand what's happening in Equities around the world before we get into what's happening in India's major indexes and individual stocks.

This week's talk of the town in the Technical Analysis community is the "Island Reversal", and rightfully so, as some of the world's strongest indexes are sporting this pattern.

Let's take a look and get into what it could mean for the days/weeks ahead.

In early May we outlined the "Five Bull Market Barometers" we're watching to identify the beginning of a new bull market in stocks.

If you haven't read our initial post linked above, we'd encourage you to check it out so you understand what the rationale behind these five indicators is.

Now that the market has pulled back from its overhead supply, let's take a look at where these long-term indicators stand.

Relative strength charts are a great tool to identify where the big money is flowing into and out of.

Today, we're looking at a chart that suggests one sector is getting ready to outperform the broader market again.

Since early March we've been highlighting the many signs that pointed to the Rupee's longer-term weakness.

Today, we want to check in on our broader thesis and outline why that weakness may accelerate soon.

The Nifty Pharma sector has been a favorite of ours since last November, with many trade ideas popping up along the way.

Today, we're doing a deep dive into the sector to identify the strongest names that we'd want to be buying on any weakness that may be created by the Nifty 50 and other major indices reaching overhead supply.

One of our "Five Bull Market Barometers" is the Nifty 100/Nifty Small-Cap 100 ratio due to its importance as a measure of risk appetite.

Today, we want to look at a more concentrated version of this ratio, the Nifty 50/Nifty Small-Cap 100, which is a major inflection point.

Let's discuss what's happening and why it's important to our broader view on Equities as an asset class.

In early May we outlined the "Five Bull Market Barometers" we're watching to identify the beginning of a new bull market in stocks.

If you haven't read our initial post linked above, we'd encourage you to check it out so you understand what the rationale behind these five indicators is.

It's also worth pointing out that last week we noted that despite the slight improvement in two of these measures, zero of the five were above their key risk levels. Despite that, the market was telling us that the short-term momentum remained to the upside and our long ideas were working well.

After a couple of strong weeks in the market, let's take a look and see how these longer-term indicators have fared.