From the Desk of Steve Strazza @Sstrazza and Alfonso Depablos @AlfCharts
With the stock market trading sideways for the past two months, we're still finding pockets of strength and individual names that offer favorable risk-reward opportunities.
While we do want to be more selective through this corrective phase, we also don't want to miss anything. The bull market is still alive and well. This kind of sector rotation and digestion of gains is nothing out of the ordinary. While it plays its course, we want to continue to bet on leaders.
Let's dive in and check out some of our favorite setups from our Hot Corner universe this week.
From the Desk of Steve Strazza @Sstrazza and Alfonso Depablos @AlfCharts
The new highs list continues to grow as more and more stocks resolve higher from their consolidations.
The word “rotation” is being thrown around a lot these days as value and cyclical groups have risen to the top of the leaderboard over short timeframes.
While the action can be categorized as rotation, I think a better description for what’s taking place is a broadening of the current rally.
Every single sector was higher in the month of June. So it’s not that money is coming out of the leaders as much as it is going into the laggards at an increasing rate.
At the end of the day it’s just semantics. What this expansion in participation means for investors is more bullish chart patterns and more long opportunities.
Let’s talk about some new ones from our Hot Corner universe.
