From the desk of Steve Strazza @sstrazza

It's been a long time coming...

Public investors finally have opportunities to gain exposure to the exciting new Space Exploration industry.

We've seen a handful of new pure-play Space IPOs and SPACs hit the market this year. Most recently one of our favorite fund managers, ARK Invest joined the party and launched their own thematic Space ETF, $ARKX.

There's obviously a ton of hype surrounding this emerging theme right now. But is this industry, in its current form, worth investors' time?

From the desk of Steve Strazza @sstrazza and Louis Sykes @haumicharts

The same strong rotational currents that have been in place in the US since last summer have finally begun to spill over to International stocks... but, not all of them.

For the first time in about a decade, evidence suggests that stock markets around the world have finally built a strong foundation relative to their US counterparts, and might just be ready for a sustained period of outperformance.

How big the move will be and how long it will last are always some of the most difficult variables to predict. We can merely position ourselves accordingly based on the information we do have, and then be keenly aware of new data points as they come in, and constantly re-evaluate and adjust our outlook as appropriate.

As for the potential structural bull-to-bear reversal in the long-running trend of outperformance from US stocks... the seeds have definitely been planted for such a development to occur.

From the desk of Steve Strazza @sstrazza

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 to profit in the weeks and months ahead.

The market continues to fire on all cylinders right now. Last week's gains were nothing but a continuation of the same resiliency and momentum we've come to expect from risk assets over the last year.

From the desk of Steve Strazza @sstrazza and Louis Sykes @haumicharts

Check out our latest Mystery Chart!

What we do here is take a chart that’s captured our attention, and remove the x and y-axes as well as any other labels that could help identify it.

This chart can be of any security, in any asset class, on any timeframe. Sometimes it’s an absolute price chart, other times it’s on a relative basis.

It might be a ratio, a custom index, or maybe the price is inverted. It could be all three!

The point is, when we aren’t able to recognize what’s in front of us, we put aside any biases we may have and scrutinize it objectively.

While you can try to guess the chart, the point is to make a decision…

So let us know what it is… Buy, Sell, or Do Nothing?

From the desk of Steve Strazza @sstrazza and Louis Sykes @haumicharts

Markets never operate in a static manner. Instead, markets are dynamic and remain in a natural and constant state of flux.

In knowing this, we must always remain flexible and aware of the changing conditions and developments taking place around us. We pride ourselves on our ability to evolve and adapt to these changes in market structure and are never dogmatic in our approach.

For the last decade, US large-cap growth has been where the alpha is, and derivatives of this theme like large over small, stocks over commodities, and US over international have been very powerful relative trends. We know this well because we've been leaning on them for a long time...

But that's all changed recently, as we've been vocal about the importance of repositioning and decreasing exposure to growth in favor of more cyclical, value-oriented stocks.

From the desk of Steve Strazza @sstrazza

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 to profit in the weeks and months ahead.

Rotation into value is dominating the narrative right now as money continues to pour out of the former leaders and into long-term secular laggards like Financials and Energy.

In line with this trend, we continue to focus less on US Large-Caps and Growth, and instead look for opportunities in SMIDs, Cyclicals, and International stocks.

From the desk of Steve Strazza @sstrazza and Louis Sykes @haumicharts

Over the last few months, there's been a distinct rotation into Financials and other cyclical areas across equity markets not just in the US, but across the globe.

This topic is nothing new around here as it's been a big theme for us recently. Consider some of our calls from this month:

From the desk of Steve Strazza @sstrazza and Louis Sykes @haumicharts

In a recent post discussing cyclicals, we posed the following question:

Are Energy and Financial stocks about to lead the market?

Cyclical groups are catching all the right tailwinds in this environment.

Crude Oil and Yields are pressing to new 52-week highs as investors continue to favor more economically-sensitive stocks and commodities in general. This is a bullish development and supports higher prices for some of the most beaten-down risk assets... even Financials and Energy.

As participation has expanded, we've been vocal about looking for the winners in each group without a sector bias based on relative strength.

From the desk of Steve Strazza @sstrazza and Louis Sykes @haumicharts

Are we finally entering the long-awaited alt-season?

We're seeing incredibly healthy rotation within the Cryptocurrency space, which we can only interpret as support for higher prices for this group of digital assets moving forward.

We've been bullish on Bitcoin $BTC and crypto since last summer when BTC was near 10,000.

Here's a post in October where JC outlined that the path of least resistance was higher in BTC, and another in December where we outlined a target, which was hit in a matter of days. Our current target for the Crypto leader is 70,000.

The price action is clear: Crypto continues to benefit from a well-established uptrend.

Our main focus today is the broadening participation of many Altcoins (lingo for any Cryptocurrency not named Bitcoin).

From the desk of Steve Strazza @sstrazza and Louis Sykes @haumicharts

Leadership in this environment is stretching far and wide.

We're seeing a growing number of industry groups and areas not only making new highs but also outperforming and offering us more and more avenues to express our bullish thesis on stocks and risk assets in general.

Last week, we discussed Commodities and Ags.

The week before that, we dove into Chinese equities.

And for some time now, we've been vocal on SMIDs in general.

The point is, with such an overwhelming amount of leadership these days, we can be picky and place our bets on only the best of the best in each group.

In today's post, we'll explore a hot new growth industry we haven't covered in much detail yet - Autonomous Vehicles.

From the desk of Steve Strazza @sstrazza and Louis Sykes @haumicharts

As JC pointed out the other day, this week we saw the most amount of new 52-week highs in the history of the Nasdaq.

That's right. The highest reading ever. That's bullish.

We've also witnessed another very encouraging development in market internals of late.

Let's talk about it...

From the desk of Louis Sykes @haumicharts

Two ETFs tracking the same sector, industry, or niche area can yield significantly different outcomes.

We see it all the time.

I'll share a few examples, along with a short discussion of what I've taken away from it all.