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.

FICC markets are also assigning stocks with a clean bill of health and supporting/confirming a continuance of their primary uptrends.

Let's jump right into this week's report with our US index table.

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From the desk of Louis Sykes @haumicharts

Seeing as the year is coming to a close, here's a short list of some lessons I'm taking away from this hectic 2020:

1. I know a lot less than I what think I do.
    
2. Relative strength is a lot more important than what I thought it was. People who followed relative strength in 2020 were the big winners. Seeing those names keeping their heads above water in March lead markets higher.
    
3. To not be scared of new highs and the danger of the attitude that something's "gone too far too fast". Where do you draw the line on whether something's gone too far? 20%, 50%, 100%? These are emotional levels, not rational ones.
    
4. You're never chasing if you're buying a breakout.
    
5. Don't try to be smarter than what I really am. Popular momentum names were continually showing up in my scans, but I refused to buy them. Instead, I was looking at names that didn't have as much coverage thinking it made me somehow intellectually superior (spoiler, it...

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.

Many key indexes - both large and small, sit at crucial inflection points. Many of the small and mid-cap indexes are also extended and sporting extreme momentum readings, making for a logical level for sellers to step in.

It would be a healthy development for SMIDs to take a breather here and pass the baton back to large-caps for a bit.

The...

From the desk of Louis Sykes @haumicharts

Monday was the big day, I had my first CMT exam.

It's one thing stacking up all the topics you need to learn for the test, but it's another to take on lasting knowledge that'll carry you for the years ahead.

Shooting through the textbooks and lectures reinforced that despite all the charts I go through, the process I use represents only a very small proportion of the way people interpret technical data. Seriously, there were dozens of indicators, ways to plot price, and even basic assumptions on why we do technical analysis that I had never come across.

This was all so great to learn.

While I might not use these tools on a day-to-day basis, understanding how people look at markets differently and expanding my knowledge and skills can only be a strength.

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.

While we have yet to see that play out, our long-term outlook continues to favor Growth-oriented stocks down the market-cap scale as a way to express our bullish thesis.

Without further...

From the desk of Louis Sykes @haumicharts

It's always hard for us market nerds to level with others who don't share our obsession for Finance.

And that's important because, with all the noise of today, I think there's a very real barrier to finding sound information. While I'm by no means an authority on this subject (in fact quite the opposite), whenever I talk to people about Finance, I always hear two complaints.

That it's boring and too complicated.

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.

But from a more short-term and tactical perspective, it would be healthy for many indexes down the market-cap scale to digest their gains. Many sector indexes and ratios are...

From the desk of Louis Sykes @haumicharts

I'm back with a brand new edition of the Louis' Look column to share some lessons I'm learning as an intern. You can find my last post here, where I share a handful of obscure charts most people have never seen.

Let's crack straight into it.

My first year of University is now officially over! Woop Woop!

While celebrations would normally be in order, it's a bitter-sweet ending to my freshman year.

This whole virus situation meant that I only spent a few weeks of the year on campus and in the 'University scene' - a time where you're supposed to leave home, grow out, and meet new and interesting people.

As I'm sure we can all attest to, 2020 sucks.

The point of this post isn't to complain about the hectic year we've all had. We've all done it hard this year. But in such a special time 2020 has been to us all, it's a big mistake if we don't take on a whole new arsenal of lessons that will carry us through our careers. If we can be grateful for anything this year, it's the incredible opportunity to...

From the desk of Louis Sykes @haumicharts

Welcome to this week's edition of Louis' Look where I give you the inside scoop on what I'm learning as an intern at All Star Charts. Last week I wrote about having a sense of humor in the financial world with a reference to the infamous John Cena pattern in stock of Worldwide Wrestling Entertainment.

Today I thought it'd be entertaining to step back from the lessons and bring five charts you have probably never seen, thought of, or come across.

I had a lot of fun writing this one, so let's get into it.

From the desk of Louis Sykes @haumicharts

Welcome to this week’s edition of Louis’ Look, where I document the lessons I’ve learned in the last week through interning at All Star Charts.

Today, I want to take a step back from the hectic world of financial markets and remind us all of two very important things:

1. Having some fun every now and then.
2. Being passionate about the work you do.

From the desk of Louis Sykes @haumicharts

Welcome to this week’s edition of Louis’ Look, where I document the lessons I’ve learned in the last week through interning at All Star Charts. Last week, I touched on the necessity of a game plan in life and the financial markets.

Today’s topic, however, highlights a mistake I think many of us fall prone to in the financial world.

From the desk of Louis Sykes @haumicharts

Welcome to this week's edition of Louis' Look, where I walk you through what I'm learning every week as an intern at All Star Charts. Last week I discussed how information is most valuable when it remains hidden; you can read the post here. Today, I want to explore how the market continually reinforces the necessity of a game plan.