From the desk of Steve Strazza @Sstrazza

Our Top 10 Charts Report was just published. In this weekly note, we highlight 10 of the most important charts or themes we're currently seeing in asset classes around the world.

Cyclicals Shine

In recent week’s we’ve witnessed a slew of former leadership groups -- mostly growth sectors, achieve our targets and begin to roll over. This might have been a more concerning development if we weren’t witnessing value and cyclical stocks pick up their slack so aggressively. Over the past couple of weeks, we’ve seen energy stocks rebound and make a swift move off support as well as financials rally back to fresh all-time highs. More recently, we’re now seeing industrials and materials dig in and rally off their year-to-date lows. Once again, the bears had some charts looking vulnerable, and failed to make their move. Now it appears that bulls are back in the driver seat and value stocks are poised to take on some leadership. This theme is illustrated well by the strength in our equal-weight custom cyclical index, below.

• Energy and Financials switched spots this week but remain at the top of the relative strength rankings, with leadership evident across time frames and market cap levels. Over the past three months, no other sector is up more than 1%. The Financials sector is up 6% and Energy is up 8%.
• Our industry group heat map shows notable strength in Energy and Banks. Health Care, Technology and Telecom groups are coming under pressure.

From the desk of Steve Strazza @Sstrazza

Check out this week's Momentum Report, our weekly summation of all the major indexes at a Macro, International, Sector, and Industry Group level.

By analyzing the short-term data in these reports, we get a more tactical view of the current state of markets. This information then helps us put near-term developments into the big picture context and provides insights regarding the structural trends at play.

Let's jump right into it with some of the major takeaways from this week's report:

* ASC Plus Members can access the Momentum Report by clicking the link at the bottom of this post.

From the desk of Willie Delwiche.

We like to say that dollars flow to where they are treated best. If that is the case, commodities could soon see a surge of inflows. The DBC/AGG ratio shows commodities surging to new multi-year highs versus bonds and the DBC/SPY ratio shows strength versus stocks as well. DBC has more than doubled up SPY on a YTD return basis (43% vs 18%). Commodities are proving again to be a place of relative safety when inflation and bond yields are on the rise. For many investors, commodity exposure isn’t even included as part of the asset allocation discussion. At least, not yet.

This is the video recording of the October 7th Weekly Town Hall w/ Willie Delwiche

10/07/21 2PM ET

From the desk of Willie Delwiche.

My team just participated in our final cross country race of the season, and I was thrilled with our performance. 

Our focus this season was effort and the improvement that follows. This week, our runners delivered. Big time! 

We had 17 athletes compete. Of this group, 13 matched or posted their best time of the season -- a few by wide margins. 

These accomplishments didn’t show up on the leaderboard. The most competitive runners on the top teams ran mile after mile over the course of the summer. As you would expect, they received their fair share of medals and accolades. 

But for us, it was a race full of individual victories.  

From the desk of Willie Delwiche.

With our latest Weight of the Evidence Dashboard improving and now signaling a neutral stance, we have put cash to work across our portfolios to reflect a more balanced approach.

From the desk of Willie Delwiche.

From the desk of Willie Delwiche.

From the desk of Steve Strazza @Sstrazza

Check out this week's Momentum Report, our weekly summation of all the major indexes at a Macro, International, Sector, and Industry Group level.

By analyzing the short-term data in these reports, we get a more tactical view of the current state of markets. This information then helps us put near-term developments into the big picture context and provides insights regarding the structural trends at play.

Let's jump right into it with some of the major takeaways from this week's report:

* ASC Plus Members can access the Momentum Report by clicking the link at the bottom of this post.

From the desk of Steve Strazza @Sstrazza

Our Top 10 Charts Report was just published. In this weekly note, we highlight 10 of the most important charts or themes we're currently seeing in asset classes around the world.

• Higher rates are fueling strength in Energy and Financials - leadership from those sectors can be seen across market cap levels.
• Our industry group heat map shows continued deterioration from large-cap groups and improvement from small-cap groups. Some 8% of large-cap groups made new 13-week highs last week vs 42% that made new 13-week lows. Among small-cap groups, it was 17% at new highs and only 13% at new lows.