On the other hand, cyclicals and Value were already hurting coming into the year and then endured serious structural damage during the Q1 crash. If you've been invested in these areas, particularly those groups directly impacted by Covid-19, it might just seem like the "worst of times."
When going over some of this week's content ideas with JC, I told him "I can't possibly write another post about Tech stocks, but I want to."
His response was simple: "That's information."
In other words, based on the thousands of US Equities charts I'm looking at each week, the strongest uptrends continue to be in Technology $XLK. The fact that it almost seems too good to be true, or that I feel like I'm beating a dead horse about "tech, tech, and more tech" - is all the more reason to remain bullish.
We can't change the fact that there's a lot of good stuff going on in the space right now. We can only interpret the data in front of us, and right now, it's saying we should keep buying Tech.
Last week, we introduced our new weekly column called "Under The Hood." You can read more about it here.
Basically, we are looking at a universe of the most popular stocks on Robinhood measured by the net increase in accounts holding them week-over-week. Then we're drilling into the charts to find opportunities to either join in and ride the momentum in these names higher, or bet against those that get too frothy.
Here is this week's list. It represents the top 60 stocks that experienced net increases in ownership among Robinhood users last week. We've also included their weekly performance.
Every week we publish performance tables for a variety of different asset classes and categories along with commentary on each.
Despite some volatility in the second half, risk assets continued their steady march higher last week. The broadening participation from Equities was again evident as every major US and Global Index was higher with the exception of Dow Utilities $DJU.
We've written extensively about the strongest areas and those first to reclaim their highs. In this post, we'll highlight a handful of Equity ETFs/Indexes which are at or just beneath fresh highs. Whether these areas work through their overhead supply or get rejected at these key levels will provide important information into the strength and durability of the current rally.
Let's dive right in and take a look at our Sector SPDR ETF table.
A few week's ago we profiled the strength in Biotech and highlighted the Genomics space as one of the top-performing industry groups. We said we were looking for some consolidation in these areas in the coming weeks and that if and when prices resolved higher these would be areas we'd look to for long opportunities.
In this post, we'll highlight our top-down approach to look into the Biotech space and offer some trade ideas. Then we'll drill further down into Genomics, provide an update on what we're seeing there, and share some setups in holdings of the ARK Genomic Revolution ETF $ARKG.
In mid-April, we posted a list of 20 key chart levels we were monitoring in some of the most important assets around the world. We've used this as a risk-gauge to measure the internal strength or weakness of the market in the time since.
The list started at 60% bullish, never fell below 50%, and has been stuck at 90% with the same two bearish hold-outs for the past month now. The list has grown consistently more bullish since we began tracking it as more charts continued to break above our levels.
Since the end of May, 18 of the 20 items have been in bullish territory and many have run a good amount from our risk-levels. With the strongest stocks and indexes making new all-time highs and confirming this bullish outlook, prices have spoken and it's time we retire our bull market checklist.
Every week we publish performance tables for a variety of different asset classes and categories along with commentary on each.
Last week was a big one for the bears as most risk-assets sold off aggressively to end the week after a strong start.
Many major Indexes in both International and Domestic Equity Markets printed bearish island reversal patterns, most of which occurred at logical levels of overhead supply. Read our post about it here.
We also just wrote about how the market's secular leaders are holding up best since market internals peaked about two weeks ago. We're going to use our US Index and Sector tables below to highlight the noteworthy relative strength from these areas amid the recent market weakness.
Let's take it from the top and begin with our US Index ETF table.
We’ve written extensively about the split market we’ve been in for the better part of the year, as the same leaders coming into the Q1 crash emerged as the strongest areas coming out of it. Over the past 3-4 weeks we’ve seen some major mean reversion and much-needed participation from the cyclical sectors which have been lagging for years now.
This is constructive rotation and a major positive for bulls as we’re going to need to see this type of breadth expansion if this rally is to have legs.
While this is an encouraging development, there’s one thing that hasn’t changed at all. With all the focus on Financials, Industrials and Energy recently, Tech seems to have been forgotten a bit, but it’s still by far the best game in town.
These are the registration details for the monthly conference call for Premium Members of All Star Charts.
This month’s Conference Call will be held on Monday June 15th at 7PM ET. As always, if you cannot make the call live, the video and slides will be archived and published here along with every other live call since 2015.
In this post, we'll highlight that this broadening participation and flight towards risk-assets is more than just a one-week phenomenon. We've seen this type of price behavior in some asset classes for over a month now.
