In this weekly note, we highlight 10 of the most important charts or themes we’re currently seeing in asset classes around the world.
Don’t Ignore Coal
Our equal-weighted custom index of the largest coal stocks reached new highs last week. If this breakout sticks, coal is a group we want to keep leaning on for long exposure.
In this weekly note, we highlight 10 of the most important charts or themes we’re currently seeing in asset classes around the world.
Tactical Levels for the S&P
The S&P 500 is bouncing off the 38.2% retracement of its rally from the October lows. This level also coincides with the AVWAP from 2022 lows, making it a confluence zone of support to halt the recent selling pressure.
In this weekly note, we highlight 10 of the most important charts or themes we’re currently seeing in asset classes around the world.
Bulls Dance with France
Last week, France's CAC 40 Index became one of the first global indices to reach record highs. The fact that more and more countries are trending to the upside speaks to broadening participation overseas.
In this weekly note, we highlight 10 of the most important charts or themes we’re currently seeing in asset classes around the world.
The 30yr Retests Prior Cycle Highs
The US 30yr yield refuses to break below its prior cycle highs. This is a logical level for yields to find support and churn sideways which could mean more messy action for long-duration assets such as bonds and growth stocks.
In this weekly note, we highlight 10 of the most important charts or themes we’re currently seeing in asset classes around the world.
Reclaiming a Valuable Line
From an information standpoint, the Value Line Geometric Index (VLG) is one of the best tools we have at our disposal as it represents the median stock’s performance. Seeing this index make a higher high as it reclaims its prior-cycle highs from 2018 and peak from last August is a major bullish development.
In this weekly note, we highlight 10 of the most important charts or themes we’re currently seeing in asset classes around the world.
Investors Reach for Risk
Last week, the High Beta (SPHB) versus Low Volatility (SPLV) ratio reached its highest level since April of last year. This action speaks to risk-seeking behavior and offensive positioning. As long as these new highs hold, we're looking for equity markets to follow higher in the coming weeks.
In this weekly note, we highlight 10 of the most important charts or themes we’re currently seeing in asset classes around the world.
Consumers Favor Discretionary
The Equal Weight Consumer Discretionary vs. Equal Weight Consumer Staples ratio is resolving higher from a rounding bottom reversal pattern. Seeing this ratio make an upside resolution is a characteristic of bull markets as it indicates offensive positioning by investors and supports higher prices for risk assets.
In this weekly note, we highlight 10 of the most important charts or themes we’re currently seeing in asset classes around the world.
Bitcoin Bounces Back!
Bitcoin has been on an absolute tear, gaining roughly 25% since last week and booking seven consecutive up-days. Not only is price reclaiming its prior cycle highs from 2017, but momentum (as measured by the 14-day RSI) is registering its highest reading in two years. As shown in the table, price has also reclaimed its 200-day moving average, ending the second longest streak on record spent below it over the course of 2022.
In this weekly note, we highlight 10 of the most important charts or themes we’re currently seeing in asset classes around the world.
They’re Buying European Banks
European Financials (EUFN) have been among the best-performing industry groups for the last three months. As you can see, price recently reclaimed a critical level of interest and is pushing against seven-month highs. This is evidence of a bullish uptick in risk appetite.
In this weekly note, we highlight 10 of the most important charts or themes we’re currently seeing in asset classes around the world.
New Relative Lows for Growth
The relationship between growth and value has leaned heavily in favor of cyclical stocks as we see fresh new lows in this ratio. As long as this downtrend is intact, the best course of action is to remain overweight value-oriented areas and stay away from growth.
In this weekly note, we highlight 10 of the most important charts or themes we're currently seeing in asset classes around the world.
Discretionary Takes a Dive
The Large Cap Consumer Discretionary SPDR (XLY) broke below its pre-Covid highs of around $132 last week. The recent price action in XLY is an excellent illustration of how the weakest stocks are performing. We're witnessing a growing list of bearish continuation patterns resolve lower in growth indices as renewed selling pressure grips the market.
In this weekly note, we highlight 10 of the most important charts or themes we're currently seeing in asset classes around the world.
Banks Tank
The SPDR Regional Banking Index (KRE) registered its lowest weekly close since January 2021 as it threatens to break down from a topping pattern. In addition, the price is violating its AVWAP from the March 2020 lows, and momentum is hitting oversold conditions. If KRE is below this polarity zone ~58, the path of least resistance is lower, and we should be prepared for a leg to the downside.
