From the desk of Tom Bruni @BruniCharting

Last week's Mystery Chart Reveal focused on the rotation into Industrial stocks. In this post I'm going to point out five names in this sector from the S&P 1500 with extremely well-defined risk and skewed reward/risk at current levels.

These are the registration details for the monthly conference call held for Premium Members of All Star Charts. In this call we will discuss the global market environment and how to profit from it. As always, this will include Stocks, Interest Rates, Commodities and Currencies. The video of the call will be archived in the members section to re-watch any time and the PDF of the charts will be made available as well.

This month’s Conference Call will be held on Wednesday April 17th at 7PM ET. Here are the details for the call:

From the desk of Tom Bruni @BruniCharting

Healthcare Providers quickly went from hero to zero in Q4 of 2018 after a failed breakout and bearish momentum divergence, but we're beginning to see signs of a potential mean-reversion over the short-term.

Let's start with Healthcare relative to the S&P 500, which has been unable to find its footing since topping 5 months ago. Prices have now retraced 61.8% of their 2018 rally, which may offer some short-term support and transition the trend from down to sideways.

Click on chart to enlarge view.

From the desk of Tom Bruni @BruniCharting

Telecom continues to hold up well, sticking with the "reach for yield" theme we've been discussing month in and month out for a while now.

Let's take a look at the ETF and a few individual names we want to be buying to take advantage of this trend.

From the desk of Tom Bruni @BruniCharting

The market remains a “hot mess", so we’re looking under the surface at breadth and risk appetite measures to identify clues as to the potential direction that this 15-month range will resolve itself.

Today I want to look at one of those measures, Consumer Discretionary stocks vs Consumer Staples.

If you're a long-only fund manager that believes the market is headed higher, you're going to be in more aggressive areas of the market like Discretionary. If you believe the market is headed lower or isn't going to do much, you're going to be in the lower beta, often higher dividend Consumer Staple stocks.

So what's happening in these sectors right now?

The Equal-Weight Consumer Discretionary vs Equal-Weight Consumer Staples continues to struggle with a flat 200-day moving average and confluence of support/resistance, but just made new 6-month highs this week. While this chart still work to do to confirm an intermediate-term uptrend, this is extremely constructive action and is suggesting that risk appetite among market participants is beginning to pick up.

From the desk of Tom Bruni @BruniCharting

The Equally-Weighted Semiconductor Index recently made new all-time highs, while the cap-weighted sits a few below its 2018 highs. What's next for Semis? That's what I hope to answer in this post.

From the desk of Tom Bruni @BruniCharting

During last week's Conference Call we discussed a lot of the potential catalysts to drive Equities as an asset class higher over the intermediate/long-term, however, we continue to err on the cautious side given our outlook for sideways chop in the short-term.

Thursday I wrote about a growing number of potential "oopsies" (failed moves), so I want to follow up on that post and outline another group of charts that I think are suggesting short-term weakness in stocks.

From the desk of Tom Bruni @BruniCharting

During last week's Conference Call we discussed a lot of the potential catalysts for a lower US Dollar, so I wrote a free post talking about whether a weaker US Dollar means US stocks have to underperform International stocks. If you haven't read that, please do that first, because in this post I'm going to quickly touch on a short-term theme that continues to build within our Global ETF Ratio universe.

From the desk of Tom Bruni @BruniCharting

In this post we're gonna check in on Canadian Equities and see what sectors and names we want to be involved in.

From the desk of Tom Bruni @BruniCharting

Tuesday I posted a Mystery Chart that got a lot of replies.

Most said you'd be buyers at current levels or on a pullback, but a number of you were skeptical of the recent move and would be avoiding or fading it.

The feedback I got was interesting, so let's get right into the actual chart.

This week's Mystery Chart was an inverted daily line chart of the Metals & Mining ETF relative to the S&P 500. Below is the corrected chart.

Prices have put in a multi-year top, remain below support and a downward-sloping 200-day moving average, and momentum is in a bearish range. All signs continue to point to under-performance in this market sub-sector.

Click on table to enlarge view.

These are the registration details for the monthly conference call held for Premium Members of All Star Charts. In this call we will discuss the global market environment and how to profit from it. As always, this will include Stocks, Interest Rates, Commodities and Currencies. The video of the call will be archived in the members section to re-watch any time and the PDF of the charts will be made available as well.

This month’s Conference Call will be held on Tuesday March 19th at 7PM ET. Here are the details for the call: