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 Lows Streak is Over
One thing that has been consistent this year is seeing more stocks hit new lows than new highs. We’ve witnessed this kind of bear market behavior every single week of 2022. Up until now, that is. For the first time all year, more stocks made new highs than new lows last week. This is a huge development because if the market truly bottomed and we’re in the early stages of a new uptrend, we’re going to need more new highs than new lows. It’s just math. Following 37 straight weeks of net new lows, seeing this streak come to an end is yet another big piece of evidence in favor of the bull camp.
Risk environment is still cautious as downtrends linger.
Macro situation is a concern but has not been causing stress.
Breadth thrusts are firing, participation is expanding and for the first time this year new high lists are longer than new low lists. From the perspective of market internals, the rally over the past two months could hardly have been stronger.
This strength is showing up in our bull market re-birth checklist. July brought upside volume thrusts and the first breadth thrust (based on the percentage of stocks making new 20-day highs) in over two years. Last week brought to an end the string of 37 consecutive weeks of more new lows than new highs on the NYSE+NASDAQ. The trend in our net new high advance/decline line also turned higher.
Our bull market re-birth checklist has now had 4 out of 5 the criteria met. While this does...
Broadly speaking, risk assets have caught a well-received bid over the last few weeks. This recent period has proven to be an incredibly risk-on tape.
When it comes to crypto, the big narrative driving capital markets seems to be the upcoming Ethereum $ETH merge. This update will see the network move away from proof-of-work (PoW) to a proof-of-stake (PoS) framework.
Of course, as technicians, we naturally follow money flow as opposed to getting stuck in the weeds of narratives. It's quite clear to see traders are bidding Ethereum leading into the merge in what looks like a "buy the rumor, sells the news" event.
The most significant insider activity on today’s list comes in a Form 4 filing by QH Hungary Holdings Ltd, which reported purchases worth roughly $9.2 million in Quaker Chemical $KWR.
The firm now owns 4,440,989 shares, representing a roughly 22.50% ownership stake.
Our Hall of Famers list is composed of the 150 largest US-based stocks.
These stocks range from the mega-cap growth behemoths like Apple and Microsoft – with market caps in excess of $2T – to some of the new-age large-cap disruptors such as Moderna, Square, and Snap.
It has all the big names and more.
It doesn’t include ADRs or any stock not domiciled in the US. But don’t worry; we developed a separate universe for that which you can check out here.
The Hall of Famers is simple.
We take our list of 150 names and then apply our technical filters so the strongest stocks with the most momentum rise to the top.
Let’s dive right in and check out what these big boys are up to.
Here’s this week’s list:
Click table to enlarge view
We filtered out any laggards that are down 5% or more relative to the S&P 500 over the trailing month.