The Indian Financial Services sector is broken down into three formal sector indices: The Nifty Financial Services index, the Nifty Bank index, and the Nifty Public Sector (PSU) Bank index. Both the Nifty Financial Services and Nifty Bank index have been showing great leadership, sitting just off their all-time highs on both an absolute and relative basis, however, the Nifty Public Sector Bank index has not participated to the same extent.
I think our messaging has been clear that we want to be buying equities, and buying those showing relative strength. The Nifty Financial Services index and the Nifty Bank index are sitting just off all-time highs relative to the Nifty 500, so I've done a deep dive into them to highlight the best large, mid, and small cap names on the long side. I've also included some names from the Nifty Public Sector (PSU) Bank index, but would note that it's hitting 2-year lows relative to the Nifty 500 and therefore has a much smaller representation on this list despite being part of the Financial Services sector as a whole.
I am a firm believer that the Stock Market, U.S. or otherwise, is in an uptrend that began in early 2016, or summer of 2016. You can buy me beers one day and we'll discuss less relevant data points, like this 6 month difference, that dorks like me enjoy arguing about over beers. The point is, however, that this is a new bull market, not a 9-year old one like some people like to tell you.
So if we're in a bull market, then consolidations within this uptrend should resolve in the direction of the underlying trend, which is up in our opinion. The first industry group to break out from this consolidation the past couple of months and make new highs is Software. It's a major standout guys and we need to pay attention. So here's a breakdown of the sector components and which ones we want to be buying right now.
Every month I host a conference call for All Star Charts Premium Members where we discuss ongoing themes throughout the global marketplace as well as changes in trends where new positions would be most appropriate. This includes U.S. Stocks & Sectors, International Stock Indexes, Commodities, Currencies and Interest Rate Markets.
The new volatility regime in 2018 has caused many to question the uptrend in stocks that we've seen the past couple of years. In this call we will go over all of the markets around the world including intermarket relationships that help us identify whether risk appetite overwhelms any risk aversion we're seeing from institutional investors. On Tuesday, we'll focus on the strongest sectors and strongest stocks that we believe will be leaders during the next leg higher throughout the rest of 2018.
This month's Conference Call will be held on Tuesday May 15th at 7PM ET. Here are the Registration Details:
In a recent report to Allstarcharts Premium subscribers, J.C. laid out a case why he's bullish on the Industrials sector and why that's important to the overall market. Not ever one to mince words: "we want to be buying right here right now and very aggressively. The bet is that Industrials are now heading higher and leading the market to new all-time highs." That sounds pretty convincing to me!
Please allow me to introduce myself. My name is Sean McLaughlin and I’ve been involved in financial markets as a Trader, Exchange Member, blogger, in building social communities, podcasting, training and in sales for 20 years.
Some of you may already know me or have engaged with me on Twitter, Medium, or StockTwits where I go by the handle @chicagosean. Others may know me from the 7 years I spent as Director of Community at StockTwits, and a few more may know me in my role of Sales, Training, & Strategy at Trade Ideas, LLC.
Wherever you may or may not know me from, I’m happy to be teaming up with my friend JC Parets at Allstarcharts.com to build upon his excellent and unparalleled work in providing actionable insights to the financial community.
I've been looking forward to this day all year. All Star Options is now live - Go check it out!
Over the years we've built a customer base of smart, well informed and eager to learn investors from all over the world. Active Traders, Hedge Funds, Banks, Financial Advisors and many others come to Allstarcharts for unbiased technical analysis research with invariable consistency. We service most of the largest and most powerful financial institutions on earth, but the price point is also approachable for investors trading their own accounts.
In my last post I outlined the evidence from India and around the globe that suggests equities as an asset class are headed higher. I pointed out the failed head and shoulders topping patterns in the Nifty 50 and other indices that should fuel the move higher. With that being said, I wanted to outline the Nifty 50 stocks where I believe the risk is defined best and the reward/risk is still favorable.
When I go through all of the crypto currencies, the healthiest one and the only one already pressing up against key resistance is Ethereum. You guys know I look for relative strength and positive momentum. Ethereum is showing characteristics of both right now.
Today I want to take a look at what we're seeing in Ether, as the great Nasir Jones would refer to it. He's one of our generations greatest poets and I think what we're seeing in the Ether right now is pure poetry.
When I go through charts of the most popular crypto currencies, it's hard to ignore the fact that we're seeing prices breaking out above downtrend lines from their respective highs. Go one by one, we're seeing it all over.
So what does that mean? Should we be buying all the crypto currencies right now?
Since the market's volatility picked up in late January, one key piece of the bear thesis has been weakness in Technology, yet we've not seen a crack and flush lower. I don't know about you, but I was promised a "Tech Wreck" and will not leave until we get one or Mr. Market provides me a refund.
Okay I'm being facetious, but in this post I want to outline what I'm watching and explore what the implications are if the potential bearish patterns in this sector don't pan out.
Just because a stock or an index is choppy and moving sideways doesn’t mean we can’t participate in some profits. There’s opportunity in every situation, especially with options.
