During Chart Summit India we outlined a number of stocks showing relative strength and positive momentum characteristics, one of which was Bharti Airtel.

With the stock hitting new all-time highs, we want to share two more charts that suggest money may continue flowing into the entire Telecom sector.

From the desk of Steve Strazza @Sstrazza

For the week ended Friday, May 15, 2020:

Every weekend we publish performance tables for a variety of different asset classes and categories along with commentary on each.

This week's main theme is that the strong continue to get stronger and vice versa, which we'll highlight in our Industry and Sector ETF tables, below.

Notice how the top three performers this week also happen to be the only Industry ETFs that are positive over the trailing 3-month period?

Gold Miners (GDX), Biotech (IBB), and Internet (FDN) posting positive 3-month returns may not sound like much but is actually quite impressive as it means these areas have already taken out their highs from just before the broader market peaked and collapsed in February.

Click table to enlarge view.

Their strength stands in stark contrast to some of the more cyclical Industry ETFs such as Banks (KBE),...

Earlier this month we outlined the "Five Bull Market Barometers" we're watching to identify the beginning of a new bull market in stocks.

In this post, we'll update those charts without going into as much detail as to why they're important. So if you haven't read our initial post linked above, we'd encourage you to check it out.

With that said, let's jump in and see how these charts have developed since.

From the desk of Steve Strazza @Sstrazza

This week's Mystery Chart was a simple yet pivotal one... it was a ratio chart of Stocks vs Treasury Bonds.

With stocks struggling at resistance this week and Treasuries meandering beneath all-time highs, both appear to be at key inflection points.

Making things even more interesting is that the S&P 500 (SPY) relative to 20+ Year Treasury Bonds (TLT) ratio is also at a key level of interest. It is make-or-break time for these two asset classes so let's dive in and see what's going on.

From the desk of Steve Strazza @Sstrazza

Breadth divergences from earlier this year took a while to confirm, but once they did we saw considerable downside.

My Chart Summit Presentation was on how I use statistics and scans to visualize market internals for insight on breadth and relative strength. I used tables from our Weekly Momentum Reports in January and February to illustrate the clear deterioration in participation taking place at the time despite the major indexes grinding to new highs.

In this post, we’ll do a similar exercise and use stats to analyze whether breadth has been improving or deteriorating in Global Equity Markets over the past month.

Vedanta Ltd. has begun the process of a voluntary delisting of its shares from the public exchange, with the promoter group planning to buy out the remaining ~49% of non-promoter shares it doesn't currently own.

We spoke about Vedanta Ltd. in our Chart Summit India presentation last month as a stock setup we liked on the long side, so given this news, we wanted to revisit that setup and see what lessons could be taken away and applied in future situations like this one.

From the desk of Steve Strazza @Sstrazza

Last month we wrote about the lackluster move from some of the cyclical sectors off of their March lows, particularly Industrials and Financials.

We continue to see weakness out of these areas over both long and short-term timeframes as Financials are pressing on all-time lows relative to the S&P 500 and Industrials just made a fresh relative 20-year low.

In this post, we'll take a look at these underperforming areas and share some trade ideas to express our bearish thesis.

First, let's take a look at the long-term relative weakness we just mentioned.

Click chart to enlarge view.

Two massive tops breaking down to fresh lows. These are both secular laggards and have been for a long time.

The more recent relative weakness out of...

Normally one day of price action doesn't get our attention, but given our cautious view of stocks from a structural perspective, it's worth outlining why today's candle in the Nasdaq 100 could potentially be a big deal for stocks all around the world.

If you haven't heard by now, the Online Retail Index broke out to new all-time highs. We're not exactly seeing that from a broad-based perspective. This is not happening domestically and it's certainly not happening around the world. The rotation we're seeing among sectors and industry groups is real. Today we're going to focus specifically on online retail.

The way I see it, the question here is simple. Is the massive reversion, and return to these prior highs, "the" move? Or was that just a multi-year consolidation, and the move is just getting started?

Here's what that looks like:

Click on Charts to Zoom In

Now look at this group of retailers relative to the S&P500, which happens to be one of the strongest stock indexes on planet earth. So we're comparing it to strength, not cherry picking weak indexes:

...

The weight of the evidence remains mixed and suggests that there will be winners on the long side, winners on the short side, and a lot of stocks in the middle that aren't going anywhere.

An easy way to view that is through our five bull market barometers, which continue to suggest we're in a bear market. As a result, we're focused on the best opportunities on both the long and short side.

In this post, we're going to outline which area of the market we're looking to short and add several individual stock trade setups to our list of open ideas.

Let's start at the sector level. Nifty Commodities remain below the 38.2% Fibonacci Retracement of its 2020 decline at 2,635. With momentum in a bearish range and stuck below this level, then it makes sense to be erring on the short side and looking for a move back towards the lows near 2,075

Click on chart to enlarge view. ...

Jordan Kotick is one of the key people that early in my career inspired me to be more intermarket oriented. They would ask Jordan about the S&P500 and he would go into a tangent about bonds. They would ask him about Emerging Markets and he'd whip out, what he refers to as, "Chinese Dow Theory". For over a decade, Jordan was the Managing Director of Macro Strategy at Barclays and then Managing Director of Cross Asset Strategy at RBC Capital Markets. He is the first person to have ever been president of both the CMT Association (then called the MTA), and the Canadian Society of Technical Analysts (CSTA). In this podcast episode we talk about some of the great lessons Jordan learned over the years and what sorts of markets and charts investors should be paying attention to in the current environment. This was a really fun conversation and was great to catch up!

From the desk of Steve Strazza @Sstrazza

For the week ended Friday, May 8, 2020:

Every weekend we publish performance tables for a variety of different asset classes and categories along with commentary on each.

Many of the relative trends in stocks that have been in place for a long time have come into question recently as they're showing signs of maturing due in part to the change in leadership we wrote about this week.

In this post, we'll highlight two structural intermarket themes that have remained robust throughout this tumultuous time for equity markets.

The first relative trend that hasn't slowed down at all is the relentless outperformance of the US over the rest of the world. Our first table shows the Wilshire 5000 (DWC) dominating every Global Index over just about every timeframe, from this week to the trailing year.

Click table to enlarge view.

The second theme is the continuance of...