All Star Charts Premium Articles

These are the registration details for the monthly conference call for Premium Members of All Star Charts.

This month’s Conference Call will be held on Monday June 15th at 7PM ET. As always, if you cannot make the call live, the video and slides will be archived and published here along with every other live call since 2015.

Here are the details for Monday:

From the desk of Steve Strazza @Sstrazza

For the week ended Friday, June 5, 2020:

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

This was a big week for market bulls as a myriad of consolidations resolved to the upside while the powerhouse Nasdaq 100 $QQQ finally became the first major index to reclaim its all-time highs. The only assets to post negative returns this week were the usual "safe-havens" such as Treasuries, Yen, and Precious Metals. Everything else was green. How's that for improving risk-appetite?

In this post, we'll highlight that this broadening participation and flight towards risk-assets is more than just a one-week phenomenon. We've seen this type...

Here's a trade I like a lot right now.

It's in the right sector. The trend is in the right direction. And Momentum is confirming it all.

From the desk of Steve Strazza @Sstrazza

For the week ended Friday, May 29, 2020:

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

This was a special week as Friday marked the end of May which means fresh monthly candlestick data. Analyzing these long-term monthly charts every several weeks is a great exercise as it forces us to take a step back and identify the structural trends that are in place.

As such, this week’s theme is the continued outperformance over both the short and long-term from those areas sporting the strongest primary uptrends.

Tech $XLK is by far the best performing sector over the trailing year. It is also the 2nd best over the past month and quarter, behind Communications $XLC and Health Care $XLV, respectively. Not surprisingly, these same sectors are also the next best performers over the trailing year.

Click table to enlarge view....

From the desk of Steve Strazza @Sstrazza

Sentiment has not been good for Chinese Equities with a handful of recent sanctions adding to the general uncertainty around China-US relations. For the most part, we're seeing this reflected in price as the Shanghai Composite and iShares China Large-Cap ETF (FXI) are trading at multi-month lows relative to the S&P 500.

Interestingly enough, the area being hit hardest with negative headlines is one of the few bright spots in China's market right now... Technology and Internet stocks.

In this post, we take a look at the improving relative strength from this group and offer trade ideas in some of its leading stocks.

Here is the ratio chart of the Kraneweb Chinese Internet ETF (KWEB) vs the S&P 500 (SPY) which we've been writing about since November.

Click on chart to enlarge view.

Price resolved...

From the desk of Steve Strazza @Sstrazza

For the week ended Friday, May 22, 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 risk-on action from beaten-down areas which we'll highlight in our US Index and Factor ETF tables, below.

We're putting a lot of emphasis on risk-appetite measures right now in order to provide insight into how the recent rangebound activity in Equity and Bond markets is likely to resolve itself.

The most basic way to assess risk-tolerance is to compare the performance of risk-on vs risk-off assets. As such, this post will focus on how the offensive vs defensive areas of various markets are acting right now.

Click table to enlarge view.

This week we saw some more mean-reversion in the laggards in our US Index ETF table. The most risk-on areas such as Transports (DJT) and the Mid/Small/Micro-Cap segments have been long-term underperformers, yet...

From the desk of Steve Strazza @Sstrazza

Yesterday, we wrote about the divergence in both structural and tactical trends between Dow Transports and Semiconductors. The bottom line is that Dow Transports (DJT), which is the traditional "Dow Theory" average, has been getting smoked relative to the "New Dow Theory" average, the Semiconductor Index (SOX).

While we don't know whether or not this can persist indefinitely or if these divergences will soon resolve themselves, we do know that Semiconductors remain one of the secular leaders and are thus an area we want to continue to bet on from the long side.

In this post, we'll outline some Trade Ideas in our favorite Semiconductor names.

Something all of these setups have in common is that they are exhibiting impressive relative strength vs the broader market. They also all resolved to fresh highs recently, which gives us a well-defined risk management level to trade against.

We have included...

This is the video recording of the May 2020 Conference Call.

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),...

These are the registration details for the monthly conference call for Premium Members of All Star Charts.

This month’s Conference Call will be held on Monday May 18th at 7PM ET. As always, if you cannot make the call live, the video and slides will be archived and published here along with all of the other calls since 2015.

Here are the details for Monday:

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...

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:

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