Plus Section - All Star Charts -

Happy Anniversary of “The Top” In The Market

February 19, 2021 by JC

This week marks the one-year anniversary of the top in 2020 for the S&P500, Dow Jones Industrial Average and Nasdaq100 Indexes.

Everything immediately fell apart after that and we experienced one of the greatest crashes in history.

This leads some people to think that with these indexes now making new all-time highs once again, a crash can happen at any time….

But what most people conveniently like to forget is that everything else had already been rolling over by this point last year. The only indexes left still making new highs were those 3 U.S. Large-caps.

Today, let’s run it back to last year and see what was actually going on, so you can see just how different things are today. All of these charts are from posts and client presentations I gave last February.

First, take a look at Small-caps, Mid-caps and Small-caps all making lower highs by this point last year: [Read more…]

[Plus] Weekly Town Hall Meeting w/ Willie Delwiche & JC Parets

February 18, 2021 by Peter

This is the video recording of the February 18th Town Hall Meeting w/ Willie Delwiche & JC Parets.

02/18/21 2PM ET [Read more…]

[PLUS] Weekly Top 10 Report

February 18, 2021 by Peter

From the desk of Steve Strazza

Our Top 10 report was just published; our weekly report highlighting the best 10 ideas and respective charts we are seeing across the markets this week. One idea and chart that really has our attention is Emerging Markets overlaid with The CRB Index.

Emerging Markets hit new all-time highs last week. This is supportive of the bullish action we’re seeing from stocks in other regions of the globe as well as economically-sensitive commodities. It is no coincidence that the Emerging Markets ETF $EEM and the CRB index tend to peak and trough in unison throughout history. They relay a similar message of “risk-on.” The big question now is whether it’s time for Commodities to play catch-up with Emerging Markets.

[Read more…]

February Conference Call: 5 Key Takeaways

February 17, 2021 by Steve Strazza

From the desk of Steve Strazza @Sstrazza.

We recently held February’s Monthly Conference Call which our Premium Members can access and rewatch here.

In this post, we’ll provide a summary of the call by highlighting 5 of the most important charts/topics we covered along with commentary on each.

Let’s dive into it.

[Read more…]

[Podcast] Understanding Your Inner Market w/ Dr. Andrew Menaker

February 17, 2021 by JC

The need to be right vs wanting to make money. Every trader has to solve this problem and it’s not easy.

On this week’s podcast I sit down with Dr. Andrew Menaker to talk about what he refers to as “Your Inner Market”.

You guys already know how much I love a good chat about investor psychology, so this was really fun for me.

I hope you enjoy! [Read more…]

[PLUS] Weekly Macro Perspectives – Stocks Expensive Even With Better Than Expected Earnings

February 17, 2021 by Peter

From the desk of Willie Delwiche.

Key takeaways:

Both sales and earnings coming in better than expected
Rising bond yields and higher inflation put pressure on valuations
Excesses unlikely to be unwound while breadth remains strong & surprises are to the upside

Nearly three-quarters of the stocks in the S&P 500 have issued Q4 2020 earnings reports. The results have provided some cause for celebration. Earnings are now seen as rising 3%, versus an expected decline of 10% as of Dec. 31st. This is not strictly a function of shifting costs, write-offs and other methods of financial engineering. Sales in the quarter have surpassed expectations by more than 3%, the largest amount on record (going back to 2008). This eclipses the previous record which was set in Q3 2020. Companies in the S&P 500 have weathered the COVID-crisis much better than analysts had expected and that is being reflected in stock prices.