From the desk of Steve Strazza @sstrazza and Louis Sykes @haumicharts
Last week’s Mystery Chart was the Israeli Tel Aviv 125 Index zoomed all the way back to the start of this century.
You might be wondering why we’re discussing Israeli equities of all things…
The short answer: They’re making new all-time highs.
In this post, we explore the sector that is mainly responsible for these gains, dive into its strongest components, and outline some long ideas with risk/reward setups skewed in our favor.
Not only is this yet another group of stocks we can use to express our bullish thesis on risk assets — it is also excellent information. Once again, we’re seeing another development pointing to the increasing participation and improving breadth across international equity markets.
This move in Israeli equities also fits into a larger theme that is taking place beneath the surface for stocks all around the world. It’s difficult to overstate the significance of these moves.
In short, we believe this is one of the most important undercurrents at play right now due to its potential implications for stocks and other asset classes, yet it continues to go widely unnoticed by most investors and analysts.
JC hit on it in our Conference Call earlier this week, and we’ll discuss it in further detail in this post. Teaser alert: It has a little something to do with Technology exposure.
