Yesterday was unreal. We visited the NYSE with Jay Woods and got a full tour of the place.
Walking the trading floor during market hours was an incredible experience—watching the action and how things work, staying until the closing bell, and taking in that iconic moment firsthand. I’ll never forget it.
Afterward, we hung out and had some drinks right there on the floor. I feel like I just lived through the classic NYSE traders routine.
Then it was right back to work. We woke up this morning and hit it hard.
We just ended the first day of presentations, and everyone absolutely crushed it.
JC kicked things off with a state of the markets talking about sector rotation and why it is the lifeblood of a bull market.
We discussed a ton of ideas and finally made some trades.
Jason did a deep dive on Gold and Precious Metals.
Michael Nauss talked about systematic trading and how multiple strategies and systems can help to mitigate risk and diversify return streams.
Then Jeff Hirsh gave us an in-depth session on seasonality, breaking down the cycles and what we might expect in the months ahead.
Louis stepped in and showed us what’s next for crypto.
Finally, Pearlman wrapped up the day delivering a masters class on price and human behavior, as well as the importance of avoiding noise (media, politics).
But if I had to pick a favorite topic from Day 1, it’s got to be intermarket analysis.
I’m a big fan of it, and today was a perfect reminder of why it’s so critical to our process as technicians.
It's essential for understanding the broader market environment and positioning ourselves accordingly.
Here are some charts that stood out to me from day 1:
Six months ago, Discretionary was a huge underperformer. Now, it’s printing new 52-week highs relative to the Nasdaq 100 $QQQ.
If this is not rotation, then what is it?
And speaking of rotation, we haven't seen any significant flight to safety action in Consumer Staples.
Here’s Staples versus the S&P 500:
As long as we’re below that former support from 2000, then we must stay in a bullish mode.
However, if the XLP/SPY ratio reclaims that zone, then we can be more cautious.
“Financials are the market bodyguard” is a phrase that came out today.
Here’s JPMorgan and Goldman Sachs making new all-time highs.
The bottom line is this infers a good bill of health for the broader market. It’s that simple.
Mathematically, you can’t have any kind of correction without an expansion in new lows.
As long as this lack of new lows remains intact, I would prefer to spend my time looking for stocks to buy rather than looking for stocks to sell.
Here’s my favorite from today’s discussion.
Virtu Financial $VIRT just broke out of a multi-year base.
As long as we’re above that shelf of former highs around 38, I’m long this unique financial services play.
