When I think about the strongest stocks, I’m not just looking for outperformance across different timeframes. The strongest stocks should be back to our through their old bull market highs.
Let’s discuss the materials sector in this light.
The bubble chart below shows the change from the 2021-2022 highs on the Y axis and the 3-month relative change on the X axis. I'm graphing all the materials industry groups to see how they stack up.
Last week, we held our June Monthly Conference Call, which Premium Members can access and rewatch here.
In this post, we’ll do our best to summarize it by highlighting five of the most important charts and/or themes we covered, along with commentary on each.
Last week, we held our April Monthly Conference Call, which Premium Members can access and rewatch here.
In this post, we’ll do our best to summarize it by highlighting five of the most important charts and/or themes we covered, along with commentary on each.
As equity markets continue to repair the damage from April’s correction, we continue to find more and more stocks -- and groups of stocks -- that we want to be buying.
A growing number of those groups are coming from the financial sector.
Financials have made a comeback in the last week as a handful of financial indexes and individual issues are reclaiming their prior-cycle highs.
The relative trends are improving as well, with the large cap sector SPDR $XLF hitting new 52-week highs versus the S&P 500 recently.
When we think about the strongest stocks within financials, asset management and capital market stocks are top of mind.
In today’s post, we will dive in and outline some of our favorite charts in the space.
Before we do that, here’s the SPDR S&P Capital Markets ETF $KCE pressing against its former highs from 2021:
We held our April Monthly Strategy Session earlier this week. Premium Members can access and rewatch it here.
Non-members can get a quick recap of the call simply by reading this post each month.
By focusing on long-term, monthly charts, the idea is to take a step back and put things into the context of their structural trends. This is easily one of our most valuable exercises as it forces us to put aside the day-to-day noise and simply examine markets from a “big-picture” point of view.
With that as our backdrop, let’s dive right in and discuss three of the most important charts and/or themes from this month’s call.