Nifty Infra is pushing up against its long-term resistance. While the index has halted at these levels before, current market rally may lead to a breakout soon, going by the bullish momentum we're seeing in the index.

We've been tracking the cement space, and while earlier there were limited actionable trades, recent buying interest grabbed our attention again. We decided to dig a little deeper and found some actionable ideas.

Let’s take a look at this space and see what the charts have to say.

Nifty Infrastructure is taking another shot at its long-term resistance. With RSI alluding to bullish momentum and price moving higher, we could witness a good move in this sector going forward.

Click on chart to enlarge view.

Since June, we've seen so many different breadth thrusts in the Large-cap Indexes, Small-cap Indexes and even within specific sectors. They keep showing up.

So when you look back historically, these breadth thrusts tend to come near the beginning of strong uptrends, not near the end of them. Go back in history and you'll notice how consistent this is.

So today, I thought I'd share some thoughts from the peanut gallery regarding my comments about this being the beginning of a new bull market, and not the end of one.

Enjoy:

When assets are in strong uptrends, they tend to not just do well on an absolute basis, but they also outperform their alternatives. In the case of stocks, some good alternatives would be Bonds and Gold. No, not bitcoin.

So with stocks all over the world breaking out to new highs, more and more stocks participating, and even the biggest laggards around the world catching a bid, how are they performing relative to their alternatives?

Well, here is Gold vs the Nasdaq Composite breaking down to new 19-year lows. The trend is strong in this one:

The bullish trend in the market continues as more and more sectors and subsets join the rally. We have maintained our bullish stance on the Financial Services sector for quite some time but we thought we should dig a little deeper this time. Today we decided to look at a subset that has been performing well and could witness greater returns in the weeks and months ahead - Insurance.

From the desk of Steve Strazza @Sstrazza and Louis Sykes @haumicharts

At the beginning of each week, we publish performance tables for a variety of different asset classes and categories along with commentary on each.

Looking at the past helps put the future into context. In this post, we review the absolute and relative trends at play and preview some of the things we’re watching in order to profit in the weeks and months ahead.

The major indexes continue to hold important levels and many large-cap sectors have laid the foundation for upside resolutions and another leg higher in their relative leadership. 

SMIDs and Micro-Caps have had every chance to digest their recent gains, but we're yet to see that play out. Seeing such strong upward momentum from these stocks speaks to the healthy risk appetite we continue to point out.

From the desk of Steve Strazza @Sstrazza.

Welcome to our “Under The Hood” column for the week ending December 25, 2020.

What we do is analyze the most popular stocks during the week and find opportunities to either join in and ride these momentum names higher, or fade the crowd and bet against them.

We use a variety of sources to generate the list of most popular names. There are so many new data sources available that all we need to do is organize and curate them in a way that shows us exactly what we want: A list of stocks that are seeing an unusual increase in investor interest.

Whether we’re measuring increasing interest based on large institutional purchases, unusual options activity, or simply our proprietary lists of trending tickers… there is a lot of overlap.

The bottom line is there are a million ways to skin this cat. Relying on our entire arsenal of data makes us confident that we’re producing the best list each week and gives us more optionality in terms of finding the most favorable trade setups for our clients.

From the desk of Steve Strazza @Sstrazza.

We recently held December’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.

"JC, how can you be buying stocks up here?"

"JC, stocks are overvalued"

"JC, stocks have gone too far too fast"

"JC, aren't we due for a correction?"

I've heard some version of this every single day since the Spring.

These are the types of questions that come my way during bull markets. I don't get them when stocks are in downtrends, that's for sure. Different types of questions come in those environments (How low can we go? Aren't we due for a bounce? etc)

From the desk of Steve Strazza @Sstrazza

In a further effort to identify individual equities that fit within our larger more Macro thesis, we couldn't be happier to roll out and share our latest bottoms-up scan: "The Minor Leaguers."

We'll also be writing a post every other week where we outline some of our favorite setups from the watchlist. This is the first edition.

Moving forward, we'll be rotating this column with "Under The Hood" each week.

In order to make it onto our Minor League list you must have a market cap between $1 and $2B. There are also price and liquidity filters.

Then, we simply sort the stocks by their percentage from new highs. Easy.

It's that time of the year again. This is when we hear things like the "January Effect", the "First 5 Days of the Year Indicator", "Santa Claus Rally", "January Barometer" and all sorts of seasonal-type conversations.

Remember, we're right in the heart of "The Best 3 Month Period of the Year". You always hear, "Sell in May and Go Away", but as we pointed out on Nov 6th, it's waaaay more important to "Remember to Buy in November", or "Buy in October and Get Yourself Sober". Either one of those works.

Wall Streeters have all kinds of silly sayings to help remember important things. "The trend is your friend", "Don't fight the Fed", and "Bottom Fishing Can Be Hazardous To Your Wealth" are all good ones that you've probably heard before.

Today I want to talk about the significance of the Santa Claus Rally, and the fact that it might not even come at all. And that in and of itself would be the signal.

Let me explain.

This week Howard and I discuss what "Technology" actually means. With companies like Google, Amazon and Facebook representing ZERO PERCENT of the Technology Index, people continue to group them into Tech regardless.

Is that right? Should we ignore Dow Jones and their weightings? Or is it important to acknowledge which stocks are in these indexes and which ones aren't?

When asked about underperformance from Europe and Emerging Markets, Howard says "I filter the world to only see what's working. I'm all about investing for profit and joy, not misery and pain"

This was a fun chat.

Here's the video in full:

We've liked the Consumer Durables space for several months now and the sector is finally accelerating to the upside in December.

Today we're highlighting major breakouts in two of the sector's top names, Havells and Titan.

Let's get into the charts and how we're trading them.