I'm not sure when this happened. When did they start grouping any company that uses a computer into the Technology Sector?

First of all, 80% of the FAANG stocks represent a ZERO weighting in the Technology Sector. ZERO.

Facebook and Google are in the Communications Index, together representing approximately 45% of that sector. Combined, $FB & $GOOD represent ZERO percent of the Technology Sector. Netflix $NFLX accounts for another 4% or so Communications, and again, a ZERO weighting in Tech.

Furthermore, Amazon represents approximately 21% of the Consumer Discretionary Index. When you look at the Technology Sector, you'll find that $AMZN has a ZERO weighting.

The latest version of journalists grouping any company that uses a computer into the "Technology Sector" is Airbnb and DoorDash. Neither one of these are in the Tech sector, but instead are both in the Communications Index. Together $ABNB & $DASH represent a ZERO weighting in Tech.

Meanwhile these are the fairytales they feed you...

Japan continues to rally as it breaks out to new 29-year highs.

And just think, the Japanese Nikkei225 can rip another 40% from here and still not get back to its highs from the late 1980s. That's how long it takes a bubble of that magnitude to correct itself.

Let's remember, at its peak in 1989, the real estate value of just one single park in Tokyo was worth more than all of the real estate in the state of California combined. I've been to that park. It's ok I guess. But not worth more than all of Cali, quite obviously.

So here's what that Nikkei chart looks like today:

This week we're looking at a long setup in the FMCG sector.

This year has been fantastic for one sector in particular, and that is the Pharma sector. Stocks that had been in a secular bear move, reversed their trend late last year and have been trading higher since.

Let’s see if there are any opportunities in the current set-up as the sector prepares for its next leg higher (along with IT).

During bull markets I always get asked about when it's going to stop. I don't get asked about stock market bubbles and unsustainable valuations during bear markets, that's for sure. Those environments come with other kinds of funny questions.

This morning I woke up to one of my college buddies telling me that tech valuations are too high and that this has to be a bubble.

Journalists ask me every day how this can possibly continue. "Too high", they say. "Too fast", they tell me. "Fed Printing", they claim. "It's only 5 stocks!!!"... I can't.

Anyway, maybe this is the top. Maybe we are about to crash. Maybe valuations are too high....

But there's no evidence at all that this is the top. New All-time highs are not characteristic of downtrends. They are things we see regularly in uptrends. In fact, new highs are perfectly normal, and should even be expected in this type of environment.

From the desk of Steve Strazza @Sstrazza

Dividend aristocrats are easily some of the most desirable investments on Wall Street. These are the names that have increased dividends for at least 25 years, providing steadily increasing income to longer-term minded shareholders.

As you can imagine, the companies making up this prestigious list are some of the most recognizable brands in the world. Coca-Cola, Walmart, and Johnson & Johnson are just a few of the household names making the cut.

Here at All Star Charts, we like to stay ahead of the curve. That’s why we're turning our attention to the future aristocrats. In an effort to seek out the next generation of the cream-of-the-crop dividend plays, we’re curating a list of stocks that have raised their payouts every year for 5-9 years.

Introducing the Young Aristocrats. We like to say these are "stocks that pay you to make money". Imagine if years of consistent dividend growth and high momentum & relative strength had a baby, leaving you with the best of the emerging dividend giants that are outperforming the averages.

This week, Julie and I talk about some of the things that stood out the most on last week's Monthly Chart Review.

Among them were the Market Capitalization rotation into Small & Mid-caps and out of those Mega-cap stocks.

Germany and Japan making new highs leading the international charge higher.

And which rocks would we rather own: Precious Metals or Base Metals?

Check it out:

The Nifty Energy Index is breaking out to new all-time highs!

What's driving this rally? Is it sustainable? And what are the best opportunities in the space today?

Let's jump in and cover all these topics.

Markets have been rallying across the globe since April 2020, except for stocks that belong to the category of discretionary spending. With the pick up in travel activity breathing life into the entertainment space, there are certain ideas that pop from current setups.

I think this is an important discussion. Which way are rates headed?

Remember, Interest Rates setting up for a collapse was one of the reasons we were so bearish equities in late January, and looking to own bonds instead.

The thought process in January was the following: If 10s are going to break their 2012 & 2016 lows, is that most likely happening in an environment where stocks are doing well? Or are rates collapsing most likely taking place in an environment where stocks are under pressure?

Our bet was the latter. We used rates as a leading indicator.

Today we're doing the same thing. But the data coming in is the exact opposite.

First of all, here are US rates going out last week at new 9-month highs:

Monday afternoon I popped on to BNN Bloomberg to have my regular chat with Catherine Murray. These are always fun because we focus on what actually happening in the market, versus all the gossip that revolves around it.

Remember, we're coming off my Just Buy Them Baby interview with Catherine from July. We got a lot of funny emails from people after that one. But as it turns out, just buying them worked out very well.

So where do we go from here?

Here's the interview in full: 

Emerging Markets remain in focus and today we're identifying why its trend relative to Developed Markets is likely to accelerate higher.

This is a follow-up to our last few Emerging-Market-focused posts --- August 12th, September 11th, and September 25th.