The US Stock Market Indexes are all hitting new highs. This shouldn't be a surprise to anyone who reads the work we put out.

Isn't it nice when we just let the data dictate our actions?

Good music and clean charts. It works.

So today we're going to focus on a new sector that I think is just getting started: Industrials. Take a look at the fresh breakout from its 2018-2019 consolidation:

Click on charts to zoom in

See how this one is resolving? Consolidations tend to resolve themselves in the direction of the underlying trend. This one here is apparently no different.

Do you want to know my cheat code?

It's the Monthly Candlesticks.

I'm telling you. That's my secret. And it's been starring at us right in the face at the end of every single month.

It takes me about half an hour to go through my Monthly Charts. When you add that up over 12 months, it's only 6 hours of work. There is no 6 hours the rest of the entire year that even comes close to the value I get from this monthly exercise.

Is this not a breakout from a 21 month base? 

From the desk of Tom Bruni @BruniCharting

Typically on Tuesdays, I post a Mystery Chart, but I expect participation to be lacking this week and I've not found a chart I think is worthy of the exercise...I don't want to make it too easy on you guys.

Instead, I want to look at a few charts that are all suggesting we may be due for a period of consolidation over the next few weeks.

I was down in New York City this week and dropped by the Nasdaq to chat with my old pal Frances Horodelski on BNN Bloomberg. Frances and I have been rapping about the markets for the better part of the past decade. It was great to chat with her once again.

In this short clip, we talk about the new bull market for stocks, rotation into Emerging Markets and Energy, where we think gold goes and how bad bonds are going to get hit if interest rates get to the 3% mark we're looking for in the US 10-year Yield.

Here's the clip in full:

There seems to be more data available than ever as we head into the end of this decade. It's up to us to decide how we use it, or ignore it in many cases.

I have my process and everyone else has theirs. But one thing that is a common denominator among all of us is this current period of resetting before we begin a new year.

This week I asked Phil if this calendar thing was something we made up as humans or if this is something real that we should embrace. This was his response:

Rebirth is a universal theme. Dates are milestones adding rhythmic structure. Not "required" but common across cultures and eras."

I'm glad he said that because I enjoy this time of the year. I like thinking about the things we're thinking about.

We'll have a lot more charts and trade ideas this week, of course, as we approach our Monthly Conference Call Thursday (email me if you have not registered).

It's that time of the year again. They all keep calling and emailing me asking for my "predictions" for 2020.

What do you want me to say?

I have no way of knowing what's in store for next year, yet alone what to expect in December of 2020. And I think it's really important to reiterate that. This idea of the unknown unknowns gets lost in the shuffle.

Sure, we were fortunate to make some good calls this year. Our customers have only sent us positive feedback. But as Babe Ruth once said, "Yesterday's home runs don't win today's games".

The BRICKS are breaking out, but India is being left behind due to a lack of breadth. Large-Caps continue to perform, but when they pause there are not enough stocks to pick up the slack...so what we get is a messy, choppy 2-year range in the Nifty 500.

As a result, we've been focusing on the stocks showing relative strength...making money on the long side by sticking with the names that continue to trend, and playing the short side when the reward/risk is ridiculously skewed in our favor.

Unfortunately, it looks like we're going to close out the year/decade with the same gameplan as charts like the one below are a symptom of the weak breadth problem India's had for two years.

In my opinion, the reason people have been so bearish towards stocks and fighting strong trends is because they're allowing other biases influence their decision making. Whether they don't agree with the Fed, or the Trump, the direction of the Economy, or whatever it is, they're choosing to give more weight to these "opinions" than they do to price itself.

Fortunately for us, we're 100% data driven. So we don't care who the president is. We ignore everything the fed says and does. We assume anything a journalists creates is gossip, whether it is or isn't. And we certainly don't have time to care what the economy is doing.

So because we are so trained to focus on actual data, it's a lot easier for us to ignore those whose job it is to distract us. It's not "easy", but it's definitely easier for us as technicians than it is for most of society. The fact is most people are unaware, or choose not to care, that they're consuming content produced by those with ulterior motives. They're just here to sell ads to their sponsors while we're only trying to make money in the market. It's a big difference, and it becomes a problem.

I was down Philly last week chatting with Wharton Professor Jeremy Siegel, WisdomTree's Jeremy Schwartz and Tim Hussar of WhartonHill. This was a lot of fun and I thought we had a great discussion about what to expect for stocks and bonds in 2020. PHD Liqian Ren was also there and asked some great questions about rotation into emerging markets and how we try to incorporate alternative data into our analysis.

This was my first time visiting the Wharton School and it did not disappoint.

Hopefully I wasn't too hard on Professor Siegel and Tim Hussar and they invite me back on sometime!

This episode was live on SiriusXM and will be replayed several times over the holidays, but here is the podcast version of it so you can give it a listen at your convenience:

One of the things that stuck out to me during this weekend's chart review was the Nifty Private Index, particularly on a relative basis.

Let's take a look at the chart and what's happening with it.

I love how people still think we're in a 10-year bull market for stocks. This lack of understanding of basic reality is one of the many catalysts, I believe, that will take stocks much much higher.

The greatest trick the market ever pulled was convincing investors it's been in a decade long bull market.

The best part is that nothing could be further from the truth.

When we talk about "Stocks", we have to recognize that "Stocks" are an asset class. It doesn't just mean the S&P500 or Dow Jones Industrial Average. This is a global stock market, and becoming more of one with every day that passes. Those of you who have been reading our work for years know how valuable that information has been to us for so long. Today is no different.

Look at Europe doing nothing for 2 decades and now starting a new bull market: