Rotation YOU Need To Be Following
There's always a bull market somewhere. Where? Well, it depends on your timeframe.
I can tell you that right now it's not semiconductors. That could change, as this is a group that typically leads secular bull market advances. As we head into the historically weak month of September, here's a quick look at the 12 best-performing industry groups over the past month.
Gold is on fire again. I'm not sure what this says about the bull market, as gold is many times used as a hedge against inflation. If we truly should be bracing for higher inflation, the upcoming month for U.S. stocks could be a big problem.
Check out gold mining's ($DJUSPM) recent breakout from a bullish wedge continuation pattern.
Nonferrous metals ($DJUSNF) kept testing price resistance in the 950–960 area until finally blasting through it on Friday.
Aluminum ($DJUSAL) is strengthening. It will look much more bullish if it can clear 190.
The bounce off of a now-rising 20-day exponential moving average (EMA) is nice, and the Percentage Price Oscillator (PPO) crossing centerline resistance is encouraging, but can aluminum make the most important move of all... a break above key price resistance?
There are other areas showing tons of improvement, even though they didn't make the top 12 industry group list over the past month. For instance, investment services ($DJUSSB) has been trending higher and could be on the verge of completing a bullish cup.
All of these moves look great, but they're occurring in areas of the market that don't carry much weight. However, if technology stocks (XLK) continue to struggle, these are areas to consider parking your cash during what could be a very turbulent September.
FREE LiveStreaming Event
On Saturday morning at 10:00am ET, I'll be hosting a FREE LiveStreaming event, "Four Critical Market Signals, One Verdict". I'll be reviewing a few key areas of the market that could derail this secular bull market run and flip the S&P 500 into a nasty September correction. This will be a highly educational event, one in which I'll be discussing defensive strategies as we navigate a potentially volatile market. From the Fed to bond yields to market rotation to historical tendencies, you'll have plenty to think about. Simply CLICK HERE to register with your name and email address. I'll see you on Saturday morning!
Happy trading!
Tom
