Top Three Thursday
My top three charts I come across at yesterdays close
In this post, I will highlight three of the most important charts that I saw at yesterdays market close along with short commentary on each.
You might expect to see a ‘big beautiful booty bitcoin base breakout chart’… but I’m not going to do it! however, I will direct you to the best one out there… JC Parets posted his thoughts and a great chart right here.
Now moving on to my top three charts…
Here is a ratio chart of Consumer Discretionary $XLY relative to Consumer Staples sector $XLP. This ratio is often used to gauge risk appetite for stocks. Bulls want to see this ratio moving higher, indicating that the offensive sector is outperforming the defensive sector.
Now look at that strength from Discretionary relative to the safe-haven Staples... it is just impressive that the ratio is continuing to grind to another all-time high and is showing no signs of slowing!
New highs from any area of the Financial sector is a welcomed addition and seeing these lagging industries showing life again and beginning to trending higher is nothing but bullish baby! Just add another chapter to the broadening participation we have already been seeing in the second half of the year… If these six charts remain above their 2018 lows, it’s most likely in a setting where rates are heading higher, and risk-on assets and cyclical areas of the market are outperforming, which is what is currently happening!
I’m going keep this chart commentary short and dirty!… if you have a bearish thesis… you really want these two defensive sectors to be outperforming together… but they are not!… ill let you in on a little secret... you have a lot more fun if you are looking for big booty breakouts!
That’s a wrap for today, hope you enjoyed my charts, and please don’t forget to share your ideas in the comment section or get in contact with me on Twitter @granthawkridge.
Stay safe and good luck out there…
GH
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