Having fun with these HUGE rallies is far simpler when you’ve got confidence the inventory market is in a secular bull market and heading greater. It additionally helps whenever you enter a interval of historic energy – the best possible energy that we see anytime all through the calendar yr. This mix may be extraordinarily highly effective and we noticed that combo lead to surging U.S. fairness costs final week. If we take a look at a each day RRG that features our main indices and all sectors, you will see the place the relative energy was:

I highlighted the connection between shopper discretionary (XLY) and shopper staples (XLP) and you’ll see moderately clearly the route that every was headed on a relative foundation final week. I am going to get to the importance of that in only a second, however I wish to first spotlight ALL of the areas within the main and weakening quadrants. Keep in mind, even these shares within the weakening quadrant present relative energy. Leaders will typically pause on this quadrant earlier than returning to the main quadrant. This RRG highlights the areas of energy over the previous few days (since Election Day):

If you happen to’re a momentum dealer, the above RRG is your cheat sheet.

There are many buying and selling methods and scans to uncover stable alternatives. One quite simple scan to contemplate is:

This can be a scan of small and mid cap industrials shares with common quantity not too long ago over 200,000 shares and glorious relative energy, at the least primarily based on StockCharts Technical Rank (SCTR) scores.

This scan returned 46 shares, which is kind of manageable, in my view. Listed below are the ten returned having the very best SCTR scores:

These charts all look nice, however many are very prolonged and overbought at the moment. I would desire preserving them on a Watch Record and ready for a pullback to maybe rising 20-day EMAs earlier than getting into. As a substitute of shopping for firms with prolonged charts, here is one which simply made a key breakout:

ERJ is among the finest shares in its business group – aerospace ($DJUSAS). I imagine it is essential to stay with business leaders whereas their relative energy is in an uptrend. As soon as that reverses, it is time to discover new leaders.

We have been planning for the sort of rotation to small caps, mid caps, financials, and industrials, and our two key portfolios, Mannequin and Aggressive, illustrate fantastically the distinction it makes whenever you’re positioned completely:

Our present quarter runs from August nineteenth by way of November nineteenth. We “draft” equal-weighted shares in every portfolio each 90 days, which we’ll be doing once more in somewhat over per week. Our Mannequin Portfolio has TRIPLED the S&P 500 over the previous 3 months and greater than doubled the S&P 500 over the previous 6 years. The Aggressive Portfolio, which usually invests in small and mid cap shares, has completely exploded greater this quarter as these asset lessons have develop into most popular teams. It is on the verge of quadrupling the S&P 500 return. 25% return in 1 / 4 goes a LONG approach in serving to you meet your monetary objectives.

At the moment, the brand new leaders are as I spelled out earlier. You MUST benefit from these alternatives after they current themselves. Subsequent Saturday, November sixteenth, at 11:00am ET, I am internet hosting a 100% FREE webinar, “Capitalizing on Small Cap and Mid Cap Power”. CLICK HERE to register NOW and save your seat. Seating will probably be restricted, so do not miss out!

Blissful buying and selling!