Starting from the top asset class level, GoNoGo Charts help investors understand intermarket. Both $TNX and $USD are gaining strength on a daily basis from amber bars of neutral uncertainty to Go trend conditions. The recent rise in rates and the dollar index have a subtle, but observable, negative impact on further price gains in the equity index. In this week’s edition of the GoNoGo Charts show, given the whiplash daily reversals on the S&P 500 over recent weeks, Alex Cole and Tyler Wood, CMT explain the process and tools that investors can use to narrow their universe of securities to those in the highest performing sector, industry group, and down to individual names. Remember, it is a market of stocks, not a single Stock Market.
Looking at the GoNoGo Sector RelMap, viewers can see a rotation of leadership in the past two weeks from the cyclical sectors (XLE, XLF, XLI, XLB) to the growth sectors of the market (XLK, XLC, & XLY), including technology, communications, and consumer discretionary sectors. The next step in the process is to look for the industry subgroups that are outperforming those sector leaders. Within Technology (XLK), this includes $DJUSSC – Semiconductors, as well as computer hardware. Highlighting the sustained “Go” trend conditions in NVIDIA Corporation $NVDA, Alex and Tyler showcase the disciplined process for managing the lifecycle of a trade using this top-down methodology to help investors “Fish Where the Fish Are.”
This video was originally recorded on February 16, 2023. Click this link to watch on YouTube. You can also view new episodes – and be notified as soon as they’re published – using the StockCharts on demand website, StockChartsTV.com, or its corresponding apps on Roku, Fire TV, Chromecast, iOS, Android, and more!