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Today’s report starts with the oil patch as Baker Hughes returns to the breakout zone. We then feature two stocks from the industrials sector. Trane Technologies pulled back to a Bullish Setup Zone and Johnson Controls broke out of a falling wedge. We end with a utility stock (PG&E) that is firming at its rising 200-day SMA. $BKR $TT $JCI $PCG
Today’s report starts with our weight-of-the-evidence charts, and the evidence is bullish. We project a path forward for $SPY and $QQQ, and highlight the breakouts in $RSP, $IJH and $IJR (equal-weights, mid-caps and small-caps). Attention then turns to setup consolidations in Industrials ($XLI), Communication Services ($XLC) and Finance ($XLF). We also feature breakouts in the Aerospace & Defense ETF ($ITA) and Broker Dealer & Exchanges ETF ($IAI).
Technology is the leading sector with the largest gains since April and new highs throughout May. Within the sector, Semiconductors (SMH, SOXX) and AI (ARTY, AIQ) are leading the way. These two groups are not alone because the $IGV $SKYY $CIBR $ARKF
May is proving to be a volatile month for the asset class ETFs. There were big price swings in bonds, oil, copper, and agriculture. Headlines drive short-term swings, but the bigger trends remain intact. Bonds are trending lower, oil is holding its breakout, copper remains in an uptrend and agriculture is setting up with a bullish pullback. $IEF $TLT $USL $GLD $CPER $DBB $SRUUF $COPX $URA $DBA $IBIT
Today’s report features three stocks from the industrials sector: Fastenal, PACCAR and Norfolk Southern. We also cover a biotech breakout (Illumina) and a diversified utility with a bullish triangle (Evergy). $FAST $NSC $PCAR $ILMN $EVRG
The weight of the evidence remains bullish for stocks as the bull market shows signs of broadening. The S&P 500 EW ETF hit a new high, while small-caps and mid-caps turned up. $IJH $IJR $RSP $XLV $IBB $XLI $ITA $SKYY
The S&P SmallCap 600 SPDR and S&P MidCap 400 ETF (IJH) are setting up with wedge/flag breakouts and short-term breadth looks poised to break out for confirmation. $IJR $IJH $SMLA50R $MIDA50R
Breadth indicators deteriorated from mid April to mid May, but this is more of an opportunity than a threat. First, SPY and S&P 500 breadth are bullish, which sets the bullish tone for the stocks. This means bullish outcomes are more likely than bearish outcomes. $SPY $RSP $SPXA50R
May is proving to be a very volatile month for the asset class ETFs, but most of the trends remain in place. The Copper and Uranium Miners ETFs surged and fell back with sharp declines as both tests support. $GLD $SLV $IEF $TLT $CPER $DBB $SRUUF $COPX $URA $DBA $IBIT
Today’s report focuses on five ETFs. Healthcare and Natural Resources are setting up bullish. Finance failed at its 200-day. The Materials sector failed to hold its breakout as Gold Miners broke down. $XLV $XLF $XLB $GDX $IGE
Even though we are in a bull market and the cup is half full, there are clearly risks out there. Leadership is narrow and key groups are lagging. Tech and energy are leading. $RSPD $ITB $XRT $DBA $USL $UST10Y $SPY $QQQ $XLK $SOXX $IGV $MSFT $XLE $OIH $AMLP $FCG $ITA
Technology and Communication Services led the market since April, but they are not the strongest sectors when measuring internal strength. Energy and Utilities still stand out. $XLE $XLU $XLY
Bonds are trending lower and commodities highs. Oil is holding its breakout, gold and silver turned up last week and copper surged to a new high. There are setups working in Palladium ($PALL) and Uranium ($SRUUF). $IEF $TLT $USL, $GLD $SLV $GDX $SIL $CPER $DBB $DBA $IBIT
Today’s report features four stocks from strong groups: Materials, Industrials, Technology and Biotech. These include Linde plc ($LIN), Gilead Sciences ($GILD), Teledyne Technologies ($TDY) and Textron ($TXT)
The weight of the evidence remains bullish for stocks, but three indicators suggest that semiconductors are extremely overbought and some key groups are lagging. Symbols: $SPY $QQQ $IWM $DBA $ITB $RSPD $XRT $XLK $SMH $XLI $XLB $ITA $IGE $XLE $FCG