Weekend Video and Chartbook – Oil and Base Metals lead, XLI and XLF Hit New Highs, TLT Plunges with Outsized Decline (Premium)

Today’s video starts with a performance overview for 14 asset class ETFs, sectors and top S&P 500 stocks. Small-caps, oil and commodity-related ETFs are leading the charge here in 2021. Financials are leading as XLF hit a new high and industrials came to life with XLI hitting a new high on Friday. Even though the long-term trends are up and the market is bullish overall, participation is narrowing within the Nasdaq 100 and the high-flyers are in correction mode. Several clean energy ETFs are down over 5% the last four weeks. In the ETF ChartBook, I am seeing flag extensions in XLB and XME, as well as new highs in DBB. The energy and bank related ETFs continue to lead with strong extensions after their flag breakouts. These ETFs are in the trend-monitoring phase, which means traders should consider profit targets, trailing stops and/or exit strategies. The 20+ Yr Treasury Bond ETF (TLT) is in a clear downtrend and the most unloved asset right now. However, the 3-week decline was the biggest since early June (outsized) and smacks of a selling climax.