The Revenue Rises
Trending Now
Stock Market News UK Update: FTSE 100 &...
Stock Market News UK Update: FTSE 100 &...
DP Trading Room: Key Support Levels for the...
Stock Market News UK Update: FTSE 100 &...
Stock Market News UK Update: FTSE 100 &...
Stock Market News UK Update: FTSE 100 &...
Stock Market News UK Update: FTSE 100 &...
Retirees ‘stunned’ as market turmoil over tariffs shrinks...
Week Ahead: NIFTY Set To Open Lower; Relative...
Market Drop Compared to 2020: What You Need...

The Revenue Rises

Stocks

Secular Bull Market Continues, But With Major Rotation

by admin November 10, 2024
November 10, 2024
Secular Bull Market Continues, But With Major Rotation

Enjoying these HUGE rallies is much easier when you have confidence the stock market is in a secular bull market and heading higher. It also helps when you enter a period of historical strength – the absolute best strength that we see anytime throughout the calendar year. This combination can be extremely powerful and we saw that combo result in surging U.S. equity prices last week. If we look at a daily RRG that includes our major indices and all sectors, you’ll see where the relative strength was:

I highlighted the relationship between consumer discretionary (XLY) and consumer staples (XLP) and you can see rather clearly the direction that each was headed on a relative basis last week. I’ll get to the significance of that in just a second, but I want to first highlight ALL of the areas in the leading and weakening quadrants. Remember, even those stocks in the weakening quadrant show relative strength. Leaders will sometimes pause in this quadrant before returning to the leading quadrant. This RRG highlights the areas of strength over the past few days (since Election Day):

If you’re a momentum trader, the above RRG is your cheat sheet.

There are plenty of trading strategies and scans to uncover solid opportunities. One very simple scan to consider is:

This is a scan of small and mid cap industrials stocks with average volume recently over 200,000 shares and excellent relative strength, at least based on StockCharts Technical Rank (SCTR) scores.

This scan returned 46 stocks, which is quite manageable, in my opinion. Here are the 10 returned having the highest SCTR scores:

These charts all look great, but many are very extended and overbought currently. I’d prefer keeping them on a Watch List and waiting for a pullback to perhaps rising 20-day EMAs before entering. Instead of buying companies with extended charts, here’s one that just made a key breakout:

ERJ is one of the best stocks in its industry group – aerospace ($DJUSAS). I believe it’s important to stick with industry leaders while their relative strength is in an uptrend. Once that reverses, it’s time to find new leaders.

We’ve been planning for this type of rotation to small caps, mid caps, financials, and industrials, and our two key portfolios, Model and Aggressive, illustrate beautifully the difference it makes when you’re positioned perfectly:

Our current quarter runs from August 19th through November 19th. We “draft” equal-weighted stocks in each portfolio every 90 days, which we’ll be doing again in a little over a week. Our Model Portfolio has TRIPLED the S&P 500 over the past 3 months and more than doubled the S&P 500 over the past 6 years. The Aggressive Portfolio, which typically invests in small and mid cap stocks, has absolutely exploded higher this quarter as these asset classes have become preferred groups. It’s on the verge of quadrupling the S&P 500 return. 25% return in a quarter goes a LONG way in helping you meet your financial goals.

Currently, the new leaders are as I spelled out earlier. You MUST take advantage of these opportunities when they present themselves. Next Saturday, November 16th, at 11:00am ET, I’m hosting a 100% FREE webinar, “Capitalizing on Small Cap and Mid Cap Strength”. CLICK HERE to register NOW and save your seat. Seating will be limited, so don’t miss out!

Happy trading!

previous post
Nvidia Stock Rises with DJIA Inclusion & AI Driving Growth
next post
Oil and Natural Gas Analysis: High Volatility & Trends

Related Posts

Spotting a Bullish Opportunity in Zscaler (ZS) with...

November 16, 2024

What Does This Mean for the S&P 500...

August 21, 2024

Inflation Sparks Stock Market Downturn: What This Means...

January 9, 2025

Unveiling Market Trends: What’s Triggering a Midweek Bearish...

March 28, 2025

The Best Five Sectors, #10

March 11, 2025

Navigating Tariffs: Master the Charts to Outsmart Market...

March 6, 2025

S&P 500 Teetering On 100-Day Moving Average Support

August 10, 2024

Communications Trying to Prop Up Equity “Go” Trend

December 17, 2024

How to Trade Erratic Uptrends – An Example...

January 5, 2025

MUST SEE Options Trade Ideas! DIS, AAPL, META,...

December 25, 2024

    Become a VIP member by signing up for our newsletter. Enjoy exclusive content, early access to sales, and special offers just for you! As a VIP, you'll receive personalized updates, loyalty rewards, and invitations to private events. Elevate your experience and join our exclusive community today!


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Stock Market News UK Update: FTSE 100 & 250 Rise
    • Stock Market News UK Update: FTSE 100 & 250 Rise
    • DP Trading Room: Key Support Levels for the SPY
    • Stock Market News UK Update: FTSE 100 & 250 Rise
    • Stock Market News UK Update: FTSE 100 & 250 Rise

    Popular Posts

    • 1

      Polls show some good early signs for Kamala Harris

      July 26, 2024
    • 2

      Solana and Cardano: Solana is waiting for a new impulse

      July 18, 2024
    • 3

      The presidential race shifts — modestly, so far — toward Harris

      August 6, 2024
    • 4

      Donald Trump’s imaginary and frightening world

      September 23, 2024
    • 5

      DP Trading Room: PMO Sort on Earnings Darlings

      July 18, 2024

    Categories

    • Business (663)
    • Economy (965)
    • Politics (873)
    • Stocks (749)

    Disclaimer: therevenuerises.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 The Revenue Rises. All Rights Reserved.