“FANG” strength buoys Growth trade, while Yield curve flattening drives down Financials

Technical Strategy Video (Recorded Wednesday, October 27th):

The video in this report is only accessible to members
The video in this report is only accessible to members

Key Takeaways

  • Stalling out for market has given way to minor consolidation, while Technology and Growth trade outperform with “FAANG” outperformance
  • Treasury yield breakdown looks important, particularly on the long end, which resulted in Financials underperforming
  • Breakout in Solar Energy makes this sub-sector one to continue to favor within Energy

As discussed in yesterday’s report, several indices were at/near prior highs, (DJIA, Dow Jones Transportation Avg, Equal-weighted Technology, which combined with DeMark based exhaustion developing, suggested a slowdown was possible this week.  Technically this should prove short-lived only in duration and magnitude, leading to a bounce back to highs into mid-November.

The video in this report is only accessible to members

Solar stocks begin to play Catchup

Technical breakouts in Invesco’s Solar ETF, ($TAN) looks important in helping this group kick into gear after some lengthy consolidation for much of this year.Rotation into some of the former Energy laggards looks to be happening, and as discussed in recent days, this might help the Alt. energy space. Stocks like FSLR, SEDG, ENPH are attractive to buy on dips, and any we...

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