Technical Strategy Video (Recorded Friday, November 5th):

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

Key Takeaways

  • Trends growing stretched with RSI on daily and weekly above 70; Yet, no evidence of any exhaustion or trend reversal, and it remains correct to favor more upside
  • Airlines and Casinos are finally starting to participate after a lackluster few months. This mean reversion should carry these groups higher to play Catch-up
  • Growth breaking back out vs Value this week given FANG outperformance

Parabolic Melt-up continues for SPX. While momentum has officially reached overbought levels as per daily and weekly RSI, the broadening out in participation is seen as bullish, not a reason to sell. Minor pullbacks still look buyable, and SPX should initially reach targets near 4765.

The video in this report is only accessible to members

Airlines, Casinos, and other laggard areas within Leisure & Entertainment snapping back

Friday brought about some huge mean reversion bounces in many of the formerly laggard areas within Consumer Discretionary and Transportation, and Airlines were a key beneficiary. This surge brought the US Global Jets ETF, (JETS) to levels right near key downtrends which have kept this group under pressure since March. Snapback rallies in Airlines &...

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