The Nifty Energy Index is breaking out to new all-time highs!

What's driving this rally? Is it sustainable? And what are the best opportunities in the space today?

Let's jump in and cover all these topics.

Markets have been rallying across the globe since April 2020, except for stocks that belong to the category of discretionary spending. With the pick up in travel activity breathing life into the entertainment space, there are certain ideas that pop from current setups.

I think this is an important discussion. Which way are rates headed?

Remember, Interest Rates setting up for a collapse was one of the reasons we were so bearish equities in late January, and looking to own bonds instead.

The thought process in January was the following: If 10s are going to break their 2012 & 2016 lows, is that most likely happening in an environment where stocks are doing well? Or are rates collapsing most likely taking place in an environment where stocks are under pressure?

Our bet was the latter. We used rates as a leading indicator.

Today we're doing the same thing. But the data coming in is the exact opposite.

First of all, here are US rates going out last week at new 9-month highs:

Monday afternoon I popped on to BNN Bloomberg to have my regular chat with Catherine Murray. These are always fun because we focus on what actually happening in the market, versus all the gossip that revolves around it.

Remember, we're coming off my Just Buy Them Baby interview with Catherine from July. We got a lot of funny emails from people after that one. But as it turns out, just buying them worked out very well.

So where do we go from here?

Here's the interview in full: 

Emerging Markets remain in focus and today we're identifying why its trend relative to Developed Markets is likely to accelerate higher.

This is a follow-up to our last few Emerging-Market-focused posts --- August 12th, September 11th, and September 25th.

From the desk of Steve Strazza @Sstrazza and Louis Sykes @haumicharts

At the beginning of each week, we publish performance tables for a variety of different asset classes and categories along with commentary on each.

Looking at the past helps put the future into context. In this post, we review the relative strength trends at play and preview some of the things we’re watching in order to profit in the weeks and months ahead.

In last week's report, we outlined how the market was in an incredibly healthy state of order. We've been seeing rotation into SMIDS and Micro-Caps, strong breadth, and a sustained bid for Growth, particularly down the market-cap scale.

This week, we're harping on a similar theme.

The weight of the evidence, particularly from an intermediate and long-term time horizon, looks excellent.

From the desk of Steve Strazza @Sstrazza.

Welcome to our “Under The Hood” column for the week ending December 04, 2020.

What we do is analyze the most popular stocks during the week and find opportunities to either join in and ride these momentum names higher, or fade the crowd and bet against them.

We use a variety of sources to generate the list of most popular names. There are so many new data sources available that all we need to do is organize and curate them in a way that shows us exactly what we want: A list of stocks that are seeing an unusual increase in investor interest.

Whether we’re measuring increasing interest based on large institutional purchases, unusual options activity, or simply our proprietary lists of trending tickers… there is a lot of overlap.

The bottom line is there are a million ways to skin this cat. Relying on our entire arsenal of data makes us confident that we’re producing the best list each week and gives us more optionality in terms of finding the most favorable trade setups for our clients.

This week we're looking at a long setup in the Pharma sector.

All Star Charts is known for its Top-Down analysis. In this process, we begin at the asset-class level to ascertain the best category of investment that matches our reward/risk ratio. This then trickles down to specific instruments of investment on the basis of relative strength and momentum.

Let’s take a look at this procedure in our weekly column, The Top/Down Take, and help you understand our analysis better.

Last time it was Tata Consultancy Services (TCS), but today the stock we're looking at is IndusInd Bank (INDUSINDBK) which has been tearing through the roof since November.

One of the biggest themes in last night's Monthly Strategy Session was the sector rotation we're seeing globally.

In this post, we're sharing two bubble charts that highlight this occurrence and we'll discuss how we're approaching the market going forward.

Every month we get a fresh batch of Monthly Candlesticks. It only happens 12 times a year.

I promise you guys from the bottom of my heart that there is no other part of my entire process that provides as much value and information as my monthly chart review. Premium Members can access the Chartbook here. Stay tuned as we'll be adding more workbooks of charts this week to the Chartbook section.

In the meantime, my friend Josh Brown and I have been doing these short monthly videos since the summer. They're fun and I like how he pushes back against me sometimes. In other interviews they make it too easy on me. I like these!

This month we talk about the breakout in Biotech, Market-cap rotation into Small-caps, European Stocks performing well and what we're doing about Gold & Bitcoin.

Here's this month's video in full:

In today’s analysis, we’re looking at Media. It’s been one of the subdued sectors in the market and we’ve been observing this space for any signal of revival in momentum.

Let's get into what's happening and how we're approaching it.