≈ If not, then you’re unentertainable!≈
Coach Tyler here. Today’s title comes from the fantastic film Gladiator starring Russell Crowe as Maximus. The quote came after one of Maximus’ gladiator fights, where he easily bested his opponents. As I surveyed stocks after the bell Wednesday and basked in the glorious rotation into cyclical sectors like XLI, XLB, XLF, and XLB, it was as if the market was asking me, like Maximus of old, “Are you not entertained!?”
My answer is a resounding “YES!” This might be the most entertaining market I’ve ever seen. The rotation has been working like clockwork, and technical analysis continues to prove prescient. I honestly don’t know what more we could ask for.
I kid. I could totally go for some participation from small caps (see today’s chart of the day). You get IWM to push to new highs, and I swear I’ll never say anything bad about equities again😊
Anyways, the point is this is one of the most bullish, well-behaved markets in history. Sector rotation continues to propel the S&P 500 to new records seemingly every week. Someday this will end, but don’t allow your paranoia to keep you out. Our job is to participate in the trend – not guess when it’s going to end.
Chart of the Day
Can Small-Caps Finally Break Out?
Coach Emily pointed out the imminent breakout in IWM in last night’s Trade Masters. Wednesday’s bullish hammer candle was powerful and launched prices right into overhead resistance at the 50-day moving average. Given the sharp awakening in cyclical stocks this week, I’d say the Russell has a good chance of pushing higher here.
Video of the day
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