So Exodus had just flagged 3 consecutive OS signals in a row, something of an oddity since 2009. The results are in: 200+ point melt up, albeit a weak one.
The point is, the SPY is now up for all of those watermarks.
Second, I ran some scans to try to identify a trend, any trend for that matter. I could live with this market, as long as there is rhyme, reason and order to it.
Here’s what I found, delving into companies whose markets caps exceed $5 billion.
Software stocks are exhibiting strength. I recall an old deskmate of mine who used to buy software stocks and nothing else. When times were tough in the market, he was the only one making commissions. He’s walk around the joint like he fucking owned the place. His head got so big, he got himself fired for impersonating a sales manager and signing trade tickets for other reps. Brokers would line up to get him to sign their tickets. He’d sign anything, mainly because he gave zero fucks.
Here are some software names that have been outperforming.
INTU, CRM, MSCI, MSFT, RHT.
Soda pop
MNST, DPS, KO.
Business services
BR, CTAS, GPN, IRM, PYPL, VRSK.
Cleaning products
CHD, CLX
Discount Stores
COST, DG, DLTR, TGT
A shit load of utilities
Just buy XLU
Personal Products
PG, EL
Packaged and Processed Foods
FLO, GIS
Property and Casualty Insurance
ACE, ALL, CB, HIG
Restaurants
DRI, QSR, SBUX
Waste Management
RSG, SRCL
Listen to me: these are recessionary allocations. This doesn’t necessarily mean we are barreling towards recession. However, money managers are positioning for it.
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