SPX FOLLOW-THROUGH STRENGTH; LEADERS PARTICIPATE

hello investors it is Connor Bates associate portfolio manager with r Asset Management today is Thursday September 12th coming to you with tonight's review Roundup daily Market Insight video so Market State this is getting upgraded to an uptrend um strong past two days this week and if we look at the trend gauge here Market leaders pulling them putting them back into a bullish uptrend um just plain and simple a lot of stocks falling through to the upside and for the first time in a while breakouts are working and falling through to the upside which is good to see for growth grow stocks especially short term we have the Green Arrow here this is our 21 EMA U mid and small cap still lagging there medium term 50-day the S&P and the Dow Jones pretty clearly above the QQQ is right at it and then again uh relative weakness and mid and small caps and then longterm this is our 200 day moving average Green Arrow stays um so today basically was S&P falling through to the upside with leaders participating so here are the final numbers 21 over 21 list up 1.05% 15 green 1 flat five down big eight up 1.32% rga8 up up 1.10% S&P up 0.75% RSP that's the S&P 500 equal weight up 0.62% QQQ up 0.98% equal weight up 0.47% Dow Jones up 0.66% midcaps uh 0.86% Russell 2 1.29% 640 0.4% and then in-house grow tax up 0.89% on the day so as usual into the inter asset correlation and first chart is the S&P 500 and as you can see we obviously had that very strong upside reversal yesterday off the 100 day and falling through to the upside today clearly above the 50 and 21 day and great action you know we had this 5400 double bottom and now we're breaking through to the upside and then obviously 6600 is a resistance that we're going to be keying in on and after this strong move up you know maybe a little tight digestion for move higher that's definitely an option and one thing is you look at this weekly and we talked about this in a couple videos but that 21 we moving average it held again and that's a clear clear Line in the Sand for for Vol for a bull market bull Trend as long as it keeps respecting that and bouncing the trend remains in attack and overall this is good um obviously this Panic low here and then obviously forming a um a higher low back above all the moving averages so good to see for the index RSP uh breaking this down trend line and seen some more participation QQQ very strong today day two higher high falling through to the upside back above the 50 and the 21 Day and after quite some time of relative weakness maybe we start to see the NASDAQ get into gear and Lead um a lot of the big Tech names have quite some room to the upside if they want to explore those prices and uh a few of them are just right under high so a lot of good-looking charts for big Tech as well and then the weekly um bounced right off that 40 week and getting back above the 21 week and the 10 week so triple wh there and that's just great to see for the for the bull Trend Dow Jones breaking this down trend line here and strong up closing the day at the highs and you can notice on all these indexes stastics are getting that uh bullish cross midcaps relative weakness but held that 200 day and coming into the 50-day Russell 2000 right at that 50 and and 21 day Big Picture This still looks fine but just a choppy mess there's been a few trends like this one was you know a couple but it's all been within a range so um just pretty choppy for now but maybe if this can finally get going it could Trend nicely but it's still hanging in there nothing wrong with it the vix exactly what we want to see back below 20 and continuing lower so that should be good for volatility and helpful for swing and position trading you get that smoother Trend the dollar uh outside reversal against the 21 Day can argue that's good for stocks and you'll see that prompted a uh night really nice breakout in in the medals today gold breaking out of this flat base GDX wedge pop Above This 21 uh downtrend line Sorry silver even participating relative strength line hooking back up back above all these mov moving averages so we saw a broad base move in Commodities gold silver Bitcoin uh just kind of coming back into this 21 day still in this big range very choppy price action uh bonds just tight digestion day TLT digestion day maybe it's forming a handle right at this 100 level uh 30 year might be trying to put in a UNR here off off this this low and then same thing with the 10-year could say this is know you know potentially trying to undercut and reclaim that so we'll see moving forward all right we'll get into the tow of the tape so basally on this sectors wise like I mentioned it was a lot of strength and precious metals and commodities gold silver copper oil home builders were strong as well weakness um semic conduct c s were down on the day but overall they they just saw a big balance the other day so some digestion and then tan was down did have a big pop up um as the market you know just based on the Pres presidential debate so we'll see and then one thing to know good to start seeing two days above the eight two days above the 21 the best trading environments occur when the indexes are moving to the upside above the 821 so that's good to see [Music] um and then so lot of action today in house we bought back Nvidia bought back Oracle and when I go over those Oracle got some good news after hours that's and the stocks popping I'll mention it uh bought nail and nugget and then added to C and upro and then Friday Keys obviously S&P versus that 5600 5651 QQQ into that 475 and sometimes our best gauge um besides the indexes what are the leaders doing and the leaders definitely were really strong today and there was proliferation of setups and breakouts working so um let's get into the charts so I'll start with uh some of the trades in house today um so Nvidia bought this one back breaking above the 50-day and 21 nice volume as it held that 100 level and if the Market's going to go higher you thinking expectation is NVIDIA is going to going to lead as it's been all past year two years and then we added Oracle and it's always a nice treat when your stock gaps up um overnight this one's up 6% over uh in after hours trading and the reason there is Oracle Executives were speaking at a company conference and they said that they see at least 66 billion Revenue in fiscal year 2026 and then they also see at least 104 billion Revenue in fiscal year 2029 and then they also see 20% EPS growth in fiscal year 2029 so good to see in the setup here was had that strong earnings Gap reclaimed the high volume close and then just put in um another high higher high today and obviously it's up into that 170 Mark after hours added to Cava this one continues to show relative strength took out that high volume close from the earnings Gap and then it closed near High day and it was this was a you know this is how you like to see Power earnings gaps act you know they have that initial strong gap on volume we had a little pullback and the volume was um larger than you would like to see but that was also due to a news event started to U-turn off that Gap low and now it's starting to turn higher so we added there added to the S&P with it getting back above some key levels um added back home builders via nail this is the ETF we use but I'm going to show the the underline because the the lever ETFs can just skewed sometimes breaking this down trend line back in through this 120 spot and look at um some of the home builders today toll very similar look KB again a lot of these have a similar chart and one thing that you know so I'm showing you individual homeb Builder stocks that have similar charts but if you do a relative strength um time frame analysis you'll see that now which is the levered ETF often outperforms all these stocks and that's the reason we choose that and obviously we don't have to worry about single stock risk like you know is Toll Brothers going to outperform kbh you know that's really just a coin toss versus seeing the sector strength here and playing it V via the ETF and we bought nugt which is the gold miners and you can see gold breaking out um and GDX just really strong downtrend line break and gold has just been very strong continues to uh form new bases after moves up had this big move up or another base another move up now it's looking like it's trying to move higher out of this Bas um so that was inhouse today um let's take a look at the 21 over 21 list axon super strong here notice this one another one that held that high volume close from the earnings Gap and then really just you turning strong up up on the day 6.3% on 68% above average volume affirm good see this one start to bounce back it had that strong earnings Gap and day two higher high but just got Slamm with the market but now this one held the 200 day strong two days up Cavo we added to this one gev so they had some news this morning and it prompt a gap down here but this bounced quickly off the open retook the opening range and just trended up really strongly all day so um you know that's what you expect in in some leading stocks as tips to get bought so this one continues to be very strong shark ninja back above that 100 level and another just A+ uh after earnings Gap action gapped up built a nice range moving higher and continues to move higher out of these consolidations C limited this is another one that's in this retail internet Industry Group hanging in there pretty well closed near the low end of the day but chart looks good service now another in-house named day two higher high looks great gwre guidewire software continues to Trend higher uh Sprouts Farmers Markets this one's setting up a really nice base here so maybe this one breaks out relative strength has been great ntnx this was another earnings Gap kind of undercut that low and reclaimed and sometimes you see that a lot as well uh they'll put in a day two higher high then come back down and shake out those buyers and then reclaim that low and Get Off to the Races iot had that huge volatility yesterday but shaking it off for now nooc these military stocks remain strong lock another one paler continues to build off that S&P inclusion news um AR GX just kind of pulling back to the 21 flutter consolidating after this breakout race sitting right at the 21 CBOE consolidating above the 21 ftnt pulled back to the 21 had some news intraday about a breach of data and you can see that um how the market reacted and you know sometimes you do see these in these cyber security stocks because trust is so critical crowd's a good example of that huge gap down and so you know sometimes you get those type of moves in the sector PWS another one in the sector that's holding up pretty well held the 50-day that 345 level was Prior high of the base so it's coming back around that looks pretty good and then I wanted to talk about some big tech stocks Netflix this is one of the best looking ones right under highs um and starting to emerge through this downtrend line so this one's clearly showing some relative strength and indic ative that Tac maybe wants to move higher met is another one broke this downtrend line really nicely today undercut reclaim that 500 level and I mentioned that 21 we uh earlier with the S&P and stocks tend to respect this pretty well also mea on the pullback um found support right at the rising 21 week and and moving higher now so good to see that and then you got Microsoft which has been a lagered Rel the strength but like I mentioned some evidence that Tech might take the Baton here this one's clearing a big RS down trend line and this is getting back above the 50 days so maybe this is just um a multi-month base because these stocks have had some huge runs so basing is normal um Amazon building above the 200 day and seeing a strong push today Google this is the real lagard but if this can get back above the 200 day in that 154 uh prior low maybe this one gets some momentum back to the upside you have the 50-day there so maybe a higher low but um good to see good to see these starting to claw back is they were getting sold pretty heavy but um now given how some of them how oversold they are That Could set the stage for Tech to really have a lot of juice to the upside um so got some other semiconductors avgo um just three really powerful days and look at that volume back above all the moving averages and I'll just pull up a chart of the socks so yeah this you know is building a higher low and uh trying to build above the 200 day so definitely still oversold and some work to do but the leaders like avgo Nvidia are doing well for the sector um for the sector right now so couple other in-house names Eli Lily held the 50-day very nicely this was pretty orderly pullback no damage and now it's reclaiming the 21 that's good race I'll just mention this one yeah sitting at the 21 um and so yeah strong character change in the market you know it just from this was one of the biggest yesterday was one of the biggest intraday reversals the market seen since that uh October low when the market gapped down and then reversed really hard um so good to see and and strong strong positive day overall so that's everything I got for you guys today so that is going to wrap it as always like to hear from you my email is Connor R asset and you can always reach out to Dan or donr asset.com phone is 855 real wealth and is 8557322332 Thursday September 12th this is Conor Vates with rever Asset Management telling it like it is thanks for listening and have a good day