Noticing some patterns

Today, there were the most pocket pivots i’ve seen in a day in the scan, 81 to be exact. And this on a day that the indexes was up on pretty low volume. Is this a sneaky signal for a big leg up?

I’m also noticing that a lot of consumer cyclical (apparel), defensive, and restaurants are really breaking out, TGT for example, UA, GIII, Nutrisystem, BGS,  EFOI, DIN, DPZ, DENN, PLCE, SKX, INGR, BURL, CMG, NFLX, TSN (TSN is the LEADER), FOSL, OLLI, GLUU, PRMW, HOFT. Maybe these stocks are breaking out right now because the theme around the market and the strength of the market is the CONSUMER. Manufacturing and energy are down but i keep reading that america is 2/3 driven by consumption and that jobs and wages are still growing despite the global slowdown. This makes sense.

Maybe its time to rotate into these consumer stocks? The more i look, the more that answer is yes.

Engineering and construction stocks are breaking out nicely out of bases. LAYN, VSEC, IESC. Trucking WERN, STB, JBHT etc

Certain bio stocks are setting up nicely as always as well. AXGN, MNOV, MNKD

Gold is basing a triangle flag and looks to continue as it broke out of a huge channel, while the dollar is lacking demand around the 50dma.

FSLR breaking out on two big volume days as well.

Materials wise, chemicals are showing life TROX, OEC, diversified miners TCK, GLNCY

Bottom line is a ton of stocks are setting up right now with institutional backing (pocket pivots). The market is probably moving higher from here and with a high chance of additional stimulus from all over soon.

 

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