US Equities made mincemeat of the bears as last Friday’s bearish engulfing pattern failed with equities again roaring to new highs.
All key U.S. equity indexes are now up on the year led by NASDAQ 100 (NASDAQ:QQQ) which is up more that 5%.
This is more than one would make sitting with the U.S. long bond for over a year.
However, there is a clear disconnect between market action and some key risk metrics.
One glaring disconnect is that Utilities are outperforming the S&P 500 on a short-term basis, which is generally an excellent risk-off indicator.
It is highly unusual for this to occur when stocks are hitting new all-time highs.
This week’s highlights are:
So, speaking of Beyond Meat (NASDAQ:BYND), we had another great discretionary trade using our Real Motion indicator which made it extremely obvious that its downward price action to new lows was seriously diverging from its momentum.
This is exactly what our proprietary Real Motion Indicator is designed to find.
At its peak from our entry, we were up almost 75%, and we sold a portion of our position up almost 70%.
Not bad for being in the trade for only 6 days.