The Vanity Trade or New ’Thinner’ Consumer?

I hope by now, my readers and followers know how excited I am about the future of the “vanity” trade, so named because of the diet drugs, folks using them more and more, and the domino effect of the buying habits of this new thinner consumer. 

If you are new to my Daily or me, I suggest you go back to read past Daily’s and watch media clips where I go into more detail about this megatrend and the investment opportunities. 

For today, I will show you a few favorite charts. One is already flying higher while the other two are just getting started. 

I have many other stocks in this trend, so it pays to do your research on what folks are buying if they are getting thinner.  

This is a chart of Novo Nordisk (NYSE:NVO). 

Note where I draw circles. 

The top one is at the price level. NVO gapped higher this morning and found resistance at the 50-DMA (blue Line). 

The second is the leadership indicator, which now shows NVO about to outperform the benchmark. 

The bottom circle is momentum, which flashed bullish a while ago when the 50-DMA began to clear over the 200-DMA. Now, the bullish divergence continues. 

NVO looks about ready to clear the July 6-month calendar range (green horizontal line) as well.

The second chart is Eli Lilly (NYSE:LLY). 

The price action is more rangebound. 

I like the way the July 6-month calendar range high, and the 200-DMA are about to merge near the top of the recent trading range. 

Leadership looks as though it is about to flip in favor of LLY. 

Momentum is totally in a bullish divergence as the red dots have already cleared the 200-DMA. 

Now all you need is the timing, the risk or stop loss and profit target once executed.

The third chart is for Ulta Beauty (NASDAQ: ULTA). 

This is a company that is rarely mentioned in the media. I do though. 

Why? 

Since the first gap in early May, followed by another gap higher in late May, then the massive consolidation from June until these last few days, this stock has gone up over $150. 

Yet nary a mention. 

The top ellipse shows a clear rally beyond the July 6-month calendar range high. 

The middle ellipse illustrates the strength of ULTA compared to the SPY. 

The bottom ellipse represents the momentum, which is neither as strong nor as weak.  

The company does not report until August 28, 2025. 

There are so many opportunities right now in the vanity trade.  

ETF Summary  

(Pivotal means short-term bullish above that level and bearish below)  

• S&P 500 (SPY) 628 calendar range high now through it so now support 
• Russell 2000 (IWM) 226 the calendar range high. He made it, now must hold  
• Dow (DIA) 450 the calendar range high. Now must hold  
• Nasdaq (QQQ) 558 calendar range high to hold  
• Regional banks (KRE) 62 pivotal  
• Semiconductors (SMH) Did not clear the calendar range high  
• Transportation (IYT) 70 pivotal 
• Biotechnology (IBB)  
• Retail (XRT) 81.70 the calendar range high. she made it, now must hold  
• Bitcoin (BTCUSD) 134 the calendar range high. Now must hold