I'm on vacation this week so I'll post mostly abbreviated articles. There will be no blog article on Friday.
One confirmation signal that I always look for during a bull market is leadership from our 5 aggressive sectors - technology (XLK), consumer discretionary (XLY), communication services (XLC), industrials (XLI), and financials (XLF). Currently, the XLK and XLY are in record high territory as money has poured into these two key sectors. That is undeniably bullish in my view. The relative strength in the other 3 has been okay, but I'd like to see more. It starts with absolute breakouts and we're nearing such breakouts on all 3:
Stock To Watch
Advanced Micro Devices (AMD) is a stock I own and is also a stock in my Model Portfolio. Since the Model Portfolio's inception on November 19, 2018, it's gained 44.06%. By comparison, the S&P 500 has risen 12.03%. That's a ton of outperformance. My Model Portfolio invests equally in 10 companies with strong earnings and excellent relative strength.
Recently, when the semiconductors took a tumble, AMD's relative strength held up well. As soon as the industry regained its footing, AMD shot to new highs. It's the way Wall Street works. Here's the AMD chart:
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