Market leaders are constantly evolving and staying up to date on the newest trends, and macro events can be challenging. Looking back at previous decades of market leadership provides insight into how market leaders change over time, and the impressive cumulative returns indicate potential future market leadership gains.
It may seem grim this week as tech stocks like Apple (AAPL), Tesla (TSLA), Meta Platforms (META), and other mega-cap names continue to fall, but history reminds us that new leaders are potentially emerging. Traders should stay attuned to shifting current market conditions to look for new leadership trends. It helps to have trading indicators and research tools to pinpoint changing market leadership.
So, what does all this mean for investment themes in 2023?
To stay on top of shifting market leadership, it is essential to be aware of the key factors that signal a changing leadership. Our Triple Play Indicator can help signal and alert traders where and when capital should be deployed based on market leadership.
The last decade had a fantastic run for large-cap growth stocks, and the FAANG stocks ($NYFANG) dominated until the beginning of 2022. Given the crypto winter and current crypto FTX crisis, a shifting macro backdrop might usher in fresh leadership, similar to commodities emerging in the 1970s with precious metals gaining astronomical returns. It is also consistent with our view that we are in a comparable inflationary environment to the 1970s.
Real assets, particularly gold, exemplify potential new leadership emerging. The Triple Play indicator measures price leadership and volume strength, and gold outperforms the SPDR S&P 500 ETF (SPY) in the above chart. When the Triple Play blue line is above the red line, it’s bullish. It highlights that gold will likely continue to rally while its trend is strengthening.
The indicators and data provided by our Triple Play Indicator can help you stay ahead of shifting market leadership so you can adjust your trades accordingly.
Rob Quinn, our Chief Strategy Consultant, can provide pricing and trading software compatibility and a one-to-one trading consult to learn more about Mish’s Premium trading service. Our Real Motion Indicator and TriplePlay Indicator are available on trading platforms such as StockCharts, Fidelity, and TradeStation.
Follow Mish on Twitter @marketminute for stock picks and more. Follow Mish on Instagram (mishschneider) for daily morning videos. To see updated media clips, click here.
Read Mish’s latest article for CMC Markets, titled “What’s Next For Key Sectors After the Midterms“.
Mish explains why MarketGauge loves metals and is still patiently loading up equities on Business First AM.
Mish talks metals, rates, dollar, and which sector to buy/avoid in this appearance on UBS Trending.
Mish joins Cheddar to talk about some of the fallout from the most recent Fed Meeting.
Click here to see Mish and Helene Meisler’s panel at the Trader’s Summit event!
Mish discusses Meta and Palantir and how trends are switching in this appearance on BNN Bloomberg.
- S&P 500 (SPY): 369 support, 377 resistance.
- Russell 2000 (IWM): 171 support, 177 resistance.
- Dow (DIA): 321 support, 329 resistance.
- Nasdaq (QQQ): 260 support, 265 resistance.
- KRE (Regional Banks): 60 support, 65 resistance; same as before.
- SMH (Semiconductors): 189 support, 197 resistance.
- IYT (Transportation): 208 support, 214 resistance.
- IBB (Biotechnology): 127 support, 132 first resistance; same as before; closed at 129.05.
- XRT (Retail): 58 support, 63 resistance; same as before; closed at 59.41.
Chief Executive Officer
Mish Schneider serves as Director of Trading Education at MarketGauge.com. For nearly 20 years, MarketGauge.com has provided financial information and education to thousands of individuals, as well as to large financial institutions and publications such as Barron’s, Fidelity, ILX Systems, Thomson Reuters and Bank of America. In 2017, MarketWatch, owned by Dow Jones, named Mish one of the top 50 financial people to follow on Twitter. In 2018, Mish was the winner of the Top Stock Pick of the year for RealVision.