[Market Outlook] Market Leadership Has Shifted!

[Company Logo] Hi Trader, Unfortunately, due to some insane travel/weather issues we got stuck in Dallas for almost 20 hours and there will be no video this weekend. As a result, I've linked this commentary to the charts in Big View that you're entitled to see if you are a free or premium ($) member. Overall, U.S. Stocks performed well, but the narrative is changing, which could indicate the final big wave is underway. The leadership shifted to big cap Dow stocks +2%, inflation plays and value stocks. Volume patterns are confirming the shift in spades as both [the Dow Industrials and the S&P 500 are showing good accumulation](. What was leading, the NASDQ100 (QQQ) closed down -.4% for the week, and now has 5 distribution days over the past two weeks. The price action is obvious from the chart (below), and our[table of volume accumulation/distribution in Big View here](. [image] Could it be that Mr. Market believes, that with interest rates on the rise, the Fed will be more cautious going forward on additional bumps and not derail the bull market, hence getting behind the curve on inflation? Here is another factoid; [($)value stocks are on the verge of taking out a decade plus long downtrend versus momentum ($)](. Plus, value has turned positive on a short-term time frame. We have been stalking this for quite some time and have mentioned it here in this column back in August and in Mish’s daily column back on June 12. Funny thing is that this week Mish and I were at a dinner party with some very sophisticated business people who were discussing their portfolios. One, a real estate developer, tired of losing, has completely given up on gold thinking it has become a yellow relic, while another correctly observed that it now takes 22 ounces of gold to buy one measly share of the Dow and is still a believer. The historic perspective of the value of Gold vs. the Dow can be seen below (compliments of Barron's and Bloomberg, September 23, 2018) [image] We believe in the truth of the charts until proven otherwise and at the moment Gold Miners, which are most sensitive to underlying gold prices, are looking like a bottom. Along the same vein of throwing in the towel at just the wrong time; the death of value stocks was proclaimed just recently by several leading economists and leading hedge fund players… hmmm. The highlights of this week’s market action are the following: - [The Dow Industrials made new all-time highs +2%]( - [($) Value Stocks are on the verge of an important breakout]( - [($) Foreign equities including commodity sensitive emerging markets might have bottomed]( - [US Small Caps closed down -.4% for the week which indicates (counter-intuitive) a trade war with China will impact domestic companies]( - [($) The dollar weakened while the Euro confirmed a positive phase change which is a positive for commodities]( - [($) Metals, both precious and otherwise, specifically (copper) and Gold Miners (GDX) look to have bottomed]( Best wishes for your trading, Keith Schneider CEO MarketGauge Get more - follow us here... Twitter [@marketgauge]( and [@marketminute]( and [Facebook]( To stop receiving this go [here.]( Got Questions?Office hours 9-5 ET (New York time) Email: info@marketgauge.com Live Chat: Go to bottom right corner of our [home page.]( Call: 888-241-3060 or 973-729-0485 There is substantial risk of loss associated with trading any securities including and not limited to stocks, ETFs, futures, and options. Only risk capital should be used to trade. Trading securities is not suitable for everyone. No representation is being made that the use of this strategy or any system or trading methodology will generate profits. Past performance is not necessarily indicative of future results. "Market Intelligence at a Glance + Tools For Serious Traders" [Tap here to manage your email subscriptions or stop receiving this email.]( MarketGauge.com 70 Sparta Ave, Suite 203 Sparta, New Jersey 07871 United States (888) 241-3060