If a huge recession is looming, someone forgot to tell the apparel retail group ($DJUSRA), because their absolute and relative strength is undeniable right now. The past three months have seen many stocks within this space SOAR. Here’s the visual of the DJUSRA on both an absolute and relative basis, along with a strengthening small cap stock within the industry:
URBN is already a beneficiary of the much-improved relative strength in the DJUSRA. The green arrows highlight the rising 20-day EMA acting as excellent support during the current uptrend. I’d look for that to continue.
I am VERY bullish and don’t mind at all being the outsider in terms of evaluating the S&P 500. It wasn’t fashionable to be bearish heading into 2022 either, but I accepted that role and it was the correct side to be on. Those shorting this market now, in my opinion, will be whipsawed in the weeks ahead exactly like the longs were baffled earlier in 2022. You have to understand the manipulation that ALWAYS takes place in the stock market, or else suffer the consequences. Current manipulation is pointing to the big Wall Street firms accumulating aggressive areas of the market. That spells trouble ahead for shorts.
“Understanding Market Manipulation” is our next scheduled event this Saturday, November 5th, beginning at 10am ET. It is a FREE virtual event that simply requires your name and email address to register. CLICK HERE for more information and to register for the event. I’ll see you next Saturday!
Tom Bowley is the Chief Market Strategist of EarningsBeats.com, a company providing a research and educational platform for both investment professionals and individual investors. Tom writes a comprehensive Daily Market Report (DMR), providing guidance to EB.com members every day that the stock market is open. Tom has contributed technical expertise here at StockCharts.com since 2006 and has a fundamental background in public accounting as well, blending a unique skill set to approach the U.S. stock market.