Stock Trends

Give credit where credit is due

Good morning,

Fed day came and went without too many fireworks, and these days, that’s about all we can ask for.

However, things were arguably better under the surface than the modest index gains would suggest, with the Nasdaq, NYSE, and the Russell 2000 all posting their best reading of 1-month highs in at least three months.

In Monday’s Playbook, we looked at two groups, banks and energy, that had been leading the market since the November bottom and were breaking out to new highs.

Today, I want to make sure we acknowledge more good news and look at the private equity stocks.

Private equity was one of the four “canaries” that we’ve been tracking since late September, but over the past three weeks, they’ve been putting in big gains.

More importantly, as today’s report will show, some of these stocks have soared through major resistance levels this week, levels that we would expect to hold if this were just a rally in an ongoing downtrend.

Today’s report will look at four of those stocks, as well as:

• Financials (that aren’t big banks) hitting new highs

• Semiconductors

• Mega-cap tech

• Hot List updates

• and more!

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Noted improvement in private equity

Apollo takes out a 5-month downtrend line

Apollo Global has seen one of the strongest moves this week, taking out a five-month downtrend line on Tuesday, and adding 3.6% to close at its highest level since July yesterday. The overbought signal (76 on RSI-14) is another sign that the worst is likely over here.

KKR also breaks out through a big resistance level

The zone near $130 has been a key pivot point for more than a year and KKR just sliced through it like butter. That zone should act as support if the stock needs to rest before taking out the red downtrend line.

Blackstone back above the 2021 highs

BX is also making a technical stand, holding a long-term uptrend line and moving back above the November 2021 highs AND all key moving averages. It’s not the one I would buy, but the technical improvement is a noted development.

Blue Owl back above the neckline, but I’m still skeptical of this one