Transcription
Hey everybody, welcome back to another edition of the strength report. As I stated on Wednesdays, now that will be our strength report. Saturdays are going to be the deep dives, as we talked about the longer format, and then during the week, we'll just do updates on both of those. I want to start with the beginning of what happened today, and then we're just going to dive into the sectors that are moving. I'm going to show you how you can do this for yourself as well. But let's get right to it.
If we take a look at what's happening here in the market, everyone's getting a little concerned because we didn't go up. Well, there's a lot going on out there right now, and I want to spend some time on this, but not a lot, because we're going to focus on obviously what is strong right now, but we would be remiss in not just covering this. Obviously, we have a lot going on with tensions in the world right now. So, you would think that the strength report is going to point to commodities. And what's interesting is it didn't. It actually flipped today, and I'm going to show you guys how you can monitor this for yourself. I think it's really important to get this concept down. And one of the reasons why in '26, I'm actually starting this is because I want people to understand that during periods where the market is essentially flat. And if we really look at this, take the top of this level to here, you really have gone up 2 and a half percent from mid-October from this breakdown October. And if you guys were watching back then, we actually talked about, you know, getting out and going into cash in here.
But if you really look at the market during this period of time, you know, it's 96 days and you're up 1.4%. So, if you understand how to find strength, rotation, relative strength, doesn't matter if the market goes sideways, it's actually better because the rotation just keeps kicking into the new one, and all you do is just keep rotating. That's what the, that's what the key is to this. So, if we look at the ES, we can see our key levels here. We can see we're under 7,000. I don't want to spend an inordinate amount of time on this, but I want to spend some on it. So, then when we dive in here again, we look at the NQ. We can see that we are unable to get above that level. And for those that watch us in the pre-markets, you'll remember these levels, and you'll remember them exactly when we talked about the QQQ and this 626, 628 corridor, and how you're having problems in here, and you're just not able to really get through that. And it's really that $2 range, and it's just Mumbo City up here. You're not able to get through it. Today, everyone was scared, and then what happened? We got back over that 55. So now you've seen what the S&P looks like. You've seen what the NASDAQ looks like. If we look at the Dow, that looks a lot better, doesn't it? And if you mark the Dow from here over, from that date, you would look at that and go, "Oh, you're up 5.3%." So, the Dow is doing better. If we took a look from even the trough of these areas, but if we went back to that October level, mid-October here, and we came across to where you're at now, you're up 7.2%.
So when we're looking at this again, and we're trying to identify where strength is, no matter what they're saying, no matter what anybody is saying, any economist or anyone, strength is in the small caps. So the very first thing that we would take from this, and we went through this last week, small caps are where the strength are. So the easy thing to take from this is looking at things like 3x ETFs. If you so want to, you should do what you're comfortable with. This was something we bought in the community around 48. Never been worried about it, and the thing just keeps on grinding, hitting highs. But obviously, these 3x ETFs can be pretty vicious. Uh, but this is just a great example of using relative strength and then deciding where you want to put your chips.
What we've seen a lot of is we've seen a tremendous amount of interest lately in silver. And we went through this. If you haven't, I'll link it at the end to last week's uh strength report where we covered silver, and you guys will remember the names that we went through there where we covered CDE and HL, and we talked about, hey, you might want to look at these names, and obviously they had a fairly good week. We also talked about things like ARQ and how these things are setting up. I'm sorry, AGQ, and we talked about some of these things and silver, and how they've just been absolutely exploding. Um, obviously this has just been on a complete utter tear, but what we're looking for is what's going to move us ahead. So, we start with one place and then we can always take it someplace else.
Now, in front of us are 40 different sectors, and what we're doing is we're quantifying them, but where we were in the year. So, we already started with what we've already started with the best index was still the small caps, and now we're just going into sectors, and now we can see where URRA is, uh, XME, UFO, NLR, oil, etc. And what you'll note here, and I think this is really important. So, if we drop this down and let's go to a one for a second on this, and let's see how it takes us out there and see how we'll be able to drill into this. Sometimes it'll let me, sometimes there's too much on here. And again, we're just going to have to keep this the way it is. But XME, URA, and then you have UFO and gold, and you can see oil and ITB, and they're creeping up since the 5th, right? And then if we just start going this way with it, you'll start seeing how they're moving.
Now, as they move, what's starting to happen? So you can start to see the movements. See the movements. What you're always looking for with these, with these, especially with these, is you're always looking for what's moving the fastest that week. In other words, is something taking something else's place? And when you start scrolling through them this way, you'll start to see it. Let me show you this. And what I'm going to do is I'm going to take the top ones that are happening on the week and compare them to what? I'm going to take them and compare them to what happened last week. And then we'll be able to to look at those, and I'll show you how to discern which ones you should be looking at.
So now what we've done is we've taken last week's winner to make sure that we know where that is. Is that's still winning? You could argue that it is, but I'm going to show you something. If you see this, this I put silver in here twice just to outline it. So you would have Block, that is crypto. We can see where crypto is. We put XME in here as well, which is obviously where you would just strip out silver from. And then if we take a look at the UFO, we can see where that is. And then if we see ITB, we can see where that is. And Jedi, I put in here as well.
Now, this is where it gets super interesting because if I look at something like this, the very first thing that you guys will notice is that some of these are still hitting highs while others are not. Meaning, if we take a look at Block and we look at where that was in the beginning of the day on Wednesday versus where you are now, you've already leveled off. If you take a look at something along UFO and we see where that's at, we can see how we're leveling off. So, the very first thing that we could do here is just clean this up. We can see pretty clearly that ITB and some of these others are not winning. But what you can always do is this too, right? You can go back to this 14 and we can look at that and just blow up and say, "All right, just give me the day," and you can see by the day what's happened. So obviously you had this big push at 11:30 into crypto, which faded, which we all know what happens at the beginning of a day versus the end of the day. We all know the beginning of the day is retail, and institutions are the end of the day, right? We we should know this if you've been watching these videos for some time.
But once again, the purpose of these reports is to find the strength. So if we're looking at Block right now, or we're looking at crypto, that's not where we pushed today. Where we pushed end of day would have been the UFO, and you can see this at the end of the day. So what we would do now, just to make life a little easier, is strip some of this out. We're just going to get rid of the ITB, the XME, and we'll get rid of the Block. And then what we have here is silver, Jedi, and UFO. And we can see that they're both pushing. And they're a little different. So we're going to just take silver and the UFO. Now, if we look at these and we go back to this date on Friday, and now let's just go here, we would say silver's definitely winning. And then what we'll do is we're going to get rid of this silver one. And then when we look at this, you'd have to say, well, silver's still outperforming. And the answer is yes, but watch this, and you'll start see, you'll see the flip.
So what you do is you take silver and then you divide silver on the long and compare it to UFO, and you'll see it here. So, what you're going to do now, just to make this easy, is I'm going to go here, click off of this, and then I'm just going to hide silver for a second. And then I'm going to go here and pull this down, and I'm going to hide UFO for a second. And now in front of us, you have silver compared to UFO. Now, what you'll notice here is that the moves of this performance are all happening when they're all happening after hours. They're not happening during the day. The entire silver moves that are happening, if you really look at this chart, they're all happening after hours. So, you have a tremendous amount of overnight risk that you have to take with silver right now. Long or short, does I don't really care. You know, one minute you're genius, the next minute you're a with it. But you get, you get where we're going with this, hopefully.
So, if we look at this over from 9:30 today, did silver really outperform? If you took overnight risk, sure it did. But then it faded all day long, and actually UFO for the rest of the day continued to push. So what we started to see then was we actually started to see rotation of strength. And I'm just going to say that concept again. It's rotation of strength. It's not that silver is not strong. It's just that during the day, from the open, silver versus UFO lost its strength. So then when we go and click back onto silver and we click back on to UFO and we put this on mute for a second, if we're going to go take a look at this from 14 over, you're going to notice that UFO on the day actually outperformed silver from that morning open. That's really important to get right, and that also solidifies it as you see during the day between the ups and downs versus what they did all day long in UFO.
So what we did again was index, sector, stock. I'll link last Wednesday's video to this one so you can go and watch what we did in silver that is still applicable for what's going on right now. But if we start getting into UFO, then you can start looking at the names that were we're doing really well. Now, if you're in the community, you're already aware of this one. We started buying this guy at like $80, and this is setting up to absolutely continue to outperform. What we're seeing the money go into seems to be those not only that are doing drones and defense, but anything that can launch a rocket apparently seems to be where we're going. So Echoar has an enormous position in SpaceX. There's the largest publicly traded company with a position in it, like on a percentage basis. It used to be like 50% of the market cap is just SpaceX. So you're seeing that continue to move. And then we started seeing Rocket Labs absolutely break out and reverse today and hit all-time highs. Interesting fact, stock first goes to 90, 70% of them go to 100. So do with that what you want. Um, but you're seeing something here, and you're seeing these little reversals and undercuts.
So, where are we seeing that money flow into? We're seeing that money flow into Rocket Labs. We're seeing that money flow into uh SATS as we saw right here. Where else are we seeing it? We're seeing it flow into PL as we can see that continuing to push. We are seeing constant rotation here. And I think that this is very important for us to get the rotation that we explained. We can watch it rotate. These undercuts that you're seeing right now where they're doing these little liquidity grabs and pushing are exactly what you want to see. Obviously, with everything else going on, we're between CPI and PPI are out right now, which is great. What could derail us a little bit is you have Taiwan Semi tonight, and they will come out overnight, and then we will go from there and see how that plays out.
If you are trying to get into the community, please look for a a letter. Uh, we have a whole waitlist that went out recently, and if you're not on the waitlist, please get on if you're trying to get in. Uh, a group went out. I do the onboarding calls myself. So after that, uh, I'll do another another batch. I give everyone the opportunity. They're not forced to talk to me. So that said, tomorrow you have to watch what happens with Taiwan Semi, and then of course, we'll get into Friday and what to do uh after tomorrow's day. But the strength hands down is going into UFO. It is going into this space. It is unmistakable, and it is really incessant. If you want to get another just refresher on silver, just watch the video at the end of