{"id":182198,"date":"2022-11-14T10:15:00","date_gmt":"2022-11-14T15:15:00","guid":{"rendered":"https:\/\/ibkrcampus.com\/traders-insight\/chart-advisor-follow-through-friday-stocks-confirm-the-historic-momentum-thrusts-from-yesterday-with-another-broad-based-rally-to-close-out-the-week\/"},"modified":"2024-01-24T12:15:26","modified_gmt":"2024-01-24T17:15:26","slug":"chart-advisor-follow-through-friday-stocks-confirm-the-historic-momentum-thrusts-from-yesterday-with-another-broad-based-rally-to-close-out-the-week","status":"publish","type":"post","link":"https:\/\/www.interactivebrokers.com\/campus\/traders-insight\/region\/chart-advisor-follow-through-friday-stocks-confirm-the-historic-momentum-thrusts-from-yesterday-with-another-broad-based-rally-to-close-out-the-week\/","title":{"rendered":"Chart Advisor: Follow-Through Friday &#8211; Stocks confirm the historic momentum thrusts from yesterday with another broad-based rally to close out the week."},"content":{"rendered":"\n<p><strong><a href=\"https:\/\/www.investopedia.com\/contributors\/54841\/?utm_source=chart-advisor&amp;utm_campaign=fwd_chartadvisor&amp;utm_term=27774019&amp;utm_medium=email\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>By&nbsp;<\/strong><\/a><strong><a href=\"https:\/\/www.investopedia.com\/contributors\/54841\/?utm_source=chart-advisor&amp;utm_campaign=fwd_chartadvisor&amp;utm_term=27774019&amp;utm_medium=email\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>J.C. Parets<\/strong><\/a>&nbsp;&amp;&nbsp;<a href=\"https:\/\/get.allstarcharts.com\/?utm_source=chart-advisor&amp;utm_campaign=fwd_chartadvisor&amp;utm_term=27774019&amp;utm_medium=email\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>All Star Charts<\/strong><\/a><\/strong><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-friday-11th-november-2022\">Friday, 11th November, 2022<\/h2>\n\n\n\n<p><strong>1\/ ARKK Hooks Higher<\/strong><\/p>\n\n\n\n<p><strong>2\/ Dollar Gets Pounded<\/strong><\/p>\n\n\n\n<p><strong><strong>3\/ Financials Power Forward<\/strong><\/strong><\/p>\n\n\n\n<p><strong>4\/ As the World Turns<\/strong><\/p>\n\n\n\n<p><em>Investopedia is partnering with All Star Charts on this newsletter, which both sells its research to investors, and may trade or hold positions in securities mentioned herein. The contents of this newsletter are for informational and educational purposes only, however, and do not constitute investing advice.<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-1-arkk-hooks-higher\">1\/ <strong>ARKK Hooks Higher<\/strong><\/h2>\n\n\n\n<p>The big theme today is follow-through. Despite a historic rally yesterday, we never want to give too much weight to just a single day of price action.&nbsp;<\/p>\n\n\n\n<p>Today, stocks posted another broad rally, bolstering our conviction about the momentum thrusts from yesterday.&nbsp; Here\u2019s a look at the poster child of the recent <a href=\"https:\/\/www.investopedia.com\/terms\/b\/bearmarket.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=871844-20221111&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=111122&amp;cid=871844&amp;mid=101758063629\" target=\"_blank\" rel=\"noreferrer noopener\">bear market<\/a>, the ARK Innovation ETF (<a href=\"https:\/\/www.investopedia.com\/markets\/quote?tvwidgetsymbol=ARKK&amp;hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=871844-20221111&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=111122&amp;cid=871844&amp;mid=101758063629\" target=\"_blank\" rel=\"noreferrer noopener\">ARKK<\/a>):<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2023\/02\/1-12-1100x546.png\" alt=\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" class=\"lazyload\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/546;\" \/><figcaption class=\"wp-element-caption\"><strong>Source: All Star Charts, with data provided by Optuma<\/strong><\/figcaption><\/figure>\n\n\n\n<p>ARKK has rallied roughly 25% since yesterday morning. This historic momentum thrust is illustrated by the two-day rate of change in the lower panel. The fund has never experienced a short-term rally that even comes close to the performance it has put up during the last two sessions.<\/p>\n\n\n\n<p>We\u2019re seeing similar rallies in a long list of equity indexes and funds this week. However, two characteristics make the ARKK chart stand out from the rest. Not only is there a <a href=\"https:\/\/www.investopedia.com\/articles\/trading\/04\/012804.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=871844-20221111&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=111122&amp;cid=871844&amp;mid=101758063629\" target=\"_blank\" rel=\"noreferrer noopener\">bullish momentum divergence<\/a> in place, but price is hooking higher from a key <a href=\"https:\/\/www.investopedia.com\/trading\/support-and-resistance-basics\/?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=871844-20221111&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=111122&amp;cid=871844&amp;mid=101758063629\" target=\"_blank\" rel=\"noreferrer noopener\">support level<\/a> at its prior cycle lows. It looks like the squeeze is on for these speculative growth stocks.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-2-dollar-gets-pounded\">2\/ <strong>Dollar Gets Pounded<\/strong><\/h2>\n\n\n\n<p>The <a href=\"https:\/\/www.investopedia.com\/terms\/u\/usdx.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=871844-20221111&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=111122&amp;cid=871844&amp;mid=101758063629\" target=\"_blank\" rel=\"noreferrer noopener\">U.S. Dollar Index (DXY)<\/a> is falling fast. When we look at individual currencies, this dollar weakness is most pronounced against the <a href=\"https:\/\/www.investopedia.com\/terms\/g\/gbp.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=871844-20221111&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=111122&amp;cid=871844&amp;mid=101758063629\" target=\"_blank\" rel=\"noreferrer noopener\">pound<\/a>.<\/p>\n\n\n\n<p>Yesterday, the GBP\/USD <a href=\"https:\/\/www.investopedia.com\/terms\/c\/currencypair.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=871844-20221111&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=111122&amp;cid=871844&amp;mid=101758063629\" target=\"_blank\" rel=\"noreferrer noopener\">currency pair<\/a> had its best day since 1993, gaining more than 3%. A single-day return of that magnitude is rare, as it has occurred only a handful of times in the past 40 years.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2023\/02\/2-10-1100x537.png\" alt=\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" class=\"lazyload\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/537;\" \/><figcaption class=\"wp-element-caption\"><strong>Source: All Star Charts, with data provided by Optuma<\/strong><\/figcaption><\/figure>\n\n\n\n<p>The power of yesterday\u2019s momentum thrust often marks significant <a href=\"https:\/\/www.investopedia.com\/terms\/b\/bottom.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=871844-20221111&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=111122&amp;cid=871844&amp;mid=101758063629\" target=\"_blank\" rel=\"noreferrer noopener\">bottoms<\/a> for the pound. This is another piece of evidence against King Dollar and another momentum thrust favoring <a href=\"https:\/\/www.investopedia.com\/terms\/r\/risk-asset.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=871844-20221111&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=111122&amp;cid=871844&amp;mid=101758063629\" target=\"_blank\" rel=\"noreferrer noopener\">risk assets<\/a>.<\/p>\n\n\n\n<p>Evidence continues to suggest the market is in the midst of a significant turning point. And it\u2019s hard to imagine a more bullish catalyst than a falling dollar.#<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-3-financials-power-forward\">3\/ <strong>Financials Power Forward<\/strong><\/h2>\n\n\n\n<p>On Monday, we pointed out that the relative trends in the financial sector were indicating continued leadership from these stocks for the foreseeable future.<\/p>\n\n\n\n<p>Today, European financials (<a href=\"https:\/\/www.investopedia.com\/markets\/quote?tvwidgetsymbol=EUFN&amp;hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=871844-20221111&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=111122&amp;cid=871844&amp;mid=101758063629\" target=\"_blank\" rel=\"noreferrer noopener\">EUFN<\/a>) are resolving ahead of their U.S. peers as EUFN is <a href=\"https:\/\/www.investopedia.com\/terms\/b\/breakout.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=871844-20221111&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=111122&amp;cid=871844&amp;mid=101758063629\" target=\"_blank\" rel=\"noreferrer noopener\">breaking out<\/a> above its August highs. While U.S. financials (<a href=\"https:\/\/www.investopedia.com\/markets\/quote?tvwidgetsymbol=XLF&amp;hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=871844-20221111&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=111122&amp;cid=871844&amp;mid=101758063629\" target=\"_blank\" rel=\"noreferrer noopener\">XLF<\/a>) are also trending well, they have yet to make a higher high.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2023\/02\/3-11-1100x546.png\" alt=\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" class=\"lazyload\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/546;\" \/><figcaption class=\"wp-element-caption\"><strong>Source: All Star Charts, with data provided by Optuma<\/strong><\/figcaption><\/figure>\n\n\n\n<p>As the charts look similar, XLF could likely follow the same path as EUFN. If and when it does, it would be a major development for the bulls.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-4-as-the-world-turns\">4\/ <strong>As the World Turns<\/strong><\/h2>\n\n\n\n<p>It has been one of the worst years in history for international equities. Not only have stocks around the globe been falling on an absolute basis, but they have been serial underperformers when benchmarked against U.S. equities.<\/p>\n\n\n\n<p>The chart below shows the relationship between developed markets outside of North America (EAFE) and the S&amp;P 500:<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2023\/02\/4-10-1100x555.png\" alt=\" class=\" class=\"wp-image-166479 lazyload\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/555;\" \/><figcaption class=\"wp-element-caption\"><strong>Source: All Star Charts, with data provided by Optuma<\/strong><\/figcaption><\/figure>\n\n\n\n<p>The chart above shows the relative trend between these indexes in the top pane, the direction of the trend in the middle pane, and the persistence or duration of the current trend in the bottom pane.<\/p>\n\n\n\n<p>At 253 weeks, this is one of the longest streaks in history of consistent outperformance from the U.S. However, with some major improvements in international equities in recent weeks, we are on high alert for a <a href=\"https:\/\/www.investopedia.com\/terms\/r\/reversal.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=871844-20221111&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=111122&amp;cid=871844&amp;mid=101758063629\" target=\"_blank\" rel=\"noreferrer noopener\">reversal<\/a> in the relative trend that would favor ex-U.S. stocks. With the dollar rolling over, it could make sense to see the U.S. finally forfeit its long-term leadership role.<\/p>\n\n\n\n<p>&#8212;<\/p>\n\n\n\n<p>Originally posted 11th November, 2022<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The big theme today is follow-through. Despite a historic rally yesterday, we never want to give too much weight to just a single day of price action.\u00a0<\/p>\n","protected":false},"author":186,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[14,16,18,6,8,9,22,23,26,3],"tags":[7936,1779,2547,4790,11572,2006],"contributors-categories":[13686],"class_list":{"0":"post-182198","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-etfs","7":"category-forex","8":"category-macro","9":"category-north-america","10":"category-region","11":"category-securities","12":"category-stocks","13":"category-technical-analysis","14":"category-text-articles","15":"category-traders-insight","16":"tag-arkk","17":"tag-dxy","18":"tag-eafe","19":"tag-eufn","20":"tag-gbp-usd","21":"tag-xlf","22":"contributors-categories-investopedia"},"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Chart Advisor: Follow-Through Friday &#8211; Stocks confirm the historic momentum thrusts from yesterday with another broad-based rally to close out the week.<\/title>\n<meta name=\"description\" content=\"The big theme today is follow-through. Despite a historic rally yesterday, we never want to give too much weight to just a single day of price action.\u00a0\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.interactivebrokers.com\/campus\/wp-json\/wp\/v2\/posts\/182198\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Chart Advisor: Follow-Through Friday - Stocks confirm the historic momentum thrusts from yesterday with another broad-based rally to close out the week.\" \/>\n<meta property=\"og:description\" content=\"The big theme today is follow-through. Despite a historic rally yesterday, we never want to give too much weight to just a single day of price action.\u00a0\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.interactivebrokers.com\/campus\/traders-insight\/region\/chart-advisor-follow-through-friday-stocks-confirm-the-historic-momentum-thrusts-from-yesterday-with-another-broad-based-rally-to-close-out-the-week\/\" \/>\n<meta property=\"og:site_name\" content=\"IBKR Campus US\" \/>\n<meta property=\"article:published_time\" content=\"2022-11-14T15:15:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-01-24T17:15:26+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.ibkrcampusdev.wpengine.com\/campus\/wp-content\/uploads\/sites\/2\/2023\/02\/1-12-1100x546.png\" \/>\n<meta name=\"author\" content=\"Contributor Author\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Chart Advisor: Follow-Through Friday - Stocks confirm the historic momentum thrusts from yesterday with another broad-based rally to close out the week.\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Contributor Author\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\n\t    \"@context\": \"https:\\\/\\\/schema.org\",\n\t    \"@graph\": [\n\t        {\n\t            \"@type\": \"NewsArticle\",\n\t            \"@id\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/traders-insight\\\/region\\\/chart-advisor-follow-through-friday-stocks-confirm-the-historic-momentum-thrusts-from-yesterday-with-another-broad-based-rally-to-close-out-the-week\\\/#article\",\n\t            \"isPartOf\": {\n\t                \"@id\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/traders-insight\\\/region\\\/chart-advisor-follow-through-friday-stocks-confirm-the-historic-momentum-thrusts-from-yesterday-with-another-broad-based-rally-to-close-out-the-week\\\/\"\n\t            },\n\t            \"author\": {\n\t                \"name\": \"Contributor Author\",\n\t                \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/#\\\/schema\\\/person\\\/e823e46b42ca381080387e794318a485\"\n\t            },\n\t            \"headline\": \"Chart Advisor: Follow-Through Friday &#8211; 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