There's nothing like an impeachment of the President to fuel the markets to new highs. Talking about counter-intuitive, Tesla also hit all-time highs and closed out the week over $400, destroying shortsellers who have lost billions in one of the most hated stocks by Wall Street pros. The short-covering may not be over yet either, as the recent price action could attract even more new buyers once the short-term overbought situation works itself off. As the chart above shows, we hit the top of the trading multiyear trading channel, an important annual floor trader pivot (R1) and the upper trendline of relative performance versus the S&P500 that started in mid-2017.

This week’s highlights are:

• Risk Gauges are still in bull mode but backed off from 100% bullish
• The Nasdaq 100 is leading the charge up and running rich with a doji day as it closed at all-time highs with an inclusive doji pattern
• Utilities outperformed the SPY by a wide margin this week
• Semis continue their tear, looking to close out the year up over 60%
• Volume patterns are showing major buying pressure
• The Retail sector continues to poorly perform this year, as does the Transportation sector which should be respected as a yellow flag for the major indexes
• Both Value and Growth plays are leading themes relative to the S&P 500

This week’s video will take a deeper look into Gold and commodities and what that might mean for equities as we head into the next decade.  This week we launched our Alpha Options service which is a quant model that plays risk on/off with options.