At the same time, when you stack it up against its defensive counterpart—Consumer Staples—it’s also pushing to new relative highs, signaling risk-seeking behavior among investors.
This tells us market participants are playing offense and positioning for this bull cycle to continue- a classic sign of a risk-on environment.
Here’s a look at our overall industry rankings, which show Automobiles jumping eight spots to enter the top 5.
This group is riding a powerful wave of momentum.
Their sharp run up the leaderboard is confirmation that money is rotating into more cyclical oriented industries.
Below are the Top 10 names in the Automobiles subsector, ranked by relative strength.
This week’s spotlight stock is Hesai Group $HSAI, a $3.2B Chinese company specializing in three-dimensional light detection and ranging solutions, aka LiDAR.
Not only is this a top stock in a top group… but it’s also a Chinese speculative growth name. We’re checking a lot of bullish boxes with this one.
HSAI just broke out of a massive base, and has successfully retested the breakout level around its old IPO highs.
As long as we’re above 24, the path of least resistance is higher, and I want to be long with an initial target of 36 and a secondary target of 57 over longer timeframes.
And this is more than just a perfect chart. This is further confirmation that we’re on the right track by positioning for a big move in Chinese equities.
We’ve put a handful of trades on China lately, making them our main overweight in the Breakout Multiplier portfolio.
A massive trend reversal is underway and the biggest stocks are all buying in. We’re sitting pretty, up about 150% in both our BABA and BIDU calls, with plenty of time before expiration.
We’re planning to put another China trade on in a mega cap growth stock early next week. If you want access to it, take advantage of our Labor Day sale and get Breakout Multiplier for 55% off right now!
