Welcome to the 2nd issue of the ARTAIS signal report. ARTAIS (Absolute Returns Through Adaptive Investment Strategies) is the methodology I use to manage money at my firm, ARTAIS Capital.

It is a momentum-based strategy that screens for stocks that meet long, intermediate, and short-term momentum and trend screens.

This weekly report will highlight macro and sector rotations and the stocks within the ARTAIS universe that meet this screening process.

As a CMT charterholder and someone who has been managing money professionally for the past 30 years, I will also be highlighting charts of interest that help explain what I am seeing in the markets, including a PDF chart pack with my notes on the stocks that pass my screening process (which I will refer to as the actionable list).

In This Issue

What the current market rotation says about the health of the market
Notable “big picture” charts
Why NVDA will play an important part in whether we get a summer rally in the stock market
The ARTAIS Universe and which stocks are passing my screening process
Full chart pack for this week, covering my opinion on the stocks that pass the screening process.

Macro Rotation

Over the past week, the broader market has reversed and started to see improvement in momentum. (If you are unfamiliar with Relative Rotation Graphs, aka RRG charts, here is a brief primer.)

Value took the lead, but growth names are quickly catching up. Only the dollar (DXY) is showing weakness.

Notable Charts

NVDA:

NVIDIA has successfully retested support. This is what you want to see if you are bullish on this market.

For the past few weeks, as the S&P 500 index rose higher, NVDA got weaker and weaker. A retest of support is an indication that this is where the market sees value.

This is an important retest, as NVIDIA plays a very important part in index returns.

Currently, the technology sector makes up nearly 40% of the S&P 500 index. In other words, tech has a huge “vote” on whether the market goes up or down.

Source: S&P Global

In fact, the top 10 names in the S&P 500 index are tech or tech-related names:

Mutual funds and ETFs also hold a very large amount of NVDA shares:

Source: Koyfin

As you can see, NVDA plays a very important part not just in the index, but in the portfolio performance of most investors as well.

As a side note, the Energy sector is up nearly 30% year to date, which makes sense given the rise in oil prices amid Middle East tensions.
However, the S&P 500 index only has a 3.1% allocation to the Energy sector. Energy stocks have almost no impact on the direction of the index.

Market Health

Signal & Noise: Weekly Screen + Chart Pack

Keep reading with a 7-day free trial