Changing of the Seasons and the Guard

The seasons are not the only thing changing these days. In addition, market leadership looks to be on the move. 

While it remains to be seen which sectors have the potential to lead the bull for another sustained move to new highs (if that is, in fact, coming), we know that monster winners like Netflix are turning into glaring laggards.

This morning, NFLX is continuing to push below $100, well in the red, an important level we have been observing to see if this glamorous growth issue is topping, potentially moving down to $70 this autumn. 

Beyond that, cybersecurity stalwart CYBR is lagging again, already below all moving averages and red in the face of a sizable gap up in the broad market, much like NFLX. 

As for relative strength names, we are keeping a focused and updated list of them inside Market Chess Subscription Services for Members. 

One such name is firearms maker SWHC, perhaps a byproduct of news headlines over the last year, some type of fear trade, a late-cyce mover, or perhaps a combination of all of those factors.

At any rate, the daily chart, below, shows a bull flag consolidation forming in the context of an established uptrend. If this market does tighten up into year-end, it is likely SWHC does better than most given how well it withstood the summer volatility.