Conclusion, Investment Implications, Strategy

The SPDR S&P Capital Markets ETF (KCE) has recently resumed its November 2023 minor uptrend according to its 50-day moving average amid expanding investor assets and relative outperformance versus the S&P 500 (SPY).  Together, these factors establish favorable conditions for more outright strength and relative outperformance from KCE and other capital markets related assets.

KCE Amid Favorable Conditions To Extend Recent Gains

The upper panel of Chart 1 below shows that the SPDR S&P Capital Markets ETF (KCE) reestablished its minor uptrend on Jan 21st as it rose back above its 50-day moving average, a widely-watched minor trend proxy.  The middle panel shows that the total net assets invested in KCE (AUM) moved back above their 21-day MA on Jan 20th to reestablish their previous November trend of monthly expansion.  Expanding assets indicate bullish conviction in higher prices.  The lower panel shows that KCE resumed its quarterly trend of relative outperformance versus the S&P 500 on Jan 17th, a trend that originated in July 2024. 

As long as these three conditions remain true, GLD is likely to continue moving higher in the weeks ahead.

Chart 1

Current Sector & Industry Group Ideas

Table 1 below is also accessible via the Asbury ETF Trade Ideas rectangle at the top of the Research Center.

Table 1

Click the table to make it larger