Chinese equities have been undergoing meaningful changes beneath the surface since they posted their best week ever back in October.

A new uptrend appears to be taking shape for these stocks.

Looking at the bigger picture, when we compare Chinese stocks to their U.S. counterparts, the relative trend sits at a critical support level.

Take a look at the Shanghai Composite $SSEC versus the S&P 500 $SPX over the last three decades:

Lately, it’s become almost routine to see tech-related groups hitting fresh highs across the board. 

From Software and Internet to Cybersecurity, Digital Payments, and Fintech, the strength in these sub-sectors has been nothing short of remarkable.

Now we can add the Cloud Computing ETF $SKYY to this impressive list of tech indexes breaking out to new all-time highs.

Traveling is one of life's greatest joys—getting to know new places, cultures, and food never gets old.

I've been lucky to visit some incredible spots like the UK, the south of France, Chicago, San Diego, Madrid, Rome and my all-time favorite: New York City. As a 27-year-old Venezuelan, I feel that place is just electric.

But travel isn't just fun—it's also a hot theme in the market right now.

Travel stocks have been some of the biggest winners since the market bottomed this summer, showing how strong the consumer economy is.

These are the kinds of stocks that thrive when the economy and markets are doing well.

The Defiance Hotel, Airline, and Cruise ETF $CRUZ does a great job of illustrating the recent strength in this area.

It’s game time for big tech stocks.

Apple $AAPL, the world’s largest company, has just smashed through its six-month consolidation range with authority, breaking out to new all-time highs. 

The stock is kicking off a fresh up-leg, and I think this puts it firmly on track for a jaw-dropping $5 trillion market cap.

Think about that—It only needs to climb a little under 40% to get there. 

Participation continues to expand across the board as more sectors and industries break out to new cycle highs.

The SPDR S&P Retail ETF $XRT is the latest example of this theme.

Here’s a look at XRT completing a textbook bearish-to-bullish reversal.

After spending nearly three years in the base-building process, buyers are finally taking control and kicking off a new uptrend.

When I was a kid, I loved to play video games. I spent endless hours on Mario Bros, FIFA, and Call of Duty. Those games were my favorites!

Now, I see them in a whole new light—as an opportunity to profit in the market.

Gaming and eSports are a hot spot right now, and the stocks tied to it are embarking on new uptrends.

A great way to tap into this space is through the VanEck Video Gaming and eSports ETF $ESPO.

Happy Thanksgiving! A quick pause to say thanks—for the markets, the lessons, and the endless opportunities ahead. 

Let’s enjoy the holiday, recharge, and get back to the grind. 

Here’s today’s note!

Chinese equities are brewing something big.

With the most heated areas not breaking down, and instead, catching a bid, it's tough to imagine China will sit on the sidelines.

When it comes to relative strength, building and construction stocks are back toward the top of our scans.

How these stocks perform offers a glimpse into economic health and, more importantly, reveals how much risk investors are willing to embrace.

And right now, it’s a green light from these stocks, with new highs on both an absolute and relative basis this week.

Here’s a look at the Invesco Building & Construction ETF $PKB breaking out relative to the S&P 500 $SPY.

Transportation stocks are finally catching a serious bid—providing a necessary ingredient to  support the current bull market rally.

If you go back and do the work, you’ll find it's tough for the stock market to sustain an uptrend without some rotation into underperforming areas.

Transports fit the bill perfectly as they've gone nowhere for four years. But now, the landscape has changed. 

Forgotten groups like transports are waking up and participating higher, adding fuel to the broader market.

The iShares US Transportation ETF $IYT is breaking out of a massive base to new all-time highs.

In this market, it’s becoming clear that some of the best opportunities are coming from the underdogs—those lagging groups finally starting to turn things around.

One name that stands out to me is Lovesac $LOVE.

The stock is setting up nicely, breaking out of a textbook inverted head-and-shoulders pattern.

Energy stocks have been showing some strength over the past few weeks.

Looking at the large-cap Energy Sector ETF $XLE, the price has been coiling around a key shelf of former highs for the past two years.

And when you zoom out on the chart like I’ve done, you’ll notice this base has been forming for the past 16 years!

Buyers have tested this level multiple times, steadily absorbing the overhead supply at the current level.

The big theme this week is textbook retests. We’re seeing this kind of price action across the board right now.

One that stands out is the large cap healthcare index. 

The healthcare sector is finding its footing after experiencing significant downside pressure in recent weeks.

Price is currently testing a critical level of former resistance marked by a shelf of prior cycle highs.