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Institutional investors tend to focus heavily on relative strength; after all, this is essentially how they are evaluated in their performance as money managers! In this article, let’s review three ways to analyze relative strength and what these charts are telling us about sector rotation as we progress through Q4.

Relative Strength Trends Show Clear Winners in Q4

I like to group the 11 S&P 500 sectors into three important buckets based on their general tendencies: growth sectors, value sectors, and defensive sectors. Let’s focus in on the relative performance of the value sectors, with each line representing the ratio of the sector ETF vs. the S&P 500 ETF (SPY).

Two of these four sectors stand out as strengthening in the month of November, specifically the financial and energy sectors. Both of these sectors are expected to benefit from a Trump administration. Banks, it’s assumed, will be facing less regulatory pressure and also a steepening yield curve. For energy, it’s the assumption that with less support for renewable energy policies, oil and gas companies could stand to thrive going forward.

As my friend and fellow StockCharts commentator Tom Bowley once explained, “If you want to outperform the S&P 500, you need to own things that are outperforming the S&P 500.” So, by focusing on sectors that are showing stronger relative strength, we have the opportunity to outperform our passive benchmarks.

Offense vs. Defense Ratio Still Favoring Offense

I also love to use ratio analysis to compare sectors to each other, as we can then start to infer what big institutions are doing with their capital as they rotate between the 11 economic sectors. Let’s look at one of my favorite ratios, which I call the “offense vs. defense” ratio.

The top panel is the ratio of Consumer Discretionary (XLY) versus Consumer Staples (XLP), while the bottom panel uses equal-weighted ETFs for those same sectors (RSPD and RSPS). This analysis was inspired from conversations years ago with Bill Doane, my Fidelity predecessor who ran the Technical Research team in the 1970s. We are basically comparing “things you want” vs. “things you need”, with the idea that, when conditions are good, consumers tend to spend more money on discretionary purchases.

We can see in this chart that offense has been outperforming defense fairly consistently since early August. And if there’s one thing I’ve learned in 24 years of analyzing charts, it’s to assume that a trend is continuing until it doesn’t! So this chart certainly suggests broad market strength going into year-end 2024.

Relative Rotation Graph Indicates Resurgence in Key Sectors

No discussion of sector rotation would be complete without a nod to the GOAT of visualizing sector rotation, Julius de Kempenaer. His RRG charts have been an essential part of my toolkit for many years, and I’m thrilled that we now have an upgraded version on the StockCharts platform with which to continue our analysis.

I’ve highlighted the two consumer sectors, which we can see support our earlier comments on offense over defense.  The XLY is trending up and to the right in the Leading quadrant, and the XLP is moving down and to the left within the Lagging quadrant.

I’ve also selected one other comparison, which is one I’ll be watching closely as we head into 2025. Technology, driven by the strength of software and semiconductors, is currently in the Improving quadrant. Utilities, which has traditionally been considered as a defensive sector, sits in the Weakening quadrant.

If and when these relative trends would begin to reverse, that could and will indicate more defensive positioning than we’ve seen at all in 2024. But until and unless we see that sort of defensive rotation, my sector analysis tells me this market is poised for further strength.

RR#6,

Dave

P.S. Ready to upgrade your investment process? Check out my free behavioral investing course!


David Keller, CMT

President and Chief Strategist

Sierra Alpha Research LLC


Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

The author does not have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author and do not in any way represent the views or opinions of any other person or entity.

In this exclusive StockCharts video, Joe goes into detail on the S&P 500 ETF (SPY), sharing why using MACD and ADX together can be beneficial — especially in the current environment. He touches on Sentiment, Volatility and Momentum, pointing to reasons why we need to be on alert at this time for signs of a downturn. Joe covers the QQQ and IWM since both are at critical levels right now. Finally, he goes through the symbol requests that came through this week, including AMZN, CVNA, and more.

This video was originally published on November 20, 2024. Click this link to watch on StockCharts TV.

Archived videos from Joe are available at this link. Send symbol requests to stocktalk@stockcharts.com; you can also submit a request in the comments section below the video on YouTube. Symbol Requests can be sent in throughout the week prior to the next show.

After the election, things have hardly settled in the world. New developments in the Ukraine-Russian conflict and the Middle East are still volatile. Worst of all, I am in Redmond, WA this week, where last night’s storm caused a massive power outage in this region.

Needless to say, producing electronic content is a challenge at the moment

But I found a small pocket where things seem to operate decently, so I’ll give it a try.

When market conditions become cloudy, I always like to step back and zoom out to see the big picture.

Weekly Asset Class Rotation

Using Relative Rotation Graphs, I do that, bringing up an RRG for asset classes as plotted at the top of this article. This is a weekly RRG, and the rotations seem pretty straightforward. (Note: I have left out BTC as it is powering way up into the leading quadrant and living a life of its own.) Stocks are the only asset class inside the leading quadrant, and they are on a decent RRG-Heading, suggesting that more relative strength lies ahead.

On the opposite trajectory, we find the three fixed-income-related asset classes in this universe: government bonds, Corporate bonds, and High-Yield bonds. All three are traveling on a southwestern heading and are moving deeper into the lagging quadrant. This suggests further relative weakness for this group in the coming weeks.

We find commodity ETFs and the Dollar Index inside the improving quadrant. DJP and GSG are in the improving quadrant while still in the middle of their respective trading ranges, both in price and relative.

The Dollar index, on the other hand, is interesting, having reached the top of a broad trading range after a significant rally that started at the bottom of that range back in September. It is now pushing against heavy overhead resistance.

Zooming in on the Daily Timeframe

Things are getting more interesting when I zoom in on the daily timeframe. This RRG is plotted above.

A few observations in combination with the rotations as seen on the weekly version. In the daily timeframe, stocks also head deeper into the leading quadrant on a strong RRG heading. This happens after a leading-weakening-leading rotation, which means it is a reasonably reliable start for a new up-leg in the already established relative uptrend. Conversely, the fixed-income asset classes confirm their weaker rotation back into the lagging quadrant after a lagging-improving-lagging rotation.

Overall, the preference for stocks over bonds is firmly shown based on RRG. Commodities are heading further into the lagging quadrant on this daily RRG, which tells me that the positive rotation on a weekly basis might be slowing down soon.

$USD Close to Breaking from Broad Range

This leaves $USD with an interesting rotation. The long tail traveling upward inside the improving quadrant on the weekly is getting support from the leading-weakening-leading rotation that is developing on the daily RRG.

On the price chart, $USD is very close to overhead resistance, and, with its current strength, there is a fair chance of breaking it upward. When that happens, $USD looks set for a strong follow-through that could reach the levels of the previous highs around 114. This target can be calculated by adding the range’s height, around 7 points, to the breakout level, around 107.

Stocks vs. Bonds

SPY continues to make higher highs and lower lows, confirming its uptrend even though negative divergence is still present and weaker breadth data (not shown here). However, at the end of the day, you can only trade SPY.

There was a nice rally in bonds, pushing yields down, but the decline of the 23.50 highs seems to be breaking the rising trendline.

The primary relative trend for GOVT vs. VBINX has been down for a long time, and the recent uptick seems to have ended, once again with a high for the JdK RS-Ratio line below 100, resulting in another lagging-improving-lagging rotation, the fifth since late 2022. So far, the rise in yields has not been damaging to stocks, and as a result, the stock-bond ratio has again accelerated in favor of stocks.

Overall, the preference for stocks over bonds continues while $USD seems to be setting up for a perfect rally!!

#StayAlert –Julius

How do you find the next big stock before it gains the investing public’s attention?

It’s tricky, but there are only two ways to spot a so-called “hot stock” before the social buzz. One is to scour financial reports and forum chatter to see what Wall Street insiders might be looking at before the general public catches. Another is to use various scans to trace the smart money’s tracks before the news gets out.

Alternatively, you could do both.

(As far as the latter—scanning for stocks exhibiting technical strength—perhaps it’s something you should be doing daily, as you have plenty of tools to scan every sector and stock on the market rapidly.)

Tuesday’s Scan After the Close

On Tuesday, I did an after-market scan to prepare for the following day’s trading session. Pulling up the StockCharts Sample Scan Library from the Charts & Tools menu, I ran a scan for New 52-week Highs and categorized the Symbols by the StockChartsTechnicalRank (SCTR) score.

FIGURE 1. NEW 52-WEEK HIGHS SCAN RESULTS. AppLovin is at the top when sorted by SCTR scores.Image source: StockCharts.com. For educational purposes.

The mobile marketing tech company AppLovin (APP) had the highest SCTR score and a new 52-week high. I realized that APP was also on the SCTR Top 10 report, which is visible on the SCTR Reports Dashboard panel.

FIGURE 2. SCTR REPORT TOP 10 LIST. APP been on this list for a while but its move to the top position is worth noting.Image source: StockCharts.com. For educational purposes.

If you’ve been following the SCTR Reports from time to time, you might have noticed that APP has been occupying the top 10 list for quite some time. APP, though not the most popular stock (perhaps until now), has been abuzz among institutional and tech investors for quite some time. It makes you wonder what other scans APP might have shown up on.

In the Symbol Summary tool, here’s what came up Tuesday afternoon.

FIGURE 3. LIST OF SCANS ON SYMBOL SUMMARY THAT INCLUDED APP. It’s time to do a deeper dive.Image source: StockCharts.com. For educational purposes.

At the least, APP’s appearance on several scans tells you it’s time to do a deeper top-down dive on the stock. Let’s start with a weekly chart to get a big-picture view of APP’s price history.

FIGURE 4. WEEKLY CHART OF APP. The stock price had a parabolic upside move.Chart source: StockCharts.com. For educational purposes.

That’s a jaw-dropping 1,303% jump (see percent line measurement in the chart). And it begs two questions: Were there early signs to get into the stock when APP was just at $30, and is it now just a FOMO trade, or is there still room for growth?

Starting with the first question, the earliest technical indication was in May 2023 (see blue dotted vertical line) when two things coincided (green circles highlight each event):

  • The Chaikin Money Flow (CMF) broke through the zero line, indicating that buyers controlled the market.
  • The SCTR line shot up to around 99, well above the bullish 90 line.

At this point, you’re probably wondering if there’s still room for APP valuations to grow or if it’s now just a FOMO trade. Here, we’ll shift to a daily chart of APP to take a closer look.

FIGURE 5. DAILY CHART OF APP. There are multiple levels of support for the looming pullback.Chart source: StockCharts.com. For educational purposes.

APP’s runaway gap followed a stellar earnings report. The divergence between the CMF and the On Balance Volume (OBV) lines shows a potential decrease in institutional buying (represented by the CMF) versus retail FOMO (using OBV as a proxy). The Relative Strength Index (RSI) is clearly in overbought territory, but APP’s price action also shows how the RSI can sustain extreme levels for an extended period of time.

In the daily chart, three indicators show potential convergence at support levels. The Ichimoku Cloud provides a dynamic support range that shifts with price action, aligning with the quadrant lines, especially the third quadrant just below the 50% retracement. Keep in mind that the second and third quadrants typically signal bullish levels during a pullback. Lastly, notice the Bollinger Bands, where the middle band also falls within the third quadrant.

If APP starts pulling back, as it seems likely, and you’re bullish on the stock, watch these levels closely. How the price reacts at these points can guide you in making a more informed decision about when to take action.

At the Close

The steps to spotting a potential breakout stock like AppLovin highlight the importance of analysis using differentiated tools to uncover hidden opportunities. From initial scans to spot technical strength to deep dives using SCTR rankings and Symbol Summary insights, the journey of discovery relies on methodical steps. Whether you’re looking to catch the next big move or planning entry points during a pullback, the takeaway is clear: consistent, multi-layered scanning and analysis is the key to finding market gems early on.


Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

Cambridge Dictionary has put it out to the universe, naming “manifest” as its word of the year for 2024.

Popularized by celebrities such as singer Dua Lipa, “manifest” refers to the practice of using “methods such as visualization and affirmation to help you imagine achieving something you want, in the belief that doing so will make it more likely to happen,” the British dictionary publisher said in an announcement Wednesday.

Lipa has spoken about how she thinks manifestation has played a part in her success, helping to bring about key moments in her career, such as playing at the Glastonbury Festival this year.

“If you set an intention and you think about it every single day of your life, and for me, Glastonbury for example, when I first started making music I dreamed about the day that I would get asked to headline Glastonbury,” she said in an interview in April.

“And I’ve probably thought about it every single session that I’m in the studio, because when I write a song I think I go ‘oh what’s this going to sound like at Glastonbury?’” Lipa said.

“That in a way is setting that idea, that intention in the back of my mind,” she added. “I think it’s powerful.”

US Olympic gymnast Simone Biles has also mentioned her use of manifestation after her mother started encouraging her to write down her goals.

“You have to write it down, you have to speak it into existence, you have to see it daily and then it usually happens,” she said in an interview in October.

Taken from Latin and French, in English the word “manifest” originally meant “easily noticed or obvious” before it started to be used as a verb meaning “to show something clearly.”

In the early 20th century it started to be used to mean “to make something happen by internalizing it, intentionally or unintentionally,” according to Cambridge Dictionary.

This year marked manifesting’s move into the wider public consciousness, it said.

“In 2024, the word manifest jumped from being mainly used in the self-help community and on social media to being mentioned widely across mainstream media,” it wrote.

“The use of this sense of manifest has gained in popularity with the increasing number of ‘manifesting influencers’ promoting this scientifically unproven practice on social media—so much so that it was added to the Cambridge Dictionary in May of 2023.”

The dictionary said the word has been looked up nearly 130,000 times on its website, becoming one of its most viewed entries.

Wendalyn Nichols, Cambridge Dictionary’s publishing manager, said the word of the year pick is based on “user data, zeitgeist and language.”

“Manifest won this year because it increased notably in lookups, its use widened greatly across all types of media, and it shows how the meanings of a word can change over time,” said Nichols.

Other words on the 2024 shortlist include “brat,” inspired by the title of singer Charli XCX’s 2024 album; “ecotarian,” which references the trend towards environmentally conscious living; and “resilience,” reflecting strength and adaptability.

Earlier this month, Collins Dictionary named “brat” its word of the year, defining it as someone “characterized by a confident, independent, and hedonistic attitude.”

This post appeared first on cnn.com

Investigators are trying to crack the mystery of how two undersea internet cables in the Baltic Sea were cut within hours of each other, with European officials saying they believe the disruption was an act of sabotage and US officials suggesting it was likely an accident.

The two cables – the BCS East-West connecting Lithuanian and Sweden and the C-Lion1 linking Finland with Germany – were suddenly disrupted on Sunday and Monday.

European leaders were quick to voice their suspicions. Germany’s Defense Minister Boris Pistorius said that “nobody believes that these cables were accidentally severed.”

The foreign ministers of Finland and Germany said in a joint statement that they were “deeply concerned” about the incident and raised the possibility that it was part of a “hybrid warfare,” specifically mentioning Russia in their statement.

Their assessment was not plucked out of thin air. Russia has been accused of waging a hybrid war against Europe after a string of suspicious incidents, arson attacks, explosions and other acts of sabotage across multiple European countries were traced back to Moscow.

And the disruption to the cables came just weeks after the US warned that Moscow was likely to target critical undersea infrastructure. This followed months of suspicious movements of Russian vessels in European waters and the significant beefing up of a dedicated Russian secretive marine unit tasked with surveying the seabed.

The Kremlin on Wednesday rejected the “laughable” suggestions that it was involved, saying it was “absurd to keep blaming Russia for anything without any grounds.”

Still, law enforcement agencies in both Sweden and Finland indicated they believe the damage deliberate.

The Swedish Prosecuting Administration said Tuesday it launched a preliminary investigation into a suspected sabotage. Then on Wednesday, the Finnish National Bureau of Investigation announced it was opening a criminal investigation into the suspected crimes of aggravated criminal mischief and aggravated interference with communications.

One vessel in particuar has sparked the interest of authorities and online sleuths.

The Chinese-flagged ship Yi Peng 3 was spotted in the area around the times the two cables were cut. The bulk carrier was sailing from the Russian port of Ust-Luga, where it docked for several days.

On Wednesday, the Danish Armed Forces said they were present in the area near Yi Peng 3, but did not say whether they pursued the vessel.

Asked about the vessel during a press briefing on Wednesday, Chinese foreign ministry spokesperson Lin Jian said he was “not aware of the situation.”

He said China “has always fully fulfilled its flag state obligations and requires Chinese ships to strictly abide by relevant laws and regulations.”

“We also attach great importance to protecting the safety of undersea infrastructure and work with the international community to actively promote the construction and protection of submarine cables and other global information infrastructure,” he said.

This post appeared first on cnn.com

Mali’s Prime Minister Choguel Maiga has been fired, state television ORTM said on Wednesday of the civilian who criticized the ruling junta’s failure to organize elections within a promised 24-month transition back to democracy.

The military rulers, who seized power in successive coups in 2020 and 2021, had promised to hold elections in February but postponed the vote indefinitely for technical reasons.

Last week, Maiga said there had been no debate on the elections’ postponement within the government and that he found out about the junta’s decision from the media.

“It’s all happening in total secrecy, without the prime minister’s knowledge,” Maiga told reporters on Saturday.

His comments sparked tensions with the junta, forcing it to postpone a ministerial council meeting planned for Wednesday, a source close to Maiga told Reuters.

Maiga had fervently defended Mali’s junta as West African neighbors and international allies criticized its military cooperation with Russian mercenaries and repeated election delays.

Under the law, Maiga’s successor would have to form a new government in consultation with interim President Assimi Goïta.

Before being named prime minister in 2021, Maiga served as Mali’s commerce minister under former President Amadou Toumani Toure and as digital economy minister under former President Ibrahim Boubacar Keita.

Maiga was also the leader of the M5-RFP opposition coalition that spearheaded protests against Keita before his overthrow.

This post appeared first on cnn.com

The United States has vetoed a UN Security Council resolution that called for an immediate, unconditional and permanent ceasefire in Gaza, on the grounds it would not have secured the release of hostages.

“We made clear throughout negotiations we could not support an unconditional ceasefire that failed to release the hostages. Because, as this council has previously called for, a durable end to the war must come with the release of the hostages,” Deputy US Ambassador Robert Wood said following the veto Wednesday.

“These two urgent goals are inextricably linked. This resolution abandoned that necessity, and for that reason, the United States could not support it,” Wood added.

Seven American citizens are still being held in Gaza. “We will not forget them,” he said.

The resolution put to the 15-member council by its 10 non-permanent members demanded an “immediate, unconditional and permanent ceasefire to be respected by all parties; and further reiterates its demand for the immediate and unconditional release of all hostages.”

However, US officials said the language was not strong enough as it did not condition the ceasefire on the release of the hostages.

Wood claimed that the authors of the resolution had declined to consider compromise language that could have led to its passage, noting also that it failed to “condemn Hamas for its October 7 terrorist attack.”

Only the US voted against the resolution, using its position as one of the five permanent members of the council to veto it.

The other four permanent members voted for it – including the UK, which has previously abstained from three other ceasefire resolutions shot down by the US.

Before the vote, Israeli Ambassador Danny Danon said approval of the resolution would have been a “betrayal.”

Veto ‘emboldens Israel’: Palestinian Authority

Palestinian officials condemned the veto. “There is no right to mass killing of civilians. There is no right to starve an entire civilian population. There is no right to forcibly displace a people. And there is no right to annexation. This is what Israel is doing in Gaza,” said Majed Bamya, deputy ambassador to the Palestine mission to the UN.

The Palestinian Authority presidency said the US move “emboldens Israel to continue its crimes against innocent civilians in Palestine and Lebanon,” according to the official Palestinian news agency WAFA.

The council’s 10 elected members (E10) that sponsored the draft resolution were “deeply disappointed” it was not adopted, according to Guyana Ambassador Carolyn Allison Rodrigues-Birkett. Guyana is one of the E10.

Permanent member France also expressed disappointment. “There is an obvious urgency to implement an immediate and unconditional ceasefire. This is the only way to guarantee the protection of all civilians and the massive and unhindered delivery of emergency aid,” France’s UN representative Nicolas de Riviere said.

The UK’s Ambassador Barbara Woodward described its decision to back the resolution as “an expression of our determination to end this war, stop the suffering in Gaza and secure the immediate release of the hostages.”

In June, the Security Council approved a US-backed ceasefire plan to end the war. Fourteen of the 15 members voted in favor, with only Russia abstaining – the first time the UNSC had endorsed such a plan.

However, following the vote, Israel vowed to persist with its military operation, saying it would not engage in “meaningless” negotiations with Hamas.

This post appeared first on cnn.com

It is a very specific and high-profile warning, so you would expect the information behind it to have been quite precise.

The US Embassy in Kyiv has not closed since it relocated during the opening months of Russia’s invasion of Ukraine in 2022. But on Wednesday, it announced a one-day closure, citing “specific information of a potential significant air attack.” Kyiv endures air attacks on an almost nightly basis – but the US step suggested a fear of being potentially targeted.

The Greek, Italian, and Spanish embassies followed suit, causing the Ukrainian foreign ministry to plead that its allies behave on the 1001st day of the war, as they had done on the previous thousand days, and not let their anxieties overcome them. Ukrainian defense officials even derided a fake warning circulated widely on Telegram claiming a massive Russian air attack, as being crude Russian-produced misinformation.

“[Moscow] have one instrument, which is to scare. This have always been a classic element of Russian politics. It’s blackmail and panic they want to create. I would like our partners to be more careful as to the information coming from Russia,” he said.

Residents in Kyiv struggled to reconcile the specific nature of the US warnings, with the quotidian daily threat they face. On Wednesday morning alone, there was a 45-minute air raid alert, and then another that lasted two and a half hours.

In the central Maidan Square, where a sea of flags are each marked with the name of a dead soldier, Anya planted one in memory of her father. She is used to air raids in her hometown of Krivyh Rih, but Wednesday felt different.

“I will be honest, we went down to the basement during every air raid siren today,” she said. “It was really scary indeed.”

Every flag in the square is a story of this war’s trauma and turmoil. Her father died in late October after five months in a coma from frontline injuries, she said. “I want peace very much, but want things to be as they used to be — without Russia. I just want all this to be over.”

Threats and talk of peace are deeply personal across Ukraine, yet the geopolitical risk is growing too. The US Embassy felt compelled to clarify its closure was not linked to the nuanced changes in Russia’s nuclear doctrine, loudly detailed by the Kremlin on Tuesday, insisting it stemmed from the fear of drone or missile attack.

Yet both statements showed how far this war is escalating: a US diplomatic mission saying it feared a direct Russian attack, then specifying at least this would not be nuclear.

It would be a grave and perhaps foolhardy move by the Kremlin to directly attack American government assets in Ukraine now. It would necessitate a severe American response that could trigger a wider war between NATO and Russia. Above all, it would likely tie the hands of US President-elect Donald Trump, who seems keen on stopping “the killing” and striking a deal with Russia. Putin would be wise to hold off a few months.

It is important to remember much of Russia’s domestic narrative insists Moscow is already in a wider war against the US and NATO. That is an inaccurate reflection of the proxy fight, in which NATO is arming Ukraine to wage in its own defense. But it is a story told by the Kremlin to Russians, intended to excuse their appalling performance over a thousand days, fighting a war that was only meant to last a few weeks.

While Russia is the aggressor, strategically it is difficult to see how Moscow can continue to endure the overt Western escalation against its territory without trying to assert some sort of deterrence again. They are slowly finding all the red lines the Kremlin head seems to lay down evaporate in the heat.

Kyiv will likely remain on edge. Moscow might inflict damage on a civilian target where Westerners are known to congregate — a major hotel, or district in the capital. Putin is unlikely to view his slow success on the frontline — and the looming change in the White House — as marking a moment where the tide is turning against him. Rather, he may see the next two months as a test of his patience and resolve, with clear rewards ahead.

This post appeared first on cnn.com

Ukraine launched the British-French-made Storm Shadow missiles at targets inside Russia for the first time on Wednesday, according to a Russian military blog and Reuters, a day after Ukraine fired US-made ATACMS missiles into Russia.

Ukraine’s use of the UK-supplied missiles to hit Russian territory was confirmed to Reuters by an official on condition of anonymity. British media also reported the use of the cruise missile on Wednesday, citing sources.

When Umerov was asked if Ukraine used the Storm Shadow missiles to hit a target inside Russia, he replied, “we are using all the means to defend our country, so we’ll not go into detail. But we are just sending that we are capable and able to respond.”

Umerov added: “We’ll be defending and giving punches back… with all the means available.”

A Russian military blogger on Wednesday posted photos on Telegram of a Storm Shadow missile fragment, claiming that up to 12 of the missiles were fired on Russia’s Kursk region.

According to the Russian blog, the fragment was photographed in the Russian village of Marino, which is about 35 miles from the Ukrainian border. The fragment has engravings that say “Storm Shadow.”

BBC’s diplomatic correspondent Paul Adams wrote on Wednesday that “Ukraine has so far confined the use of Storm Shadow to the Kursk region, where Ukrainian troops continue to hold ground.” He noted reports were still murky, and the target is not known “but Storm Shadow is powerful enough to penetrate bunkers, with extreme accuracy.”

Ukraine used US missiles to hit ammo depot

Ukraine used eight long-range US missiles to successfully hit an ammunition depot deep inside Russia, according to two US defense officials.

The facility struck is in Bryansk, north of the Kursk region, where Ukraine continues to hold Russian territory sezied in a counteroffensive.

According to an initial assessment of the strike, the Ukrainian attack damaged the ammo depot, the officials said. One official added that the US had seen indications of secondary explosions, a common result of striking facilities housing large quantities of ammunition and weapons.

Russia fired two interceptors at the incoming missiles and may have intercepted a pair of the ATACMS, the officials said, but the attack was still successful in hitting its target.

The US assessment contradicts the Russia’s claim that the Ukrainian attack did not cause any casualties or damage.

The Russian Ministry of Defense said on Tuesday that Ukraine had fired six ATACMS missiles at the facility in Bryansk, claiming five of the missiles were shot down and the sixth was damaged. The Ministry said fragments of the missiles fell on the territory of the military facility, causing a fire that was extinguished.

Ukraine has yet to confirm or deny the use of the long-range US missiles. On Tuesday, Ukrainian President Volodymyr Zelensky said: “Ukraine has long-range capabilities. Ukraine has long-range drones of its own production. We now have a long ‘Neptune’ (Ukrainian cruise missiles) and not just one. And now we have ATACMS. And we will use all of this.”

This post appeared first on cnn.com