Stocks have surged 9 percent from their lows this quarter and are now within spitting distance of record highs. But for those looking for even more gains, one strategist says there are two areas where bulls will continue to rage: the dollar and technology stocks.
Bensignor looks at what he calls a "cross-asset bull market location model" to measure the strength and weakness in different areas of the market. The model, as he explained, is made up of 10 different markets ranging from U.S. equities to commodities, bonds and emerging markets. It compares each asset's current price to where it was both two months and six months ago.
"Commodities and emerging markets continue to be troubled spots," Bensignor said. "The dollar has been solid and obviously the Nasdaq is much stronger than the S&P 500, and they've both been in bullish mode for quite some time." The greenback has been on a tear since 2014, surging more than 25 percent since May 2014 as investors await a rate hike from the Federal Reserve.
Meanwhile, the Nasdaq composite has been driven by the stellar outperformance in biotech and tech stocks. "The Nasdaq is very influenced by tech and that obviously affects the S&P 500," he said. "But it's the weighting of the indices and how they actually calculate; the S&P just doesn't show up as well."