The Vanity Trade or New “Thinner” Consumer

July 23, 2025

Mish's Daily

By Mish Schneider

I hope by now, my readers and followers know how excited I am about the future of the “vanity” trade, so named because of the diet drugs, folks using them more and more, and the domino effect of the buying habits of this new thinner consumer.

If you are new to my Daily or to me, I suggest you go back to read past Daily’s and watch media clips where I go into more detail about this megatrend and the investment opportunities.

For today, I will show you a few favorite charts. One is already flying higher while the other two are just getting started.

I have many other stocks in this trend, so it pays to do your own research on what folks are buying if they are getting thinner.

This is a chart of Novo-Nordisk. NVO.

Note where I draw circles.

The top one is at the price level. NVO gapped higher this morning and found resistance at the 50-DMA (blue Line).

The second is the leadership indicator, which now shows NVO about to outperform the benchmark.

The bottom circle is momentum, which flashed bullish a while ago when the 50-DMA began to clear over the 200-DMA. Now, the bullish divergence continues.

NVO looks about ready to clear the July 6-month calendar range (green horizontal line) as well.

The second chart is Eli Lilly LLY.

The price action is more rangebound.

I like the way the July 6-month calendar range high, and the 200-DMA are about to merge near the top of the recent trading range.

Leadership looks as though it is about to flip in favor of LLY.

Momentum is totally in a bullish divergence as the red dots have already cleared the 200-DMA.

Now all you need is the timing, the risk or stop loss and profit target once executed.

The third chart is Ulta Beauty ULTA.

This is a company barely anyone mentions on the media. I do though.

Why?

Since the first gap in early May, followed by another gap higher in late May, then the massive consolidation from June until these last few days, this stock has gone up over $150.

Yet nary a mention.

The top ellipse shows a clear rally beyond the July 6-month calendar range high.

The middle ellipse shows how strong ULTA is acting versus the SPY.

The bottom ellipse shows the momentum, which is not as strong but not weak either.

The company does not report until August 28, 2025.

There are so many opportunities right now in the vanity trade.

Educational purposes only, not official trading advice. 

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