Despite the media frenzy over high unemployment and other worrisome economic headlines, there are signs the global markets are stabilizing, and that risk taking is increasing. I have a shit ton of charts to prove this point, way too many for the average Joe, so I’ve narrowed it down to 5 for this post. If…
There is evidence of new trends emerging in the market. US bonds look ready to head lower relative to their foreign counterparts. Will another cycle of credit shock prevent this trend? Although the SPX indicator remains bullish, the NASDAQ is now bearish for the first time since the end of November. This implies an environment…
It was a choppy roller coaster day, but there were some bright spots. International markets stayed afloat as commodities moved up. The financial sector finds itself in peril once again. Stay away from the big names who are too big to fail. Their bond holders might see cash, but the equity gets wiped out. HYG…
Not much action in the equities market this week. According to my indicator, the SPX has managed to stay bullish, but it is very close to resuming a downtrend. The buywrite/index spread is rising (bearish), but it is in a resistance area, and any turn around would be bullish. The NAMO has turned positive,…
A rundown of various market themes for tomorrow’s trade. Despite the hefty haircut in the QQQQ’s, my NASDAQ indicator is still bullish. Buy the dip is still in play until I see some O’s, but I’m taking very small positions. The BXM/SPX ratio is bearish as long as it is printing X’s. Nevertheless, it is…
On final chart post for this weekend. My NASDAQ indicator keeps printing X’s signaling lower volatility and more bullish stocks. The intervention I was looking for here is underway. Don’t fight the BOJ until you see another X printed. Gold and precious metals like silver continue to put in nice uptrend work. This remains the…
I hope to God that the chart below is a misprint and not a premonition. If bonds make a move like that, this crisis is going to take a turn for the worst. Though we closed positive Friday, my indicator fell, suggesting a bearish divergence in an uptrend. Buy on the dip is still in…
The Buywrite Index has been crushing Buy ‘N’ Hold strategies for months. Will the BXM:SPX ratio find resistance @ the 10sma? Gold miners haven’t lost much ground to gold, which I interpret as a bullish signal. Long LSC and short commodities is one of the best strategies I can see. Up almost 20% since this…
American Equities vs. Bonds are rallying in a downtrend, but approaching resistance. The stabilization of Miners vs. Gold reduces deflationary worries. Relative to gold, the 30Y is bouncing off long term resistance, but remains in an uptrend. Signs of stabilization are emerging as these ratios exhibit mean reversion. If volatility can stabilize, we may be…