Basic Materials, Commodities, etc. Are Not the Best Way to Play a China Resurgence
Much has been made of the waves China made overnight with talk of incremental stimulus measures. The SSEC rallied nearly 4% on that news. However, we would caution anyone looking to play any resurgence in China against using the playbook…
Financials Signaling Sustained Upside in Risk Assets?
The chart below shows the ratio of the SPX vs. XLF – when the ratio moves lower, financials out-perform. The ratio is now breaking below support line (1). This is important as every time the ratio has hit line (1) over…
Case for Airlines Out-Performing Continues to Build
All the way back on May 30 we highlighted the emerging case for Airlines sustainably out-performing the SPX. We didn’t take a strong, high conviction stance on this belief, but merely stated the “possibility” for this happening was becoming stronger. At…
Time to buy Chinese Companies Listed in the U.S.?
The chart below shows FXI on a weekly basis. FXI has been bouncing on trend-line support (1) for the past few weeks. This has been “the” line in the sand for FXI since 2005 and has produced many sizeable rallies…
Gold Miners Breaking Out
The chart below highlights the AMEX Gold Bugs Index. This index is now following the previous break-out in gold as it pushes above trend-line resistance dating back to its 2011 highs. For more detail on the potential upside in gold…
Break-Outs in Global Equity Indices / Lessons from PTJ
The charts below highlight that many global equity indices across North America, Europe and Asia are all concurrently breaking above trend-line resistance. Some break-outs are clearing resistance dating back to 2007 and others more recent resistance dating back to 2010….