AMZN Entering Critical Area of Resistance; A Break-Out Likely Sets it Up to Target $435
In the chart below AMZN’s rally of late has taken it into a key area of resistance in the ~$265-$272 region. $265 marks trend-line (1) resistance formed off the stock’s 1999 and 2011 highs. $272 marks 261.8% Fib extension resistance…
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….
Can Gold Now Target $3,000 With Miners Out-Performing on the Ride Up?
Back in the saddle, finally. I apologize for being away so long. Regardless, prior to stepping away, I had begun to shift our focus toward metals and away from equities with the thought being that the best trading opportunities were…...
Given Their Tight Correlation, Could Weakness in Lumber Prices Drag Housing Stocks Lower Too?
During the week of 8/18/12 lumber prices gapped open to start the week ~275 bps higher and at the time, were already up an astounding 38% YoY. Lumber is typically a rather subdued commodity so we thought the gap higher…...
What does the SSEC Continue to See that Global Mining Plays Don’t?
We had a post the other day that suggested price action in the SSEC doesn’t carry much informational content value anymore. To some degree, YTD results justify this view with the SPX up ~12% and the SSEC down ~7%. However, what if this view…