Attractive Long Opportunities in this Industry Group
I favor some financial services / asset managers based on the bullish looking charts below. LM and SCHW appear the most bullish and as if they have broken out into areas that portend materially more upside. Broadly speaking, given the…...
Thoughts on the Nikkei in Real Terms
We’ve had some commentary recently about looking at the Nikkei in real terms. By real we meant taking the nominal value of the Nikkei and dividing by 10 Yr UST yields as a proxy for CPI. 10 Yr UST yields…...
Butter, Meet Hot Knife
Coming into this week the Nikkei faced incredibly important and formidable resistance. As a refresh that resistance included: A falling trend-line off the 1989 and 2007 highs – the most important tops in the index’s history 61.8% Fib retracement resistance,…
Is the “Reach for Yield” Trade in Riskier Areas Going to Get Hurt by Rising Risk-Free Rates?
No matter where you turn you can read about the global “reach for yield” game that’s being played by investors, institutional and retail alike, as they attempt to generate income in riskier asset classes with “higher” yields to circumvent the…...
Spread Trade Idea in Commodities Could Offer 50% Upside
The ratio of palladium vs. silver is plotted below. The ratio is breaking out from a near decade-old consolidation pattern formed by lines (2) and (3). The logical upside target for the ratio is ~0.45x or nearly 50% higher. This…...
More Yen Downside or is 25% in Six Months Enough?
In the chart below the Yen appears to be breaking straight through critical 23.6% Fib retracement support (1985 lows / 1995 highs). This level, or ~1.00, is also parity level with the USD and a place of numerous important swing…...
How to Catch TSLA-like Moves Before They Occur
In the past three months TSLA shares have doubled. How does one catch a move like that before it occurs? Well, there’s never so much as a guarantee in the markets, but silly little lines can help, or at least…
Potential for a 50% Rally in This Stock is Rising
Note the stock below is working on a break above line (2) which represents its 23.6% Fib resistance formed off its recent highs and lows. This resistance, as indicated by the red arrows, has been formidable for the stock over…
Analog Update
Haven’t updated analogs in a while so this will be an exhaustive attempt at that. 1) 4th & 5th Consecutive Annual Gain – All ex 1928/1929 – Dow 1A) 4th & 5th Consecutive Annual Gain – 1988/1989 vs. 2012/2013 –…...
Nikkei Faces Critical Resistance, What Would a Break Above Do?
As we’ve said all along, 14K seemed like a likely upside target for the Nikkei this year. Now that we’re there, what do we do? To be honest, we’ve not been sure and have vacillated back/forth b/t a new secular bull beginning…...