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…
This European Bank Could Provide Clues to the Next Big Move in Broader Risk Appetite
The chart below reflects that shares of NBG are caught in a tight consolidation pattern between lines (1) and (2). And though NBG trades in the low single digits now, we still believe its shares carry a good deal of…...
SSEC Just Broke Below Major Support Dating Back to 1994
With last night’s ~175 bps decline to start the week, the SSEC has now decisively broken below a nearly 20 year support line (1) dating back to 1994, in the chart below. Incredibly, the index now stands ~66% off its…
Taking a Look at Market Leadership Groups
The chart below plots the ratio of the SPX vs. XLF. When the ratio falls, financials are out-performing the broader market. Since 2010, when the ratio has fallen to line (1) support, it has marked almost perfectly, broader market tops in…...
SPX Price Action from This Monday Resembles that from Other Turning Points Since 2007
Into Monday’s close on 8/20 we put up this post that suggested the statistical aspects of that day’s price action were bearish, and in-line with the statistical characteristics of areas since 2007 that were at, or very close to, major…
The Holy Grail of Investing/Wealth Creation?
To preface, this post definitely strays from the macro and technical charts that this site is almost entirely dedicated to. And while there is likely no “Holy Grail” strategy when it comes to investing and wealth creation, the lessons provided…
Gold & Silver Approaching Resistance as USD Nears Support
In the chart below we plot Gold, Silver and the USD on a weekly basis. Gold and silver are both approaching stiff resistance dating back to their 2011 highs. At the same time, both are nearing the completion of descending…