As an Industry, Info Tech’s Size Reaches Historically High Levels
In the chart below I plot the relative weightings of various SPX industry groups as a % of the entire index’s market cap over time. Right now, Info Tech constitutes nearly 22% of total SPX market cap. This was roughly…...
Immortan Joe Activates U.S. Cyber War Rig, Moving America Beyond Just Financial Warfare with Russia
Just the other day the deep state trotted out Immortan Joe Biden in an interview with Chuck Todd to let the world know it was planning a “covert” cyber attack on Russia and Putin for their alleged involvement in holding…
Analog Update
I’ve been fooled many times by the market this year with respect to my expectation for runaway SPX strength, which, based on the suggestions provided by our mid-cycle pause analog, I thought would be imminently forthcoming post June, yet has…...
Out with the Old, In with the New
In the chart below BBRY appears to be breaking out from a very favorable-looking consolidation pattern as of this week. I’ve highlighted this name in emails recently as having an increasingly bully appearance. In addition, the favorable technical break-out is…...
Press Long Semi Bets
A month ago we put together a semiconductor-related post that highlighted the likelihood of the group vastly out-performing the broader market. Since then both the SMH ETF and the SOX Index are up ~10% vs. the SPX. Not a bad relative…
Similar to Semis, Tech In General Now Staging a Significant Long-Term Relative Strength Break-Out
In the chart below I plot the ratio of the DJ Tech Index vs. SPX. For 15 years it’s been stuck in a flag/consolidation pattern b/t lines (1) and (2). No more. As of this week it is breaking out…...
US Equity Analog Update
I’ve been waiting for the market to inflect lower as the mid-cycle pause analogs have suggested it should start to do, rather than just print sideways as it’s done for the past two weeks, before updating them. With today’s ~100…...
EM Relativity & The Potential for Improved Chinese GDP Growth
In top pane of the chart below we see that EEM has completed a bullish inverse H&S pattern recently; in the bottom pane the ratio of EEM vs. SPX just broke out of a ~five-year, steeply descending channel. Thus, consistent with a…...
Bovespa Break-Out
In the chart below the Brazilian Bovespa is breaking above ~six year channel resistance dating back to 2010(!) on absolute basis in the top pane and is breaking out of a bullish descending wedge vs. the SPX in the lower pane,…...
Semiconductors Poised for Out-Performance vs. SPX
In the chart below I plot the SMH semiconductor ETF vs. SPY on a monthly closing basis. Note that it is breaking above line (1) and (2) resistance; line (1) dates back ~16 years and line (2) a decade. This…...