Long Gold / Short Equities Has Been a Generational Trade That Will Likely Continue
Since 1999 the ratio of the SPX vs. gold has declined 85%. That’s +485 bps annualized for somebody who was short the index and long gold the entire time. In the end, the logic for this trade remains quite simple:…
Technicals & Seasonals Suggest iPhone 5 Release Could Disappoint AAPL Investors
Chart below shows AAPL on a daily basis. On a more granular basis at inset (A) the stock appears to have broken down from a mild ascending wedge pattern yesterday formed by lines (1) and (2). On a longer-term basis at…...
Do Transports Always Have to Out-Perform to Confirm Overall Market Strength?
Much has been made of the recent under-performance in the DJ Transportation Index vs. the broader market as of late. However, as the chart below details, there is no tablet carved in stone with the words “Transports must always out-perform…
As the World Remains Enamored with China and the SSEC, Malaysian Equities are at All-Time Highs
The chart below is the Malaysian KLSE Compsosite index. It correlates quite will with the EWM ETF. In the chart below we can see the index has broken trend-line resistance (1) and is registering new all-time highs. It is currently in the…...
INTC’s Recent Decline Has Taken it To Trend-Line Support from its 2009 Lows
Self-explanatory chart below – INTC is now sitting on trend-line support from its 2009 and 2011 lows. Can we expect a bounce here for INTC and with it the semiconductor space in general – both have been beaten up badly…
Nasdaq Attemping to Clear Key 12 Year Technical Milestone
Last week, as the chart below indicates, the Nasdaq Composite index appears to have finally cleared its 50% Fib retracement level formed between its highs in 2000 and lows in 2002. This is a big deal in our opinion – it’s taken the Nasdaq nearly…
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…