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…
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….
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…...
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…
The Dow Has Never Had Four Consecutive Annual Gains in a Secular Bear Market / Are Central Banks Breaking Historical Market Cycles?
Do you believe this is a secular bear market? If you do, take note that the Dow has never registered four consecutive annual gains in a secular bear market – EVER. And yet, it was up in each of 2009,…
Is The Russell 2000 Now Working on a 1995 Style Break-Out?
Our earliest posts on the R2K were directionally bearish in nature. On 5/30 we suggested the index’s path of least resistance was likely down. A month later on 6/27 we then suggested downside risks remained elevated over the intermediate-term. Neither…...