Ratio of Copper vs. Gold Continues to Suggest a Major Move in Risk Assets on the Horizon

We posted this same analysis a few weeks ago and are updating it now given it has changed since then (break-out in ratio occurring). The only times the ratio of copper vs. gold has been lower than it has been…...

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SPX Breaking Out? Going to Target New All-Time Highs?

Any repeating patterns this summer vs. last fall when the SPX broke out of a choppy consolidation zone following the August mini-crash? Also, any similarities between the rally off the 1987 crash lows and the rally off last August’s mini-crash…...

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Relative to Average Path other Assets Have Taken from Bubble Tops, Homebuilders, Despite 135% Rally, Remain Under-Valued

At the end of March 2012 I noted homebuilders appeared very under-valued vs. other bubbles at this juncture of their bubble peak price. I presented the chart below to justify this. Since that original post, the S&P Homebuilder Index has…...

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Bio-Tech & Pharma Working on Break-Outs

Both bio-techs and pharmaceuticals are working on quality, long-term technical break-outs in the charts below. The set-up in bio-tech is the most compelling given that the DJ Bio-tech index has already cleared all-time highs from 2000. Should it break its next…...

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This Week’s Price Action in SPX Rare in Context of History (and Very Intermediate-Term Bullish Should History Hold)

This week the SPX was down every single day Monday-Thursday and then wiped out the entirety of those losses on Friday. This has happened only four other times in history dating back to 1928. The other days were 10/26/56, 11/15/57,…...

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Repeating Fundamental & Technical Patterns in India/Bombay Sensex Suggesting a New Up Leg in EM Secular Growth Phase?

Coming into 2012 we figured the year would be up or down big given we had just finished a third straight up year in what was ostensibly a secular bear market, which had happened only one other time in 100…...

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Revisiting the R2K – If History is Correct, Downside Risks Remain Elevated over Intermediate-Term

On 5/31/12 we ran a post on the R2K that suggested, based on its current price structure and momentum in the context of history, the path of least resistance for the index was lower, not higher, over the intermediate term…....

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Bio-Techs, a Leadership Group, Face Stiff Resistance (Same Resistance Faced at top of SPX Bear Market Retracement Rallies in 2001/2008)

Bio-Techs, a Leadership Group, Face Stiff Resistance (Same Resistance Faced at top of SPX Bear Market Retracement Rallies in 2001/2008)

Below is a table (via Finviz.com) that details YTD industry performance – biotech has been a standout YTD, up 22% and in 11th place out of all industries. That said, in the chart below the group’s YTD rally, via the DJ…...

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Outcomes for Equities Here & Contingency Planning for Each Potential Set-Up

I think there are two potential outcomes here: 1) Per the first chart below – the SPX daily – there’s a chance that the move off the late May / early June lows of ~1,280 and the choppy consolidation that then…...

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SPX Creating an Incredibly Bearish Wick at Important Resistance

If today’s losses hold through tomorrow (a BIG if), the SPX weekly chart will look like it does below (or worse). In that chart you can see the SPX has put up an incredibly bearish looking wick at important resistance…....

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