Ratio of Gold vs. Silver Sitting on Support that Has Tended to Coincide with Silver Tops Historically

The two technical set-ups in this post could make for some firecrackers, er, fireworks, in the metals space in the near-term. In the chart below the ratio of gold vs. silver has fallen to the combo of support lines (1)…...

Member only content: Login to view or Register
Did Yesterday's Open-Ended QE Announcement by the Fed Usher in a New Reflationary Wave?

Did Yesterday’s Open-Ended QE Announcement by the Fed Usher in a New Reflationary Wave?

The chart below shows the SPX on a weekly basis. Line (1) represents what we believe to be the market/economy’s most important line in the sand since 1987 – an on/off switch if you will. Why? This line is where…

Despite 175% Rally From August 2011, S&P Homebuilder Index Still Has ~20%-50% More Upside

Despite 175% Rally From August 2011, S&P Homebuilder Index Still Has ~20%-50% More Upside

I’ll reiterate my very simple thesis on homebuilders which I’ve maintained for quite some time now: They remain noticeably under-valued relative to where other bubbles tend to trade ~350-400 weeks after their peak bubble prices. This was much more so…

Do Transports Always Have to Out-Perform to Confirm Overall Market Strength?

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…

Does the Potential for a Gold Rally Mean Silver Must Follow it Higher?

We are long gold and have been for weeks now following a break-out of trend-line resistance that was in place since the metal’s 2011 highs. Conspicuously absent from this long position has been a corresponding long position in silver or any…...

Member only content: Login to view or Register
Basic Materials, Commodities, etc. Are Not the Best Way to Play a China Resurgence

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?

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…

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…...

Member only content: Login to view or Register

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…