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)…...

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INTC Sitting On Quarter-Century Support Dating Back to 1986; Ratio of INTC vs. XLK Near All-Time Low

INTC Sitting On Quarter-Century Support Dating Back to 1986; Ratio of INTC vs. XLK Near All-Time Low

The chart below shows that INTC sits at quarter-century support line (2) dating back to 1986 while it is caught in a long-term consolidation pattern b/t lines (1) and (2). At the same time, the ratio of INTC vs. the XLK…

What Sectors & Industries Are Likely to Out or Under-Perform Moving Forward?

Please refer to my post yesterday on commodities under-performing on a relative basis over the past week despite the Fed’s pledge for infinite QE. Next refer to this post, which further emphasizes my general belief that commodities et. al under-perform moving…...

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CAD$ at Resistance & Bulls At All-Time High

The chart below shows the CAD$ at resistance line (1) with crude facing resistance line (2). At the same time the % of the public that is bullish the CAD$ is now at ~85%, an all-time high rivaled only in…...

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Long Gold / Short Equities Has Been a Generational Trade That Will Likely Continue

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:…

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…...

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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…

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…...

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