Recent Under-Performance in Small Caps Likely Portends an Inflection Point in Broader Risk Appetite
The 26 week RoC in the ratio of the R2K vs. SPX is -768 bps as of yesterday’s close. In the top pane of the chart below we highlight where small caps have under-performed large caps to this degree of greater since…
Time to Pay Attention to the Swiss Franc? Sniffing out More Global CB Intervention? About to Cause a Precious Metals Rally?
First chart is the Swiss Franc alone. Note that it’s approaching long-term support line (1) in the 0.98-0.99 area. Also note that this is 50% Fib retracement support. Also note that it is along line (1) where, for whatever reason,…...
Spread Trade Opportunity within Homebuilders
The ratio of HOV vs. XHB has reached resistance on the weekly charts while HOV itself faces resistance as well. The ratio of HOV vs. XHB which currently stands at ~0.125, is up ~55% from its lows this May of…...