Is the Nikkei’s Run of Material Out-Performance vs. Other Global Indices Over or is There More Remaining?
The ratio of the DJ World Stock Index vs. Nikkei is plotted below. It was this ratio, among other things, which helped get us very bullish on the index from an execution standpoint, in 2012, in our humble opinion, well…...
Spread Trade Idea in Commodities Could Offer 50% Upside
The ratio of palladium vs. silver is plotted below. The ratio is breaking out from a near decade-old consolidation pattern formed by lines (2) and (3). The logical upside target for the ratio is ~0.45x or nearly 50% higher. This…...
This Sleepy Industry Could Begin to Out-Perform
The ratio of the DJ Electricity Index vs. SPX is plotted below. The ratio appears to have broken out from a bullish descending wedge pattern last week. A similar pattern formed b/t 2000-2004. When it completed and broke out, the…...
Relative Out-Performance Opportunity in this Industry
I like mobile telcom and telco equipment. Look at all the charts below. The first two are the DJ US Mobile Telcom Index and the ratio of that index vs. the SPX. Both have broken out. Next, look at the…...
Airlines Under-Perform by 10% on the Week…Are Silly Little Lines the Only Things That Matter?
There are plenty of people out there on the intra-webs (far more intelligent than us, no doubt) that spend their days opining on the virtues of why it’s essential for our financial-souls and well-being that we understand the inner workings…
Where’s the Next Great Bull Market?
The first chart below plots the relative value of the Mid-Cap 400 Value Index vs. SPX from 2000-October 2002. This was the bear market coming off the heels of the tech bubble. As the chart suggests – the SPX was…
Spread Trade Idea In Commodities
The ratio of Nat Gas vs. Silver is presented below. It fell 97% into 2012 from its high in 2006. As it did so it formed an ever-tightening, bullish descending wedge pattern b/t lines (1) and (2). In late 2012…...
Decade+ Relative Strength Break-Out in This Industry
The first chart below highlights the ratio of the DJ Home Furnishings Index vs. SPX. Note the break-out above falling resistance this past week which had been in place for over a decade and had defined this industry’s inexorable under-performance…...
More Evidence the Commodity & Emerging Market Secular Bull Run is Over
The chart below highlights the ratio of the DJ Basic Resources Index vs. SPX. Note the secular rise in the ratio from 2002-2008 indicating the ongoing strength of the secular bull market in basic resources, commodities and emerging markets/infrastructure growth….
Long-Term Meat Product Bull Market Over? Impact to Stocks & Industries?
The first half of this post’s title is not a joke. In the charts below live and feeder cattle have been battling quarter-century, long-term channel resistance over the past two years, having, along with the rest of the commodity group,…...