Continue to Reiterate that Homebuilders Likely Have More Upside & Out-Performance Left
The chart below plots the post peak price bubble analog we’ve highlighted numerous times before with prices updated through today. The black line is the S&P Homebuilders Index. Our ongoing thesis has been that it will ultimately reach ~50% of…...
GOOG Has ~20% of Additional Out-Performance vs. AAPL
The chart below plots the ratio of AAPL vs. GOOG. As the ratio declines AAPL is under-performing GOOG. The ratio has recently completed a bearish H&S pattern and has broken below support line (1). It’s next major areas of support…
Oil’s Decline Helping our Airline Out-Performance Thesis
We’ve re-visited the case for airlines out-performing two times on this site. Our last post on 9/7 was the catalyst for initiating a long spread trade in the group with a corresponding short in the SPX. On 9/14, we then…...
Defense Industry Ready to Out-Perform?
The chart below plots the ratio of the DJ Defense Index vs. the SPX. From its 2009 highs to its recent lows the ratio declined by ~40% as defense companies have under-performed the broader market materially. The decline in the…
Spread Trade Opportunity in Flat Panels / LCDs
Chart below shows the ratio of PANL vs. CREE and the DJT vs. SPX. PANL and CREE are competitors – suppliers to the flat panel/LCD TV industry. Note the ratio has reached long-term resistance and is putting in a pattern…...
Spread Trade Opportunity in Smartphone Space
The chart below plots RIMM in the top panel and the ratio of RIMM vs. NOK in the bottom panel. The ratio has fallen to support line (1). At the same time, RIMM is hanging by a thread at support…...
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)…...
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…
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…...
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…