All Over for Housing Re-Inflation?
Both lumber and LEN face significant long-term channel resistance in the charts below. Is the Bernanke-inspired housing re-inflation run over for home-builders and housing in general?
This Industry is Down 50% on a Relative Basis Since 2010; Can the Trend Reverse?
The first chart is the ratio of the DJ Brewer Index vs. SPX. Look at the confluence of support lines that are currently meeting and the fact that the consolidation pattern they help to create around the ratio has tightened…...
Are Solar Stocks Intrinsically Cheap?
Very simple post here. The analog below shows the path the Guggenheim Solar ETF (TAN) has taken off its highs in 2008 and compares it to the path the average and worst bubbles have taken off their respective highs through…...
A Highly Favored Group of Ours Faces Near-Term Resistance
We’ve been very bullish on Airlines dating back to the genesis of this site in May of last year. Our original and ongoing thesis on the group can be seen by clicking right here. As of right now, the group, via the…
Could 20 Years of Relative Under-Performance in This Industry Be on the Cusp of Sustainably Reversing?
Ratio of the DJ Food Retail & Wholesaler Index vs. SPX is plotted below on the far left. It’s done nothing but travel from upper left to lower right of the chart for 20 years. In other words, stocks in…...
Mega-Cap Gold Miner Bellwether ABX Sitting at Critical Support
If support line (1) can’t hold, the next stop is 35% lower at line (2) support. Big crossroads for not only this stock, but the group. If the industry bellwether can’t hold here, the weaker ones won’t either. On the…
More Gold Miner Thoughts
Wanted to update this evolving short set-up with three charts. Each has a similar conclusion and when triangulated, suggests intermediate-term downside of ~25%. Such downside can be captured via a GDX short, via DUST, a 3x inverse ETF on gold…...
Another Industry Set to Out-Perform the Broader Market?
Another relative performance-based post. The chart below highlights the ratio of the DJ Leisure Goods Index vs SPX and its attempt to break out from a decade-plus descending triangle pattern. Though such patterns are typically bearish, I’m inclined to believe…...
Evolving FX and PM Set-Ups
Forgive me for continuing to focus so much attention on the PM space. However, I do tend to think it currently offers very solid risk/reward set-ups and more importantly, the opportunity to make some money on the short side in…...
Might This Stock Double or Triple in as Little as 6 Months?
CUB is sitting on channel support line (1). Also caught in a flag pattern formed by that line and the blue line. Last two times it’s been at channel support and has formed a flag pattern (A and B) and…...