Video Game Industry’s Golden Years Long Gone
Chart below plots the ratio of the DJ Toys Index vs. SPX. Note that it sits toward the bottom of long-term channel support, which is supportive of the group out-performing moving forward, so long as that support remains in place…....
Taking a Look at the Healthcare Industry
The chart below highlights the ratio of the DJ US Healthcare Providers Index vs. SPX. The ratio is caught in a long-term ascending triangle pattern b/t lines (1) and (2). Typically such patterns are bullish and result in strong break-outs…....
Look to Under-Weight and/or Find Shorts in This Industry
I don’t like the Clothing & Accessories industry. I believe it and its constituents are prone to serious downside risks over the intermediate-term and should be under-weighted, avoided all together or shorted. The chart below shows the ratio of the…...
PMs, Especially Miners, at a Critical Crossroads
I’d say the juncture PMs find themselves at right now is as important as those from their secular bull market beginnings in the early 2000s as well as their global panic lows in late 2008. This is less my opinion…...
Transports Have Had a Great Run Since September, Now What?
I kind of dropped the ball on the Transports back in early October. In this post I highlighted the fact that I thought they’d continue to under-perform until the ratio of the DJ Transports vs. SPX fell to 3.2-3.3 vs…....
After a Brutal January, Gold Miners Approaching Support
The Arca Gold Miners Index is down over 10% thus far into January. Brutal indeed. That said, the index now finds itself at support line (1) below, where swing lows from 2010 and 2012 occurred. As it reaches this support…
This Group Finds Itself Back at Relative Support
In summer 2012 we over-weighted coal stocks given the ratio of the DJ Coal Index vs. SPX stood at the combo of support lines (1) and (2) below. The group ran incredibly well into the November elections, out performing by…...
New Industry Out-Performance Idea Presents Opportunity for Alpha
The first chart below shows the ratio of the DJ Medical Equipment Index vs. SPX. The ratio has traded sideways for a decade now, meaning medical equipment names have effectively been market-performers over that time. However, since 2006 the ratio…...
Airlines +19% in a Quarter vs. Flat SPX; More Upside Likely?
Here is a link detailing all of our bullish posts on airlines dating back to May 30th of last year. In the past quarter alone, since mid October when we suggested more airline out-performance, the group (via FAA) is up…
Gold Miners Update
On 12/4/12 we suggested it was time to be short gold miners in this post. Since then, the index has decline by ~370 bps. Decent, but not stellar, return on the short in a single month. In our view, given…...