Apparel Retailers Face Resistance as a Group

Apparel Retailers Face Resistance as a Group

The chart below plots the DJ Apparel Retailers Index. The index faces resistance line (1) which has marked cyclical highs for the group in 2000 and 2007. Until the index can take this resistance to the upside, we’d think this space…

Are Silver’s Best Days Ahead of It?

We struggle with silver. We know some see it as a currency, like gold. As such, QE and central banker largesse around the globe, which will likely go on ad infinitum, should naturally benefit the metal. However, at the same…...

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What Sectors & Industries Are Likely to Out or Under-Perform Moving Forward?

Please refer to my post yesterday on commodities under-performing on a relative basis over the past week despite the Fed’s pledge for infinite QE. Next refer to this post, which further emphasizes my general belief that commodities et. al under-perform moving…...

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Did Yesterday's Open-Ended QE Announcement by the Fed Usher in a New Reflationary Wave?

Did Yesterday’s Open-Ended QE Announcement by the Fed Usher in a New Reflationary Wave?

The chart below shows the SPX on a weekly basis. Line (1) represents what we believe to be the market/economy’s most important line in the sand since 1987 – an on/off switch if you will. Why? This line is where…

Despite 175% Rally From August 2011, S&P Homebuilder Index Still Has ~20%-50% More Upside

Despite 175% Rally From August 2011, S&P Homebuilder Index Still Has ~20%-50% More Upside

I’ll reiterate my very simple thesis on homebuilders which I’ve maintained for quite some time now: They remain noticeably under-valued relative to where other bubbles tend to trade ~350-400 weeks after their peak bubble prices. This was much more so…

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…...

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Coal Stocks are Up 13% Since Our Last Post on the Group

Coal Stocks are Up 13% Since Our Last Post on the Group

On August 9th we highlighted how oversold coal stocks were, with the DJ Coal Index down ~75% from its highs in 2011. We noted that similar sell-offs in the past have led to material rallies in the group. With the…

Do Transports Always Have to Out-Perform to Confirm Overall Market Strength?

Do Transports Always Have to Out-Perform to Confirm Overall Market Strength?

Much has been made of the recent under-performance in the DJ Transportation Index vs. the broader market as of late. However, as the chart below details, there is no tablet carved in stone with the words “Transports must always out-perform…

INTC's Recent Decline Has Taken it To Trend-Line Support from its 2009 Lows

INTC’s Recent Decline Has Taken it To Trend-Line Support from its 2009 Lows

Self-explanatory chart below – INTC is now sitting on trend-line support from its 2009 and 2011 lows. Can we expect a bounce here for INTC and with it the semiconductor space in general – both have been beaten up badly…

Financials Signaling Sustained Upside in Risk Assets?

Financials Signaling Sustained Upside in Risk Assets?

The chart below shows the ratio of the SPX vs. XLF – when the ratio moves lower, financials out-perform. The ratio is now breaking below support line (1). This is important as every time the ratio has hit line (1) over…