Continue to Favor Telco Equipment & With It a New Long Idea in the Industry
Late last year on 12/23 we had a post that suggested the DJ Telco Equipment Index would be a source of relative out-performance vs. the SPX in 2015. Our proxy for that call, the IGN ETF, has delivered +725 bps…...
4 Years of Biotech Relative Outperformance Appears to Have Run its Course
We’ve been bullish on biotech for a long, long time dating back to summer 2012 in posts outlined here and here. Despite many calling for tops in the space for quite some time, I’ve been reticent to do so, outlining…...
Working Thesis for 2015
It’s that time again. Time to put pen to paper and make our best attempt at crystal-balling the upcoming year. If we had to name 2015 or give it a theme we’d probably call it “The Year of Capitulation”. By…...
Telecom Equipment to be a Source of Relative Outperformance in 2015
In the chart below I blot the ratio of the DJ Telecom Equipment Index vs. SPX. B/t lines (1) and (2) the ratio has been caught within a softly declining, bullish descending wedge pattern that appears set to break out…...
Yen/USD Cross Approaching Material Long-Term Resistance
In the chart below the Yen is reaching material long-term resistance at lines (1) and (2). In addition, its 61.8% Fib retracement level (3) formed off the 1998 highs / 2011 lows in the cross comes into play at the…...
More Gold Miner Downside to Come
In the chart below the Gold Miners Index is breaking 12 year support line (1) on a monthly basis. Assuming that break down holds through the last few days of the month, this suggests there is a high probability of…...
Pity the Fool?
Pity the fool that doesn’t buy Mr. T, as in AT&T? In the charts below with T pressing a break-out of ~15-yr resistance line (1a) this morning in the left pane on the heels of WIN’s decision to spin out…...
Semi Out-Performance Thesis Has Reached a Critical Juncture
We’ve been vocal proponents of over-weighting semis vs. the broader market this year and thus far, that trade has paid off handsomely. For instance, INTC, the group bellwether, has outperformed both the SPX and Nasdaq by 26% YTD. Having said…...
Additional Mega-Cap Break-Out
EMC breaking above and out of a long-term flag/consolidation pattern this week b/t lines (1) and (2) on heels of a push by a large activist fund to break company up and spin off VMW. Similar to all the other…...
Buying this Mega-Cap Tech Stock
Very much in-line with our ongoing semi and MSFT thesis, be a buyer of CSCO. In the chart below the stock is breaking above ~13-yr resistance line (1) dating back to the early 00s. The height of the pattern formed…...