Is This Line Relevant to the Nikkei?

Is This Line Relevant to the Nikkei?

Is line (1) in the chart below relevant to the Nikkei per history? If so, what happens with a sustained break above it, if anything?

Airlines +19% in a Quarter vs. Flat SPX; More Upside Likely?

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

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…...

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Silver Sits at Some Intermediate Support

Silver Sits at Some Intermediate Support

The chart below is self-explanatory – silver finds itself sitting at some very important intermediate, swing support at ~$30. This is the level, along line (1), where nearly all of the metal’s big moves and price action have occurred since…...

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Nikkei Tacks on Another ~3% Tonight To its Already Incredible Run; Where's the Next Relevant Resistance?

Nikkei Tacks on Another ~3% Tonight To its Already Incredible Run; Where’s the Next Relevant Resistance?

The Nikkei’s run has been incredible over the past few months. In early June 2012 at the global equity bottom, futures were trading at ~8,225 vs. the current 10,880. That’s a 30% gain in six months. In the chart below…...

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Consolidation Patterns in Gold & Silver Appear to be Ending

Consolidation Patterns in Gold & Silver Appear to be Ending

Both gold and silver find themselves caught in consolidation/flag patterns in the chart below, formed by their respective lines (1) and (2). Both currently sit on line (2) support. We aren’t suggesting which direction they’re apt to turn in next…

Contrarian Short Opportunity in Consumer Tech?

Contrarian Short Opportunity in Consumer Tech?

V and MA presented in the chart below. Both are reaching/close to formidable long-term resistance lines. As this resistance approaches, a timely contrarian cover story in Barron’s this past week espousing the need to buy both names. The long-term thesis…...

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Grains Down Double Digits in a Few Months, Now What?

Grains Down Double Digits in a Few Months, Now What?

Here was our original post on grains back in September. In that post we suggested being short some combo of soybeans, wheat and corn. All are down double-digits or are close to being down that much since the post. In…...

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Fresh Thoughts on the Ongoing Short Yen Trade

Fresh Thoughts on the Ongoing Short Yen Trade

Our first high conviction short Yen trade came on August 14th in this post. At the time the Yen traded at ~1.27 vs. the current ~1.156, a decline of 9%+ over less than four months. Not too bad of a…

Russell 2000 Faces Resistance on a Relative Basis & Could Under-Perform for Years

Russell 2000 Faces Resistance on a Relative Basis & Could Under-Perform for Years

Dating back to June of this year we have been suggesting that the potential for a longer-term reversal in the USD could lead to small-caps sustainably under-performing the broader market. We continue to believe this today. Even if the USD…