Airlines Continue to Out-Perform the Broader Market but is the Pace Set to Accelerate?
The chart below plots the ratio of the SPX vs. FAA (airline ETF). Note that this week the ratio is breaking below support line (1) and seemingly falling back into a channel whose bottom is defined by line (2). If…
This Beleaguered Industry Just Broke out From a Bullish Descending Wedge Pattern
The chart below plots the Guggenheim Solar ETF (TAN). At its recent lows it was trading at a mere 5% of its all-time high prices in 2008. I’m not attempting to make a compelling fundamental thesis in this post detailing…...
Sandy Hook Have the Gun Manufacturer Bull Market Coming to an End?
Both RGR and SWHC are in the process of, or have, broken down from bearish patterns recently. In the case of RGR, it sits atop support line (2) below which dates back to 2008 and has defined its bull market…
Time to Take Profits on Short AAPL / Long GOOG Spread Trade
On October 3rd, when it stood at ~0.88, we noted the ratio of AAPL vs. GOOG still had ~20% in additional downside (i.e., GOOG had the same amount of out-performance left vs. AAPL) until it hit noteworthy support. As of…
Nikkei Working on a Break-Out; Next Up 14K by the End of 2013?
In the chart below the Nikkei is attempting to break-out from a consolidation flag pattern formed by lines (1) and (2), which has been in development since 2008. If a break-out occurs, it could result in materially more upside in…
This Stock Has Doubled in Three Months; Time to Short?
UPDATE: This post was originally published on 12/12 behind the password protected firewall; given the material decline today (12/21), the bulk of profits from the trade have accrued, hence we are willing to release the post publicly now ******************************************************************************************************************************** Never…
Spread Trade Opportunity in Basic Materials
Long FCX against a copper short, but not yet. In the chart below I plot the ratio of FCX vs. copper. If the ratio is able to trade down to ~0.073 from its current ~0.088, or by ~17%, it will…...
Big Break-Out in the SPX
Self-explanatory below – big break-out in SPX on the Fed news today taking out resistance that’s been in place since mid September per line (1). So long as these gains hold through today/end of week, we’d believe this break-out portends…
Technical Break-Outs in Airlines Occurring
The chart below is self-explanatory – various airline indices are clearing some noteworthy resistance with their push higher this week. We discussed the potential for this just a few days ago right here. Depending on which index you’re looking at,…
Where Next For Interest Rates?
First off, we plot the 10 year interest rate below. Very nice and tight consolidation pattern that’s taken place along lines (1)-(3) that looks very close to ending. A break above line (1) and rates could shoot aggressively higher over…...