Potential for Longer-Term Dollar Rally Could Cause Small Caps to Under-Perform

In the chart below the ratio of the R2K vs. SPX is presented in black. As the line increases small caps outperform large caps and vice versa. This ratio is plotted against the USD in red, which is inverted. Together,…...

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The ratio of HOV vs. XHB has reached resistance on the weekly charts while HOV itself faces resistance as well. The ratio of HOV vs. XHB which currently stands at ~0.125, is up ~55% from its lows this May of…...

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Does anybody remember how cutting edge this company used to be?  This beauty was featured in one of the Matrix movies. At its lows last week following disappointing EPS results, NOK was down an incredible 95% from its all-time highs…...

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Last week, Greek equities managed a single week, 18% rally off their lows from the previous week.  NBG was even more impressive, up 50%. Who could have predicted such a massive rebound? Prices could have. As the chart below suggests,…...

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Had an earlier post this morning on why gold was technically broken. So long as prices remain below the 12 month MA will continue to believe that the onus is on the metal to prove itself to the upside. That…...

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Bonds or stocks? One of these is going to have egg on its face when this is all over. Longer-term, the 10 Yr UST is suggesting the fair value on the SPX is < 700. Is the 10 Yr UST correct or is…...

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K-I-S-S-I-N-G… To say long only funds are in LOVE with equities here is an understatement. As of April month-end, mutual funds held less cash and more stocks than they ever had before – we’re talking 60 year lows on the…...

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The fundamental case for gold is quite clear as it pertains to ongoing global monetary/fiscal crises and the threat that central bank intervention/”money printing” leads to future runaway inflation. In fact, from a crisis-hedge standpoint, isn’t the world we live…...

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I know the airlines group is generally loathed. That said, in a post earlier this week it was noted that the group’s relative performance against the SPX has tracked the general decline in the USD for over a decade now and…...

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Euro Financials about to Out-perform Near-Term, Positively Boost Global Sentiment?

The ratio chart below of the DJ Euro Financials vs. the XLF suggests the former could be reaching a support zone whereby they could out-perform the latter, at least in the very near-term. Ostensibly, such out-performance would likely be coupled…...

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