Broad European Indices Have Rallied ~15% Since June...Now What?

The chart below shows a very broad European index, the DJ Euro STOXX 600, on a weekly closing basis. The index tested line (2) support in June and since then has rallied nearly 15%. That rally has brought it to…

Repeating Pattern in the Ratio of Copper vs. Gold Suggesting Another Fall 2008 Scenario?

We’ve commented on the ratio of copper vs. gold a few times over the past few months including here and here. The ratio tends to be a good proxy for global economic activity and risk levels. Prior posts have centered around the…

Bond / Stock Ratio Approaching a Level that has Coincided with Equity Tops Since 2007

The chart below plots the ratio of the 10 Yr UST price vs. the SPX in the top pane and the SPX in the bottom pane. When the ratio b/t the two has approached trend-line (1) since 2007, as it is doing…

The chart below compares the similarities b/t that of TPX and FOSL. The analysis in that chart is similar to the parallels we drew b/t CMG and SBUX to successfully short the latter into its EPS recently. TPX has now retraced…...

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This week the market was down each of the days Monday-Thursday and erased all of those losses on Friday with its large rally. This happened on 7/13 as well and has now happened only six times in history.  We noted…...

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If They Can't Sell Hard & Fast Right Here, Stocks Are Likely Coiling For a Big Move Higher

We’ve posted repeatedly about the need for stocks, given the historical limitations of cyclical bull market rallies within secular bears, to sell hard and fast at this juncture if they are going to fall at all. We did that here,…

Wanted to dive further into the historical analysis of cyclical bull/bear cycles within secular bears. As we noted just a few days ago, the rally from the March 2009 lows appears extended in both magnitude and duration at this point…...

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Recent Under-Performance in Small Caps Likely Portends an Inflection Point in Broader Risk Appetite

The 26 week RoC in the ratio of the R2K vs. SPX is -768 bps as of yesterday’s close. In the top pane of the chart below we highlight where small caps have under-performed large caps to this degree of greater since…

If down today, the SPX will have been up only 35% of the trailing 20 trading days. Through history, the market goes up ~55% of the time on any given day. Regardless, the chart below shows other periods since the…...

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For those that would like additional background on this topic, please refer to our earlier post on the subject. Otherwise, in the chart below, the Sensex appears to be attempting a break-out from a three-year flag/consolidation pattern. As of yet, NO…...

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