Sentiment has not been good for Chinese Equities with a handful of recent sanctions adding to the general uncertainty around China-US relations. For the most part, we're seeing this reflected in price as the Shanghai Composite and iShares China Large-Cap ETF (FXI) are trading at multi-month lows relative to the S&P 500.
Interestingly enough, the area being hit hardest with negative headlines is one of the few bright spots in China's market right now... Technology and Internet stocks.
In this post, we take a look at the improving relative strength from this group and offer trade ideas in some of its leading stocks.
Every weekend we publish performance tables for a variety of different asset classes and categories along with commentary on each.
This week’s main theme is risk-on action from beaten-down areas which we'll highlight in our US Index and Factor ETF tables, below.
We're putting a lot of emphasis on risk-appetite measures right now in order to provide insight into how the recent rangebound activity in Equity and Bond markets is likely to resolve itself.
The most basic way to assess risk-tolerance is to compare the performance of risk-on vs risk-off assets. As such, this post will focus on how the offensive vs defensive areas of various markets are acting right now.
While we don't know whether or not this can persist indefinitely or if these divergences will soon resolve themselves, we do know that Semiconductors remain one of the secular leaders and are thus an area we want to continue to bet on from the long side.
In this post, we'll outline some Trade Ideas in our favorite Semiconductor names.
Something all of these setups have in common is that they are exhibiting impressive relative strength vs the broader market. They also all resolved to fresh highs recently, which gives us a well-defined risk management level to trade against.
Every weekend we publish performance tables for a variety of different asset classes and categories along with commentary on each.
This week's main theme is that the strong continue to get stronger and vice versa, which we'll highlight in our Industry and Sector ETF tables, below.
Notice how the top three performers this week also happen to be the only Industry ETFs that are positive over the trailing 3-month period?
Gold Miners (GDX), Biotech (IBB), and Internet (FDN) posting positive 3-month returns may not sound like much but is actually quite impressive as it means these areas have already taken out their highs from just before the broader market peaked and collapsed in February.
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This month’s Conference Call will be held on Monday May 18th at 7PM ET. As always, if you cannot make the call live, the video and slides will be archived and published here along with all of the other calls since 2015.
If you haven't heard by now, the Online Retail Index broke out to new all-time highs. We're not exactly seeing that from a broad-based perspective. This is not happening domestically and it's certainly not happening around the world. The rotation we're seeing among sectors and industry groups is real. Today we're going to focus specifically on online retail.
The way I see it, the question here is simple. Is the massive reversion, and return to these prior highs, "the" move? Or was that just a multi-year consolidation, and the move is just getting started?
Every weekend we publish performance tables for a variety of different asset classes and categories along with commentary on each.
Many of the relative trends in stocks that have been in place for a long time have come into question recently as they're showing signs of maturing due in part to the change in leadership we wrote about this week.
In this post, we'll highlight two structural intermarket themes that have remained robust throughout this tumultuous time for equity markets.
The first relative trend that hasn't slowed down at all is the relentless outperformance of the US over the rest of the world. Our first table shows the Wilshire 5000 (DWC) dominating every Global Index over just about every timeframe, from this week to the trailing year.
Gold (GLD) broke out of a multi-year base last year and has more or less been trending higher since. No new news there.
But as JC explained in a post last week, Gold Miners (GDX) have finally broken out of a 7-year base as well after recently taking out resistance at key prior highs.
Today we're going to take a deeper look at the space.
We love setups like the one in Gold Miners right now. Not only did GDX resolve higher from a massive base but there is also a hefty amount of price memory at the breakout level which should act as solid support going forward.
Every weekend we publish performance tables for a variety of different asset classes and categories along with commentary on each.
This week we're highlighting the underperformance from the US using our Global Index and International ETF tables.
Click table to enlarge view.
Despite the Wilshire 5000 (DWC) closing slightly higher on the week, all major Large-Cap averages in the US closed lower. While equities sold off across the board to end the week, the Eurozone still managed to book a nice gain with the German Dax (DAXX) and Stoxx 50 (STOXX) up 4-5% each in what was a short week for much of the region.
The Nikkei 225 (NI) and Shanghai Composite (SSEC) each closed almost 2% higher in what was also a short week for much of Asia.