Add Industrials to this list of sectors (like financials) that are badly underperforming in the current market environment. This chart says it all:
We already got short financials last week. Time to step in here on the industrials. [Read more…]
Expert technical analysis of financial markets by JC Parets
Add Industrials to this list of sectors (like financials) that are badly underperforming in the current market environment. This chart says it all:
We already got short financials last week. Time to step in here on the industrials. [Read more…]
From the desk of Steve Strazza @Sstrazza
Last month we wrote about the lackluster move from some of the cyclical sectors off of their March lows, particularly Industrials and Financials.
We continue to see weakness out of these areas over both long and short-term timeframes as Financials are pressing on all-time lows relative to the S&P 500 and Industrials just made a fresh relative 20-year low.
In this post, we’ll take a look at these underperforming areas and share some trade ideas to express our bearish thesis.
From the desk of Steve Strazza @Sstrazza
New Mystery Chart!
For those new to the exercise, we take a chart of interest and remove the x/y-axes and any other labels that would help identify it. The chart can be any security in any asset class on any timeframe on an absolute or relative basis. Maybe it’s a custom index or inverted, who knows!
We do all this to put aside the biases we have associated with this specific security/the market and come to a conclusion based solely on price.
You can guess what it is if you must, but the real value comes from sharing what you would do right now. Buy, Sell, or Do Nothing?
In a recent blog post, JC highlighted some bullish stocks that he can simply no longer ignore. Regardless of whether or not we feel the upside may be close to exhausting itself in the broader markets, there are some setups that are screaming for attention.
I’m game. Let’s play along. [Read more…]
by JC
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?
Here’s what that looks like: [Read more…]
by JC
Jordan Kotick is one of the key people that early in my career inspired me to be more intermarket oriented. They would ask Jordan about the S&P500 and he would go into a tangent about bonds. They would ask him about Emerging Markets and he’d whip out, what he refers to as, “Chinese Dow Theory”. For over a decade, Jordan was the Managing Director of Macro Strategy at Barclays and then Managing Director of Cross Asset Strategy at RBC Capital Markets. He is the first person to have ever been president of both the CMT Association (then called the MTA), and the Canadian Society of Technical Analysts (CSTA). In this podcast episode we talk about some of the great lessons Jordan learned over the years and what sorts of markets and charts investors should be paying attention to in the current environment. This was a really fun conversation and was great to catch up!
From the desk of Steve Strazza @Sstrazza
For the week ended Friday, May 8, 2020:
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.
by JC
If you know me by now, you know how much I enjoy all things Japanese. For me, it’s the best cuisine on earth. The architecture in Japan is spectacular. I can’t take the smile off my face whenever I’m there. If you can believe this, I even passed the Japanese Sake Advisor Exam earlier this year.
There’s a blog post I’ve been working on for a while I titled, “Investing Like a Sumo Wrestler”. But that’s a conversation for another day.
This week I was watching the new documentary, “The Delicacy”, about sea urchins and the divers who harvest them. Uni, which is what the Japanese call the edible part inside the sea urchins, is one of my favorite snacks in the world. You can get good ones from Hokkaido, Santa Barbara and off the coast of South America.
The documentary was awesome, even if you don’t like to eat Uni, like my wife. She also loves visiting Japan, but she’ll tell you she prefers Italy or Greece. I’m torn.
Anyway, watching this while having a glass of Junmai Daigingo sake, they brought up the concept of Ichigo Ichie. This is a philosophy that I learned about while visiting Kyoto a few years ago and unfortunately never had a chance to write about it.
Ichigo Ichie is a cultural concept of treasuring unrepeatable moments. It’s most often used to remind people to cherish any gathering as a once-in-a-lifetime experience. Even if that moment is with the same group of people in the same place, each time will be different than the last. So if we let it slip away without enjoying it, the moment will be lost forever. [Read more…]