When we talk about asset allocation, similar questions often come up: More International stocks? More Emerging Markets? More US Investments? Where do we rotate as we head into next year? These are all common themes normally brought up in this type of conversation. So using only facts to help our decision making, let's look at price and see what, if anything, it is pointing to.

This is a chart of the S&P500 ETF $SPY compared with the ACWI Ex-US Index ETF $ACWX:

Last week I shared with you guys a "Mystery Chart" without any labels on it. The point of this exercise is to eliminate any biases and focus only on facts. The only truth in the market that we can count on is price. Sell side analysts are going extinct because they offer little value, the media is often either wrong or lying to you, the same can be said about C-level executives, and the list goes on and on. None of these people are reliable. This is why the only thing we can count on is price. It's just math. So we prefer to focus on that and ignore the rest of the noise.

Today we're looking at a rare development in economically sensitive assets that I think have much broader implications for stocks and commodities moving forward:

There have been a lot of really amazing moves this week in the market. But one interesting development that I don't hear much chatter about is the monster move in Value stocks vs Growth stocks. Value stocks like Berkshire Hathaway and JP Morgan have exploded higher the past week at the same time that Wells Fargo stopped crashing. Meanwhile, in Growth land Amazon and Facebook have had a tough time. You can see this beautifully in the charts.

Over the past few days I've received requests from readers about my thoughts on Russian stocks. While I don't particularly care about the US/Russia relations when it comes to picking stocks to buy and sell, it seems to be something of interest to a lot of people. So let's dive in.

Every now and then I throw out a mystery chart just to get us thinking. Not knowing what a chart represents helps eliminate biases or any ideas we may already have in our heads. Today we are looking at what I think is one of the more interesting developments in the market today.

Every month I host a conference call for All Star Charts Members where we discuss ongoing themes throughout the global marketplace as well as changes in trends where new positions would be most appropriate. This includes U.S. Stocks & Sectors, International Stock Indexes, Commodities, Currencies and Interest Rate Markets. Transports and Copper continue to make new highs while US Treasury Bonds keep selling off on the back of higher interest rates. We'll discuss all of these issues and more.

This month's Conference Call will be held on Tuesday November 15, 2016 at 7PM ET. Here are the Registration Details:

When it comes to the U.S. stock market, there are a bunch of popular stocks that many consider important bellwethers that could give clues to the health and direction of the overall market. Personally, I look at shares of J.P. Morgan Chase (JPM). They have a long track record that goes back to the 19th century. More importantly, with a market cap of $250 billion, this bank has a huge influence on the financial sector, not to mention the entire market. But even more telling, in my view, is the historically high positive correlation between J.P. Morgan shares and the S&P 500.

There is a lot of noise out there about the Mexican Peso and the Presidential Elections. So I can't think of a better time to focus on the supply and demand dynamics in the forex markets to see if we can determine the most likely direction of the Peso. Fortunately, as technicians, we can just ignore all that junk and spend our time on the only factor that actually pays, which is price.

Throughout the second half of 2016 I've remained in the camp that interest rates are going higher and that bonds are a fade. The action into 4th of July weekend originally put me in that camp and I continue to believe that, bigger picture, this is the underlying trend that we need to respect. The catalyst here, in many cases, is becoming more and more clear with each passing day. Forget the economy and the stock market, inflationary forces are moving in sync with the bond market suggesting a very high correlation between the inflation trade and higher rates.

Let's break this down using math and blatantly ignore anything the federal reserve has to say. Listening to them has been a time waster and money loser for years. I don't expect this trend to change any time soon. I'm sure they are nice people, but from a portfolio construction perspective, they offer absolutely zero value, and some might argue that listening to the fed is actually detrimental to a sound investing plan. I agree with both the latter and the former: that noise is toxic on all accounts.

Transports this week are hitting new 6-month highs relative to the S&P500. Remember, these guys have been the leader for years. To review, the Dow Jones Transportation Average peaked in late 2014, well before the S&P500 put in its final top in May of 2015. Moving forward, the Dow Transports put in their bottom in January of this year, the month before the S&P500. So yes, we want to continue to look to the Transports for leadership.

Today we are breaking down the Transportation stocks once again to see what is really happening underneath the surface: