Over the last few years, all we've heard from the financial media and economists are how we're in a "rising rate environment" and interest rates are going up. They keep averaging down on their irresponsible calls because they can. They have no skin in the game. They don't care about making money in the market. The media wants to sell ads and who knows what economists are thinking. As the great Warren Buffett said last year, "Any company who has an economist has one employee too many".

Meanwhile U.S. 30-year yields hit new lows in July proving all of their forecasts to be incorrect (shocking I know). And there is probably a good reason for that. They obsess over what the federal reserve people are saying, and blatantly ignore price action. Rather than focusing on what pays, they instead choose to focus on gossip from a group of people who never stop talking, literally.

U.S. Treasury Bonds have been a short for months (see here), but do we press these shorts or take profits? Today we're looking at what I think is an extremely powerful development over the past week:

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. We have been bullish towards both U.S. and International stocks since early July and are seeing money rotate into new sectors and countries showing leadership. We will be discussing this in detail Wednesday.

We will also be focusing particular attention to the follow through, or lack thereof, after Friday's sell-off in U.S. Stocks and the spike in volatility. Bonds have continued lower and will be a major topic as well.

This month's Conference Call will be held on Wednesday September 14, 2016 at 7PM ET. Here are the Registration Details:

We don't have to make things complicated guys. We don't get paid to tell stories and make up reasons for why the market is moving during the day. We are market participants. We are the 99.99% of people in the world who are just here to try and make a profit. We don't have to put together a pitch, or a sexy headline, or ask our boss for permission to do things. We just want to make a buck when the market moves. That's it.

So while all those people out there pretending to be mother goose are making up stories about the fed and inflation and all sorts of noise, we prefer to focus on price, which is literally the only thing that will ever pay anyone in this business. Today we are looking at the chart that has suggested since June that selling Treasury Bonds was the right move, and therefore interest rates would rise.

Sometimes Standard & Poors, Dow Jones, MSCI and FTSE simply don't do the trick. If we want to analyze a specific group of stocks and the big boys haven't created an index with what we want, what then? Through technology, we can just build our own. There's nothing stopping us. Now, we're not just going to create random indexes so we can complete with them in their space. The point here is to build something if and when it is necessary. Will it help us throughout our process or just create unnecessary noise? That is the big question.

With all of the major U.S. Stock Market Indexes hitting all-time highs, I think it’s important to see if the bond market is telling a similar story. Are bonds confirming the risk appetite we’re seeing towards stocks or is there a divergence? Based on my work, bonds suggest there is plenty of risk appetite out there globally and therefore stocks should continue higher.

One of the biggest reasons why I got so bullish towards U.S. Stocks in early July was because of the breakout in Technology out of a multi-year range. This sector represents over 20% of the S&P500, so the way I see it, if the largest sector in America is breaking out of a range to new 52-week highs, it's hard to be bearish. Although there were many other factors that have kept us bullish over the past few months, Technology has definitely been a big one.

Now, as sexy as this breakout in Technology stock prices might have been, it's another breakout in Technology last week that really gets me optimistic:

My favorite event of the year is coming very soon! This is a weekend that I, along with many of my friends, look forward to every Fall. The island of Coronado is a special place that has brought a lot of people together and has helped launch incredibly successful businesses. In other cases, this event along with networking opportunities at the Del Coronado Hotel has helped grow many companies with new partnerships and business ideas. If there is one common denominator for all 5 Stocktoberfests since 2012, it's that. Guys like Josh Brown, Ryan Detrick, myself and many others are always happy to share our success stories post-Coronado Island visits. I'm certain that this year will be no different.

Every week I go sector by sector and start my analysis from scratch on both weekly and daily timeframes. This provides structural perspective to get a bigger picture outlook and then I work my way down to daily timeframes for execution and risk management purposes. This is what we call a top/down approach. Along the way, I also want to see how each sector is performing relative to the rest of the market. This relative strength analysis is usually a 'heads up' for what is to come on a more absolute basis.

Today, I want to focus on one of the most important sectors in the US Stock market and why the relative underperformance is something we want to keep on our radar.