Here's a very simple shorting opportunity in a name that we all know well. This is a bear market, I've been very clear about that for months. The majority of stocks have already fallen more than 10-15% from their recent highs, and in some cases a lot more. But there are a few names that have held in there despite the major U.S. Stock Market indexes falling completely apart.

Today I want to focus on Dr Pepper Snapple $DPS, a stock that is putting in bearish momentum divergences on both weekly and daily timeframes. To me, this is a great recipe for a nice correction. If the risk vs reward is in favor of the bears

Today I want to point to a chart that a really smart friend of mine has been sending me for months. He prefers to remain nameless, you know how these sell side guys roll, so we'll just call him Mr. T. In this Chart, Mr. T has been telling me since the Fall that the Regional Banks vs REITs ratio is suggesting that U.S. Interest Rates are heading lower, specifically the U.S. 10-year yield.

On the top frame, we're looking at the Regional Bank Index ETF $KRE over the REITs Index ETF $IYR. In this case, the numerator, Regional Banks, do relatively well when the market thinks rates will rise, while the denominator, REITs, do relatively well when the market thinks that rates

From the desk of Tom Bruni @brunicharting

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Telecom Threatening A Structural Breakdown

When I read about the Telecom sector or speak with colleagues about it, I find many people often think of it as a collection of companies with strong balance sheets, great cash flows, and shareholder friendly actions like juicy dividends and share buybacks. While that may be true in many cases, that doesn't necessarily mean that the sector can be utilized as a bond proxy to boost a portfolio's yield. As we saw in recent years with sectors exposed to high-yield, and MLPs, there's no such thing as a free lunch. In addition to that, simple math shows that Telecom hasn't been correlated with bonds (TLT) at all over the past ten years, with the correlation being 0.29, 0.19, and 0.08 over the past one year, three years, and ten years, respectively.

If you had adopted the above philosophy, stuck this sector in your portfolio and hoped for the best, you've seen that

In all markets, there are uptrends and there are downtrends. And then, of course, there are periods where there is no trend at all and it's just a mess. Ultimately these messes find away to clean themselves up and a new beautiful trend is born. This is just the evolution of markets, that by definition trend. It's our job to try and find them early in their growth, or, on the other hand, look to benefit from the downside of an aging and changing trend.

It's the sideways markets with no trend that'll get you. This is what some of us refer to as a chopfest, and is exactly what we've seen in the 10-year note yield over the past couple of

From the desk of Tom Bruni @brunicharting

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Potentially Time To Fade The Natural Gas Rally

With Natural Gas futures up roughly 48% since the December lows, the urge to call a bottom in this asset class is quite strong. However, history tells us that the most vicious rallies occur during bear markets, which may suggest that current levels offer a decent risk/reward on the short side.

Before taking a look at price, it's important to be aware of current sentiment and seasonality data within its proper historical context. In terms of sentiment, the recent rally has allowed a number of things to occur

This year has gotten off to an awfully noisy start. When you consider that most of what we've seen in the first week of 2016 is just a continuation of ongoing trends, you would think that people would consider this to be normal. But since there is a change in calendar, people rather freak out and the noise levels are spiking for little reason. Trends typically continue, rather than reverse course. So why should a change in the calendar year make that any different? It doesn't.

I want to invite all of you this Thursday January 12, 2016 to a FREE Webinar that I'm putting on where we will all remain calm, go over the biggest ongoing themes across the global marketplace, and figure out how to continue

With all the noise surrounding the recent sell-off in the U.S. stock market, it can be easy to forget that there are some areas of the market doing much better than others, and there is a lot of money to be made in the widening of those spreads. This is where intermarket analysis and ratio analysis can really become profitable for a portfolio. Today we are looking at the biggest companies in America, as a group, breaking out to new highs relative to the smallest companies in America: the Micro-caps.

What this ratio tells us, as investors, is the direction of the flow of money. Are institutional dollars flowing into the riskier, smaller companies in the stock market, or is it going into the larger, more traditional, relatively safer segment of the market that is, the Mega-caps. To me, there is no better gauge out there for the Mega-caps other than the old Dow Jones Industrial Average. The 30 components that make up this Index are 30 of the largest companies in America: Apple, Microsoft, Exxon, JNJ, General Electric, etc. When we compare this group to the Russell Micro-cap Index, we get a very clear picture of the direction of money flow.

Ladies and gentlemen, let me introduce you to Tom Bruni @brunicharting

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Non-Correlated Short Setups In Live Cattle

With every global equity market down to start 2016 and media outlets declaring "Markets In Turmoil", it can seem like there are no opportunities to make money in this environment. While it may be true that it's difficult to press shorts while stocks are extended in the short-term, and even more difficult to try to make money on the long side until global markets stabilize for a few days, as market participants we can look at all liquid asset classes around the globe for opportunity.

With that being said, Live Cattle Futures are a non-correlated asset that look interesting on the short side.

From an structural perspective, Live Cattle Futures

We're down 9% from the all-time highs in the S&P500 and I see people acting like 2-year olds that just had their favorite toy taken away from them. "Markets in turmoil".....really? Why, because the market is down 9% from it's highs last year after rallying over 220% over the prior 6 years? Please.

If you don't live in a box and have access to any data that came before tinder was invented, you'll easily be able to see how perfectly normal it is for markets to go both up and down. As someone who looks at stock markets all over the world, commodities and currencies, I see things get absolutely destroyed all the time. Look at the British Pound lately, look at the agricultural commodities,