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. Transportation stocks have been a huge winner for us and we'll be discussing the sectors and assets that I think can behave in a similar manner in the coming weeks and months.
This month's Conference Call will be held on Wednesday December 14, 2016 at 7PM ET. Here are the Registration Details:
I like to keep an open mind. The one thing I'm certain of is that I'm not certain of anything. So I weigh all of the evidence and then try to find the best risk vs reward opportunities based on the cards that we've been dealt. We can't let our emotions impact our decision making, it has to be 100% dependent on the data at hand. Today, I think one of the more interesting situations is in the US Dollar Index.
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:
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.
