From the desk of Steve Strazza @Sstrazza and Grant Hawkridge @GrantHawkridge

The credit market is overflowing with information. 

We haven’t discussed it too much lately… but that doesn’t mean we aren’t paying close attention.

It would be foolish to overlook it. After all, they call Bond traders the “smart money” for a reason... Right?

We’ve recently discussed the theme and likely implications of how so many major stock market indexes - in both the US and abroad, are hitting very logical levels of overhead supply right now.

We think it’s no coincidence that all of this is occurring at the same time. And you’ll never guess what else…

We’re also seeing this very same behavior from some of the most important Bond Market ratios we track, as many are currently running into crucial inflection points.

From the desk of Steve Strazza @Sstrazza and Grant Hawkridge @GrantHawkridge

Following an onslaught of bullish initiation readings for US stocks last year, global equity markets began to register similar breadth thrusts earlier this year.

In this post, we'll take a look at those thrusts in addition to the current state of international stock market internals.

We'll even take a quick look at some of the differences we're seeing take place beneath the surface in various global markets.

Let's dive into it.

From the desk of Steven Strazza @Sstrazza and Grant Hawkridge @granthawkridge

Check out our latest Mystery Chart!

What we do here is take a chart that’s captured our attention, and remove the x and y-axes as well as any other labels that could help identify it.

This chart can be of any security, in any asset class, on any timeframe. Sometimes it’s an absolute price chart, other times it’s on a relative basis.

It might be a ratio, a custom index, or maybe the price is inverted. It could be all three!

The point is, when we aren’t able to recognize what’s in front of us, we put aside any biases we may have and scrutinize it objectively.

While you can try to guess the chart, the point is to make a decision…

So let us know what it is… Buy, Sell, or Do Nothing?

From the desk of Steve Strazza @sstrazza and Grant Hawkridge @granthawkridge

Marijuana stocks have been smoking hot over the trailing quarter, with the Alternative Harvest Marijuana ETF $MJ more than doubling since the election on November 3rd.

Considering this new leadership role over the near-term, today we're going to do a follow-up on our last deep dive into the space, which we published last fall.

Back then, we were simply looking for a bottom and mean reversion move higher, which we got... Now, with the industry making new highs, we want to see how things are looking on both an absolute and relative basis.

And as always, we'll check in on some of our past trades in the space and highlight today's strongest stocks, along with trade setups skewed in our favor that we want to use to express our bullish thesis.

Before we get into the weeds, let’s start at the industry level with the Alternative Harvest ETF (MJ).

From the desk of Steve Strazza @sstrazza and Grant Hawkridge @granthawkridge

They say the Bond Market is where the smart money is. Maybe it is. I have no idea.

What I do know is that it's where a lot of the smart information is.

Due to the diversity among credit instruments, there is a swath of unique data that we can use not just for Bond prices and Interest Rates but also to glean insight into other asset classes.

I'm talking about things like TIPS for inflation expectations and Emerging Market or High Yield Bonds to analyze risk-appetite for other assets such as the stock market.

Alpha has been in Equities and risk-assets for a while now. As such, we haven't needed to discuss bonds from a portfolio perspective... but that doesn't mean we aren't paying close attention to these assets.

The Bond Market is overflowing with information. We'd be foolish to neglect it.