From the desk of Tom Bruni @BruniCharting

Copper is important for a variety of reasons, but it's often discussed within the context of global growth expectations.

Given we just hit 2-year lows it may be a good time to discuss Dr. Copper, why he may be headed into "critical condition", and what it could mean from an intermarket perspective.

We've wanted to be erring on the long side of stocks if the major Indexes are above their 2018 highs. That has been the strategy for the second half of 2019. But what if we're not above those highs? Then what?

This is the question I often ask myself. In which direction is there the most risk? Are we better off looking for stocks to buy or looking for stocks to sell? There is no need to make this complicated. Where are the probabilities of success skewed in our favor?

You're well aware by now that I spend a lot of time looking through charts in the U.S. and around the world. We have Indexes, Sectors, Stocks and other assets throughout My Chartbook. One thing I learned a long time ago is to also pay attention to the bellwethers. It's a word that gets thrown around a lot, but we take it a little more seriously around here. There are only a few of them and today I want to draw your attention specifically to what is happening in shares of J.P. Morgan.

Today we're looking at a chart that highlights a major divergence that's plagued the Indian stock market since January 2018.

We've spoken about this topic in the past, but keep drilling it home every few months because it remains one of the key reasons why Indian Equities as an asset class are struggling.

Do you see how stocks and gold can make new highs at the same time? Who said they couldn't? Why does it have to be one or the other? The current market environment is a great reminder of this. Don't forget it.

So? Should we expect Gold and Silver to keep going? 

From the desk of Tom Bruni @BruniCharting

JC and I are generally on the same page about a lot of things, but this week our brains seem to be very in sync as we're writing about the same topics with a slightly different spin on each subject.

Yesterday JC spoke about how US Equities can do just fine, actually really well, during periods of Small-Cap underperformance.

Today I want to take a more granular look at the Russell 2000 and see what its recent price action has in common with the Euro Stoxx 50.

From the desk of Tom Bruni @BruniCharting

Every week I go through my chartbooks and think about what should be highlighted as our "Chart of The Week", something that speaks to a theme that people need to know about.

Sometimes I have trouble choosing just one chart, but this week it's a no brainer in my opinion.

Silver.

What do we know about new all-time highs? We know they're not a characteristic of a downtrend.

I often get that guy that comes to me and says, "Well every new downtrend must start from a new high". Yes, and that must be a great way to go through life.

You see, markets trend. That's why Technical Analysis works. That's why this is so valuable. Because if you can recognize the direction of the underlying trend, you're already way ahead of the pack. The likelihood for a trend to continue in its path is exponentially higher that for it to reverse. A 4-year old can recognize if a chart is going up, down or sideways. It's the adults that have more trouble with this.

As I went through all my weekly charts this weekend, I noticed an interesting underlying theme: New Highs.

From the desk of Tom Bruni @BruniCharting

JC beat me to writing about Interest Rates this morning, but while I came to the same conclusion I wanted to add some additional perspective that shared on Real Vision this past Monday.

While that segment was about Mid-Cap Industrial stock Herman Miller Inc., a big part of that thesis is that we're seeing US Rates begin to stabilize.

The chart I want to share today is the Regional Banks/REITs ratio, which highlights an "Interest"-ing divergence between Equities and the Bond/Commodities markets.

If you're familiar with our analysis, you've probably noticed that Fibonacci Extensions and Retracements play a vital role in our process.

From setting upside objectives to identifying areas of potential support and resistance, Fibonacci is a versatile tool.

As with any tool, there are times when it works better than others. And while we don't want to get into every intricate detail of how and where we use it, we did want to share a great example of Fibonacci in action.

From the desk of Tom Bruni @BruniCharting

We've been bearish the Micro/Small/Mid-Caps relative to Large and Mega-Caps from a structural perspective for most of the last year, however, last week's rally confirmed the conditions we look to indicate potential outperformance in the coming weeks and months.

From the desk of Tom Bruni @BruniCharting

We just sent out the Top 10 Charts of The Week Report that goes out to our Institutional Clients every Wednesday morning, and while I may be biased, I really enjoyed putting together week's edition.

We discussed a few market themes as we typically do and then identified several actionable trade ideas on both the weekly and daily timeframes.

With that said, I wanted to share one chart and its caption because I think they sum up the current market environment pretty well.