#DJI: DJIA leading the charge?
Updated
We have an interesting situation, at least for the following 6 weeks...After the jobs report, the market is repricing the timing of tapering and eventual rate hikes it would seem. Financials had underperformed for some time, and 
QQQ and 
SPY moved higher thanks to growth names regaining strength, while bond yields were falling and a big unwind of losing yield curve steepener bets were unwinding. I had pointed out the strength in growth and bonds before, and rotated away from value and financials/energy when I figured out the reflation move had ran its course.
At least financials are prone to do very well for the next few weeks, as the weekly uptrend in
TLT expired, and predicts a 6 week sideways or down move in bonds, which is connected to mean reversion following a furious move caused partially by the unwinding of big yield curve bets. News of the hedge fund that took the hit were recently published, which made me think the move in the yield curve is overdone and bound to mean revert. This will favor US banks for some time again. We also observe this behavior in the 
DJI chart here, and the SPY and QQQ weekly charts.
BothSPY and QQQ have weekly trends that expire in the next 2 weeks, which can lead to a sideways or downside move after the last short term upswing takes a breather.
I'm still bullish longer term overall, in names like
AAPL, 
TSLA and 
NVDA to name a few, but they might correct or consolidate in two weeks, while US Banks soar.
The trend will likely go back to lower bond yields and outperformance of growth later on, but for now it is the time of theDJI to shine over SPY and QQQ, specially in 2 weeks from now.
Cheers,
Ivan Labrie.
QQQ and SPY moved higher thanks to growth names regaining strength, while bond yields were falling and a big unwind of losing yield curve steepener bets were unwinding. I had pointed out the strength in growth and bonds before, and rotated away from value and financials/energy when I figured out the reflation move had ran its course. At least financials are prone to do very well for the next few weeks, as the weekly uptrend in
TLT expired, and predicts a 6 week sideways or down move in bonds, which is connected to mean reversion following a furious move caused partially by the unwinding of big yield curve bets. News of the hedge fund that took the hit were recently published, which made me think the move in the yield curve is overdone and bound to mean revert. This will favor US banks for some time again. We also observe this behavior in the DJI chart here, and the SPY and QQQ weekly charts.Both
SPY and QQQ have weekly trends that expire in the next 2 weeks, which can lead to a sideways or downside move after the last short term upswing takes a breather.I'm still bullish longer term overall, in names like
AAPL, TSLA and NVDA to name a few, but they might correct or consolidate in two weeks, while US Banks soar.The trend will likely go back to lower bond yields and outperformance of growth later on, but for now it is the time of the
DJI to shine over SPY and QQQ, specially in 2 weeks from now.Cheers,
Ivan Labrie.
Note
An example is 
WFC: Last rally was from a weekly signal on April 13th to May 21st or so.
Note
Off to a good start.
🔒Want to dive deeper? Check out my paid services below🔒
ivanlabrie.substack.com/
ivanlabrie.substack.com/
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.