Business cycle is still going down (as indicated by falling steel prices) and defensive sectors are supposed to outperform SPY in this environment. Lately XLU is underperforming SPY significantly, which happened twice in last several years. In 2015 it foretold a big market crash. In early 2019, while the divergence was relatively small, it predicted the May...
Year over Year growth is higher and sure to garner some High Frequency Trader attention. Sometimes a huge final quarter is last hurrah for business cycle. This is a favorite stock with Retail Traders.
Defensives XLP, XLU, and IYR should continue to outperform
Business cycle also implies more downside for EEM and likely for DAX and SPX.
Relative performance of defensive sectors XLP, XLU and IYR vs SPY. XLV performance did not follow a cyclical pattern Best fit suggests outperformance of XLP vs SPY in coming months
Business cycle points to lower long term government bond yields. US 10 year yields seem to be the most at risk. LONG LT BONDS & Bond proxies
Slowing business cycle also points to further weakness in EM equities until end of 2019 or steel prices turn higher. SPX may be more resilient but upside should be limited. IF EM equities will be under pressure, it is likely that DXY will be strong in the coming months. SHORT EEM bounces. Be cautious on SPX
Nike, the icon of footwear, reports today out of season which is not a good sign for earnings. The stock is not being traded heavily pre market, however, so the retail crowd appears to not know about this earnings report yet. The stock has already hit an extreme deviated peak in its business cycle after a fast-paced speculative run out of its prior bottom formed...
By looking at the 4-hour chart and the daily chart, the EUR/USD currency pair has taken a turn to the upside. The pair had rebounded from 1.1211 a hair below our hypothesized bullish entry point of 1.1215. The pair had a 2.5% probability of falling lower than our hypothesized support area. However, we deduced that for something like that to happen, there would...
Consumer Staples (usually a defensive investment) are taking precedence over Consumer Discretionary (usually aggressive posture, when all is well) in October. We are pressing lower and showing the largest drop in a while. This is potentially a leading indicator of some kind of slowdown coming.
Founded by Elon Musk, the company, has some rather concerning fundamentals. Don’t get me wrong, electric vehicles are the future; we need renewable sources of energy before the world reaches peak oil. Big Energy companies are slowly moving away from oil as a source of energy we are witnessing electric cars solar panels pop up everywhere the future is here and it...
Facebook has been in the limelight for tanking cause of the news , but this chart shows that the tech sector has been tanking for a while now, will it continue I don't know but my outlook is bearish until price breaks through 68.37 in XLK