"Everyone has a plan 'till they get punched in the mouth" - Mike Tyson

July 06, 2014

Rotation report 7/6/14

A lot of new themes have popped up in the last few weeks.  Let's dive in

Are industrial metals leading China?  The S&P group index has broken out to 15 month highs.  


The Shanghai composite has found support at 2000 throughout 2014 with the weekly RSI settling into a neutral range.  

The FXI / SPY ratio has broken a nearly two year falling wedge.  This is a major turning point that asset allocators need to be aware of.

The China real estate ETF has broken out of an 18 month consolidation.  Is the vaunted real estate bubble completely baked in?  Heck yeah.

The EEM hit 3 year highs last week as it's RS vs SPY forms a bullish consolidation pattern.  It sure appears emerging markets can outperform in the second half.  


The S&P 500 relative to the 30 year US treasury has broken above 2008 highs.  Does it stick?

The Silver/Gold ratio is at 1 year resistance.  We could really see some traction in the group if silver takes it's leadership to the next level.

Specialty Retail has broken out of a half year consolidation.  Is the consumer stronger than we think?

That consumer breakout is coming as energy starts to pull back.  A coincidence?  Definitely not.

Give me a follow @atmcharts on twitter and @a_jackson on stocktwits for daily notes and ideas not posted here.

Trade 'em well!

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All ideas shown on this blog represent the authors opinion based on the data available.