Daily Archives: November 15, 2017

Eye on IWM Versus SPY:  Is Bull Market Losing Steam?

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On November 6, we noted in our Mid-Day Markets update that a comparison of the SPY and IWM showed a deterioration in the Russell 2000 small-cap ETF relative to the big-cap SPY. We said that as long as IWM was trading below its 20 DMA at 149.11, we would view it as vulnerable to downside continuation off of its Oct 9 all-time high at 150.58.

We were watching and continue to watch this SPY-IWM relationship closely, as, historically, in the later stages of a bull market, a divergence is very likely.  In other words, as a bull market loses steam, small companies lose upside momentum relative to the “go to” mega-capitalized companies. (more…)

Hong Kong Hits Resistance

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Today is profitable, but God in heaven it’s boring. The buy-the-dip crowd is committed to destroying the market utterly, and as usual the lows of the day were established at the opening bell. So let’s just say my heart’s not really in it.

As a comment cleaner, I’ll just throw out the symbol $HSI which is the Hang Seng Index. It’s near the pre-financial crisis highs of 2007, yet its long-term trendline is broken and it’s mushed right up against the underside of the same line. Just another data point to suggest that weakness lies ahead, although it’s quite apparent such a body of evidence is having trouble against the BTFD mob.

1115-hsi

Eyes Without a Bass

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Since I don’t really play any musical instruments, I’ve always been fascinated by those who do. Many of the layers of a song are missed as we enjoy it, but the bass line to Billy Idol’s “Eyes Without a Face” is really cool, so I thought I’d seek out a guy playing just the bass part. I find this mesmerizing (and if nothing else, it’s cool background music while you do your trading):