I last wrote about the Fed Monetary Stimulus Program “Canaries” in my post of February 6, 2013. As a reminder, I chose six of of them (ETFs) in order to determine their relative strength/weakness against their respective Stock Market Index, since they may have held clues for further accumulation of riskier assets due to respective Central Bank stimulus programs.
So that we can compare their current relative strength/weakness, I’ve provided the following 3-Year Daily ratio charts for each “Canary.”
XLF:SPX ~ U.S. Financials ETF has, basically, traded lock-step with the SPX since my last post. A recent breakout has brought price back to re-test this breakout level. We’ll need to see 0.0120 held if XLF is going to resume an outperformance of the SPX. (more…)