I was playing around with the Future Trend function in SlopeCharts this morning, and the results I was seeing among ETFs was fascinating. Since Future is based on past price behavior, it is very, very, very biased to the upside, because – – in case no one mentioned it here on Slope – – central bankers have firehosed trillions of dollars of “money” at assets for the past eleven years, so things are tilted skyward.
With that in mind, let’s take a look at what is projected. The “diamonds”, the ETF based on the Dow Industrials, looks poised to continue marching in perpetuity. What I find really interesting – – and you’ll see this on many charts below – – is how obedient even future price action is with respect to the drawn objects.
The emerging markets paints a similar picture, although with a downturn projected in the autumn.
Brazil marches higher as well. Take note, yet again, of the behavior against that trendline. I find that to be mesmerizing, since these price points aren’t programmed to cling to these things. They are simply my own trendlines based on prior price behavior.
There was a time when stocks and bonds moved in opposite directions. Typically, observers would note that people were leaving the riskiness of equities and seeking a flight to quality into bonds. Well, the correlation is quite the opposite now, with stocks and bonds cheerfully moving higher together. Indeed, the 40-year bull market in bonds isn’t projected to be interrupted. Instead, it is more resolute than even equities.
Precious metals, however, look slated for weakness. Below is the triple-bearish-on-miners symbol DUST. Take note of the approximately 80% rise in price anticipated. Also note how it ultimately doubles, coming to rest at the already-existing horizontal.
The upside-down version of this can be seen in triple-bullish fund JNUG, which is based on junior miners. It gets squished.
I also find the crude oil chart interesting, since it is quite clearly cyclic.
A broader view of commodities is shown here:
And, lastly, the agricultural fund.
Pretty cool, isn’t it? I had actually not used Future Trend in ages, and it was a kick going through these. Slope has truly become so feature-packed that I am forgetting all the amazing stuff we have in here.