Midnight Ketchup

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Let’s thumb through a smattering of ETFs before Wednesday’s open. First up is Mexico (EWW), which has broken its intermediate term uptrend.

slopechart EWW

The small caps, my present obsession, has mercifully not pushed through its horizontal. (I am pleased to say every single one of my shorts is profitable as of Tuesday’s close, in spite of that day marking the highest point in human history for U.S. equities).

slopechart IWM

The Dow Transports (IYT) had broken out last week, but they’re leaking back into their 2019 range.

slopechart IYT

Banks (KBE) likewise broke bullish last week, but they have been hemmed in by the long-term trendline. Banks have been pulsing higher since early October, but my view is that the cyclic pattern within their ascending channel is going to make the next move lower.

slopechart KBE

Lastly, a longer-term chart, and this one of the US dollar versus the Chinese Yuan. I have always held that, as long as the USD/CNY is bullish, U.S. stocks are in harm’s way. This bullish pattern has help, and should it rally, my opinion is that stocks will resume their troubles.

slopechart USD CNY