Commodities, led by oil, have been very strong since December 26th (just like equities). We are approaching the 50-day EMA, however, which could be an exhaustion point for this sector.
Soft Commodities
Slope of Hope Blog Posts
This is the heart and soul of the web site. Here we have literally tens of thousands of posts dating back over a decade. These are listed in reverse chronological order. You can also click on any category icon to see posts tagged with that particular category.
Retail Short
In honor of Sears’ demise today, may I offer this short idea: the retail exchange-traded fund:
Consumer Staples Diamond
I stumbled upon an extremely well-formed diamond pattern last night with the symbol XLP, which is the consumer staples ETF. I’ve drawn it below with the SlopeCharts polygon tool:
DRIP Rip
If you watch my tastytrade show, you’ll recall I had pointed out some powerful formations in the energy bearish funds. DRIP has been absolutely on fire lately:
ETF Video Review
Where the Nuts Come From
Once again (so far at least), we got out usual schtick from the market: green prices all over the place for absolutely no good reason, and then a reversal. It’ll be nice if it actually manages to drive lower again. I miss those days.
While we are waiting, I wanted to point out again my fondness for Brazil as a short, by way of the symbol EWZ. Here’s the pattern with its Fibonacci retracements:
Short Emerging Markets Bonds
It’s Time to Short Bonds
Emerging Averages
I suspect the market is going to be in a state of “arrested development” today and tomorrow, since everyone and his brother is waiting for the stupid G20 to finish and some kind of announcement (or lack thereof) to be made.
In the meanwhile, let’s take a look at the emerging markets ETF, which has been steadfastly bearish all year long. I’ve circled in red where the respective crossunders took place with the exponential moving averages (50/100/200) and have tinted each “lower high”. This downtrend will remain intact as long as no “higher high” takes place.
Why Bother?
I noticed on a different site someone mentioned the fund SHE, the “gender diversity fund“, and I thought they were just doing a politically correct joke. Sort of a riff on all the virtue signaling going on these days. Nope. This is real. There is seriously a fund based only on having more women than usual in senior management positions. And as you can see below, comparing SHE to the male-dominated SPY, those women sure do make a gigantic difference in investment returns. I’m sure it makes the lack of liquidity and wider bid/ask spreads totally worth it.
