SPY vs GLD Correlation
Ever since the first government-sponsored rescue package was thrown at the market in 2009, correlation among asset classes (stocks, commodities, currencies, fixed income) has increased. The terms ‘risk-on’ and ‘risk-off’ were coined to describe markets’ appetite for risk in general. As such, investors have not distinguished much between asset classes, for when risk was on […]
Are small cap stocks trying to tell us something?
Most of my trading activities focus around trading the S&P 500 via various execution vehicles and in different time frames. One of my indicators for clues as to the next move in the S&P 500 comes from closely following the Russell 2000. Two things I pay especially careful attention to are; 1) relative out or […]
A Bullish Sign: Weak Non-Cyclical Sectors
A very basic but time-proven way to measure risk appetite in equity markets is to follow the performance of cyclical versus non-cyclical market sectors. During times of better performing economies the so called cyclically sensitive sectors tend to outperform. Stocks such as Caterpillar (CAT) in the industrial sector or Dick’s Sporting Goods (DKS) in the […]
What Kind Of A Market We May Expect This Summer
Over the past week I was asked numerous times what I foresee for stocks during the summer months. The question may be a little too forward to fully answer at this juncture, simply due to the fact that headline and rumor risks are at ultra high levels and that has the potential to shoot risk […]
Two Industrial Stocks Into Year-End
In yesterday’s article I discussed the S&P 500 sectors performance and shed some light on the industrial sector, which I see as a potential outperformer into year-end. Today, let us look at one industrial stock to like and one to dislike into the last few trading weeks of 2012. Should stocks continue to drift higher […]
Don’t Trade On Pure Technicals The Coming Days
With the U.S. election just hours away I have received a dozen or so emails asking me how folks should trade the market these next few days. In short, unless you must trade by mandate or have in incurably itchy trading finger it might be best to just sit out and let the elections come […]
S&P 500 Sectors – Best Bet Into Year-End
With just four short trading weeks left in the year I thought we’d take a look at how the S&P 500 sectors are faring and what they may look like going into year-end. Out of the nine sectors in the S&P 500 that I am tracking using the SPDR Sector ETFs, seven of them are […]
Three Stocks To Avoid In October
The month of October tends to have its spooky aspects not only as it relates to All Hallow’s Eve but also in the financial markets. Simply by looking at the monthly absolute changes (both increases and decreases) in the VIX volatility index in October it’s clear that investors are often in for a ride. Positioning […]
ANF – Potential for a trade but not an investment
Since the recent lows in stocks back in June the rising tide managed to lift the majority of stocks higher with it. For those stocks that did not participate there are usually two schools of thought; a) they will catch up and move higher soon or b) they are weak for a reason and will […]
Opportunity In Retail Stocks Into The Holiday Season
October is here and while the holiday season is still too far away for most to give it much thought, investors would be wise to position their portfolios accordingly. The following statistics and thoughts may be of help for those considering the retail stocks sector as a potential investment. Historically, looking back to 2001 retail […]