In the first section of this article, we highlighted three key components/charts illustrating why the “rally to the peak” is very likely a result of a continued Capital Shift away from risk and into the US stock market as an attempt to avoid foreign market growth concerns. This method of pouring capital into the US stock market is a process that is driving incredible asset rallies in the US technology sector. Already the US technology sector (FANG and our Custom Technology Index charts) are up almost 15% in 2020. How long will it last and when will it end? Recently, China has revised the Coronavirus data with a sharp increase in infection cases – now over 40,000. We believe the true number of infections in China are currently well above 250,000 from video content and other data we’ve researched. We believe economic data originating from China for January and February… more
It's not exactly a centerpiece of the typical trader's repertoire. In fact, even to most investors willing to stick with stocks for the long haul, the importance of valuation is questionable. There are extreme cases where a market's valuation reaches such an extreme, however, where nobody can afford to ignore fundamentals. This is one of those times, with the S&P... more
By Michael Santoli, CNBC The way markets have been acting this year, treating high-quality American assets as a haven, makes sense. But even a sensible move can reach extremes and create distortions. The trick is trying to figure out when rational activity takes conditions to a riskier place. It’s unclear we’re there yet. That’s right — even though the coronavirus... more
Another week, another win. The S&P 500 shrugged off the potential spread of the coronavirus — again — gaining 1.57% to plow deeper into record-high territory. Once again though, the volume behind the move was not only modest, but slumped. There's just not a lot of investor participation in the move. There's simply less interest in challenging it. In the... more
By Keris Lahiff, CNBC Travel earnings are on deck this week, and it could give insight into how large an economic impact the coronavirus outbreak might have on the industry. Hilton Worldwide, which reported Tuesday morning, issued solid guidance but said the effect of the coronavirus was still unknown. TripAdvisor, Expedia and MGM could offer a better outlook when they... more
The first part of this article highlighted what we believe is the start of a broad market sector rotation setup in the US and global markets. This second part will highlight what we believe are excellent examples of sector trade setups for our friends and followers. As China continues to pour capital into their markets to stabilize the outflow and... more
Stocks got off to an amazingly good start last week, easily bouncing back from the previous week's drubbing that left the market on the brink of a major technical breakdown. But, when the S&P 500 had a chance late in the week to decisively plow into new-high territory, the bulls just weren't ready. The buyers may be able to regroup... more
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