Our Macro Monday analysis backs up our mostly bullish opinion. Amongst us we have varying degrees of bullishnish, but can't argue the data. A widening bugle, acceleration in the small caps and the SPX looks determined to re-test all time highs. Watch today video to learn how we use Chaikin Analytics to assess the market from 30,000 ft, then see how we square with Marc Chaikins weekly news letter.
part 1, etf management
We had hoped to add to our paper money portfolio this week. We spent the time to determine we wanted to add $EWG, $EWD, $EWY, $COPX and $GLD. However, we noticed we were over invested. So instead we liquidated a few trounches in $SLV, $QQQ and $EWT. We remain a little over invested. Any additional purchases we want to make in coming weeks will need to be preceded by liquidations.
MAcro Monday looks awfully bullish. As the indacies approach all time highs, which of course the Q's have already achieved and surpassed. The Q's are rolling up, out of overbought and today's action likely to result in the SPY OB/OS oscillator reversing prior to reaching oversold. We discuss the possibility of a dollar bounce and a corresponding commodity move. Watch todays video to see how we use Chaikin Analytics to assess our 30,000 ft view.
We remain at our cap in tech but added to several of our U.S. sector 1&2 positions this week. In U.S. Sector 1 we added XLY and XLB. Sector 2 saw us add XHB,XHE,XRT. Additionally, there we no forced liquidations this week. Watch todays video to see how we use Chaikin Analytics along with our rules to manage a simulated ETF portfolio.
Today, we used macro-economic analysis of futures and ETFs and Chaikin Analytics to make assumptions about the market. We are bullish, but expect a dollar retracement of its recent breakdown to slow the pace of commodities and metals. But, at worst a minor pullback. More likely some sideways consolidation before another move higher. Institutions are piling into metals and commodity based ETF's. Even the dryships ETF is involved. After our analysis, we compare our findings to Marc Chaikin's weekly investor note. We appear to be on the same page.
Despite recent price appreciation, our rules forced us to liquidate our remaining gold position. Golds long sideways consolidation has caused relative strength to fall below our relative strength benchmark, ACWI. Gold was not alone in liquidation this week. We will likely look back at this week as a whip-saw in the case of a few of our liquidations, including FXI, but must follow our rules. Turning to acquisitions, silver and copper met our rules as well as Germany, Taiwan and Sweden. Watch today's trading video to see how we use Chaikin Analytics along side our own rules to manage a simulated portfolio.
Relative STrength Wednesday ( tuesday)
A day early this week, regardless our relative strength wednesday highlighted continued strength in materials. The rotation into materials has been ongoing for several weeks,. XLB now sits atop our relative strength analysis along with the XLK. XLE and XLRE continue to be the laggards of the recovery. Watch todays video to see how we use Chaikin Analytics along with our proprietary scoring method to gauge and track relative strength in the market.
Our Macro Monday analysis revealed widening bugle, as more SPY sectors are now outperforming the SPY it self on a fundamental basis. We also note the SPY Bull, Bear ratio now approaching 2.0 while overbought. We also dive into our newest addition to Macro-Monday, RSMK analysis.