Our macro-monday analysis shined a little light on defensives gaining strength, utilities in particular. However, our stance remains mostly bullish as the bull : bear ratio has now creeped just above 1.0 The RMSK indicators we have incorporated into our macro monday meeting are also painting a bullish picture with dry shipping index $BDRY showing sustained strength along with consumer discretionary $XLY Watch the video above for our complete macro monday.
This week we managed the International and Macro side of our simulated ETF portfolio. Despite recent price strength wee continue to liquidate our gold position based on our rules. Golds long consolidation near highs has caused relative strength to wane. On the buy side in macro, we added to our silver position. We added more risk on the international side this week than in weeks past, as relative strength in some international ETFs is finally showing up. Our purchases below. Note: we would have purchased more Q's, however, based on our rules we our maxed on Q's on the international side of our simulated portfolio. Watch todays video to see how we use chaikin Analytics and relative strength to manage our paper money portfolio.
relative Strength wednesday
We discover a little jockeying for position mid-pak during this weeks relative strength Wednesday. Discretionary and materials flip-flop, while financials appear to be running on fumes. Watch this weeks video to see how we use Chaikin Analytics to identify relative strength in the market.
AS the bull : bear ratio on the SPY tries once again to capture 1.0 we saw an interesting rotation this week. Healthcare and materials strength on a fundamental basis, according to the Chaikin power Gauge ratings. Meanwhile gold, emerging markets and small caps show strength on a relative strength basis.
Litt change over the last several weeks atop out Relative Strength Wednesday analysis. XLK, XLY,XLC and XLV jockey for position but remain front of the pack. The cyclicals continue to waiver, while real estate looks slightly more bearish each week. Watch todays video to see how we use Chaikin Analytics to gauge relative strength in the market.
Below is a relative strength rank trend vs. SPY. We use a relatively new indicator called RSMK, which measures relative strength vs. an underlying index over a specific lookback period. Below, we're trending multiple lookback periods up to 200 days. It's simply a rank of relative out or underperformance of each ETF vs. the benchmark SPY.
Below are long running macro indicators, including our daily look at the Chaikin SPY bull:bear ratio. Also displayed below our trending chart of SPY Sector bull:bear ratios. Looks as if the market may be tapping the brakes just a bit as discretionary continues to weaken and financials take a fundamental hit. Lastly, trending Chaikin RS scores, six month look back against the SPY. EM makes a move this week and gold hangs in.
Recent strength in the Dry Shipping ETF and commodities, particularly metals bear watching. The rest of world, ex-US (EFA, EEM and VEU) all showing relative strength in past 10 to 15 weeks.