FEBRUARY 11th, 2019

Macro-Monday

Line chart showing the SPY Bull / Bear ratio over the last several years. Click to enlarge.

The SPY Bull / Bear ratio continues to improve, heading back towards the 1.50 area.  However, the SPY does have the 200 day SMA to break, while at the same time the OB/OS oscillator is retreating.  It seems a pull back is in order before another possible run at the 200 day.    Such a pull back may be just shallow enough for the OB / OS oscillator to fall to, or below, the 30 line.  We'll have to wait and see.  

Sector rotation and our sector Bull / Bear ratio chart continues to favor defensives,  however, a deeper dive reviled some less defensive leading sub-sectors.  Lets not forget about bonds.  Bonds continue to show strength, in today's video Mike points out a bullish chart pattern on the /ZN futures that could be pointing to high bonds prices and lower interest rates.   LAstly, in today's video we manage our various option positions and go over a new  option strategy we are going to test using the Chaikin platform alongside our own set of rules. 

Watch our Monday video HERE