macro-monday
Macro-Monday
Relative Strength Rotation
Below, I've ranked relative strength of various regional equity, currency and commodity ETF's vs. the SPY across multiple lookback periods. I'm using a relatively new indicator, RSMK. Each column measures and then ranks the strength of each ETF vs. SPY for the lookback period in each header (The lookback period is a 3 day moving average of relative strength vs the SPY). The higher the underlying RSMK score, the higher the relative rank vs. all ETF's measured. Any ETF that ranks higher than SPY has a postive strength divergence and those ranked lower are underperforming. Ranks are trended over multiple lookback periods from 200 days to five days so that traders can assess the general trend of relative performance. Collum S, ranks the most recent 3 day moving average of price performance of each ETF vs. the SPY compared to five days prior. ILF (Latin America) ranks first and BDRY last. ILF has demonstrated superior RSMK rank performance for a couple of weeks now and the trend of outperformance has been strengthening over the past 45 to 50 days. This doesn't mean lower ranked ETF's are all bearish. When market is going up, lower ranked ETFs using this metric could be uptrending, but at a lower rate. Relative strength trend is best used in conjunction with other Chaikin metrics for consistent outperformance.
The Bull / Bear ratio has maintained a level greater than .50 for several days now. We also noticed a increased fundamental strength in some defensive sectors, as shown in the sector bull / bear chart below.
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