Transports look ready to take another leg lower should they break these levels. Barometer portfolios have elevated cash and are hedged with index futures. Should short and long term indicators start to reverse, hedges will come off and cash will be deployed. No sign yet that short term correction has run it’s course. 

Unless equities rally to end the afternoon, today will go down as a follow thru day to the downside. The early week bounce appears to be failing. Breadth has been weakening in major indices opening the door to seasonal weakness. Barometer portfolios are hedged with index futures and have reduced long positions over the last […]

Mondays market action was clearly much better than at the end of last week. Indices and sectors rallied into the gaps that were left when the market dropped Thursday. From here, follow through would be required to become more bullish however, no short or long term breadth indicators reversed back positive with Monday action. Bullish percent […]

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What can be gleaned from yesterdays move higher in financials as it relates to forward looking returns. $XLF $IAI $KBE $KCE Click here to watch 2 minute video

Much has been made of the recent tight ranges in many asset classes. It appears that we are moving through the end of thes tight trading ranges. Bond prices appear to moving lower…bullish for interest sensitives like financials, and industrials. And energy shares after consolidating their move up from the lows in January appears to […]

From a BAML report, their Sell Side Indicator is based on the average recommended equity allocation of Wall Street strategists as of the last business day of each month, they have found that when Wall Street strategists are bearish, markets tend to go the other way. In fact, with BAMLs indicator at the most bearish level […]