The Road Most Traveled

But what happens when the merry-go-round stops?  Are investors prepared for the carnage that may ensue?  We have built Market Gauge to help investors, like you, NOT LET THIS HAPPEN. The indices (SPY, QQQ, Russell 2000 and the DOW) continue to go up without a proper correction or retracement.  It will happen and it is anyone’s’ guess when and how bad it happens. Make sure your risk/trade management is in place before you make any trades.

Here are this week’s latest highlights:

  • Risk Gauges reversed course and are now in full risk on mode with US equity benchmark now up 6% YTD on average
  • Long bonds (TLT) broke down under long term support, steepening the yield curve which if continues could pressure stocks
  • Grandpa Russell (IWM) roared, up +7.83%, for the week and 12.85% YTD
  • Utilities (XLU) and Consumer Staples (XLP) both risk off plays underperformed, confirming the bullish outlook
  • Transportation (XRT) lagged, diverging from Energy (USO), giving a mixed message on the recovery that the market is betting on
  • The Retail sector (Grandma retail (XRT) sold-off -10.4% last week as the short squeezes on stocks in that sector abated, but its still up
  • Biotech (IBB) bucked weakness in the Healthcare sector, not surprising with the world focusing on technology to solve medical issues
  • Real Motion (momentum) on the four benchmark stock indexes is still diverging from price action but back into a neutral zone
  • Market Internals reversed course with the McClellan Oscillator back on a positive footing
  • Volatility (VXX) retreated and is on the cusp of breaking long-term support which if it does will confirm more room to this relentless bull run
  • Soft Commodities (DBA) matched the performance in equities and bucked the sell-off in Gold (GLD) giving us a confused read on inflation

Have a great week.

Video Length: 00:09:32

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