Weekly Commentary

I’ve been keeping a close eye on the Sector Rotation model and its bullish signals from the September 2010 market low (the onset of QE2 Rumors) and the model has held-up well. Let’s take a look at two perspectives of recent Sector Performance – one from the February 2011 top and the other – surprise…

How far will the current pullback in the “Risk-On” markets last?  Has the pullback already ended and are we going to start marching on to new recovery highs? Let’s take a look at the current weekly chart picture in the S&P 500, Gold, and Oil to see weekly lower support reference levels should these retracements…

There’s an interesting similarity of price reference levels for the three main “Risk-On” markets – as they’re all balanced at critical support levels. Let’s take a quick look at the reference levels to watch this week in the S&P 500, Gold, and the newly volatile Crude Oil: First, the key level in the S&P 500:…

I’m a huge proponent of segmenting the broader stock market into sectors and then comparing which sectors are outperforming the other using insights from the classic Sector Rotation model. I came across a new way of viewing sector breakdown performance from FinViz’s website with their Group Screener Grid tool and I wanted to share that…

The US Dollar Index continues to flirt with a long-term (3-year) Trendline and critical support level which traders are watching very closely. Let’s take a moment to look at this trendline and level as it stands now in the Dollar Index: We’re seeing the US Dollar Index ($DXY) on the Daily Scale (though a weekly…

The topic of QE2 and endlessly rising markets has been the talk of the town lately – and for very good reason. Let’s take a quick objectively look at some of the cross-market charts with a focus on trend and percentage change since the July period, including August 27th when the first rumors of QE2…

What does it mean when someone says “The SP500 is really, really overbought?” There’s many ways to measure “really, really overbought” objectively, and one of those is to compare the percentage price is extended from a certain moving average, for example the 200 day simple moving average. Right now, price is just over 14% extended…

If you’ve been watching bond prices over the last few weeks, you may have thought there was nothing to stop price from going off a cliff. However, price has now pulled back to a critical long-term trendline level that traders are watching very closely to see if the selling stops here… or breaks the major…

Many investors and traders look to copper prices to gauge the strength or weakness of the economy, as copper is an industrial metal used in all sorts of construction projects. If that sentiment holds true, then copper just sent a big “economic recovery” message this morning, as it has been doing over the last few…

What are the long-term Fibonacci retracement levels to watch on Crude Oil?  Did you know that oil is pushing right up against a major Fib level right now? Let’s take a look at monthly Crude Oil to see this level and what the larger IF/THEN possibilities are at this time: A quick long-term look traces…