S2N Spotlight
No spotlight today.
S2N Observations
Who is going to bet against the S&P 500 making 6,000? I am short already, but I think it will need to get this number out of its system.
Interestingly, we still have a Dow Theory non-confirmation. This is when the Dow Jones Industrial Index and the Dow Jones Transport Index don’t make new highs near each other. I cannot help but think its important, but then I ask myself, how is the Transport Index relevant anymore? I am a student of history, and Dow Theory has a long history, so I share it.
To look at the transports more closely.
In a similar vein to Dow Theory I find looking at Gold and Gold Miners interesting. Here is a major non-confirmation. I wish I knew what this was telling us. There is a story untold with this chart.
I haven’t looked at Canada’s stock market for a long time. It is also enjoying a bull run of note.
The market is in the throws of bull market euphoria. If you look at the corporate bond yield spread or lack thereof, we certainly are not pricing in any great corporate collapse.
Finally, I don’t usually look at sectors of an exchange; I prefer to focus on the big picture. However, this chart cried out to me to short it. I think the risk-reward payoff profile of this setup is awesome if you put a stop at the recent high.
Performance Review
For those who are new to the letter, the shading is Z-Score adjusted so that only moves bigger than usual for the symbol are highlighted.