Updating a Few Market Indicators

Some daily charts of market indicators that could come into play at any time.

[edit] I forgot Staples vs. Discretionary; let’s pop it in here and ask whether it was a false positive when it bounced. This is still technically in the condition it was in in 2007, big picture wise (ref. monthly chart we’ve viewed on occasion), though lately threatening to undo the bearish setup. Today it gets dinged.

xly/xlp

Gold/Silver ratio is a bit hysterical. So far that only brings pain to the precious metals and commodities – as it usually would – but it is certainly not favorable to the fiscal ‘reflation’ theme either.

gold/silver ratio

VIX got humiliated recently and is trying to pull itself up off the mat. It’s not a timer, but it is indicative of full frontal complacency in the markets.

vix

While Junk is actually positive vs. Treasury today and is around even vs. Investment Grade, nominal Junk is getting dinged. When Junk and its ratios to higher quality bonds start to drop, a warning will be in.

hyg

Palladium vs. Gold is fine too. We remain on an economic up signal.

pall/gold

For now what I see is the precious metals tanking into an anticipated buying opportunity. Got to let the holdout bugz finish puking. This will probably also go hand in hand with the climax in silver bug vs. gold bug pukage. Commodities and ‘reflation’ may follow later.

Right now the stock market is as it has been; very bullish and very high risk. Cue the stories of late, detailing all those new accounts being opened at the discount brokerages. Yeah, that’s gonna end well.

Payrolls upcoming and yield dynamics are central to everything. Keep your head screwed on straight.

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