Market Comments & Sectors vs. SPY

While the S&P 500 is still technically holding its uptrend from the April 2nd low, the VIX is sporting a bullish look. That backed me off a bit as I got rid of SPXU for a sub-1% loss.

vix

But of course, this…

The first 3 bullet items pretty much tell the story of where the media (MarketWatch in this case) is guiding its herds. That’s usually short-term bullish.

Meanwhile, it pays to be aware of what is sensitive to yields (ha ha ha, what a terrible bond bear market, eh Mssrs. Gross, Dalio & Tudor Jones? Eh Mr. Media?). The reports of the long bond’s death have been greatly exaggerated.

Anyway, our view has been of a US market rally to test the highs. NDX and SOX already did so and failed. SPX is still technically in process, but I am giving it less benefit of the doubt (increasing interest paying cash equiv. and selective shorts).

Insofar as you’re long it’s an environment in which to be aware of sector rotation with interest rates, currencies and the ever present Trade War Food Fight (TWFF) ™ as the instigators.

Here are the daily ‘vs. SPY’ trends.

And here are the weeklies. I am sure you can ID the trends with no more words from me.

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