vs. SPY: A view of reflationary progress (or lack thereof)

A picture of various reflation-sensitive markets vs. SPY/SPX

The picture says that equity-centric reflation markets are struggling to regain uptrends relative to the broad SPY/SPX, and indeed are maintaining the downtrends begun at varying points during the summer cool down.

Raw commodities, however, are making a move. Strength in commodities would be an early component of an economically negative Stagflationary backdrop. Later, they’d probably cave in but in driving up costs they’d instigate the Stag.* Let’s see how this develops.

* Last week I was evaluating a specialty Materials company, CMC Materials (CCMP) but backed away from it after reading the most recent quarterly report noting increased raw material input costs for this ‘materials’ company.

For “best of breed” top down analysis of all major markets, subscribe to NFTRH Premium, which includes an in-depth weekly market report, detailed market updates and NFTRH+ dynamic updates and chart/trade setup ideas. Subscribe by PayPal or credit card using a button on the right sidebar (if using a mobile device you may need to scroll down). Keep up to date with actionable public content at NFTRH.com by using the email form on the right sidebar. Follow via Twitter @NFTRHgt.

Testimonials