SPX Next week expected move = $64.
A very strange week last week. Nasdaq mega-caps rotated into Small-cap value.
This is due to a short squeeze in the Most-shorted index, not a cyclical rebound.
Seeing $VVIX upward movement this week alongside the $SPY. This is a huge Divergence.
I said keep a lookout for divergences. This week was full of 'em.
30-year Bonds got demolished. Higher yields + Steeper yield curves helped out the banks.
The $IWM is full of banks. $GLD was overextended and a pullback was expected.
$UUP The Dollar appears to be forming an inverse H&S.
Lots of money moving around under the surface.
$TIPS $LTPC Inflation Expectations are moving up I believe, which will be a problem
for these more richly valued stocks that've been justified by really low rates.
Market Breadth is deteriorating as can be seen from the:
- $RSP Equal Weight Index
- $MMTW % of stocks above 50-day ma
Small caps are the only major index that's been in a primary downtrend since 2018 high.
Warren Buffett last week sold all of his exposure to Goldman Sachs $GS and purchased Barrick Gold $GOLD.
Best of luck next week,
- RH
A very strange week last week. Nasdaq mega-caps rotated into Small-cap value.
This is due to a short squeeze in the Most-shorted index, not a cyclical rebound.
Seeing $VVIX upward movement this week alongside the $SPY. This is a huge Divergence.
I said keep a lookout for divergences. This week was full of 'em.
30-year Bonds got demolished. Higher yields + Steeper yield curves helped out the banks.
The $IWM is full of banks. $GLD was overextended and a pullback was expected.
$UUP The Dollar appears to be forming an inverse H&S.
Lots of money moving around under the surface.
$TIPS $LTPC Inflation Expectations are moving up I believe, which will be a problem
for these more richly valued stocks that've been justified by really low rates.
Market Breadth is deteriorating as can be seen from the:
- $RSP Equal Weight Index
- $MMTW % of stocks above 50-day ma
Small caps are the only major index that's been in a primary downtrend since 2018 high.
Warren Buffett last week sold all of his exposure to Goldman Sachs $GS and purchased Barrick Gold $GOLD.
Best of luck next week,
- RH
$PC Put/Call ratio is lowest it's been in 20 years for those contrarians out there.