On this week’s show we talk about the importance of understanding what you own. Which stocks are driving the index or ETF that you have or are analyzing? You’ll often be surprised by what you might find. I certainly still am on a pretty regular basis.
Chart-wise it’s hard to ignore the fact that most indexes and sectors are stuck in messy ranges from any sort of tactical perspective. The Russell2000 Small-caps, Micro-caps, Emerging Markets, Nasdaq100, Growth Index, etc all look like hot messes.
Now, all of these rangebound markets fall within the context of longer-term uptrends. How long will they take to resolve? The bet continues to be messy for longer.
Bonds stopped going down. Yen has caught a bid. And Gold Miners are putting in bullish divergences. So it comes down to the Copper/Gold ratio. If that one resolves lower, then messy for longer is most definitely the theme moving forward. It will take an upside resolution there to prove otherwise.
Fire your question over to [email protected] and we’ll cover them right here. Also if you’re interested in the slides, send an email with the password, “Trading Tools” and we’ll send them over!