Category Ratios

Protected: This Group Finds Itself Back at Relative Support

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Protected: New Industry Out-Performance Idea Presents Opportunity for Alpha

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Russell 2000 Faces Resistance on a Relative Basis & Could Under-Perform for Years

Dating back to June of this year we have been suggesting that the potential for a longer-term reversal in the USD could lead to small-caps sustainably under-performing the broader market. We continue to believe this today. Even if the USD fails to rally, the mere possibility of its downside beginning to abate in the future […]

Protected: Spread Trade Opportunity in Home Furnishings

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Protected: Time to Buy This Euro Financial

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Airlines Continue to Out-Perform the Broader Market but is the Pace Set to Accelerate?

The chart below plots the ratio of the SPX vs. FAA (airline ETF). Note that this week the ratio is breaking below support line (1) and seemingly falling back into a channel whose bottom is defined by line (2). If the break is for real, the pace of the ratio’s decline could be set to […]

Time to Take Profits on Short AAPL / Long GOOG Spread Trade

On October 3rd, when it stood at ~0.88, we noted the ratio of AAPL vs. GOOG still had ~20% in additional downside (i.e., GOOG had the same amount of out-performance left vs. AAPL) until it hit noteworthy support. As of this post, the ratio now stands at 0.72, an 18% decline from our original post. […]